Workhorse Group adjusts dealer model following Motiv merger

Commercial medium-duty EV truck manufacturer Workhorse Group is revamping its dealer sales model as part of its planned merger with fellow medium-duty EV OEM Motiv Electric Trucks as the merged company looks to navigate the evolving EV market. 

The merger of Workhorse and Motiv creates one of the leading medium-duty electric truck manufacturers in North America, according to an Aug. 15 Workhorse release. Motiv Chief Executive Scott Griffith will be CEO of the combined company, with current Workhorse President, CEO and Director Rick Dauch to serve as an adviser. 

Workhorse currently uses a 19-dealer nationwide network to sell its EV vehicles, but with the Motiv merger, the new combined company will adopt more of Motiv’s hybrid direct sales approach, Motiv’s Griffith said during an Aug. 19 joint conference call that also served as Workhorse’s earnings call. 

“Together, we’ll be able to increase customer contact and confidence through a much stronger go-to-market strategy,” he said. “We’ll combine Motiv’s strong, experienced sales team with Workhorse’s national dealer network to foster a new team-sell approach with the dealer groups that will allow their sales professionals to participate in the sales process and help them sell more trucks.” 

Merger details

The all-stock transaction values the combined company at $105 million — $50 million from Motiv, $30 million from Workhorse and $25 million from two Workhorse transactions with affiliates of Motiv’s controlling investor, Workhorse Chief Financial Officer Robert Ginnan said during the call. 

The deal is expected to close in the fourth quarter of 2025, subject to approvals. 

The combined company plans to deliver a full range of Class 4 to Class 6 electric trucks, targeting the $23 billion medium-duty market, Motiv’s Griffith said.  

In the interim, Sharonville, Ohio-based Workhorse plans to continue expanding its portfolio and operations, while working on the integration with Foster City, Calif.-based Motiv, Workhorse’s Dauch said. 

“We will work with the Motiv team on a plan to integrate our product road maps and R&D technology, allowing us to hit the ground running once the transaction is completed,” he said. “We will also continue to strengthen our financial position by fulfilling fleet purchase orders, expanding dealer-led sales and continuing to convert finished goods inventory into cash.” 

Updated dealer model 

Following the merger, the company expects to expand its partnership with Motiv client Hudson County Motors, viewing this partnership as a model for developing dealer relationships in other states, Motiv’s Griffith said during the call. They want a consultative sales model where the company works with the dealer and customer to close the sale, then the dealer handles delivery and support, he said. 

“That joint effort that we’re doing with Hudson County is exactly the kind of model we’re moving to, where we bring our direct sales approach in with the dealer network that Workhorse has developed.” — Scott Griffith, CEO, Motiv Electric Trucks

Secaucus, N.J.-based dealer Hudson County Motors sells Motiv box trucks, shuttle buses, step vans and trolleys, in addition to Volvo, Western Star, BYD and Autocar vehicles, according to the dealer.  

Market outlook 

The merged company also expects voucher programs in New Jersey and neighboring states, such as New York, to support its growth, particularly in people-mover and box truck segments, Griffith said.  

In addition, California’s reinstated Class 5 and Class 6 EV incentives, offering up to $85,000 per truck to a maximum of $165,000 for small business owners, are expected to boost EV adoption, Workhorse’s Dauch said. Through those programs, the merged company expects to replicate the Hudson County business model in new markets, despite setbacks at the federal and state levels, such as changes in incentive programs and deregulation of emissions standards. 

“The big fleets that we speak with, they really want to talk directly with the OEM as they start really understanding this transition,” Griffith said. “Once they get more comfortable, they get enough trucks on the road, the dealer can start to play a much more important role.”

Meanwhile, Workhorse delivered a record 32 trucks in the second quarter, resulting in a 573% increase in its total sales revenue to $5.7 million for its EV products.

Shares of Workhorse Group (NASDAQ: WKHS) were up tktk% from market open to $tktk as of market close today. It has a market capitalization of $tktk million. 

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