Arrival to focus on van development. Buses and cars on pause in order to cut costs
Arrival “reported a wider quarterly loss and said it would delay spending on its bus project as it looks to secure more capital”, Reuters reports.
Arrival will focus exclusively on van development, thus putting projects on buses and cars on pause due to costs issues. The news was anticipated by several press articles and then confirmed by Arrival itself in August. Arrival “reported a wider quarterly loss and said it would delay spending on its bus project as it looks to secure more capital”, Reuters reports. The news comes shortly after it was announced that the UK company is planning a business reorganization with up to 30 per cent of the workforce to be eventually reduced.
As mentioned on Bloomberg, “This would be the company’s first year of revenue, and Arrival forecast it would generate more than $1 billion. The company expected about $5.1 billion in 2023 and $14.1 billion in 2024. But earlier this month, Arrival disclosed a series of setbacks continue to plague its efforts to start production, telling investors it doesn’t expect any revenue at all this year”.
Prospects, microfactories and disruptive elements. The Arrival project explained by Andrea Finardi, Head of Commercial for Southern Europe
Arrival will now focus on van development
The announced pilot with First Bus will be reportedly postponed as Arrival is now focusing on the van project: “The focus right now for the organization is to start production on the van” Avinash Rugoobur, Arrival’s president, is quoted as saying to Bloomberg journalists. Besides, Arrival gained popularity after the order of 10,000 light electric trucks from delivery company UPS announced in late January 2020. The electric bus project was announced in Spring 2020.
Back in June, Arrival zero-emission van received EU certification, thus completing all the required functional and safety testing to achieve EUWVTA, the latter being a critical step towards starting trials with customers in the coming months.