Trucking news and briefs for Monday, Feb. 12, 2024:
Mack expanding Roanoke Valley Operations plant
Mack Trucks is expanding its RVO plant to prepare for higher demand for its MD series and MD Electric trucks.
Mack Trucks is investing $14.5 million to expand its Roanoke Valley Operations (RVO) manufacturing facility in Virginia to prepare the plant for higher demand for the Mack MD Series and Mack MD Electric vehicles.
“Mack is committed to making the industrial and product investments we need to be a North American market leader,” said Stephen Roy, global president of Mack Trucks. “The expansion of the RVO plant will help us grow in a strategic market segment and support our sustainability goals.”
Virginia Gov. Glenn Youngkin announced the $14.5 million investment during an event with state and local officials at RVO. Youngkin approved a $255,000 grant from the Commonwealth’s Opportunity Fund for the project. The project will result in 51 jobs. Roanoke County offered a package of incentives totaling $842,420.
Mack’s investment will go toward equipment, tooling and a 72,000 square-foot building expansion, making the facility 352,000 square feet. Construction will begin April, and the expansion project is expected to be completed in Q4 2025. The Virginia Economic Development Partnership worked with Roanoke County Economic Development and the Roanoke Regional Partnership to secure the project.
The Virginia Jobs Investment Program will support employee training activities, and Mack is eligible to receive state benefits from the Major Business Facility Job Tax Credit for new full-time jobs created as a result of the project.
All Mack medium-duty models are produced at RVO. Mack launched the diesel-powered Mack MD Series in 2020 and launched the Mack MD Electric in March 2023. Adding the new model to the product lineup increased the need for more space at the facility.
“Customer demand for the Mack MD and MD Electric continues to grow beyond our expectations,” Roy said. “This investment and expansion will well-position Mack Trucks for the future.”
The diesel-powered Mack MD and MD Electric are available in Class 6 and Class 7 ratings. The Class 6 model has a Gross Vehicle Weight Rating (GVWR) of 25,995 pounds, and the Class 7 model has a GVWR of 33,000 pounds. Both models are exempt from the 12 percent Federal Excise Tax (FET).
Nikola rejects slate of directors nominated by founder Milton
Nikola Corporation said Feb. 9 that its Board of Directors has rejected a slate of five “dissident nominees” proposed by an entity controlled by former Executive Chairman Trevor Milton for election as directors at Nikola’s 2024 Annual Meeting of Stockholders.
On Jan. 26, Nikola received a notice from M&M Residual, LLC, Milton’s entity, declaring its intent to nominate a slate of five directors for its eight-member board: Cole Cannon, Derek Johnson, Hans Peterson, Paul Southam and Dave Sparks.
The Board of Directors reviewed the director nominees and rejected the slate and does not endorse their nomination.
“The director nominees have no public company experience, add no skills or experience to the board, and indisputably lack the depth of experience that the current Nikola board members bring to the company,” Nikola said in a press release. “Additionally, it is the company’s belief that the director nominees lack the expertise or knowledge needed to navigate the complexities of a zero-emissions trucking and energy infrastructure business.”
Milton was criminally convicted of one count of securities fraud and two counts of wire fraud as it relates to the company, and on Jan. 17, 2024, was sentenced to 48 months in prison, followed by supervised release for three years. On Oct. 20, 2023, Milton was found liable in an arbitration with Nikola, resulting in an award to the company of $165 million plus interest, which includes a $125 million settlement with the Securities and Exchange Commission from December 2021. This judgment remains unpaid, and Nikola is vigorously seeking all legal avenues to recover monies owed to the company by Milton, Nikola added.
Milton is separated from Nikola entirely and has had zero involvement in the company’s day-to-day operations since September of 2020; however, Nikola said it continues to suffer harm created by his business decisions from over three years ago in his role as founder and executive chairman.
Radiant Logistics acquiring Select Logistics and Select Cartage
Radiant Logistics announced Feb. 7 that it has acquired Select Logistics, Inc. and Select Cartage, Inc. (collectively "Select"), both Doral, Florida-based, privately held companies that have operated as part of the company's Adcom Worldwide brand since 2007.
Radiant structured the transaction similar to its previous transactions, with a portion of the expected purchase price payable in subsequent periods based on the future performance of the acquired operations. Terms of the deal were not disclosed.
Originally founded in 2007 and operated by Gabby Santos and Hector Cavallo, Select provides both domestic and international freight forwarding services.
On a post-closing basis, Select is expected to transition to the Radiant brand and will combine with existing company-owned operations in south Florida. Santos will assume the role of General Manager for the newly combined organization, which will continue to develop and deliver advanced supply chain solutions for their cruise line and other customers. Cavallo will be moving on to pursue outside interests.
"Through years of dedicated service, our entire team here in Florida has developed some very strong relationships with our customers, vendors and associates around the globe,” Santos said. “Our customers have always remained our top priority whether they were here in the United States or abroad and this philosophy has been key to our success. We were happy when Radiant acquired Adcom Worldwide back in 2008 and are looking forward to flying the Radiant flag ourselves here in Florida. Radiant has consistently provided an environment for us to grow our business over the years and it has been rewarding to be a part of the building momentum of the Radiant network."
