Summary:
Mullen Automotive increases stake in Bollinger Motors to 95%, aiding its exit from bankruptcy
$11 million paid to founder Robert Bollinger to settle lawsuit
Production of Class 4 trucks to resume in 8-10 weeks
Engineering operations to be consolidated in Michigan, adding 40-50 jobs
Efforts underway to resolve supplier disputes and clean up the supply chain
Electric truck startup Bollinger Motors has successfully exited U.S. bankruptcy court, thanks to additional financial support from its parent company, Mullen Automotive Inc. This marks a significant turnaround for the suburban Detroit-based company, which has faced its fair share of challenges.
Mullen Automotive, based in California, has increased its ownership stake in Bollinger Motors to 95 percent by acquiring an additional 21 percent. This move comes as Mullen executes its second reverse stock split in as many months to comply with Nasdaq share price rules.
Key Developments:
- Robert Bollinger, the founder, was paid $11 million by Mullen, resolving a lawsuit where he claimed the company was broke and sought to recover his loan.
- James Taylor is set to oversee daily operations as a consultant, marking his return after departing in March.
- Mullen plans to consolidate its engineering base from Irvine, California, to its tech center near Detroit, adding 40 to 50 employees in Troy, Michigan.
Production Resumption: Mullen CEO David Michery announced that production of Class 4 trucks would resume in eight to 10 weeks, with plans to expand the metro Detroit staff in anticipation of increased demand. However, the stagnant market poses a challenge.
Supply Chain Cleanup: Bollinger Motors has been embroiled in lawsuits from suppliers alleging non-payment. Michery is actively addressing these debts, including payments to contract manufacturer Roush, which assembles the Class 4 trucks.
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