ECD Automotive Design Announces Agreement to Increase Factory Utilization and Drive Fixed-Cost Absorption

Core Insights - ECD Automotive Design, Inc. has signed an agreement to take over select builds from a regional 4x4 restoration shop in southern New England, enhancing its production capacity and operational efficiency [1][2] Company Overview - ECD is the largest Land Rover and Jaguar restoration company globally, known for custom luxury builds including bespoke Defenders, Range Rovers, Jaguar E-Types, Ford Mustangs, and Toyota FJs [1][3] - The company operates a 100,000-square-foot facility in Kissimmee, Florida, employing 98 staff, including 67 skilled craftsmen with a total of 66 ASE certifications and three master-level certifications [3] Strategic Objectives - The primary objective post-IPO has been to fill production capacity to achieve cash-flow breakeven, leveraging advanced facilities and skilled workforce [2] - The collaboration with regional builders is expected to absorb incremental volume efficiently, providing both parties with benefits in craftsmanship and capacity [2] Financial Implications - By committing at least 10% of production capacity to this new collaboration, ECD anticipates adding a minimum of 20 units per year to its backlog, which is expected to improve cost structure and unit economics [2]