Arrival sold its manufacturing asset to Canoo after bankruptcy

Canoo has announced the acquisition of valuable and advanced manufacturing assets belonged to no longer existing e-van manufacturer Arrival “at deep discount”, as written in the official press note. As stated by Canoo itself, the company’s strategy “in acquiring new and unused equipment at pennies on the dollar (80%+ discount), reduces capital expenditures by tens of millions of dollars, enhancing equity value”.

The purchased assets will be collected into more than 20 containers and shipped by sea to Canoo’s manufacturing facilities in Oklahoma. As announced in January 2024, Canoo previously acquired substantially all of the new and like-new assets owned by Arrival Automotive USA, Inc. These assets were transported from Arrival’s North Carolina facility and received at Canoo’s Oklahoma facility where commissioning is underway.

Arrival, founded in 2015, had prior to insolvency announced its plan to refocus its resources on the development of its US Van product, therefore putting the Arrival bus project on hold in order to cut costs. In mid-2022 they had already announced a business reorganization.

Canoo takes over assets from Arrival

More into economic details of the deal between Canoo and Arrival, Canoo states it now has the necessary manufacturing equipment to deliver 2024 production and this acquisition expands its capabilities to deliver its 2025 production at significantly lower costs. The assets purchased in this opportunistic transaction will accelerate Canoo’s transition to automated processes by shortening purchase lead times by over 40%, reducing capital expenditures by 20%, and eventually lowering unit costs.

Arrival’s advanced manufacturing assets, now going to Canoo, include equipment supporting cabin production processes such as robots, dispensing systems, advance control equipment, PLC controllers and equipment supporting general assembly capacity expansion such as advanced safety equipment, manipulators, high-tech dynamic vehicle testing equipment and other spare equipment parts.

“Our current strategy will save our shareholders tens of millions of dollars, which today, is not properly reflected in the value of our company. We remain focused on capital discipline and the smartest way to invest and create value,” said Tony Aquila, Investor, Executive Chairman, and CEO of Canoo.

Arrival Bus project, a recap

Arrival electric bus project was announced in Spring 2020. At that time the company said it has invented a unique assembly technology to produce all the vehicles in its portfolio from what the company calls “microfactories”, deployable worldwide to serve local communities, pay local taxes and support retention of local talent.

The UK-based startup has debuted on Nasdaq in 2021. In May 2022 Arrival announced that it was going to start production of the electric bus in Q3 2022. Public road trials with First Bus were also expected in Q3 2022 (delayed). In the same 2022 Enel X and Arrival announced they have entered into a partnership to test the zero-emission battery electric bus in Italy. Also, Arrival had signed a partnership with Hitachi Europe regarding the providing of new bus and infrastructure solutions to the European bus industry.