Reach bus and Uber racks to cut costs and prioritize truck

The recent news out of London confirms earlier data from the UK electric startup EV – which said it plans to cut at least a third of its costs amid slumping cash flow in order to get production of its electric truck on the starting line. The company aims to start generating revenue from the access car before returning to developing two other electric vehicles, the bus and the car.

Arrival (ARVL in dollars) is a seven-year-old EV company focused on urban mobility, including an all-electric passenger bus, delivery van, and ride-on vehicle designed in tandem with Uber.

The company is currently headquartered in both London and Charlotte, North Carolina, but all research, development and design is currently done in the UK. This is where Arrival Van production will begin with the company’s unique small plant approach.

Although the Access Q1 report said Van and Bus production remained on track for 2022, the startup, like many companies, has faced financial problems due to the challenging economic environment around the world, with rising interest rates and volatile markets. stock.

Since it went public via a SPAC merger in March 2021, the startup’s stock has steadily declined, leading to an announcement in July that it would reorganize its business to focus on Arrival Van production. Here’s the company’s statement at the time:

Access has proposed plans that include a reorganization of the organization that would enable it to deliver business priorities through late 2023 with $500 million in cash on hand. The Access proposal includes a 30% target reduction in spending across the organization and is expected to impact up to 30% of employees globally.

With nearly a third of its 2,700 employees worldwide likely to face the chopping block, sources close to the start-up state that two Arrival truck-tracking vehicles are set to follow…at least in the near future.

Arrival car and bus / Source: Arrival

Reach pauses buses and car to build pickup trucks and generate revenue

According to a recent report by financial times, the development of the access company’s bus and car would also fall victim to the company’s business restructuring. According to the report, people close to the matter say the arrival bus will be suspended, including UK trials with potential first customer, First Bus.

In addition, the ride-sharing-focused arrival car, which was co-developed with Uber, will also be suspended. Its prototype was revealed in late 2021 and trials were supposed to begin sometime this year. According to one of FT’s Sources, the car could resume development once the company starts generating revenue. Hopefully this will now happen only on her Van.

Despite some of the aforementioned hurdles, Arrival appears to be on track to deliver its flagship Van next quarter, which should provide a vital cash flow lifeline, especially with UPS’s whale-like order in its book.

UPS initially ordered 10,000 electric delivery vans to arrive in early 2020, that number has doubled since then and will be the main focus of the startup’s initial van production in the UK. Production and delivery will be critical to not only getting into Van’s post production but to help boost its shrinking stock as well.

We’ve reached out to Access, but are unable to comment at this time due to the proximity of the August 11 second quarter report. We are sure to know more concrete details about this production hub at that time.

Take Electric

The Financial Times report seems a bit shocking to me. It’s not fair to say that Wassoul made a tough market move after its merger with SPAC, but it’s more a symptom of this cooling fad than the company’s performance.

However, if you are not making any revenue during tough economic times, not many investors will stop and throw some coins into your cup. I’d rather hear this news than access live, so there’s not much to say until August 11th.

However, I will say that I don’t see anything particularly scary about putting a pin access in two of their electric vehicles to put their head down and get a real product (van) into series production. According to an investor report from the first quarter, 96% of non-binding LOI requests were for pickup trucks anyway.

What’s the point in continuing to develop the bus and the car if the whole company (including the pickup truck) gets sucked into the process? Lower the weight and circle back when your pockets are full.

It may have stretched too far to try to build three electric cars at once and manufacture them in two different countries, but the arrival appears to be centered. I just hope the employee guarantees are reduced.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to podcasts.

%d bloggers like this: