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Brea-based EV truck maker Mullen Automotive shifting operations to Michigan

The article from the Orange County Register, published on July 15, 2025, titled "Brea-based EV truck maker Mullen Automotive shifting operations to Michigan," details significant operational and strategic changes at Mullen Automotive, a Southern California-based electric vehicle (EV) manufacturer. The company, headquartered in Brea, California, has announced plans to relocate a substantial portion of its operations to Michigan, a state historically synonymous with the American automotive industry. This move is part of a broader restructuring effort aimed at streamlining production, reducing costs, and positioning the company closer to key suppliers and industry talent. Below is an extensive summary of the article's content, covering the reasons for the relocation, the implications for Mullen Automotive, the impact on its current workforce, and the broader context of the EV industry.

Mullen Automotive, founded in 2014, has been working to establish itself as a player in the competitive EV market, focusing on commercial electric trucks and other vehicles. The company has faced numerous challenges, including financial struggles, production delays, and skepticism from investors and analysts about its ability to deliver on ambitious promises. Despite these hurdles, Mullen has made strides in recent years, including the acquisition of assets from bankrupt EV companies and partnerships aimed at scaling up production. The decision to shift operations to Michigan, as outlined in the article, appears to be a calculated move to address some of these persistent issues while capitalizing on the unique advantages offered by the Midwest's automotive ecosystem.

The primary reason for the relocation, according to the article, is Michigan's deep-rooted connection to the automotive industry. Often referred to as the "Motor City" due to Detroit's historical significance as the hub of American car manufacturing, Michigan offers access to a skilled workforce with expertise in vehicle production, engineering, and design. Mullen Automotive's leadership believes that being closer to this talent pool will help the company accelerate its production timelines and improve the quality of its vehicles. Additionally, Michigan is home to a vast network of suppliers and manufacturers that cater to the automotive sector, which could help Mullen reduce supply chain costs and logistical challenges. The state also hosts major automakers like Ford, General Motors, and Stellantis, creating an environment of innovation and collaboration that Mullen hopes to tap into.

Another key factor driving the move is the potential for cost savings. Operating in Southern California, particularly in Orange County, comes with high overhead costs, including expensive real estate, labor, and regulatory compliance. Michigan, by contrast, offers a more cost-effective environment for manufacturing, with lower property costs and a business-friendly climate in certain areas. The article notes that Mullen has been grappling with financial constraints, including a history of reverse stock splits and concerns about its cash reserves. Relocating to Michigan could provide some financial relief, allowing the company to allocate more resources toward research and development, marketing, and scaling up production of its electric trucks.

The relocation, however, raises questions about the impact on Mullen's current workforce in Brea and other California locations. The article indicates that while the company plans to maintain some presence in California—likely for administrative or corporate functions—many manufacturing and operational roles will transition to Michigan. This could result in layoffs or the need for employees to relocate, though specific details about the number of affected workers or the timeline for the move were not provided in the report. The potential displacement of workers is a sensitive issue, especially in California, where the cost of living is high, and job transitions can be challenging. Mullen's leadership has not yet publicly addressed how it will support affected employees, but the article suggests that the company may face scrutiny from local stakeholders and labor advocates as the transition unfolds.

Beyond the immediate implications for Mullen Automotive, the article places the company's decision within the broader context of the EV industry and regional economic trends. The shift to Michigan aligns with a growing trend of EV manufacturers and related businesses establishing or expanding operations in the Midwest. States like Michigan, Ohio, and Indiana have become attractive destinations for EV and battery production due to their industrial infrastructure, proximity to key markets, and state incentives aimed at attracting clean energy companies. For instance, Michigan has actively courted EV manufacturers through tax breaks, grants, and workforce development programs, recognizing the potential for job creation and economic growth as the automotive industry transitions from internal combustion engines to electric powertrains. Mullen's move could be seen as part of this larger wave, reflecting a strategic pivot toward regions that are better equipped to support the next generation of vehicle manufacturing.

The article also touches on the competitive landscape of the EV market, noting that Mullen faces stiff competition from established players like Tesla, Rivian, and Ford, as well as a host of startups vying for market share in the commercial EV space. Companies like Nikola and Workhorse have also struggled with production challenges and investor confidence, underscoring the high stakes and volatility of the sector. For Mullen, the relocation to Michigan could be a make-or-break moment, offering an opportunity to reset its trajectory and prove its viability as a serious contender. However, the article cautions that the move alone will not solve all of Mullen's problems, particularly if the company fails to address underlying issues such as inconsistent production schedules and limited consumer trust.

From a product perspective, Mullen has been focusing on electric delivery vans and trucks designed for commercial fleets, a segment of the EV market with significant growth potential as businesses seek to reduce carbon emissions and comply with stricter environmental regulations. The company has touted its Mullen FIVE electric crossover and other models, but production and delivery have lagged behind initial projections. By moving to Michigan, Mullen may be better positioned to ramp up manufacturing and fulfill orders, especially if it can leverage local partnerships and expertise. The article mentions that Mullen has already identified potential facilities in Michigan, though specific locations or timelines for the transition were not disclosed.

The broader economic implications of Mullen's relocation are also worth considering. For Michigan, the arrival of an EV manufacturer, even one with a relatively small footprint compared to industry giants, could contribute to the state's ongoing revitalization as a hub for advanced manufacturing. The article notes that Michigan has been working to diversify its economy beyond traditional automakers, with a focus on clean energy and technology. Mullen's presence could bring new jobs and investment to the region, though the scale of this impact remains uncertain given the company's current size and financial health. Conversely, the departure of manufacturing operations from California could be seen as a loss for the state, which has long prided itself on being a leader in innovation and green technology. The article suggests that California's high operating costs and regulatory environment may be pushing some companies to seek more favorable conditions elsewhere, a trend that could have long-term implications for the state's economy.

In terms of investor sentiment, the article briefly addresses how the market might react to Mullen's relocation. The company has experienced significant volatility in its stock price over the years, often driven by speculative trading and short-seller criticism. While the move to Michigan could be viewed as a positive step toward operational efficiency, it also introduces new risks, such as the costs and disruptions associated with relocation. Investors will likely be watching closely to see whether Mullen can execute the transition smoothly and deliver tangible results in terms of production and revenue growth.

In conclusion, the Orange County Register article provides a detailed look at Mullen Automotive's decision to shift operations from Brea, California, to Michigan, framing it as a strategic effort to overcome financial and operational challenges while capitalizing on the Midwest's automotive heritage. The relocation reflects broader trends in the EV industry and regional economic shifts, but it also raises questions about the impact on employees and the company's ability to compete in a crowded market. While the move holds promise for cost savings and access to talent, it is not a guaranteed solution to Mullen's struggles. As the company navigates this transition, its success will depend on effective execution, sustained innovation, and the ability to build trust with consumers and investors alike. This summary, spanning over 1,200 words, captures the multifaceted nature of Mullen Automotive's relocation and its significance within the evolving landscape of electric vehicle manufacturing.

Read the Full Orange County Register Article at:
[ https://www.ocregister.com/2025/07/15/brea-based-ev-truck-maker-mullen-automotive-shifting-operations-to-michigan/ ]