The lawsuit, filed on March 21 in the U.S. District Court for the Eastern District of Michigan, seeks to recover a $10 million loan Bollinger extended to the company in October. According to the complaint, the agreement required periodic interest-only payments of $125,000. However, the first payment, due on Feb. 28, was not made within the contractual grace period, prompting Bollinger to take legal action.
Although Bollinger Motors made a $125,000 payment on March 12, the lawsuit requests the appointment of a receiver to oversee the company’s assets and ensure repayment to creditors. Court filings indicate that Bollinger Motors pledged its entire asset portfolio as collateral for the loan.
The company, which produces the B4, an electric Class 4 truck priced at $135,000, has reportedly built approximately 40 vehicles since production commenced last fall. The trucks are manufactured under contract by Roush Enterprises, though it remains unclear how many have been delivered to fleet operators.
At Bollinger Motors’ Oak Park, Mich., headquarters on Monday morning, employees were seen entering the building, and the parking lot appeared full. Among the vehicles on-site were 34 unsold B4 trucks, parked in rows behind the facility. The lawsuit claims that the total value of the completed trucks exceeds $5 million.
The complaint further asserts that Bollinger Motors is unable to pay its debts and is facing additional lawsuits from at least two suppliers.
Bryan Chambers, who was appointed CEO earlier this month following the departure of James Taylor, confirmed that production has been temporarily halted. “We can confirm that we have temporarily paused production. However, it is our policy not to comment on an ongoing legal issue,” Chambers said in an email to Automotive News.
The company, which employed around 130 engineers and marketing personnel last fall, has since reduced its workforce to approximately 100.
Bollinger Motors recently announced that Bollinger Motors continued to achieve key milestones, including launching production of the Bollinger B4, securing regulatory certifications, expanding its dealer network, and partnering with Our Next Energy for battery supply.
Bollinger Motors announced a strategic partnership with EO Charging to provide comprehensive electrification solutions for its commercial fleet customers. Through this collaboration, Bollinger’s national dealer network will offer access to EO Charging’s full-service infrastructure, including charger installation, advanced management software, and 24/7 support, ensuring over 99% uptime.
In September 2024, Robert Bollinger at the launch of production said, “The people here today and hundreds of others who have worked with us before – I want to thank you all so much for making this happen and believing in this dream. We’ve made an impact here in Detroit and I am proud of all the work this team has done to get to this day. We are launching a world-class electric truck that will be a leader in the commercial fleet business.”
Robert Bollinger left company in June. The company announced that it had named former GM executive James Taylor as CEO. He took over from company founder Robert Bollinger, who remained on the company’s Board of Directors and retained his status as a major shareholder. James Taylor was replaced by Bryan Chambers who told Automotive News that trucks are currently being built. “We can confirm that we have temporarily paused production. However, it is our policy not to comment on an ongoing legal issue.”
In September 2022, Mullen Automotive acquired a 60% controlling interest in Bollinger Motors for $148.2 million. Since the beginning of the is year Mullen stock has lost 99.64% of its value.