Another $1.5bn down the EV pan...

[st13phil]

It's reported that UK electric vehicle maker Arrival has entered administration with 170 jobs at risk, having burnt through $1.5bn without making a single van. Valued at €15bn just three years ago and having already shed 800 jobs together with shifting its manufacturing operation to the USA to take advantage of Biden's subsidies it has collapsed, unable to service its debts.

More details here:

UK electric vehicle maker Arrival enters administration with 170 jobs at risk

New York-listed company, once valued at $15bn, failed to launch its debut electric van

www.theguardian.com

...and here:

Electric van maker once valued at £10bn collapses into administration

Arrival appoints EY to find a buyer after shares delisted from Nasdaq following 99.9pc plunge

www.telegraph.co.uk

 

[Darrell]

Valued at 15 Billion in 2021!! Who by? Mickey Mouse.

 

[ALFAitalia]

All there proposed stuff looking like "Fisher Price- My First Commercial Vehicle" wont have helped either!!!

 

[MikeInWimbledon]

It's reported that UK electric vehicle maker Arrival has entered administration with 170 jobs at risk, having burnt through $1.5bn without making a single van. Valued at €15bn just three years ago and having already shed 800 jobs together with shifting its manufacturing operation to the USA to take advantage of Biden's subsidies it has collapsed, unable to service its debts.

More details here:

UK electric vehicle maker Arrival enters administration with 170 jobs at risk

New York-listed company, once valued at $15bn, failed to launch its debut electric van

www.theguardian.com

...and here:

Electric van maker once valued at £10bn collapses into administration

Arrival appoints EY to find a buyer after shares delisted from Nasdaq following 99.9pc plunge

www.telegraph.co.uk

Certainly didn't burn $1.5 billion.

Any more than Euan Blair would "burn" $1.4 billion if his very small recruitment company collapsed, having put a couple of thousand apprentices into large firms who like his dad.

Euan Blair’s firm Multiverse becomes unicorn with £1.4bn valuation

The apprenticeship business has secured another 220 million US dollars (£175 million) in funding, doubling its valuation in just eight months.

www.standard.co.uk

A valuation as a multiple of possible earnings or as a valuation on x% of company bought with £y million, isn't any sign of cash in the whole business.

Arrival did raise capital of $320 million, but it's unclear whether all that money was used. Sverdlov put money in at the beginning, and then took a lot out. It's unclear whether that was less or more than his original investment.

 

[st13phil]

Arrival did raise capital of $320 million, but it's unclear whether all that money was used.

While I agree that company valuations - especially in the EV sector are pure fantasy - according to the Grauniad article, "The company received a $660m cash injection when it listed on the stock market in 2021". So was the $320m part of the $660m or in addition?

As of June last year it was carrying around $300m of debt, and according to this article it lost $310m in the three months to September 2022 with a target of reducing its cash burn rate to a mere $30m per month from December that year. More info on it's financial woes in this article, from October 2023.

Whatever the true position, it's certainly burnt a substantial amount of cash.

 

[Harrythedog]

The King’s new clothes anyone?

 

[Ted]

Wasn’t there a very positive feature on them on Fifth Gear ( the EV version)?
Edit:
Yep…

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[SpikyMikey]

Arrival............departed

 

[rf065]

All there proposed stuff looking like "Fisher Price- My First Commercial Vehicle" wont have helped either!!!

View attachment 152931

View attachment 152932

I'd have to disagree, apparently they had a contract to supply UPS with delivery vans and these do not look very different to what they use now. If you've ever watched King Of Queens, I could see Doug Heffernan in the future driving one of these.

 

[SpikyMikey]

I'd have to disagree, apparently they had a contract to supply UPS with delivery vans and these do not look very different to what they use now. If you've ever watched King Of Queens, I could see Doug Heffernan in the future driving one of these.

You do wonder what went wrong when they apparently had an order from OOPS for 10,000 with an option for a further 10,000 units.

 

[rf065]

You do wonder what went wrong when they apparently had an order from OOPS for 10,000 with an option for a further 10,000 units.

Maybe, no matter how green you think you are or try to be, EV's are just no substitute for diesel engines in commercial vehicles? (standing by for some abuse from the tree huggers who just ignore reality)

 

[ALFAitalia]

Its happening ....like it or not 500 mile range HGVs are around the corner and all new HGVs will be EV by 2040 or 2050 depend...... what you read!!!

The Electric HGV / Lorry Guide 2024 | Electric Car Guide

The Guide to Electric HGVs. We give you a thorough overview of electric HGVs, including the benefits and limitations on moving from petrol to an electric lorry.

electriccarguide.co.uk

Amazon unveils first-ever fully electric heavy goods vehicles in its UK fleet

The vehicles mark an important step towards the company’s goal to become net-zero carbon by 2040, ten years ahead of the goal set by the Paris Agreement

www.aboutamazon.co.uk

Electric HGVs will soon be cheaper overall than diesels in the UK

But the Government has still not set out a detailed plan to enable the transition to zero-emission trucks.

www.transportenvironment.org

 

[Dryce]

I'd have to disagree, apparently they had a contract to supply UPS with delivery vans and these do not look very different to what they use now. If you've ever watched King Of Queens, I could see Doug Heffernan in the future driving one of these.

As an aside: UPS refer to them as 'package cars' and not 'delivery vans'.

 

[rf065]

As an aside: UPS refer to them as 'package cars' and not 'delivery vans'.

Americans are weird, no matter how long the language of "English" has been around, they just cannot help trying to reinvent it, never ever improving it!

 

[markjay]

It's reported that UK electric vehicle maker Arrival has entered administration with 170 jobs at risk, having burnt through $1.5bn without making a single van. Valued at €15bn just three years ago and having already shed 800 jobs together with shifting its manufacturing operation to the USA to take advantage of Biden's subsidies it has collapsed, unable to service its debts.

More details here:

UK electric vehicle maker Arrival enters administration with 170 jobs at risk

New York-listed company, once valued at $15bn, failed to launch its debut electric van

www.theguardian.com

...and here:

Electric van maker once valued at £10bn collapses into administration

Arrival appoints EY to find a buyer after shares delisted from Nasdaq following 99.9pc plunge

www.telegraph.co.uk

My instinctive reaction is that it was a sham from day one.

Over the past 20 years, almost all of the small independent car manufacturers were either bought buy one of the main manufacturers, or went into administration.

It should have been common knowledge by now that developing a new platform costs many billions and takes several years. Many a small car company only survived for as long as they could sell their current long-in the-tooth-models (Rover under the Phoenix Four, LDI, Bristol, etc). Not having the resources to have their next car being developed in the pipeline killed them all (with the exception of Morgan, possibly).

Anyone asking for money from investors to start a small independent car manufacturing business these days is either a hopeless optimist or a conman. Personal opinion.

 

[Dryce]

Its happening ....like it or not 500 mile range HGVs are around the corner and all new HGVs will be EV by 2040 or 2050 depend...... what you read!!!

The ranges quoted will be based on 500km not 500 miles. Actual range will be highly dependent on payload.

The argument that EV trucks become viable is based on particular patterns of usage. Shorter average journeys and depot based vehicles.

This makes sense - but moreover from an emissions point of view what are the chances that a disproportionate number of these shorter journeys that are more optimal are in the southern half of the country - so maximising the effect? Whereas the longer journeys where EVs may be less optimal will naturally reach outwards to the less densely populate areas.

 

[ALFAitalia]

Nope I meant 500 miles... the new Tesla truck will have that range with others quoting similar.

https://www.tesla.com/en_gb/semi