Nikola Discontinue Collaboration with Republic Services on Refuse Truck | Financial Buzz

Nikola Discontinue Collaboration with Republic Services on Refuse Truck

Nikola Corporation (NASDAQ: NKLA) reported that Nikola and Republic Services (NYSE: RSG) have discontinued their collaboration of refuse truck development.  Initially the objective was to design and build the first fully integrated refuse truck based on a zero emissions battery electric drive platform and body while integrating multiple new systems into a new vehicle.  After review both companies have agreed that the combination of new technologies and design concepts would take longer than expected in development time and unexpected costs.  The program will be terminated and thus resulted in cancellation of previously announced vehicle order.

“This was the right decision for both companies given the resources and investments required,” said Nikola CEO Mark Russell. “We support and respect Republic Services’ commitment to achieving environmentally responsible, sustainable solutions for their customers. Nikola remains laser-focused on delivering on our battery-electric and fuel-cell electric commercial truck programs, and the energy infrastructure to support them.”

Nikola plans to begin deliveries of Nikola Tre battery electric semi trucks within the United States in 2021 and to break ground on its first commercial hydrogen station in 2021.  The fuel cell electric semi trucks will be produced at Nikola’s Coolidge Arizona facility in the beginning of 2023. 

The company also announced appointment of Mary L. Petrovich as new independent director and expansion of Pablo Koziner’s role in the executive leadership team. 

“Mary will be a real asset to Nikola’s board,” said Steve Girsky, chairman of Nikola’s Board of Directors. “Her transformative experience in automotive, and trucking specifically, parallels nicely with Nikola’s needs. We are confident that Mary’s valuable perspective and insights will help the Board and management team execute on its strategic and business priorities.”

“I am pleased to join the Nikola Board of Directors,” said Petrovich. “I believe in the company’s mission that combines zero-emission commercial trucking with an innovative energy infrastructure. This company has a great future ahead. I look forward to working with my fellow Board members and management to meet Nikola’s milestones while creating shareholder value.”