UK Electric Vehicle Maker Arrival Enters Administration
Arrival, a British electric vehicle maker, has gone into administration putting 170 jobs at risk. The company, previously valued at $15 billion, appointed consultancy firm EY as administrator after failing to launch its debut electric van.
Arrival Collapses into Administration
Arrival, the UK-based electric vehicle maker, has entered administration, jeopardizing 170 jobs. The company, once valued over $15 billion, failed to launch its first electric van. Consultancy firm EY has been appointed as the administrator.
Arrival's liquidity was affected by difficult market and macroeconomic conditions that led to delays in getting its products to market. The administrators are currently exploring options for the sale of the company's business and assets for the benefit of creditors.
Background on Arrival
Founded in 2014 in London, Arrival invested heavily in robot-heavy factories in Banbury and Bicester. It had plans to launch buses, cars, and European vans, but later shifted its focus to the US van market. The company received a $660 million cash injection when it listed on the stock market in 2021.
Arrival had 400 staff, with 172 based in the UK and directly affected by the administration. The company struggled to manage costs and recently made 39 staff redundant. Its initial plan was to concentrate on vans and buses before potentially expanding into smaller passenger vehicles, including taxis and cars for consumers.
Challenges in the UK Electric Vehicle Market
Arrival's collapse adds to the list of failures in the UK's electric vehicle market. Last year, Britishvolt, an electric vehicle battery maker, also went into administration due to difficulty securing investment. However, there have been successful investments, such as Tata's agreement to invest £4 billion in a battery gigafactory in Somerset.
