AYRO, Inc. (NASDAQ: AYRO), an engineer and manufacturer of
light-duty, urban and short-haul electric vehicles (EVs), and Karma
Automotive’s Innovation and Customization Center (KICC), today
announced the formation of a strategic manufacturing, engineering
and design partnership.
This partnership will utilize Karma’s state-of-the-art
Innovation and Customization Center, Karma Engineering resources
and the Karma Design Studio to provide expertise and contract
manufacturing services for the next generation of AYRO’s light-duty
vehicles. KICC will also provide strategic engineering and
development services for electrified solutions within the
fast-growing delivery and microdistribution markets.
By combining AYRO’s end-user, market and engineering expertise
with KICC’s manufacturing capabilities, development experience and
global supply chain capabilities, the companies aim to be able to
deliver over 20,000 light-duty trucks and electric delivery
vehicles over the next three years, valued at more than $300
million.
The partnership will initially serve customers in North America,
but the supply chain capabilities and resources of the two
companies can be leveraged to meet demand across global markets in
the future. Dedicated inventory space and assembly lines have been
planned for AYRO’s EVs within KICC’s ISO-certified, 550,000 sq. ft.
factory in Moreno Valley, CA. KICC’s vertically integrated
development capabilities, including frame/chassis build,
fabrication center, body shop, robotic paint shop and powertrain
integration, should allow the partnership to rapidly respond to
customer and market demands for unique, task-oriented
configurations and build-outs.
“Both teams will draw upon the diverse skill sets of both
companies to provide customizable vehicles that address
market-specific needs,” said AYRO CEO Rod Keller. “AYRO is
committed to delivering purpose-built EV solutions that reflect the
real-world needs of users. Our partnership should allow us to
rapidly expand on this promise to serve a larger and more diverse
set of commercial fleets. Karma’s manufacturing base in southern
California has the potential to put AYRO’s production and
fulfillment operations near the top in the industry and should give
us a strategic advantage in the multibillion-dollar purpose-built
EV market.”
The partnership is intended to serve a wide range of industries
including universities, hospitals, corporate campuses, airports,
hotels, municipalities, restaurants and pharmacies. These
industries are looking to quickly adopt efficient and zero-carbon
fleets to cut costs and meet sustainability targets. For example,
nearly 60% of U.S. city governments already have green vehicle
purchasing policies in place, and delivery needs have increased
significantly in order to meet consumer demand related to COVID. A
2018 market report valued the global food delivery market at $53B,
a projection that has since doubled to more than $104B between
2019-2023.
“We are very excited to partner with the AYRO leadership team,”
said Greg Tarr, chief strategy officer at Karma Automotive. “Since
opening KICC in 2019, we have been offering Karma’s EV technology,
platforms and engineering and design services to a diverse client
roster outside of traditional automotive groups. AYRO has a large
footprint in fleet and commercial vehicle applications and they are
helping us to better understand that space as we expand into new
commercial sectors that can benefit from our sustainable vehicle
solutions.”
Spartan Capital Securities, LLC acted as sole introducing
advisor to AYRO, Inc. in connection with the Joint Manufacturing,
Engineering and Design Partnership.
ABOUT AYRO, INC.Texas-based AYRO, Inc.,
engineers purpose-built electric vehicles to enable sustainable
fleets. With rapid, customizable deployments that meet specific
buyer needs, AYRO’s agile EVs are an eco-friendly microdistribution
alternative to gasoline vehicles. The AYRO 411 Club Car is the only
zero-emission, light duty EV known to AYRO that can be optimized
for the needs of any sustainable fleet, while the AYRO 311 EV can
be configured for a variety of urban last-mile transportation
needs. AYRO innovates with speed, discipline and agility, and was
founded in 2017 by entrepreneurs, investors and executives with a
passion for creating sustainable urban electric vehicle solutions
for micromobility. For more information, visit: www.ayro.com
ABOUT KARMA AUTOMOTIVE Karma
Automotive, founded in 2014, is a southern California based
producer of luxury electric vehicles. Headquartered in Irvine,
California with an assembly plant located in Moreno Valley, Karma
sells vehicles via its dealer network comprised of 36 locations in
North America, Europe, South America and the Middle East. Karma’s
Innovation and Customization Center, which opened in 2019 offers
world-class engineering, design, customization, and manufacturing
services along with electrification platforms. Karma’s flagship
vehicle, the Revero® GT, Green Car Journal’s 2020 Luxury Green Car
of the Year™, is an electric vehicle powered by dual electric
motors that embodies Karma’s goal of offering leading technology
with a luxury experience. Every Karma vehicle is created with
unparalleled individual care and craftsmanship.
For more information, visit www.karmaautomotive.com, or
www.karmanewsroom.com.
FORWARD LOOKING STATEMENTSThis press release
may contain forward-looking statements. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements
to be materially different from any expected future results,
performance, or achievements. Words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “may,” “plan,” “will,”
“would” and their opposites and similar expressions are intended to
identify forward-looking statements and include the intended use of
net proceeds from the registered direct offering. Such
forward-looking statements are based on the beliefs of management
as well as assumptions made by and information currently available
to management. Important factors that could cause actual results to
differ materially from those indicated by such forward-looking
statements include, without limitation: AYRO has a history of
losses and has never been profitable, and AYRO expects to incur
additional losses in the future and may never be profitable; the
market for AYRO’s products is developing and may not develop as
expected and AYRO, accordingly, may never meet its targeted
production and sales goals; AYRO’s limited operating history makes
evaluating its business and future prospects difficult and may
increase the risk of any investment in its securities; AYRO may
experience lower-than-anticipated market acceptance of its
vehicles; developments in alternative technologies or improvements
in the internal combustion engine may have a materially adverse
effect on the demand for AYRO’s electric vehicles; the markets in
which AYRO operates are highly competitive, and AYRO may not be
successful in competing in these industries; AYRO relies on and
intends to continue to rely on a single third-party supplier for
the sub-assemblies in semi-knocked-down for all of its vehicles;
AYRO may become subject to product liability claims, which could
harm AYRO’s financial condition and liquidity if AYRO is not able
to successfully defend or insure against such claims; increases in
costs, disruption of supply or shortage of raw materials, in
particular lithium-ion cells, could harm AYRO’s business; AYRO will
be required to raise additional capital to fund its operations, and
such capital raising may be costly or difficult to obtain and could
dilute AYRO stockholders’ ownership interests, and AYRO’s long term
capital requirements are subject to numerous risks; AYRO may fail
to comply with environmental and safety laws and regulations; and
AYRO is subject to governmental export and import controls that
could impair AYRO’s ability to compete in international market due
to licensing requirements and subject AYRO to liability if AYRO is
not in compliance with applicable laws. A discussion of these and
other factors with respect to AYRO is set forth in the Quarterly
Report on Form 10-Q for the quarterly period ended June 30, 2020,
filed by AYRO on August 14, 2020, as amended. Forward-looking
statements speak only as of the date they are made and AYRO
disclaims any intention or obligation to revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Media AYRO Liz CrumpackerMedia
Relations Contactayro@antennagroup.com
Karma AutomotiveJeff HollandDirector of Public
Relations657-234-8672jeholland@karmaautomotive.com
INVESTOR RELATIONS
CONTACT:
AYRO CORE IRJoseph Delahoussaye IIIVice
President of Investor
Relations516-222-2560investors@ayro.com
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