Workhorse Group Inc. (NASDAQ: WKHS)
("Workhorse" or the "Company"), an American technology
company focused on pioneering the transition to zero-emission
commercial vehicles, today announced a strategic collaboration with
Kingsburg Truck Sales (“Kingsburg"), its certified dealer based in
Kingsburg, California, as well as the completion of the previously
disclosed divestiture of its Aero business. These developments
highlight Workhorse's ongoing efforts to address the needs of
California's commercial truck and small fleet owners amid the
enforcement of California Air Resources Board (CARB) regulations,
while also streamlining its business to focus on core strengths.
Kingsburg Collaboration to Drive Zero-Emission Truck
Adoption
An integral part of the collaboration is Kingsburg's commitment
to purchase 141 units of the Workhorse W4 CC Class 4
battery-electric cab chassis trucks which are expected to be
delivered in 2024. This order, which is subject to significant
terms and conditions, including the receipt of California's Hybrid
and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)
vouchers, demonstrates Kingsburg's confidence that Advanced Clean
Fleet (ACF) regulations are changing the market for work trucks in
California and beyond. By expanding their inventory with a notable
number of W4 CC trucks, Kingsburg is well-equipped to serve
customers seeking reliable, zero-emission work vehicles that comply
with California’s ACF regulations.
"We're thrilled to offer a solution that helps work truck owners
in California meet ACF regulations," said Jerry Smith, President of
Kingsburg Truck Sales. "We believe in Workhorse and are impressed
with their products and support. The Workhorse W4 CC is a
practical, reliable electric truck that replaces traditional ICE
models without sacrificing performance. With a range of up to 150
miles, compatibility with Level 2 and Level 3 charging, and
numerous approved upfit options, the W4 CC is perfect for local
delivery routes. It helps our customers stay compliant with ACF
rules and lowers their fleet operating costs."
In December 2022, Kingsburg became Workhorse's first certified
electric vehicle (EV) dealer in the state of California. Since
then, Kingsburg has played a pivotal role in facilitating multiple
purchase orders for Workhorse vehicles, earning recognition as
Workhorse’s 2023 dealer of the year.
Workhorse CEO Rick Dauch stated, "Kingsburg Truck Sales has been
an excellent partner and their commitment to purchase a large
quantity of our W4 CC trucks underscores the quality and
versatility of our electric work trucks. We’re confident that
customers will appreciate the wide range of body options and upfit
configurations available for the W4 CC, making it an ideal solution
for various industries and trades. Our collaboration with Kingsburg
is meant to provide a steady supply of upfitted, work-ready trucks
for California customers."
Workhorse's extensive network of commercial vehicle upfit
partners and approved upfits enables the W4 CC to be customized for
a wide array of applications, from refrigerated and dry box trucks
to utility work and landscaping. This versatility, combined with
the W4 CC's reliable performance, positions Workhorse and its
dealers to meet the growing demand for electric work trucks across
various industries.
Through a limited promotion, Kingsburg Truck Center is offering
the Workhorse W4 CC with three popular body options – Flatbed,
Utility Bed, and Landscape Body – ensuring quick delivery to meet
the needs of work truck owners and small fleet operators. The
promotion is available while supplies last and HVIP vouchers remain
available.
Workhorse expects the Workhorse W4 CC to qualify for up to
$60,000 in incentives through California’s HVIP, which is intended
to offset the cost of clean vehicle purchases for eligible
customers. Additional state and federal incentives may also be
available to qualified buyers. Kingsburg Truck Sales and Workhorse
are committed to assisting customers in securing these incentives,
which are crucial for fulfilling the order, and simplifying the
acquisition process.
Aero Divestiture Enhances Focus on Commercial
EVs
In a move to further streamline its operations and focus on core
strengths, Workhorse has completed the previously disclosed
divestiture of its Aero business to an affiliate of ATW Partners
LLC (“ATW”). This divestiture is expected to provide monthly cost
savings of approximately $375,000 and enhances Workhorse’s ability
to concentrate on its commercial EV truck business. Under the
agreement’s earn-out provisions, Workhorse will receive a portion
of the proceeds if the Aero business realizes revenues from certain
contingent sources.
“As we continue to take strategic and financial actions to
better position Workhorse for the future, we are pleased to
complete the divestiture of our Aero business,” said Workhorse CEO
Rick Dauch. “This divestiture narrows our focus and provides
Workhorse with additional financial flexibility to advance our
commercial EV product roadmap and execute our strategic plans. We
are confident we will capture the opportunities ahead by continuing
to deliver EV trucks to new customers and expanding our commercial
dealer network, ultimately driving value for our stockholders.”
Dauch continued, “We are proud of the progress the Workhorse
team made building the Aero business, and we are confident that the
divestiture provides more opportunities for the people who support
the business. With ATW, the Aero business is expected to have
access to the capital needed to grow as demand for services and
products continues to ramp up in the future.”
As Workhorse continues to innovate and expand its offerings in
the electric last-mile delivery vehicle market, strategic
partnerships with dealerships like Kingsburg Truck Sales, along
with focused business initiatives like the Aero divestiture, will
play a crucial role in driving adoption and accelerating the
transition to zero-emission commercial vehicles.
About Kingsburg Truck CenterKingsburg Truck
Center is the California Central Valley's top destination for
high-quality new and used work trucks. Specializing in custom
solutions, Kingsburg uses its expertise to create tailored upfit
applications for specific industry needs. Since its establishment
in 1991, Kingsburg Truck Center has been the go-to source for
reliable work trucks, growing to become a comprehensive one-stop
shop for everything work truck related. For additional information
visit kingsburgtruckcenter.com and click on the Workhorse logo.
About Workhorse GroupWorkhorse is a technology
company focused on providing ground-based electric vehicles to the
last-mile delivery sector. As an American original equipment
manufacturer, we design and build high performance,
battery-electric trucks. Workhorse also develops cloud-based,
real-time telematics performance monitoring systems that are fully
integrated with our vehicles and enable fleet operators to optimize
energy and route efficiency. All Workhorse vehicles are designed to
make the movement of people and goods more efficient and less
harmful to the environment. For additional information
visit workhorse.com.
Forward Looking Statements
The discussions in this press release contain forward-looking
statements reflecting our current expectations that involve risks
and uncertainties. These statements are made under the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. When used in this press release, the words
“anticipate,” “expect,” “plan,” “believe,” “seek,” “estimate” and
similar expressions are intended to identify forward-looking
statements. These are statements that relate to future periods and
include, but are not limited to, statements about the features,
benefits and performance of our products, our ability to introduce
new product offerings and increase revenue from existing products,
expected expenses including those related to selling and marketing,
product development and general and administrative, our beliefs
regarding the health and growth of the market for our products,
anticipated increase in our customer base, expansion of our
products functionalities, expected revenue levels and sources of
revenue, expected impact, if any, of legal proceedings, the
adequacy of our liquidity and capital resources, the likelihood of
us obtaining additional financing in the immediate future and the
expected terms of such financing, and expected growth in business.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained in this
press release. Factors that could cause actual results to differ
materially include, but are not limited to: our ability to develop
and manufacture our new product portfolio, including the W4CC,
W750, W56 and WNext platforms; our ability to attract and retain
customers for our existing and new products; risks associated with
obtaining orders and executing upon such orders; the
unavailability, reduction, elimination or adverse application of
government subsidies and incentives or any failure by states or
other government entities to adopt or enforce regulations; supply
chain disruptions, including constraints on steel, semiconductors
and other material inputs and resulting cost increases impacting
our Company, our customers, our suppliers or the industry; our
ability to capitalize on opportunities to deliver products to meet
customer requirements; our limited operations and need to expand
and enhance elements of our production process to fulfill product
orders; our general inability to raise additional capital to fund
our operations and business plan; our ability to obtain financing
to meet our immediate liquidity needs and the potential costs,
dilution and restrictions imposed by any such financing; our
ability to regain compliance with the listing requirements of the
Nasdaq Capital Market and otherwise maintain the listing of our
securities thereon and the impact of any steps we take to regain
such compliance, such as a reverse split of our common stock, on
our operations, stock price and future access to liquidity; our
ability to protect our intellectual property; market acceptance for
our products; our ability to obtain sufficient liquidity from
operations and financing activities to continue as a going concern
and, our ability to control our expenses; the effectiveness of our
cost control measures and impact such measures could have on our
operations, including the effects of furloughing employees;
potential competition, including without limitation shifts in
technology; volatility in and deterioration of national and
international capital markets and economic conditions; global and
local business conditions; acts of war (including without
limitation the conflicts in Ukraine and Israel) and/or terrorism;
the prices being charged by our competitors; our inability to
retain key members of our management team; our inability to satisfy
our customer warranty claims; the outcome of any regulatory or
legal proceedings, including with Coulomb Solutions Inc.; our
ability to consummate and realize the benefits of a potential sale
and leaseback transaction of our Union City Facility; and other
risks and uncertainties and other factors discussed from time to
time in our filings with the Securities and Exchange Commission
(“SEC”), including under the “Risk Factors” sections of our filings
with the SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2023. Forward-looking statements speak only as
of the date hereof. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based,
except as required by law.
Media Contact:Aaron Palash / Greg KlassenJoele
Frank, Wilkinson Brimmer Katcher212-355-4449
Investor Relations Contact:Matt Glover and Tom
ColtonGateway
Group949-574-3860WKHS@gateway-grp.com
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