EQS-News: ARI Motors Industries SE signs landmark MOU with Faction Technologies and TUGA Innovations – gaining access to market-proven autonomous delivery technology and launching a transatlantic SPV

Corporate News - ARI Motors Industries SE signs landmark MOU with Faction Technologies and TUGA Innovations – gaining access to market-proven autonomous delivery technology and launching a transatlantic SPV

Borna, 18 November 2025 – ARI Motors Industries SE (“ARI”) has signed a Memorandum of Understanding (MOU) with Faction Technologies, Inc. (USA) and TUGA Innovations, Inc. (Canada/USA) to establish the European ARVIA SE, a new Special Purpose Vehicle (SPV) that will create a fully integrated, transatlantic ecosystem for autonomous last-mile delivery vehicles.

Through this agreement, ARI gains immediate access to Faction’s market-ready, commercially deployed driverless technology, which is already in real-world use by major U.S. companies such as Chick-fil-A. The MOU represents the most significant technological leap in ARI’s history and positions the company as the central European partner in the fastest-growing segment of urban logistics.

Faction: Market-proven autonomous delivery technology – more than 2,200 real-world deliveries completed

Over recent years, Faction has built a unique, scalable and commercially validated autonomous delivery platform. Unlike experimental pilot programs or conceptual robotics initiatives, Faction’s technology is operational today:

• 2,200+ successful delivery missions in Houston, Texas
• 100% delivery success rate
• 40% lower costs compared to gig-worker delivery services
• 20–30% faster delivery times (average of 22 minutes from order to delivery)
• 99.9% uptime of software and hardware platforms
• Fully street-legal, VIN-ready, up to 75 mph, suitable for U.S. and EU roads

The combination of TeleAssist®, DriveLink®, and Faction’s cloud-based fleet management stack makes the company the only provider worldwide offering a commercially deployable, highly scalable, on-road driverless system – complete with ongoing pilot programs and expansion plans for several thousand vehicles.

ARI as key European partner – perfect synergy in last-mile mobility

ARI has been a leading European provider of light electric vehicles for urban delivery and logistics for many years. With 49 different body configurations, established operations in Germany and the Czech Republic, and extensive European homologation expertise, ARI offers the ideal vehicle and production platform for integrating Faction’s driverless technology into the European market.

The last-mile orientation of ARI’s fleet – short routes, small payloads, urban environments – perfectly complements Faction’s business model.

This cooperation enables ARI to:

• integrate Faction’s sensors, cameras, compute units and software into existing ARI vehicle platforms
• collaborate with TUGA to scale next-generation urban vehicles for both the U.S. and EU
• bring Faction’s autonomous technology into European series-production vehicles for the first time
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This marks the emergence of something the market has long demanded but never received:
a real, scalable, affordable, street-legal autonomous delivery ecosystem – not a concept, but a functioning product.

The strategic value of Acceleracode SRL – in-house software expertise as a decisive element

A key reason why ARI was selected as Faction’s European partner is its recent acquisition of Acceleracode SRL, a mobility-focused software development company employing around 40 developers.

This team will:

• support and maintain Faction’s fleet-management platform in Europe
• develop integrations, interfaces, and software adaptations
• empower the European TeleAssist infrastructure
• accelerate the scaling of the ARVIA SE software ecosystem

This gives ARI immediate, cost-efficient software capabilities that are essential for a large-scale driverless vehicle rollout.

ARI to host the new TeleAssist Center Europe

Faction already operates a state-of-the-art TeleAssist Center in the United States, where operators remotely assist vehicles in rare edge cases (typically 1 operator per 10 vehicles).

Under the MOU:

• a second TeleAssist Center Europe will be established in the Czech Republic
• ARI will manage and operate the center
• full integration with Faction’s global operations will be ensured

This positions ARI as the European command hub for autonomous fleet supervision.

TUGA Innovations – urban vehicle architecture for the autonomy era

TUGA contributes:

• its narrow-track urban EV platform “TUGA Deliver”
• associated IP and patents
• one TUGA Deliver Driverless by Faction
• urban mobility design expertise

ARI will also become capable of producing TUGA vehicles in its Czech manufacturing facility — creating the first dedicated European hub for autonomous urban delivery vehicles.

ARVIA SE – ARI receives a 25% stake in a company already backed by major U.S. commercial programs

A core element of the MOU is the formation of ARVIA SE, into which Faction, ARI and TUGA will contribute assets.

Under the non-binding structure, ARI will hold 25% of ARVIA SE —independent of how quickly the European rollout progresses.

Importantly, ARVIA SE will benefit from Faction’s existing and ongoing U.S. contracts:

• Chick-fil-A: multi-year autonomous delivery rollout involving approx. 7,000 vehicles (2026–2028)
• Grubhub: fleet deployment program with 300+ vehicles

Through its stake, ARI participates directly in the growth of a business that is already operational and generating scalable, recurring revenues.

Military & defense applications – autonomy as a strategic asset

Faction’s driverless and TeleAssist technologies also offer strong potential for defense and national security use cases:

• remote-operated ground vehicles for resupply missions in active conflict zones
• autonomous delivery of critical materials without exposing drivers to danger
• ground-based logistical capabilities comparable to drone supply systems

ARI already maintains established contacts with the German Bundeswehr and the Czech military and will present the joint technology within appropriate national and EU funding programs.

Presentation at the Frankfurt Equity Forum next week

ARI, Faction and TUGA will jointly present this new corporate structure at the Deutsches Eigenkapitalforum in Frankfurt next week.

Investors may request 1-on-1 meetings via:

?? invest@ari-motors.com

About ARI Motors Industries SE

ARI Motors Industries SE, headquartered in Borna near Leipzig, is a pioneer in sustainable mobility solutions.
The company develops and manufactures innovative light electric vehicles for commercial and private applications, with a strong focus on efficiency, flexibility, and environmental sustainability.

Contact for further information

ARI Motors Industries SE
Thomas Kuwatsch
Phone: +49 341 978 569 33
Email: invest@ari-motors.com
Website: www.ari-motors.com