Written by Cláudio Afonso | [email protected] | LinkedIn | X
Mullen Automotive announced on Monday the starting of a “significant cost reduction and consolidation measures” expecting the measures to save $170 million over the next 12 months.
Mullen expects to sell 100 commercial EVs this month via its partner Randy Marion Automotive Group. The group’s Vice President Automotive Fleet Operations endorsed the goal saying that “building on March transactions, our April goal is to move 100 units of Mullen Commercial EVs.”
Operating and investing cash flows were $179 million and $108 million, respectively, for the 12 months ended on September 30th, 2023. The move aims to “refine business operations and better align focus on the commercial EV segment that has opportunity to drive near term revenue,” the company said.
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Reductions in operating cash flows are estimated to be approximately $69 million and investment spending is estimated to contract by $101 million over the next 12 months when compared to the Company’s spend over the last fiscal year.
The overall changes are focused on long-term growth and are intended to reduce the Company’s costs during a time when the consumer EV sector and overall market has proved challenging. These actions are intended to reduce the company’s operating outlay when compared to the previous fiscal year.
The Company’s planned changes include the following:
- Prioritizing near term revenue opportunities and significantly curtailing noncommercial programs
- Integration of Troy and Irvine engineering centers with focus on building efficiency through consolidation
- Focus on expanding national commercial dealer network
“Our refined business operational focus will improve our financial results and allow us to take advantage of current market opportunities while also driving long-term growth and shareholder value,” the CEO David Michery added.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
