Arrival, a nascent electric vehicle manufacturer, teamed with UPS in 2018 to construct a new generation of electric delivery vans, starting with a prototype fleet of 35 cars for usage in both the US and Europe. From there, the business soon expanded its reach, with plans for an electric bus, an EV ridesharing car for Uber, and an $11.5 million battery facility. However, the business unexpectedly stated on Thursday that it has chosen to halt its bus and automotive initiatives in order to “refocus its efforts on the US market while further expanding its underlying technologies.”
According to a news statement issued on Thursday, “expanding production in the Bicester [UK] microfactory needs considerable additional investment in hard tooling and working capital, and the Company has assessed that the advantages of such an investment would be best directed to the US market.” As a result, the firm will reorganize and concentrate its efforts on the Van and the underlying technology that powers it.
Arrival attributes their decision to the US EV tax credit, adding that the Inflation Reduction Act is “anticipated to give between $7,500 and $40,000 for commercial cars, [a] vast addressable market size, and many superior profits.” Unfortunately, the corporation will have to “right size” the UK staff, which means layoffs.