Canoo to acquire Arrival advanced manufacturing assets
The advanced manufacturing assets 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. All purchased "at deep discount".
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.
How Canoo will utilize former Arrival equipment
More into economic details, Canoo 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.
The advanced manufacturing assets 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.
