Electric-vehicle startup Arrival SA is U-turning from plans to manufacture its vans in the UK, dealing another blow to Britain’s ambition to transition its manufacturing base to battery power.
(Bloomberg) — Electric-vehicle startup Arrival SA is U-turning from plans to manufacture its vans in the UK, dealing another blow to Britain’s ambition to transition its manufacturing base to battery power.
Arrival ended last quarter with about $330 million on hand, as its plunging share price inhibited efforts to raise funds through at-the-market stock offerings. With cash dwindling and its microfactory northwest of London requiring significant investment to scale up production, the company announced plans Thursday to restructure its business to focus on making vans in Charlotte, North Carolina.
Founder and Chief Executive Officer Denis Sverdlov last month telegraphed Arrival’s interest in seizing on the climate bill signed by President Joe Biden, which supports investment in manufacturing EVs in the US and subsidizes purchases of cars and commercial vehicles. Arrival’s earlier plan had been to deliver its first vans to UK customers this year, then launch its Charlotte microfactory in 2023.
The change in strategy will have a “sizable” affect on Arrival’s workforce, particularly in Britain, the company said in a statement. Roughly 1,000 of the more than 2,000 people employed as of August were in the UK.
Arrival’s announcement follows BMW AG’s decision to cease making electric Mini hatchbacks in the UK and shift production to China. Bloomberg News also reported earlier this month that cash-strapped battery hopeful Britishvolt Ltd. has been in discussions about selling its main factory site to Slovak startup Inobat.
Arrival listed in the US through a reverse merger with a special purpose acquisition company last year. Its shares have plummeted 90% this year.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
