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Yahoo
05-06-2025
- Automotive
- Yahoo
Electric truck startup Bollinger exits bankruptcy after paying back founder who sued
Electric truck startup Bollinger Motors has exited U.S. bankruptcy court thanks to more financial aid from parent Mullen Automotive Inc., whose chief has ambitious plans for a rebound set in Michigan. California-based Mullen acquired an additional 21 percent of Bollinger, bringing its ownership stake in the suburban Detroit company to 95 percent, Mullen announced June 2 as it executed its second reverse stock split in as many months to stay compliant with Nasdaq rules on share prices. In tandem with Mullen's transaction, Bollinger was discharged from bankruptcy court, its receiver removed and case dismissed with prejudice, according to a filing in U.S. District Court in Detroit. Mullen Automotive CEO David Michery said the company paid $11 million to Robert Bollinger, who in March sued the company he founded, claiming it was broke and seeking to recover his loan. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Mullen, which has faced a host of financial issues beyond Bollinger, is all-in on the EV startup, Michery said June 4 during an interview with Automotive News and affiliate Crain's Detroit Business. Bollinger Motors — despite the spat with its namesake — will persevere as a brand that 'will outlast everyone,' Michery vowed at the startup's Oak Park, Mich., headquarters. 'You can't blame Bollinger for the current market, you can't blame Bollinger for tariffs, you can't blame Bollinger for the disruption that occurred with Robert filing this frivolous lawsuit,' Michery said. 'That hurt the company.' Now, Mullen is putting its chips on Bollinger Motors to weather the storm. Michery said production of Class 4 trucks would resume in 8 to10 weeks and that its staff of about 85 in metro Detroit would soon swell in line with a predicted increase in demand — though that remains in question with a stagnant market. Mullen will close its engineering base in Irvine, Calif., and consolidate it to the company's tech center near Detroit in Troy, Mich., where 40-50 employees will be added, Michery said. 'I want all engineering, all manufacturing, everything in the state of Michigan,' he said. While Michery serves as CEO of Bollinger Motors, the company's daily operations will be overseen by James Taylor, who will return to the company as a consultant after departing in March. Another priority is cleaning up the company's supply chain. Bollinger Motors has been sued by several suppliers claiming they were being stiffed by the startup. Michery said he is in the process of paying debts, including to contract manufacturer Roush, which makes the class 4 trucks for Bollinger. Mullen's earnings reports to the SEC seem to indicate big financial trouble. It lost $162 million on revenue of $7.9 million in the first quarter; it posted a $115 million loss on revenue of $2.9 million in the prior quarter. The company lost its 675,000-square-foot former AM General factory in Mishawaka, Ind., last month to settle a financial dispute with creditor GEM Yield Bahamas Ltd. However, Michery said the company has ample liquidity, including a $150 million equity line allowing the company to use its stock as currency — an instrument approved by the SEC and shareholders. 'Picture a credit card,' he said. 'Mullen has a $150 million credit card that it can use at will.' Mullen's 1-for-100 reverse stock split executed Monday was designed to bring its stock price above $1 per share to meet Nasdaq requirements. Financial adviser Alex Calderone said the move is window dressing and does not solve underlying business performance issues. 'I would not surmise that would impact company valuation at all or shareholder rights at all,' Calderone said. 'It just appears to be a cosmetic change to be able to adjust the share price. … It's like if I traded you a hundred dollar bill for a hundred singles.' On Wednesday, Mullen's stock shot up to above $16 per share, tripling its value over the course of a day, as Michery pointed out after pulling up the market summary on his phone. He said: 'They knew we were coming out here to put Bollinger back in business.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Automotive
- Yahoo
National Electric Vehicle Infrastructure Formula Program funding freeze will exacerbate charging deserts, analysts say
The Trump administration's attempt to withhold funding allocated through the National Electric Vehicle Infrastructure Formula Program will intensify the division between the charging haves and have-nots. President Donald Trump's targeting of the program's funds, the subject of a lawsuit filed this week, demonstrates the president's commitment to reducing government support for an EV transition. The program is small compared to the charging infrastructure network being developed by private companies such as Tesla and ChargePoint and with site hosts such as Walmart, Circle K and Pilot. There are now 75 National Electric Vehicle Infrastructure Formula Program-funded sites open with 395 ports, making up roughly 0.7 percent of the total number of public DC fast charging stations in the U.S., according to Paren, an EV charging analytics firm. The Federal Highway Administration has been steadily approving state plans — as of Feb. 6, the agency was obligated to pay $3.27 billion of the $5 billion for states' approved plans through 2025. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. The infrastructure program was designed to solve a pressing problem — private industry has been unable or unwilling to build chargers in areas without significant EV adoption. If the Trump administration succeeds in pulling back the funds, a transition from combustion engine autos to EVs will take longer. 'What it's leading to is a charger utilization divide,' said Loren McDonald, chief analyst at Paren. 'The rich are going to get richer and the poor are going to get poorer, meaning that we're going to see more and more stations being built in Miami and Atlanta and Los Angeles and San Francisco and Austin and New York and Boston — not so much in Bismarck, N.D.' Congress appropriated $5 billion over five years for the EV infrastructure program through the Bipartisan Infrastructure Act, also known as the Infrastructure Investment and Jobs Act. The program was designed to prioritize infrastructure along highways, padding the already developing charging landscape in urban areas and in states with significant EV adoption. The intent was 'not to build a lot of stations but to be very strategic about where they were,' said McDonald. States were required to submit plans for how they intended to use the money allocated by Congress, and then they could access the funds. On Trump's first day in office, he signed a flurry of executive orders, including 'Unleashing American Energy,' which targeted measures perceived to enforce an 'electric vehicle mandate.' The order said that 'all agencies shall immediately pause the disbursement of funds appropriated' through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, 'including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program.' Then, on Feb. 6, the Federal Highway Administration said in a letter to states that it would rescind the EV infrastructure program guidance and suspend past and future approvals of state plans using the Biden-era guidance. Now, states are suing. 'The President directed agencies to withhold congressionally appropriated funds, including NEVI Formula Program funds, as a tool to terminate programs the President dislikes,' the complaint says. 'Agencies have no authority to rescind or revise statutes, or to withhold funds duly appropriated by Congress based on the President's disagreement with the policies and priorities of Congress.' Arizona, California, Colorado, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, Washington, D.C., and Wisconsin filed suit against the U.S. Department of Transportation, Secretary of Transportation Sean Duffy, the Federal Highway Administration and the acting administrator of the Federal Highway Administration Gloria Shepherd on May 7. The states cite several real-world consequences of the administration's orders to withhold funding. An awardee in California, for example, has requested to withdraw its project because of the Federal Highway Administration letter, the suit alleges. The state also reported that site hosts for charging stations decided not to enter agreements after learning that the highway administration was withholding the funds. 'The withholding of NEVI Formula Program funds threatens the successful execution of grant agreements with the awardees of California's second solicitation and will likely result in potential applicants declining to participate in the third solicitation at all,' the suit says. States are not the only entities slated to be impacted if the administration succeeds. After all, National Electric Vehicle Infrastructure Formula Program funds were intended to encourage EV adoption and soothe range anxiety for parts of the country currently underserved by charging companies. 'If you're going to interfere with and interrupt the uptake and adoption of electric vehicles, getting rid of stimulated charging infrastructure in remote areas is a very good way to do it,' said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
29-04-2025
- Automotive
- Yahoo
Kenworth, other electric truck makers, confront changing policy environment
ANAHEIM, Calif. — Eyeing regulations and purchase incentives intended to slash the freight industry's reliance on fossil fuels, engineers at Kenworth Truck Co. spent five years developing an electric big rig that went on sale during the giant ACT Expo clean transportation conference here on April 28. The result was an agile and quiet semi-tractor far more comfortable, and in most attributes, technologically superior to its diesel counterpart. But now the Kenworth Class 8 T880E and the T680E work truck face hurdles that have nothing to do with the weight they can haul, how far they can travel per charge or the time it takes to energize their batteries. They face a changing regulatory environment and a White House where administrators look at EVs with skepticism to hostility, depending on the individual and agency. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. In his March 6 address to Congress, President Donald Trump said he would end Biden administration policies that favored electric cars and trucks, characterizing them as an 'electric vehicle mandate.' Even before Trump's speech, regulators were making adjustments. In January, the California Air Resources Board abandoned its effort to obtain a federal waiver from the EPA for its Advanced Clean Fleets regulation. The waiver would have allowed it to prohibit the sale of new gasoline and diesel trucks in 2036 and force freight fleets to use zero-emission trucks by 2042. Kenworth had looked at California's regulatory push — and its influence on the environmental policies of other states — to create the initial market for heavy-duty electric trucks. The state's $4.1 trillion economy and massive port infrastructures require tens of thousands of heavy-duty diesel-engine truck trips daily, which would all be replaced with zero-emissions counterparts. Electric truck makers knew the standards before Trump took office. Now 'we have to watch how they evolve now and adapt,' Joe Adams, Kenworth's chief engineer, told Automotive News. Kenworth is not alone. Sibling Peterbilt is using the same technology to launch electric trucks. Rivals Freightliner, Volvo, Mack and International already have or will soon have competitive offerings. Meanwhile, distribution centers, fleet operators and private companies have poured tens of millions of dollars into charging infrastructure to power the thousands of electric trucks previously expected to be deployed on the busy shipping corridors emanating from the sprawling Southern California port complex and across the state. They are now watching how the market will develop. 'The industry is expecting a deceleration of sales based on the policy shifts,' said Henrik Holland, global head of mobility at Prologis. The San Francisco company owns or manages 1.3 billion square feet of warehouse and distribution space. Nonetheless, Prologis is moving forward with charging infrastructure investments that will reach hundreds of millions of dollars. Holland said he believes the freight industry will adopt electric trucks but, in the near term, at a slower pace than it would have without the policy shifts. Just before ACT Expo, Prologis Mobility, the company's charging provider, and NFI, a motor carrier, said they would build a charging depot in Ontario, Calif., that could handle up to 20 rigs daily. NFI is already running 90 electric Volvo and Freightliner electric trucks between the port and inland distribution centers. Kenworth executives said there would be a market for their truck, both because of their approach to its development and customer interest, even after a reduction of state mandates and regulations that would have forced their purchase. 'We believe there are some segments that are out there now or in the near future where you're going to see battery electrics maybe have a [total cost of operation] that's positive,' Adams said. Municipalities and regional governments still have an interest and will be early customers, said Sarah Abernethy, Kenworth powertrain marketing manager. 'That is where we believe there to be a little bit more funding,' she said, adding that for companies keeping their environmental, social and governance goals 'we still believe that these trucks will do an excellent job in a lot of applications.' That makes the trucks a choice for fleets looking to lower carbon emissions, she said. Kenworth and the other electric truck manufacturers saw a partial reprieve on April 25 when CARB and the California Trucking Association reached an agreement on how the state would proceed with its requirements. The framework calls for the trade group to dismiss a lawsuit against the state over the regulation. Following action expected this summer, the board will limit its electric truck purchase and operating mandates to state and local governments and public agencies and colleges. California regulators don't need federal approval for that regulation. Kenworth is moving forward and has started to accept orders for its electric truck range at ACT Expo. It has taken a modular approach to its Class 8 electric trucks. Both Kenworth and the Peterbilt versions offer two to five battery packs depending on the customer's needs. A company needing a work truck or an urban hauler — both operating in a small, defined radius — might choose two battery packs that provide a range of 100 miles. Additional packs add about 50 miles. The largest configuration has a 250-mile range, a peak of 605 hp and 1,850 pound-feet of torque. 'A lot of consideration has gone into how we've designed the product line so that we can span this very broad application coverage,' Adams said. There's also opportunity in other markets. Kenworth is a division of Paccar Inc., a global truck manufacturer. Last year, it delivered 45,400 trucks — about a quarter of its global sales — in Europe, a region that continues to transition to electric commercial vehicles. Some motor carriers here are still expressing interest in electric trucks, even if Congress ends the federal Commercial Clean Vehicle Credit of up to $40,000. Jennie Abarca owns King Fio Trucking, a regional carrier with 32 trucks that works the nearby port complex. Her fleet includes two Nikola electric tractors and six Volvo VNR Electric semis. A seventh is on order. Her drivers like the considerable reduction in noise and vibration they experience in the electric models. 'It's like driving a big BMW,' she said. Abarca has used large California incentives and grants to make the down payment on the electric trucks, and those incentives are expected to continue. In February, the most recent month for the data, the state provided $31 million in purchase incentives for 200 zero-emission trucks and buses, or an average of $155,000 per vehicle, according to CARB. 'That's what helps you get over the hurdle of having a bigger upfront payment. Also, there's literally no maintenance. I am not doing oil changes. I'm not doing fuel filters. I am not doing transmission fluid. All these things you have to constantly change in a diesel, I don't have to do those in the EV,' Abarca told Automotive News. Powering the truck is another significant savings. Once she's able to charge at her depot later this year, Abarca figures she will spend about $100 per week per truck on electricity. That compares with the $800 to $1,000 weekly for her diesel trucks. 'When you're able to self-charge, then it really starts to make sense,' she said. As manufacturers use volume to bring assembly costs in line with diesel trucks and as battery prices fall, the market will grow even with reductions in government support, said John Boesel, CEO of Calstart, a clean transportation advocacy non-profit. More models like the ones introduced at ACT Expo also will foster growth. 'That competition will be good for business and fleets,' Boesel said, pushing the manufacturers to produce trucks at lower cost and with better performance than the electric models out now. 'I believe that the market is going to go nowhere but up from here,' he said. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
03-04-2025
- Automotive
- Yahoo
Electrified gasoline engines may be the powertrain of the future
In 1966, General Motors built the Electrovair II, an electric version of the Chevrolet Corvair packed with the latest technology from the aerospace and electronics industries. The car's acceleration nearly matched the 110-hp gasoline-fueled Corvair, but without the noise and vibration of a combustion engine. Still, the Electrovair II lacked the driving range and rapid fill of its gasoline sibling. In a promotional video, the narrator says: 'Electrovair II can only travel 40 to 80 miles depending on how you drive it before its silver zinc batteries must be recharged. Recharging takes almost six hours. Obviously, a better battery must be found to make a practical car, but Electrovair II has demonstrated for the first time what electric car performance could be like when that better power source is found.' Six decades later, scientists are still looking for that better battery — one that charges as fast as a pump fills a gasoline tank and propels the vehicle for well over 350 miles before recharging. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. As Automotive News celebrates its 100-year anniversary, we are taking a look at today's topics through both a historic and future lens. This installment looks at the future of powertrains. The effort to displace gasoline as the primary fuel for automobiles is as old as the car itself. Steam, turbines that could run on anything from french fry grease to perfume, hydrogen and natural gas have all been looked at as replacements. Until recently, battery-electric vehicles looked to be the successor. But a flurry of announcements from various automakers in recent years saying they wouldn't invest heavily in new combustion engines has turned into a false alarm for those who like the roar and vibration from putting the pedal to the metal. Toyota is working to improve the thermal efficiency of its engines, a move that increases fuel economy and reduces emissions by converting more of the heat generated in the combustion process into work. Toyota's Dynamic Force engines can achieve 41 percent thermal efficiency. Most combustion engines run at about 30 percent efficiency. (EVs operate in the 70 percent range, according to the Department of Energy.) Porsche plans a combustion-engine SUV that could be a replacement for its gasoline Macan as the automaker boosts investments in gasoline models amid slower-than-expected EV sales. Mercedes-Benz said this year that is it developing a new combustion engine, a reaction to its tepid EV sales. But even as they start to invest in new engines, automakers are also looking at how to pair electricity with gasoline motors. 'I believe that the most cost effective gains can be made by modifying the internal combustion engine's operation through the use of electrification,' said Greg Davis, director of the advanced engine research laboratory at Kettering University in Flint, Mich. 'Internal combustion engines do not have broad regions of high efficiency, so combining them with electric drives in hybrid electric vehicles is a great way to limit the use of the engine to operating regions with better efficiency,' Davis said. The early Toyota Prius and Honda Insight were the first step in this direction. They used electricity to launch from a stop — the portion of the drive cycle that needs the most power — and then let the gasoline engine take over. What may emerge, at least in some global markets, is a permanent marriage between gasoline engines and electric motors. Even early tinkerers, including Ferdinand Porsche, recognized the benefits of electrifying the gasoline powertrain. In the early 1900s, Porsche installed electric wheel hub motors in a giant wagon called the Lohner-Porsche. That vehicle debuted in 1900 at the World Exposition in Paris. But the excessive weight of the 80-volt lead-acid batteries and electric motors severely limited driving range. On his next vehicle, the Mixte, Porsche added a gasoline engine to power a generator to recharge the batteries. It was the first range-extended hybrid. Fast-forward 125 years and the range-extended gasoline-electric powertrain that Porsche pioneered is on the cusp of making a comeback. Ram is launching the extended-range Ramcharger truck this year. Scout plans to offer a range extender in its SUVs and pickups. Ford CEO Jim Farley said a range-extender powertrain in the company's SUVs and pickups is coming in 2027. Nissan's e-Power engine, used in a range-extended vehicle sold overseas, achieves 50 percent thermal efficiency and will launch in U.S. versions of the Rogue in 2026. Mazda and Subaru are also working on a new generation of engines geared specifically for hybrid powertrains. And Mercedes-Benz's AMG division is working on a 'highly electrified' V-8. Davis believes we'll see electric motors not just bolted to a gasoline engine but integrated into its design. 'This also allows the use of smaller displacement engines, lowering costs, as the engine output can be combined with the electric output during transitory high-demand situations,' he said. Nonetheless, EVs are a potent challenger to the combustion engine's reign. EVs made up 8 percent of new-vehicle registrations in the U.S. last year, or 1.28 million vehicles, according to S&P Global Mobility. That was an 11 percent gain from the prior year and outpaced the 2.5 percent gain for all light-vehicle sales last year. Those vehicles all rely on forms of lithium ion battery chemistry. For most models, that allows a range of at least 250 miles, high-voltage charging in 45 to 60 minutes and easy overnight home charging. Two emerging battery chemistries, sodium ion and solid state, have the potential to replace today's lithium ion cells in most EVs, allowing them to match combustion engine convenience. Sodium ion batteries could be less expensive to manufacture because the raw materials they use are abundant. But lower power density and a shorter life are two major issues battery engineers are working to solve. Solid state batteries, which could be on American roads by 2030, promise faster charging, lower risk of fires and greater energy density. But solid state batteries have challenges, too. They are expensive to manufacture. In China on March 17, BYD announced that its Super e-Platform batteries can deliver 248 miles of range in just five minutes, bringing an EV into parity with the speed at which a gasoline-fueled car can be refilled. Chris Borroni-Bird, a research scientist who worked on fuel cell development at Chrysler and General Motors, said he sees a very different type of automobile on the road a century from today. Powertrains will be battery electric, getting most of their energy from solar panels, he said. Advanced wheel motors will improve maneuverability and provide greater design flexibility. The powertrain won't be the only part of the car with a smaller environmental footprint. 'Right-sized vehicles made of recycled and natural materials and having a solar panel roof can be used to complement public transport and make moving people and goods easier on the wallet and on the planet,' he said. Throughout 2025, we will honor our legacy by connecting topics of today with our historical coverage as we look ahead to the next 100 years. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
25-03-2025
- Automotive
- Yahoo
Lawsuit alleges Bollinger Motors is broke; production on hold
DETROIT — Another electric vehicle startup, Bollinger Motors of suburban Detroit, appears to be in financial distress. The founder and former CEO of the Class 4 truck maker, Robert Bollinger — who left in June — filed a $10 million suit against Bollinger Motors on March 21 and is seeking to have a receiver appointed to manage and possibly wind down the business by liquidating assets until he is paid in full. The dispute centers around a $10 million loan Bollinger made to his old company in October. The terms of the loan call for periodic interest-only payments of $125,000, according to the lawsuit, which was filed in the Court for the Eastern District of Michigan. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Robert Bollinger filed the lawsuit after the first interest payment, due Feb. 28, was not made within a three-day grace period. The company put up its entire assets as collateral for the loan, according to the lawsuit. Despite receiving a $125,000 payment March 12, Robert Bollinger is asking the court to appoint the receiver to secure the company's assets to ensure he and its creditors are paid. The company has built around 40 of its B4 electric trucks since production started last fall. The vehicles were built by Roush Enterprises under contract. It is unclear how many have been sold to fleet operators. At Bollinger Motors' Oak Park, Mich., headquarters, it looked like business as usual early March 24. Employees were seen entering the building, and the parking lot was full. That includes 34 completed B4 trucks parked in rows in the lot behind the building. The B4 has a sticker price of $135,000. The lawsuit claims the value for all trucks built is more than $5 million. Robert Bollinger's lawsuit alleges that Bollinger Motors is insolvent, can't pay its bills and is being sued by at least two of its suppliers. Bollinger Motors CEO Bryan Chambers said no trucks are currently being built. 'We can confirm that we have temporarily paused production. However, it is our policy not to comment on an ongoing legal issue,' he told Automotive News in an email. This month, Bollinger Motors appointed Chambers as CEO, replacing James Taylor. The company employs about 100 engineers and marketing personnel, down from 130 last fall. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
