West Coast automaker’s offer for Mishawaka EV plant approved
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A cavernous, vacant manufacturing plant in St. Joseph County that at one time produced General Motors (NYSE: GM) Hummer H2 SUVs, and an assortment of other autos and vans over the past two decades, could once again start producing vehicles. California-based electric vehicle startup Mullen Automotive Inc. (Nasdaq: MULN) says it has gained court approval to buy Electric Last Mile Solutions’ assets out of bankruptcy in a $240 million cash transaction.
Michigan-based ELMS filed for bankruptcy in June, less than a year after it went public through a $1.4 billion SPAC.
Last week, the U.S. Bankruptcy Court approved Mullen’s bid to acquire ELMS’s manufacturing plant in Mishawaka, all inventory and intellectual property.
Mullen says the plant will allow it to accelerate the launch of the Mullen FIVE, an EV crossover, as well as an electric SUV and pickup truck.
“Upon closing the ELMS transaction, the Company will be in a position to strategically leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market,” said David Michery, chief executive officer and chairman of Mullen Automotive.
Mullen says it will move production of the Mullen FIVE EV from a facility in Mississippi to the Mishawaka plant. It plans to begin production in 2024.
Mullen is the latest in a long line of automakers who have attempted to build autos at the factory in Mishawaka.
An Inside INdiana Business previously reported, GM operated the plant for seven years, producing Hummer 1 and Hummer 2 vehicles. But it struggled with the economics of the 2008 recession.
From 2011-2013, another company manufactured wheelchair-accessible taxicabs. For a while, AM General was a contract manufacturer of Mercedes-Benz autos for the Chinese market. Neither of which continued for very long.
In 2017, AM General sold the plant to SF Motors, a subsidiary of China-based Sokon Industry Group, to build electric vehicles. St. Joseph County economic development officials say SF invested $20 million to retool the plant, but no vehicles ever rolled off the assembly floor.
Then, in December 2020, ELMS announced plans to acquire the 650,000-square-foot plant to manufacture “last mile” electric delivery vans. It filed for bankruptcy in June.
In September, Mullen acquired a 60% stake in Bollinger Motors, a Michigan-based startup that aims to build electric vehicle commercial trucks and off-road vehicles.
“Mullen’s acquisition of Bollinger was one of the largest transactions of its kind in the EV market. Upon closing the ELMS transaction, the Company will be in a position to strategically leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market,” said Michery.
Michery as a result of the bankruptcy court’s decision, the automaker will accelerate launch of the EV lineup by 12 months.
Mullen says with the additional manufacturing capacity, total production volumes are expected to exceed its previous business projections and produce 50,000 vehicles annually.