Benzinga | Aug 5, 2020 08:34AM EDT

ElectraMeccanica Names Three Finalist States In BDO-Led Search For SOLO EV US Assembly Facility And Engineering Technical Center: Arizona, Florida And Tennessee

VANCOUVER, British Columbia, Aug. 05, 2020 (GLOBE NEWSWIRE) -- ElectraMeccanica Vehicles Corp. (NASDAQ:SOLO) ("ElectraMeccanica" or the "Company"), a designer and manufacturer of electric vehicles including the single-occupant, three-wheeled SOLO EV, today provided an update related to its ongoing search for the Company's future U.S. based assembly facility and engineering technical center.



Since late February, the Company has been engaged with BDO USA's Site Selection & Business Incentives Practice ("BDO") in 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. Earlier in June, the Company narrowed the candidate list to five.

Following comprehensive proposals and site visits at select candidate locations, the Company has narrowed the list to three finalists (in alphabetical order): Arizona, Florida, and Tennessee.

As part of the latest phase in the site selection process, ElectraMeccanica's executive management team travelled to BDO-identified sites in the greater Nashville, Orlando and Phoenix areas. The Company is now entering the final stages of its review process and anticipates selecting a location by the end of November.

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 we continue to progress through the review process for identifying our future U.S. base of operations, we would like to express our appreciation for the hospitality and great interest we've received from all candidate states and locations," said ElectraMeccanica CEO Paul Rivera. "In further narrowing our finalist list, we remain focused on the key areas that will have a materially positive impact on our long-term production efforts: access to a top-tier talent pool, global supply chain cost protection, and the best opportunity for us to pursue our larger goal of a multi-use, urban SOLO ecosystem for personal, commercial, utility and fleet applications. We firmly believe that the remaining finalists offer us these benefits and are looking forward to maintaining an ambitious campaign schedule which will have us making a final decision by the end of November."

Tom Stringer, Leader for the National Site Selection & Business Incentives Practice, BDO USA, added: "Our hosts across the country have been extremely excited about this project and the significant economic impact that it will have on their communities. Now that the process has entered its final decision making phase, we're looking forward to helping the Company and the selected community bring this project to life in conjunction with our state and local partners."