FTZ Approval
Mullen Automotive, Inc. announced today the Company has been approved for Foreign Trade Zone (“FTZ”) status with the U.S. Department of Commerce for its commercial vehicle manufacturing and assembly center located in Tunica, Mississippi.
With FTZ approval, the Company now qualifies for a variety of benefits, including deferment of payments on duties related to import fees. For domestic U.S. sales, the Company is now able to match import duty payment to when vehicles are shipped from the zone. This key FTZ benefit reduces the pressure on cash flow which is significantly different from the previous model of paying duty at time of port entry. Mullen estimates that resulting deferred working capital on domestic sales could result in deferred outlays of up to $21 million for FY2024 and FY2025.
For international sales, the Company is now 100% exempt from duties and taxes owed on vehicles exported, returning a bottom-line pick-up of up to 27% on vehicle kits and 11% on vehicle batteries for a blended average of 20% on the full duty cost associated with both Class 1 EV cargo vans and Class 3 EV trucks.
“Foreign Trade Zone approval for our Tunica facility is a significant milestone for us, further strengthening our manufacturing position while delivering a competitive advantage and cash flow saving opportunities,” said David Michery, CEO and chairman of Mullen Automotive. “This approval also helps the overall economic development of the local Tunica, Mississippi, community.”
Mullen’s FTZ benefits now include:
- Enhanced global competitiveness
- Reduction of taxes and fees
- Increased logistics flexibility
- Relief from inverted tariffs
- Duty exemption on re-exports
- Duty elimination on waste, scrap and yield loss
- Weekly entry savings
- Duty deferral
- Improved global supply chain performance
What is a Foreign-Trade Zone?
A Foreign-Trade Zone (FTZ or Zone) is a secure area within the United States where foreign and domestic merchandise is generally considered to be in international commerce and outside of U.S. Customs territory for duty and tariff purposes. Companies that operate in foreign-trade zones can defer, reduce or eliminate Customs duties. FTZs were created by Congress in 1934 to encourage international trade and capital investment in the U.S. Zones offer a competitive advantage for U.S.-based operations and attract foreign investment to America by encouraging multinational firms to establish operations in the U.S.
Amerit Fleet Solutions for Bollinger Trucks
Bollinger Motors, Inc., an electric commercial vehicle (“EV”) manufacturer, and Amerit Fleet Solutions (“Amerit”), a leading provider of customized fleet maintenance and repair programs nationwide, announced that they have entered into an agreement for Amerit to provide mobile service and maintenance to Bollinger’s commercial fleet customers.
Under the terms of the agreement, the two companies will jointly provide EV service and warranty support for the Bollinger B4 in key states allowed by law, as well as future vehicles developed by Bollinger Motors.
The Bollinger B4 Chassis Cab is an all-new, all-electric class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. Bollinger’s unique chassis design protects the 158 kwh battery pack and components to offer unparalleled capability and safety in the commercial market. The company anticipates deliveries of the Bollinger B4 to begin in the second half of 2024.
Under this agreement Amerit will provide maintenance, repair, and warranty services to customer locations outside of the designated service area of a Bollinger authorized dealer. Amerit’s Mobile Service Centers are an important complement to Bollinger’s service strategy, providing convenient and essential services on location, minimizing downtime, and maximizing fleet efficiency.
“With Amerit, Bollinger can now offer the best nationwide coverage for electrified fleets ,” said Robert Bollinger, founder and CEO of Bollinger Motors. “Our customers can have total confidence in our trucks, knowing we have a complete sales, service, and warranty network across America.”
Amerit will provide strategic, nationwide service locations aligned with Bollinger’s launch plan. Amerit service technicians will complete an extensive safety training program as part of Bollinger’s training curriculum for the B4 Chassis Cab and other future vehicles.
“Bollinger is an innovative EV company serving the commercial fleet market, and we look forward to supporting their customers by offering service programs across the US,” said Amerit’s CEO Dan Williams. “With over 2,500 trained and certified technicians across the country, our customized approach to service programs, and our expertise in providing EV maintenance solutions, we believe that Amerit is ideally suited to rapidly scale services to Bollinger’s B4 customers and vehicle programs in the future.”
Today’s announcement follows a series of Bollinger Motors announcements in recent months, including partnerships with Our Next Energy in Novi, Mich. to supply the company with batteries and related components and Roush Industries in Livonia, Mich. to manage vehicle assembly operations.
Bollinger Motors recently qualified for federal clean vehicle tax credits under the Inflation Reduction Act of $40,000 per vehicle for the B4 chassis cab. And Bollinger recently grew their national authorized dealer network by adding Nacarato Truck Centers and Nuss Truck & Equipment to LaFontaine Auto Group.
ABOUT BOLLINGER MOTORS
Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Mich. 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.
National Auto Fleet Group Dealer for Mullen in CA
Mullen Automotive, announced today the addition of California based commercial dealer, National Auto Fleet Group (“NAFG”). NAFG will offer Mullen’s full line of all-electric commercial vehicles, the Mullen ONE, Class 1 EV cargo van and Mullen THREE, Class 3 EV cab chassis truck, which is HVIP approved and provides up to $45,000 cash voucher at purchase. NAFG will support national fleet customers via Sourcewell and offer Mullen’s commercial vehicle lineup in the following two key market locations in California:
- Watsonville, CA (Northern California)
- Alhambra, CA (Southern California)
NAFG, founded in 1980, is based in Northern California and is a premier all-in-one, minority family-owned vehicle dealership group specializing in government fleet sales in California and across the United States.
As a Sourcewell selected vehicle vendor with two awarded contracts (#091521-NAF and #060920-NAF), NAFG has revolutionized government vehicle purchasing by linking its nationwide network of manufacturers and upfitters to meet agency upfitting needs. Sourcewell is a government agency that has fulfilled the bidding requirements on behalf of members and holds hundreds of competitively solicited contracts ready for use. NAFG streamlines the purchasing process for government agencies through Sourcewell contracts and their online quoting system with resources to assist public agencies with a variety of fleet purchasing solutions, eliminating the need for lengthy bidding procedures.
“Everything you see, smell or touch was moved by truck at one time or another. With Mullen we will offer municipal and government fleets the opportunity to work more efficiently, with a stronger TCO and with zero emissions,” said Clarke Cooper, National Fleet Auto Group. “We believe Mullen’s All Electric line provides municipalities and government fleets with the option they need to transition to electric. Further, the fact that these vehicles are assembled in the United States by Americans upholds the goals we value when we work with public fleets and Sourcewell.”
NAFG will leverage its extensive network and expertise to offer Mullen’s innovative Class 1 and Class 3 commercial EVs to government agencies nationwide and will simplify the process for public entities seeking to transition their fleets to sustainable electric transportation.