Canoo, a struggling startup in the electric vehicle industry, has purchased assets from bankrupt commercial EV startup Arrival, including advanced manufacturing equipment. This acquisition is expected to reduce Canoo’s capital expenditures by 20% as it aims to transition from prototypes to commercial production. The assets, transported in more than 20 container ships, will be sent to Canoo’s facility in Oklahoma. It remains unclear if Canoo also acquired any of Arrival’s intellectual property.
Canoo has been facing its own challenges, having previously gone public through a merger with a special purpose acquisition company. Despite having over $1 billion in sales pipeline, the company has struggled to convert these sales into deliveries, leading to financial difficulties. To sustain itself, Canoo has resorted to stock splits and issuing more shares.
Arrival, once valued at over $13 billion and supported by major companies like Hyundai and UPS, aimed to revolutionize EV production with compact “microfactories.” However, the company faced financial setbacks and restructuring efforts, ultimately leading to bankruptcy. Canoo’s acquisition of Arrival’s assets marks a significant development in the evolving landscape of the electric vehicle industry.
For more information about Arrival’s bankruptcy and Canoo’s challenges, you can read the full article here.
