Arrival has made a significant move by selling its numerous assets to Canoo, which is another promising EV startup on the line and is struggling to sustain its position in this highly competitive landscape. While Arrival started as one of the biggest players in the EV market, it has faced several challenges over the past few years which led the enterprise to bankruptcy. Therefore, it has taken this significant move to sell its assets. It will help both enterprises to overcome the challenges coming their way to overcome production and financial stability.
History of Arrival
TechCrunch has detailed the financial evaluation of Arrival since its launch. The company has a grand plan to surpass the challenges of EV development to revolutionize its production level. Based on its strategic approach, it was once valued at $13 billion. Arrival aimed to follow the approach of creating compact micro-factories in the center of the cities. In this way, it can make its way to build efficient vehicle assemblies.
Moreover, the company has made plans to get into the production of electric vans, cars, and buses. Also, it was around closing a deal with Uber to produce on-demand vehicles. However, the company faced numerous challenges periodically that have disrupted the progress schedule. Among the major setbacks are numerous restructurings, cash burns, and the departure of several executives. Consequently, the company filed for bankruptcy instead of achieving the level of large commercial production. Currently, the company is valued at a market of only $7.7 million.
Canoo’s Struggles
Canoo is also making its way into the electric vehicle market. However, it is facing enormous challenges because of its poor-quality designs and infrastructure. The EVs possess a skateboard architecture that can accommodate batteries as well as the electric drivetrain underneath its cabin. Moreover, there are potential anomalies in its sales pipeline which was reported to be more than $1 billion. Also, the pipeline includes a deal with Walmart to develop 4,500 units.
Another potential reason for the downfall of Canoo is its poor delivery strategy. While the company has achieved numerous sales figures, it is still facing challenges to convert its orders into real deliveries. This has brought immense loss to the company’s productivity and ability to stock splits and hold on to other measures.
Acquisition of Arrival
Despite the setbacks and marketing challenges, Canoo has purchased the Arrival’s assets. The move is expected to be a cost-saving strategy for the company as it will decrease the total expenditures on capital by up to 20%. The purchased assets are packed into more than 20 container ships and will be sent to Oklahoma where the main facility of Canoo is located. However, no details are made available regarding the acquisition of intellectual property of Arrival which has left the world with some uncertain situations.
