EV maker Arrival cutting jobs again in pivot away from UK to the US • TechCrunch

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Commercial EV “reach” is restructuring its business for the second time in six months as it tries to make the most of its remaining capital.

The company said in a regulatory deposit It posted on Thursday that it is shifting its focus to the US and away from the UK market, where it is headquartered and where the first electric trucks were supposed to be delivered.

Arrival, which went from starting a hidden electric car to a public shareholding company Via the SPAC merger, it said it would now put the bulk of its remaining resources toward producing a “family of truck products” for the US market. The money will also go towards related technologies such as core components, composite materials, mobile robots, and what it describes as software-defined factories.

This move will cause huge pain throughout the company, especially job cuts. The company said it plans to increase the “appropriate size of the organization and reduce cash-intensive activities” to expand its cash trajectory, which at the end of the third quarter amounted to $330 million.

The company did not provide specific details about the number of jobs it plans to cut. The language the company uses in its organizational profile indicates that it will be important. Wasl said the restructuring is “expected to have a significant impact on the company’s global workforce, particularly in the UK”.

The company said it will provide more information in its third-quarter earnings call on November 8.

Access also said it will try to raise more capital to fund marketing of these vehicle programs in the United States and “explore all the funding and strategic opportunities” needed to bring the country-built trucks into production at the company’s second small plant in Charlotte, North Carolina.

Arrival does not leave the UK completely. The company said it will continue to produce a small number of pickup trucks at its small Bicester plant to support trials with customers.

Key factors in the company’s decision to shift focus to developing its business in the United States included the tax credit recently announced as part of the Inflation Reduction Act – expected to provide between $7,500 and $40,000 for commercial vehicles, a large steerable market size, Much better profit margins. .

In June, Access said it would cut costs and Reducing up to 30% of its workforce In an effort to protect the business from a difficult economic environment while achieving production targets. At the time, Access said the plan would allow the company to meet its goals through late 2023 using the $513 million in cash it had.

In August, arrival Delivery plans reduced from 400 vehicles to 20 and postponed the development of its battery-powered electric buses to focus on pickups.

Now it seems those cuts weren’t enough.

The access company had planned to use its existing $513 million cash plus funds available through $300 million “in-to-market” (ATM) to deliver first vehicles to UK customers this year, investing in hardware and launching a small Charlotte plant next year. However, the company’s low share price, which closed the day at $0.72, combined with daily trading volumes meant that the ATM was an unreliable source of capital.

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