AUSTIN, Texas, Aug. 25, 2022 (GLOBE NEWSWIRE) — Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the primary all-electric, off-road powersports firm, introduced at the moment a complete program and manufacturing transition geared toward efforts to enhance profitability and money stream.
To enhance money stream and profitability over the speedy and close to time period, Volcon will shut its manufacturing operations in Round Rock, Texas, merging its logistics and storage operations right into a single location, decreasing storage and success prices. To enhance product margins, the Company has entered right into a contract manufacturing settlement with GLV Ventures (GLV), a longtime automotive provider and producer. GLV Ventures and its companion corporations have been offering sound automotive options, superior product growth and superior manufacturing in a well timed, cost-effective method for over 25 years. GLV will produce the Volcon Grunt in each present and future fashions, in addition to the Volcon Stag, the category main all electrical UTV launched by Volcon in July 2022.
The Company expects these actions will enhance total gross margin on a product-by-product degree by decreasing supplies, labor and overhead prices, cut back working bills resulting from decrease headcount and services value, all of that are anticipated to enhance money retention. The Company can be in search of to scale back its reliance on elements and elements sourced from China, and can look to consolidate its provide chain to international locations pleasant to US producers, particularly these positioned in North America.
“The manufacturing, supply chain, and logistics environment in which small and emerging companies are participating is changing at a rapid pace. Socio-economic and geo-political landscapes are much different now than they were two to three years ago,” mentioned Jordan Davis, Chief Executive Officer of Volcon. “For the past few quarters, our leadership team has been re-evaluating our costs across the entire organization to ensure we are appropriately structured to achieve profitability in order to set ourselves up for long-term success. While we’ve been able to successfully navigate supply chain and logistical issues to date, we believe the best course of action for our profitability and cash retention is to leverage the scale of third-party manufacturers. We believe that eliminating our reliance on Chinese components to the greatest extent possible, will improve our payment terms and cash outlay for parts and components that can be sourced closer to home. While we understand this transition will take time to execute, and that some products will require sourcing from southeast Asia for the time being, we believe that this cost-reduction plan stands as the best course of action to reach profitability as quickly as possible for our business and for our shareholders. As part of this program, we’ve made the difficult decision to reduce the size of the Volcon team. This was a very difficult decision as we recognize that we are losing quality teammates. We thank them for their dedication to building a great product as we could not have brought the Grunt to market without them.”
To enhance competitiveness and profitability within the speedy and close to time period, Volcon plans to take a look at further alternatives to make the most of third occasion producers which have sturdy infrastructure, established provide bases that allow a decrease value construction, excessive utilization of overhead, and larger buying energy. The Company believes some of these relationships will allow it to launch merchandise at an accelerated tempo that the Company believes will enhance profitability within the close to time period.
About Volcon Inc.
Volcon Inc. is the primary all-electric powersports firm producing high-quality off-road automobiles. Based in Round Rock, Texas, Volcon joins many main electrical car corporations positioned close to Austin, Texas, an space that’s poised to turn into the electrical car capital of the world.
Volcon was based with the mission to boost the outside expertise whereas decreasing the business’s environmental footprint in order that adventurers and employees alike can benefit from the open air and protect it for generations to return. Volcon produces all-electric, off-road automobiles designed to raise the journey expertise and assist individuals get issues accomplished at work and on the house entrance.
Volcon’s first product, the modern Grunt, combines a fats tire physique with high-torque electrical energy and a near-silent drive prepare which began delivery in September of 2021. Future two-wheel fashions could embrace the Runt, which is a youth-sized model of the groundbreaking Grunt, and an eBike, the Brat. The Stag and Project X are anticipated to be Volcon’s enterprise into the quickly increasing world of UTVs and are anticipated in future years as the corporate continues to develop.
Volcon Contacts
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For extra data on Volcon or to be taught extra about its full bike and side-by-side line-up, go to: www.volcon.com
Forward-Looking Statements
Some of the statements on this launch are forward-looking statements, which contain dangers and uncertainties. Although the Company believes that the expectations mirrored in such forward-looking statements are cheap as of the date made, expectations could show to have been materially completely different from the outcomes expressed or implied by such forward-looking statements. The Company has tried to establish forward-looking statements by terminology together with ”believes,” ”estimates,” ”anticipates,” ”expects,” ”plans,” ”tasks,” ”intends,” ”potential,” ”could,” ”might,” ”may,” ”will,” ”ought to,” ”roughly” or different phrases that convey uncertainty of future occasions or outcomes to establish these forward-looking statements. These statements are solely predictions and contain identified and unknown dangers, uncertainties, and different elements. Any forward-looking statements contained on this launch communicate solely as of its date. The Company undertakes no obligation to replace any forward-looking statements contained on this launch to mirror occasions or circumstances occurring after its date or to mirror the incidence of unanticipated occasions. More detailed details about the dangers and uncertainties affecting the Company is contained underneath the heading “Risk Factors” within the Company’s Annual Report on Form 10-Ok and subsequently filed Quarterly Reports on Form 10-Q filed with the SEC, which can be found on the SEC’s web site, www.sec.gov.
