Bollinger Motors, a US-based electric truck manufacturer, is entering court-appointed receivership amid deep financial troubles. The company faces multiple lawsuits from creditors and suppliers, including from the founder and former CEO, while production has been halted since January due to missed payments.
Bollinger Motors was founded in 2014 by Robert Bollinger, who aimed to build a full-size electric off-road vehicle. Two prototypes were made: the Bollinger B1 SUV and the B2 pick-up truck, but the company actually made its money from the Bollinger B4, a Class 4 electric truck built on a bespoke chassis.
A lawsuit from the founder and former CEO
In 2022, Mullen Automotive, a US-based manufacturer that specializes in converting Chinese EVs for its domestic market, took a controlling interest in Bollinger Motors after the latter switched its strategy and no longer developed the B1 and B2 consumer models. It seems that Mullen has lost interest in keeping Bollinger Motors afloat.
The Detroit News reports that Bollinger Motors is about to enter court-appointed receivership after a lawsuit by founder and former CEO Robert Bollinger, who loaned the company $10 million last October, which Bollinger Motors has failed to pay back.
Debt piling up
But Bollinger is not the only one looking for money from the truck manufacturer. According to CEO Bryan Chambers, the company has missed a scheduled 401(k) contribution for employees and rent payments for its Oak Park offices and is facing eight lawsuits from suppliers who are owed money.
Roush Enterprises, which produces the Bollinger B4 models as a contractor, halted production in January and has now locked Bollinger Motors out of the facility due to $1.8 million in missed payments. The next step is the eviction of the (Bollinger-owned) equipment. Even if Bollinger were to pay back every supplier, getting production back up and running would take two to three months, according to Chambers.
Mullen has lost interest
According to current and former Bollinger leadership, the problem is a lack of direction and funding from the parent company, Mullen Automotive. The board of directors has not called any meetings in nearly a year and is not providing enough money to continue day-to-day operations, says Robert Bollinger.
The court-appointed receiver will now manage, protect, and eventually liquidate Bollinger Motors’ assets in order to pay back creditors and suppliers. The company has around 40 unsold B4 vehicles in inventory, worth around $5 million, which could go towards reducing the debt pile. A sale of the company is also on the cards.
