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Arrival the latest EV manufacturer to face financial constraints

Arrival has announced 800 jobs are at risk while it seeks to avoid exhausting its cash reserves.

As with many development-rich engineering businesses, the UK-based developer of electric vehicles has faced unforeseen issues in bringing its products to market, including supply chain problems, the long term effects of the Coronavirus pandemic, and macroeconomic factors such as rising inflation.

They are not alone, with other EV manufacturers, even the well-established Tesla, reporting similar problems. Even when the product is technically sound, business factors can present obstacles to getting that product to market.

So long as this immediate storm can be weathered, it seems that the future of the EV market is promising, with more demand being logged for new vehicles as fleet owners start to transition over from IC powered drive trains.

Arrival said its cuts would help the company begin production of its first vehicle, an electric van to be used by logistics group UPS, in the third quarter. It has a deal to sell 10,000 electric vans to UPS, which has invested in the business.

Tags

transport, climate change, start-ups & spin-outs
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