According to foreign media reports, on July 15,Electric vehicleManufacturer Mullen Automotive announced that it will move its commercial vehicle business to Oak Park, a suburb of Detroit, and integrate the sales, marketing and service operations of electric truck manufacturer Bollinger Motors.
The combined company will be renamed Bollinger Innovations and will update its ticker symbol on Nasdaq by August 15. Mullen Automotive is headquartered in Brea, California, and is the parent company of Bollinger Motors.
Image credit: Bollinger Motors
Affected by this news, Mullen Automotive’s stock price fell to $0.11 per share on July 15, a sharp decline from a month ago. Previously, the company’s second reverse stock split briefly boosted stock prices.
As part of its consolidation plan, Mullen Automotive recently highlighted cost optimization initiatives, including laying off 155 employees since January and reducing operating expenses by $35 million.
Mullen CEO David Michery said in a statement, “These necessary measures prepare the company for growth in a challenging environment while striving to achieve positive cash flow.” ”
David Michery revealed this strategic change as early as last month in an exclusive interview with Crain’s Detroit Business, a media outlet of Automotive News. He said at the time that the company would close its engineering R&D center in Irvine, California, and the related business would be integrated into the technology center in Troy, Michigan. It is reported that this integration will be accompanied by a recruitment plan for 40 to 50 new positions.
The Crane Detroit Business Journal asked the company how its business layout in Michigan and California would be adjusted after the integration.
David Michery said at the time, “I want all of the company’s engineering, manufacturing, and all of its operations to be concentrated in Michigan. ”
As a subsidiary of Mullen Automotive, Bollinger Motors’ operations have been in trouble in recent months. The Class 4 electric truck manufacturer was once forced into bankruptcy receivership proceedings after founder and former CEO Robert Bollinger filed a lawsuit to recover $11 million in loans. Although the company is now out of receivership, it still faces significant challenges such as weak market demand and tightening subsidies related to electric vehicles by the US government.