Bankrupt commercial electric vehicle startup Arrival sold some of its assets, including advanced manufacturing equipment, to Canoo, another struggling startup trying to build and sell electric vehicles.
The acquisition, which was touted as a cost-saving measure that will reduce capital expenditures by 20%, comes as Canoo struggles to move from prototypes to commercial production. Canoo said the acquired assets, packed into more than 20 container ships, will be shipped to the company’s Oklahoma facility. The company previously acquired all new and “as new” assets owned by Arrival’s U.S. business unit. It is unclear whether Canoo also acquired any intellectual property from Arrival.
Canoo did not respond to a request for comment.
Arrival announced in January that it planned to sell assets and intellectual property of its UK division after file for bankruptcy protection in the United Kingdom Arrival, once valued at more than $13 billion and Backed by Hyundai and UPSstated that it was is going to revolutionize the production of electric vehicles by building them in compact “microfactories” that could be located in city centers.
Those plans, which included an electric bus, vans and even a car specially designed for Uber, failed, burning up cash and several executives. Arrival restructured at least three times (in each case, laying off workers) and changed its focus on the United States and away from the UK market to preserve capital. Arrival has never produced any commercial vehicles at scale and its market valuation is now around $7.7 million. After years of volatility and a stock price that lost almost all its value, the company filed for bankruptcy.
Canoo, meanwhile, has had its own problems. After make it public Through a merger with a special purpose acquisition company, the company struggled to produce its electric vehicle, a striking design based on a “skateboard” architecture that houses the batteries and electric drivetrain in a chassis under the cabin. vehicle.
Canoo previously reported that it has more than $1 billion in its sales pipeline, a figure largely attributable to a deal with Walmart to buy 4,500 units, with an option to buy up to 10,000 units. However, the company has had difficulty converting those sales into deliveries.
Canoo is essentially a pre-revenue company burning cash and has had to divide shares again and issuing more shares to stay afloat. Last year, the company was moved to a different tier on the Nasdaq Stock Exchange after its share price languished below $1 and prompted a delisting notice.