The UK-based EV maker Arrival said on Tuesday it will provide a business reorganization in response to “the challenging economic environment” ahead of starting production of its Van later this quarter. Arrival added that further details about the “business strategy update” will be provided during its second-quarter earnings call on August 11, 2022.
The realignment of the strategy would enable Arrival to “deliver business priorities until late 2023 primarily utilizing the $500M cash on hand” but also “a targeted 30% reduction in spending across the company, which can impact up to 30% of employees globally,” Arrival said.
The company reiterated the “huge amount of interest in its products” believing that its proposals “are the right step at this time to ensure the long-term success of the business”. Arrival mentioned “supply chain issues, an ongoing pandemic, geopolitical tensions and rising inflation” as the main causes for this business reorganization.
BE THE FIRST ONE TO GET THE NEWS
Recently, the company announced that its Van has achieved EU certification and received European Whole Vehicle Type Approval (EUWVTA), a critical step towards starting trials with customers in the coming months. A couple months after achieving the same approval for its buses, Arrival gets the EUWVTA for its Van and expects to start production of the Van in Bicester, UK in Q3 2022.
Last Friday, Arrival announced that entered into a partnership with Enel X — the world’s largest supplier of e-bus solutions outside China operating over 3,200 e-Buses globally — to test the battery-electric bus in Italy.
Recently, the company said that physical type approval testing is now complete for the Van, and the company expects to receive official paperwork over the coming weeks for European Whole Vehicle Type Approval (EUWVTA). Start production of the Van in Bicester, UK is expected for the third quarter of 2022 and Charlotte, NC, USA in Q4 2022.
Earlier this year, the company reported its financial results for the first quarter of 2022. Arrival CEO confirmed the total production of 400-600 Vans plus low volume production of Buses in the UK starting in the second half of the year.