The U.S. electric vehicle (EV) startup Canoo recently made a strategic move by acquiring a substantial portion of the advanced manufacturing assets previously owned by the U.K. startup Arrival at a discounted price. This acquisition includes robots, control equipment, and dynamic vehicle testing equipment, which will enable Canoo to increase its production capacity and efficiency. With this new equipment, Canoo aims to ramp up its production of components and vehicles at a lower cost.
### Evolution of Canoo’s Business Plan
Canoo, formerly known as Evelozcity, was founded in 2017 by former BMW executives with a focus on California and a subscription-based EV business model. Over the years, the company has undergone significant changes in its business strategy, shifting its focus to commercial vehicles and relocating to Arkansas. The acquisition of Arrival’s manufacturing assets in Oklahoma aligns with Canoo’s evolving business plan.
### Arrival’s Commercial Vehicle Focus
Arrival, on the other hand, originally focused on stylish electric delivery vans and secured a substantial order from UPS for 10,000 vehicles across Europe and North America. The U.K. startup aimed to streamline operations through a modular platform and internal component manufacturing. However, financial challenges led to the discontinuation of its electric car project and electric bus plans, ultimately paving the way for Canoo’s acquisition.
### Canoo’s Strategic Partnerships and Orders
Despite facing difficulties and resorting to a reverse stock split to avoid delisting from the NASDAQ exchange, Canoo has reported a significant order book exceeding $3 billion, including electric van orders from Walmart. The startup has also formed strategic partnerships with major companies and attracted committed orders, indicating a potential for growth and expansion in the EV market.
### The Path Forward for Canoo
By integrating Arrival’s advanced manufacturing assets, Canoo has the opportunity to enhance its production capabilities and meet the growing demand for electric vehicles. With a focus on commercial vehicles and innovative business models, Canoo is poised to capitalize on the evolving trends in the EV industry and establish a strong presence in the market.
Overall, Canoo’s acquisition of Arrival’s assets marks a significant milestone in its journey towards becoming a key player in the EV market. By leveraging these manufacturing assets, Canoo aims to accelerate production and deliver high-quality electric vehicles to meet the needs of its customers and partners.