ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
("ElectraMeccanica" or the "Company"), a designer and manufacturer
of electric vehicles, today provided an update related to its
ongoing search for a U.S. based assembly facility and engineering
technical center.
On February 27, 2020 the Company announced its
engagement with BDO USA’s Site Selection & Business Incentives
Practice (“BDO”) to lead the search. After a nationwide review of
potential locations that matched ElectraMeccanica’s criteria, BDO
initially identified seven candidates and sent initial requests for
proposal to the chief economic development entities in each
state.
Following the initial review, the Company has
narrowed its list to the following five states (in no particular
order): Arizona, Colorado,
Florida, North Carolina and
Tennessee.
The proposed new U.S. facility is expected to
employ up to 250 people and feature a state-of-the art engineering
technical center, including plans for multiple labs to support
ongoing vehicle, chassis and power electronics testing as well as
comprehensive research facilities. Collectively, the operation
would be expected to meet the growing demand for
SOLO EVs throughout the United States, where EVs
are projected to exceed more than 30% of all passenger vehicles by
2040. In addition, the proposed new U.S.-based facility would allow
ElectraMeccanica to reduce or potentially eliminate tariffs as well
as benefit from logistical efficiencies.
ElectraMeccanica intends to maintain a
capital-light model and begin commercial production and delivery of
its flagship, single-seat, three-wheeled SOLO EV
during 2020 with its contract manufacturing partner and strategic
investor, Zongshen Industrial Group (“Zongshen”), in Chongqing,
China. In conjunction with the proposed new ElectraMeccanica U.S.
facility, Zongshen will continue to manufacture
SOLO EVs for the global market, while also
supplying knock-down kits for assembly in the United States.
As part of the secondary phase in the site
selection process, ElectraMeccanica management will be visiting
proposed sites within the remaining states during the summer of
2020 with a final decision expected by the end of the year.
Last week, at the invitation of the Arizona
Commerce Authority (the “ACA”) and the Greater Phoenix Economic
Council (“GPEC”), the Company toured locations in Phoenix, Mesa,
Avondale and Casa Grande, Arizona.
“On behalf of the entire ElectraMeccanica team,
I want to thank Sandra Watson, Chris Camacho and their teams at the
ACA and GPEC as well as Arizona State University, the Arizona
Public Service and Salt River Project for their hospitality as we
begin the next phase of our site selection process,” said Company
CEO Paul Rivera. “Going forward, we will be conducting similar
visits in the remaining states before making our ultimate decision
by the end of the year. We believe having a future base of
operations in the United States will provide us several material
benefits, including gaining access to a top-tier talent pool of
engineering resources, protecting our global supply chain costs and
driving increased efficiencies within our distribution
processes.”
Tom Stringer, Leader for the National Site
Selection & Business Incentives Practice, BDO USA, added:
“Arizona is an excellent candidate-location for this project. In
the last five years Arizona has quickly committed itself to
developing a world-class electric vehicle ecosystem. We look
forward to meeting with the other candidate cities and working to
find the best partner-location for our long-term success.”
ElectraMeccanica recently provided a video
update of its Arizona site visits on its Facebook page, which is
available for public viewing here.
About ElectraMeccanica Vehicles
Corp. ElectraMeccanica Vehicles Corp.
(NASDAQ: SOLO) is a Canadian designer and manufacturer of
environmentally efficient electric vehicles (EVs). The company’s
flagship vehicle is the innovative, purpose-built, single-seat EV
called the SOLO. This three-wheeled vehicle
will revolutionize the urban driving experience, including
commuting, delivery and shared mobility.
The SOLO provides a driving experience
that is unique, trendy, fun, affordable and environmentally
friendly. InterMeccanica, a subsidiary of ElectraMeccanica, has
successfully been building high-end specialty cars for 61 years.
For more information, please
visit www.electrameccanica.com.
About BDO Site Selection &
IncentivesBDO’s Site Selection & Incentives practice
works with clients to identify the ideal locations for new or
relocating operations, analyze business climates and labor markets,
and maximize economic development incentives. In the last decade
they have secured over $2 Billion in state and local support for
their clients, including noteworthy transportation startups,
multiple Fortune 500 Corporate Headquarters, major national defense
projects and several professional sports leagues.
Safe Harbor StatementExcept for
the statements of historical fact contained herein, the information
presented in this news release and oral statements made from time
to time by representatives of the Company are or may constitute
“forward-looking statements” as such term is used in applicable
United States and Canadian laws and including, without limitation,
within the meaning of the Private Securities Litigation Reform Act
of 1995, for which the Company claims the protection of the safe
harbor for forward-looking statements. These statements relate to
analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management. Any other statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or
phrases such as “expects” or “does not expect”, “is expected”,
“anticipates” or “does not anticipate”, “plans, “estimates” or
“intends”, or stating that certain actions, events or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved) are not statements of historical fact and should be
viewed as forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the availability of capital to fund programs
and the resulting dilution caused by the raising of capital through
the sale of shares, accidents, labor disputes and other risks of
the automotive industry including, without limitation, those
associated with the environment, delays in obtaining governmental
approvals, permits or financing or in the completion of development
or construction activities or claims limitations on insurance
coverage. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Although the Company believes
that the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved. Forward-looking information
is subject to certain risks, trends and uncertainties that could
cause actual results to differ materially from those projected.
Many of these factors are beyond the Company’s ability to control
or predict. Important factors that may cause actual results to
differ materially and that could impact the Company and the
statements contained in this news release can be found in the
Company’s filings with the Securities and Exchange Commission. The
Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. Accordingly, readers should not place
undue reliance on forward-looking statements contained in this news
release and in any document referred to in this news release. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities.
Company ContactMs. Bal Bhullar,
CPA, CGA, CRMChief Financial Officer & Director(604)
428-7656Bal@electrameccanica.com
Investor Relations
ContactGateway Investor RelationsMatt Glover and Tom
Colton(949) 574-3860SOLO@gatewayir.com
Public Relations
ContactMichelle Ravelo-Santos R&CPMK(310)
854-4755michelle.ravelo@rogersandcowanpmk.com
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