Electric truck startup Bollinger exits bankruptcy after paying back founder who sued
Editor’s note: An earlier version of this story incorrectly described the court status of Bollinger Motors. The company was in receivership in U.S. District Court.
Electric truck startup Bollinger Motors has exited U.S. court receivership 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 federal court receivership 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. In March, Bollinger sued the company he founded, claiming it was broke and seeking to recover his loan.
Mullen, which has faced a host of financial issues beyond Bollinger, is all-in on the electric vehicle startup, Michery said June 4 in 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 eight to 10 weeks and that the company’s 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 to 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. After departing in March, Taylor will return to the company as a consultant.
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