Image: Arrival Group Arrival Group has confirmed that as of late Monday (5 February), EY administrators have been appointed to oversee the company’s two British subsidiaries, based in Banbury, Oxfordshire. This development puts approximately 200 jobs in jeopardy across nine UK locations. The company is actively seeking purchasers for its vehicle platforms, which cater to a variety of sectors such as logistics and delivery, public transportation, and ride-sharing. Additionally, Arrival is looking to divest its software, intellectual property, and research and development assets.
Arrival, an electric vehicle (EV) startup, went public during the pandemic and received backing from Hyundai. It achieved a valuation of $15 billion when it went public in 2021, having secured the support of notable clients like UPS and Kia. However, the company has encountered significant financial hurdles over the past two years, a common issue within the EV industry, including rising interest rates and inflation. Supply chain disruptions have been a persistent problem for the sector.
To address these challenges, Arrival had previously made substantial cuts to its global workforce and last year, pivoted its production focus to the United States. This decision postponed the delivery of vehicles to the European market and marked the abandonment of its long-standing goal to produce EVs in a ‘microfactory’ within the UK.
Arrival’s shares were removed from the Nasdaq at the end of January 2024 because the company did not submit its annual accounts for 2022. This event occurs just a few months after the collapse of electric truck startup Volta and its battery supplier Protera.
Inverto, a supply chain consultancy and subsidiary of Boston Consulting Group, is now cautioning about the potential for “severe supply-side bottlenecks.” This comes at a time when the demand for EVs from business fleets is increasing, yet innovative manufacturers are grappling with financial difficulties. Inverto has observed a 52% increase in the number of electric vans and lorries on UK roads in 2023 compared to the previous year. However, electric models still represent only 1% of the country’s total vehicular stock.
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