Karma Automotive Debuts First Club Car Current Vehicles Produced Under Contract Manufacturing Agreement With AYRO

Production a Part of Karma's ongoing Business-to-Business Initiatives

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Jul 01, 2021, 07:47 ET

MORENO VALLEY, Calif., July 1, 2021 /PRNewswire/ -- Today, the Karma Innovation and Customization Center (KICC) revealed the first Club Car Current vehicles being produced under a contract manufacturing agreement with AYRO, Inc. (NASDAQ: AYRO). These light-duty electric vehicles (EVs) fill the gap between full-sized trucks and small utility carts for low-speed logistics and cargo services in campus and urban environments. Karma and AYRO previously announced the formation of a partnership to produce vehicles under the arrangement.

KARMA AUTOMOTIVE DEBUTS FIRST CLUB CAR CURRENT VEHICLES PRODUCED UNDER CONTRACT MANUFACTURING AGREEMENT WITH AYRO

The relationship with AYRO is part of Karma Automotive's ongoing business-to-business (B2B) initiatives, utilizing KICC and the company's OEM expertise and capabilities, to provide manufacturing, engineering, design, and other services to customers in the mobility space.

By combining AYRO's end-user, market intelligence and engineering expertise with KICC's manufacturing capabilities and development experience, the companies aim to deliver light-duty trucks and electric delivery vehicles to businesses across the U.S. The Club Car Current is engineered for multiple bed options and accessories—van box, pickup truck with sides, flatbed configurations—for fleet versatility. It is also certified under California's California Air Resource Board (CARB) Certification Program with "cleanest" scores for global warming and air quality of zero emission vehicles, making it an ideal solution for the local market. .

"Having the first of these vehicles roll off the line at our KICC facility is a great step forward in our relationship with AYRO and Club Car and will help us deliver on our Climate Pledge efforts to become net-zero by 2040," said Dr. Lance Zhou, Karma's Chief Executive Officer. "We look forward to growing our B2B business and delivering clean energy vehicles for other customers in the future."

Karma Chief of Staff, Mikael Elley, said, "KICC's strategic Southern California location near major supply routes, combined with our expertise and proximity to one of the largest electric vehicle markets, makes us an attractive partner. Our proven capabilities and quick turnaround times enable us to work with a wide range of customers—including startups and traditional automakers—to make their products succeed."

"Karma is helping us meet strong demand from our fleet customers in delivering the initial run of vehicles from their Moreno Valley facility despite supply chain hurdles impacting production for the rest of the industry," said AYRO CEO Rod Keller. "These purpose-built electric vehicles are fully customizable, affordable and available now, delivering on our brand promise to provide real-world solutions that meet the needs of businesses of all types."

"Karma has done a fantastic job in meeting tight deadlines, and their plant exceeded our rigorous quality standards in assembling the new 2022 Club Car Current," said Club Car Commercial Leader, Brant Mitchell. "The Current features new options for improved safety and comfort in the same compact, customizable design that universities, restaurants, governments, hospitals, hotel resorts, sports stadiums, and airports across the U.S. have come to love."

ABOUT KICC
Beginning operations in 2017 and re-named in 2019, the Karma Innovation and Customization Center (KICC) is California-based Karma Automotive's production hub. The KICC facility in Moreno Valley, CA houses production of the company's current model, the 2022 Karma GS-6 luxury electric vehicle. In addition to providing high quality craftsmanship and technology integration for Karma vehicles, KICC also provides contract manufacturing, engineering, and other services for various companies in the mobility space.

KICC sprawls over 556,000 square feet and is home to the company's chassis and body shops, trim and final assembly, e-coat and paint shop, complete flash and end-of-line testing. The facility contains the very latest in automotive technology and tooling all under one roof.

For more information, visit www.karmaautomotive.com, or www.karmanewsroom.com. For business inquiries, reach out to Evan Bontrager at [email protected].

ABOUT CLUB CAR
With over 60 years of experience in innovation and design in producing small-wheel vehicles, Club Car is a leading manufacturer of gas and electric golf, utility, and personal transportation vehicles. Founded in 1958, the Club Car product portfolio has grown to include much more than golf cars, now encompassing vehicles for commercial and consumer markets, built with an uncompromised desire for superior performance. As an industry leader in electrification and sustainability, Club Car is proud to be at the forefront of environmentally responsible Zero Emission Vehicle (ZEV) technologies.

ABOUT AYRO, INC.
Texas-based AYRO, Inc., engineers and manufactures 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 micro-distribution alternative to gasoline vehicles. The AYRO Club Car Current is the only zero-emission, light-duty EV known to AYRO that can be optimized for the needs of any sustainable fleet. 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 micro-mobility. For more information, visit www.ayro.com.

KARMA AUTOMOTIVE SAFE HARBOR DISCLOSURE
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include Karma Automotive's expectations. Forward-looking statements typically can be identified by the use of words such as "will," "expect," "believe," and similar terms. Although Karma believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the automotive industry, competition in certain markets, the volatility of battery prices, failure of customers to perform under contracts, changes in government regulation of markets and of environmental emissions, and our ability to achieve the expected benefits and timing of our electric vehicle projects. Karma Automotive undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause Karma's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect Karma Automotive's future results.

SOURCE Karma Automotive