Mullen Buys Bankrupt ELMS And Its Indiana Plant For $240 Million

EV startup will build the Mullen Five crossover and Bollinger B1 SUV and B2 pickup at the ex-GM plant that used to make Hummer H2s.

Electric Last Mile Solutions starts building electric vans in the US 4

Dan Mihalascu

By: Dan Mihalascu

Oct 19, 2022 at 11:44am ET

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After acquiring a 60 percent controlling interest in Bollinger Motors in September, Mullen Automotive has now bought bankrupt Electric Last Mile Solutions and its assets, including the plant in Mishawaka, Indiana.

The EV startup has received approval from the US Bankruptcy Court on October 13 to acquire electric vehicle company Electric Last Mile Solutions' assets in a $240 million cash transaction.

The California-based startup says the former ELMS plant in Indiana will provide it with the capability to produce up to 50,000 vehicles per year. Furthermore, the deal will accelerate the launch of the Mullen Five crossover, Bollinger B1 SUV and Bollinger B2 pickup by more than 12 months. This goes to confirm that the B1 and B2 are back on the table after Mullen became the majority owner of the Michigan-based startup.

While the Mullen Five and Bollinger B1/B2 retail vehicles will be made at the newly acquired Indiana plant, the Mullen Class 1 and Class 3 Commercial Delivery vehicles will be assembled at Mullen's existing facility in Tunica, Mississippi. The site will become the Commercial Manufacturing Center and will produce all Mullen and Bollinger Class 1 to 6 commercial vehicles.

Gallery: Mullen Five

Mullen Five electric crossover at 2021 LA Auto Show

The Mullen Class 1 and Class 3 commercial vehicles will be the first to arrive on the market in 2023, while production of the Mullen Five will begin in 2024 in Indiana. The company also plans to build the 1,000-horsepower Mullen Five RS "ultra-high-performance EV sport crossover" claimed to be capable of 0-60 mph acceleration in under two seconds and a top speed of 200 mph (322 km/h).

"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."

David Michery, CEO and chairman of Mullen Automotive

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Mullen says the Indiana factory, which previously produced General Motors' Hummer H2 SUV and SUT vehicles, the Mercedes-Benz R-Class as part of a contract manufacturing deal and ELMS Urban Delivery vans, is the main benefit of the ELMS acquisition. Besides bringing additional production capacity, the plant will enable a significant reduction of Mullen's previously forecast overall spend.

The deal also gives Mullen Automotive control over ELMS's intellectual property rights and inventory—including finished and unfinished vehicles, part modules component parts, tooling, raw materials and more.

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Source: Mullen Automotive

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