Mullen Automotive finalizes the purchase of the ELMS plant in Mishawaka
MISHAWAKA, Ind. (WNDU) – It looks like mainstream vehicles will once again be made in Mishawaka starting in 2024.
The new owner of the Mishawaka plant where the civilian Hummer was made today explained why they bought the building and what they plan to do with it.
The buyer is California-based Mullen Automotive.
The prize was $240 million in cash. The property was sold in Delaware bankruptcy court, where Electric Last Mile Solutions (ELMS) filed Chapter 7 in June.
Mullen released a written statement today saying, “The manufacturing optimization will include moving the Mullen FIVE EV crossover to the Mishawaka plant, with production to begin in 2024.
According to the release, the Mishawaka plant gives Mullen the capacity to produce up to 50,000 vehicles per year and a chance to ramp up production of several Mullen models by more than 12 months.
“You know, they have big plans. It’s a tough and complicated market, but all the major automakers are getting into this space as well,” said South Bend Regional Chamber of Commerce President and CEO Jeff Rea. “So all the big manufacturers are working to win this race. So whether you’re GM or Ford, all of those are building electric vehicles and then there’s a handful of start-ups as well.
As for Mullen, the release said the deal reduces the company’s previously planned overall spending and increases Mullen’s commercial vehicle portfolio by 50%.
“This is great news,” St. Joseph County Economic Development Director Bill Schalliol said in reaction to the development. “We are looking at the numbers of what they, of what Mullen Automotive spent on the plant after the bankruptcy, so these are real numbers. It’s real money and Mullen looks like it’s well capitalized, has other product lines, they’re looking elsewhere to do, they have other facilities.
Although the numbers aren’t always good for Mullen. Shares of the company started the day at 23 cents per share, which marked a 52-week low. Mullen stock closed the day at 34 cents.
Purchase of assets from Electric Last Mile Solutions includes all intellectual property, all inventory including vehicles, finished and unfinished parts modules, components, raw materials, and all manufacturing data necessary or reasonably useful for the assembly of Class 1 Electric Commercial Delivery Vans and Class 3 Commercial Delivery Chassis Cab.
The agreement also returns to Mullen the real estate property located in Mishawaka along with all buildings.
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