Due to the recent trouble and after the end of the joint venture with IVECO, Nikola was forced to adjust its business plan, in order to keep their zero-emission dream alive. According to the U.S. manufacturer, the business needs to be optimized, so to get “a marked decrease in cash spend and streamlining of operations”.
This implies the need to realign cost structure, reduce cash use and reorganize workforce. North America will be the only market to look at. Moreover, the supply chain will be in turn reorganized, with the battery manufacturing center moved from Cypress, California, to the company’s HQs in Coolidge, Arizona, along with planned assembly of Bosch fuel cell power modules.
“Difficult but strategic decisions” to preserve the Nikola business
As stated by the company itself, “Nikola conducted a thorough review of its organizational structure and made the difficult but strategic decision to reduce its headcount, which is expected to decrease personnel-related cash spend by more than $50M annually. The reduction affected roughly 150 team members across multiple sites who were previously supporting (in part or in full) the company’s European programs, as well as approximately 120 employees based predominately at the company’s Phoenix and Coolidge sites. Nikola is supporting those affected with transition assistance. These decisions preserve 900 jobs and are intended to create a sustainable structure that matches the organization’s focus and positions the company for future growth”.
Nikola Class 8 hydrogen fuel cell electric truck will be launched in Q3, 2023, with “178 sales orders from 14 end customers” already recorded, according to the U.S.-based company. The legacy Romeo Power business will be also reorganized.
“Nikola has initiated a more focused business plan this quarter, concentrating on North America, zero-emission truck production, and our HYLA hydrogen business,” said CEO Michael Lohscheller. “Our battery-electric truck is in the marketplace and performing well for our customers, and the hydrogen fuel cell electric truck will go into production in a matter of weeks. We are proactively managing costs and reducing expenses. We are streamlining operations, including our organizational structure, to efficiently execute our objectives.”