Mullen Subsidiary, Bollinger Motors, Achieves CARB Certification; A Critical Step in Becoming Sales Ready

Rhea-AI Summary

Mullen Automotive's subsidiary, Bollinger Motors, has achieved a significant milestone with its B4 all-electric Class 4 truck receiving California Air Resources Board (CARB) certification. This certification allows Bollinger to sell vehicles in 15 CARB-compliant states and opens up access to substantial incentives. When combined with the $40,000 IRS rebate, customers can potentially save up to $100,000 through programs like California's HVIP.

Bollinger Motors is set to begin production of the B4 on September 16, 2024, with customer deliveries starting in October. The company has already secured several vehicle sales agreements and expanded its network of dealers and service centers. This CARB certification is a important step in Bollinger's mission to electrify vehicle fleets nationwide.

Positive

• Bollinger Motors received CARB certification for its B4 electric truck, enabling sales in 15 states
• Customers can potentially save up to $100,000 through combined federal and state incentives
• Production of the B4 truck is scheduled to begin on September 16, 2024
• Bollinger has secured multiple vehicle sales agreements, including 145 vehicles to Momentum Group
• The company has expanded its dealer and service center network

Negative

• None.

Insights

Financial Analyst

The CARB certification for Bollinger's B4 EV truck is a significant milestone for Mullen Automotive. This certification opens up sales opportunities in 15 CARB-compliant states, potentially expanding Bollinger's market reach. The combined $100,000 in potential savings from federal and state incentives could be a strong selling point for fleet operators, potentially driving demand. However, it's important to note that while this news is positive, it doesn't guarantee immediate financial impact. The company still needs to execute on production and delivery, starting September 16, 2024. Investors should monitor Bollinger's ability to meet production targets and secure additional fleet orders beyond the mentioned sales to Momentum Group, Doering Fleet Management and EnviroCharge.

Environmental Policy Expert

CARB certification is a critical regulatory milestone for EV manufacturers. It not only allows Bollinger to sell in CARB-compliant states but also signals the B4's compliance with stringent environmental standards. This certification, combined with the EPA's Certificate of Conformity, positions the B4 as a fully compliant commercial EV option. The potential $100,000 in combined incentives ($40,000 IRS rebate + $60,000 HVIP) is substantial and could significantly accelerate EV adoption in commercial fleets. This aligns with broader policy goals to reduce emissions in the transportation sector. However, the long-term success will depend on the vehicle's performance and total cost of ownership compared to traditional alternatives.

Automotive Industry Analyst

Bollinger's progress with the B4 EV truck demonstrates Mullen's commitment to the commercial EV market. The CARB certification, along with other recent milestones like EPA certification and expanding dealer networks, indicates that Bollinger is systematically addressing key market entry barriers. The partnerships with battery supplier Our Next Energy, warranty administrator Syncron and service provider Amerit Fleet Solutions show a holistic approach to product development and support. However, the EV commercial truck market is becoming increasingly competitive, with established players and startups vying for market share. Bollinger's success will hinge on its ability to differentiate its product, meet production schedules and provide reliable after-sales support. The upcoming production start on September 16 will be a important test of Bollinger's manufacturing capabilities.

Certification opens the Bollinger B4 EV truck to federal and state incentive programs totaling $100,000 in potential savings

BREA, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today that its subsidiary, Bollinger Motors (“Bollinger”), has achieved a key commercial EV milestone with its B4 all-electric, Class 4 low cab forward chassis truck, receiving certification from the  California Air Resources Board (“CARB”).

The CARB certification is a requirement to sell vehicles in the CARB-compliant states of California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and the District of Columbia. All CARB states and locations have adopted vehicle standards Section 177 of the Clean Air Act (42 U.S.C. §7507), which requires additional approvals beyond Environmental Protection Agency regulations.

CARB certification provides a path for Bollinger Motors’ customers to qualify for additional state incentives, such as California’s HVIP project (“HVIP”). When combined with the B4’s $40,000 IRS rebate, HVIP can offer a rebate of up to $60,000, adding up to $100,000 in combined total savings.

Bollinger Motors will begin production of the B4 on Sept. 16, 2024, with customer deliveries to begin in October.

“The CARB certification represents an important milestone in our mission to bring a world-class electric vehicle to market,” said Bryan Chambers, Bollinger Motors’ president and chief operating officer.  “Environmental requirements are critical to meeting customer expectations and providing sale-ready vehicles. With this important accomplishment, the B4 is one step closer to electrifying vehicle fleets from coast-to-coast.”

The CARB certification is among a long list of Bollinger Motors’ milestones in recent months including receiving the Certificate of Conformity from the Environmental Protection Agency; providing  full warranty coverage of the B4 chassis cab; a 145 vehicle sale to Momentum Group; a 70 vehicle sale to Doering Fleet Management; a 50 vehicle sale to EnviroCharge; the addition of TEC Equipment, Affinity Truck Center, Nacarato Truck Centers, Nuss Truck & Equipment, and LaFontaine Automotive Group as dealers and service centers; adding Our Next Energy in Novi, Michigan, to supply battery packs; teaming up with Syncron as its warranty administration partner; and adding Amerit Fleet Solutions as its mobile service provider.

To learn more about Bollinger Motors, visit www.BollingerMotors.com.

About Bollinger Motors

Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Michigan. Bollinger Motors is developing all-electric commercial chassis cab trucks, Classes 4-6. In September of 2022, Bollinger Motors became a majority-owned company of Mullen Automotive, Inc. (NASDAQ: MULN). Learn more at www.BollingerMotors.com and www.MullenUSA.com. 

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to a $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

To learn more about the Company, visit www.MullenUSA.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential" and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and Bollinger Motors and are difficult to predict. Examples of such risks and uncertainties include how long state and federal electric vehicle incentive programs will continue to apply and Bollinger Motors’ B4 Class trucks’ ability to qualify for such incentive programs; the impact of incentive programs on the resultant price of the Bollinger B4 Class trucks and whether the anticipated start of production and vehicle delivery dates will be realized.

Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen and Bollinger Motors' ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen and Bollinger Motors' ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen and Bollinger Motors' ability to successfully expand in existing markets and enter new markets; (iv) Mullen and Bollinger Motors' ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen and Bollinger Motors' business; (viii) changes in government licensing and regulation that may adversely affect Mullen and Bollinger Motors' business; (ix) the risk that changes in consumer behavior could adversely affect Mullen and Bollinger Motors' business; (x) Mullen and Bollinger Motors' ability to protect its intellectual property; (xi) the vehicles developed will perform as expected and (xii) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Mullen Automotive, Inc., of which Bollinger Motors is a partially owned subsidiary, with the Securities and Exchange Commission. Mullen and Bollinger Motors anticipate that subsequent events and developments may cause its plans, intentions, and expectations to change. Mullen and Bollinger Motors assume no obligation, and specifically disclaims any intention or obligation, to update any forward-looking statements, whether because of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen and Bollinger Motors' plans and expectations as of any subsequent date.

Bollinger Media Contact:
Mike DeVilling
(248) 875-4207,
mdevilling@westshorepr.com

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
IBN
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

Attachment

• CARB Certification is a Key Milestone for Selling Vehicles in CARB States and District of Columbia

FAQ

When will Bollinger Motors begin production of the B4 electric truck?

Bollinger Motors will begin production of the B4 electric truck on September 16, 2024, with customer deliveries starting in October.

How much can customers potentially save on a Bollinger B4 truck through incentives?

Customers can potentially save up to $100,000 on a Bollinger B4 truck through combined federal and state incentives, including a $40,000 IRS rebate and up to $60,000 from California's HVIP program.

What does the CARB certification mean for Bollinger Motors and MULN stock?

The CARB certification allows Bollinger Motors to sell its B4 electric truck in 15 CARB-compliant states, potentially increasing market access and sales opportunities for MULN stock.

Has Bollinger Motors secured any significant sales agreements for its B4 truck?

Yes, Bollinger Motors has secured several sales agreements, including 145 vehicles to Momentum Group, 70 vehicles to Doering Fleet Management, and 50 vehicles to EnviroCharge.