Mullen Buys Controlling Stake in EV Maker Bollinger, Reviving Two Electric Truck Models
Two firms tie up in rare sector deal
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Mullen Automotive Inc.(US:MULN) shares rose Thursday after it bought a controlling interest in Bollinger Motors, an electric vehicle maker, for $148.2 million.
The company said the purchase broadens its offerings to medium-duty truck classes 3-6, along with the B1 and B2 sport utility trucks, to its production.
The buy gives a Mullen 60% of the company.
The acquisition is one of the largest yet in the EV sector. Mullen said it would use the purchase proceeds to expand into the high-demand commercial EV space.
“The strong interest shown by major customers in all the high-volume segments like delivery, telecom, municipal services and utilities is a clear indication of the market’s desire for Bollinger’s vehicles,” said David Michery, CEO and chairman of Mullen Automotive.
“Combining Bollinger’s vehicles with our existing class 1 and class 2 EV cargo van programs gives us the chance to dominate the entire class 1-6 commercial light and medium duty truck segments," Michery added.
The buyer said Thursday that Bollinger brings nearly 50,000 reservations previously taken for the B1 and B2 sport utility vehicles.
“With Mullen’s acquisition and capital injection, both B1 and B2 programs will begin after the production for class 3-6 commercial truck programs,” Bollinger said.
On Sept. 1, Bollinger unveiled its B4, a class 4 electric commercial truck, available soon. It will be its first commercial vehicle.
Mullen Automotive is a Southern California-based automotive company building the next generation of premium electric vehicles (EVs) that are affordable and made entirely in the United States.
Mullen hasn’t delivered any cars yet but got close with its CODAS EV and then cut a deal with China’s Qiantu to make its Dragonfly K50 in the US.
In 2020, Mullen pivoted its strategy again and began focusing on its EV model, the FIVE crossover SUV. That is expected to be deliverable in 2024.
Robert Bollinger founded the eponymous company in 2015 in Oak Park, Illinois. Bollinger manufactures all-electric platforms and chassis cabs for commercial vehicles in Classes 3-6.
The deal is resuscitating the 50,000 orders Bollinger has. In January, Bollinger had delayed indefinitely plans and said it would refund reservation deposits.
However, Bollinger intends to get the B1 and B2 electric trucks into production using some of the cash proceeds.