Arrival of the EV startup to refocus its activity on electric vans for the American market | Engadget

In 2018, young electric vehicle manufacturer Arrival teamed up with UPS to build a new generation of electric delivery vans, starting with a pilot fleet of 35 vehiclesfor use in both United States and Europe. The company quickly expanded its scope from there, working on plans for an electrified bus, an electric ride-sharing vehicle for Uber and an $11.5 million battery factory. However, on Thursday the company abruptly announced that it had decided to end its bus and automobile projects to “refocus its resources on the US market while advancing its enabling technologies.”

In a Thursday press release, the company said that “increased production in Bicester [UK] The micro-plant requires significant additional investment in tooling and working capital, and the company determined that the benefits of such an investment would be better directed to the US market. technology that makes it work.

Arrival cites the U.S. electric vehicle tax credit as a major influence on its decision, noting that the Cut Inflation Act is “supposed to provide between $7,500 and $40,000 for commercial vehicles, [a] a large addressable market size and significantly better margins.” Unfortunately, the company will have to (ugh, their words) “do the right size” of the UK workforce, as in redundancies.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.

Source link
Exit mobile version