Will the remnants of an EV startup arrival help keep the canoe alive?

US EV startup Canoo announced earlier this week that it had acquired a “substantial portion of the advanced manufacturing assets” owned by UK startup Arrival for “pennies on the dollar”.

The assets Canoo acquired from the failed startup include robots, control equipment and dynamic vehicle testing equipment, it said.

“These assets will enable the company to increase its general assembly and vehicle cabin construction capacity and provide redundancy in the event of equipment malfunction, thereby increasing efficiency and productivity,” explained Canoo. So if Canoo can tap the knowledge and manufacturing expertise needed to use this tool, the tool could help increase production of some components, if not vehicles, at a lower cost.

Canoo already acquired what remained of the South Carolina facility that arrived in January, however what remained of the UK startup’s flagship operation was a significant acquisition, taking over 20 shipping containers.

Canoe Lifestyle Delivery Vehicle with Walmart logo

Canoo claims it has an “order book” of more than $3 billion and more than 18,000 “committed orders”. Order an electric van from Walmart. The startup has struggled in recent months, resorting to a reverse stock split to avoid being delisted from the NASDAQ exchange.

Its business plan has evolved greatly over the years. Canoo launched in 2017 as Evelozcity and was led by several former BMW executives. In 2019, it changed its name to California and A Subscription EV business. In recent years, it has moved to Arkansas, shifting its market primarily to commercial vehicles, and production is planned in Oklahoma, where the equipment will be led.

USPS Canoo LDV 190 Van

USPS Canoo LDV 190 Van

While the initial focus of the arrival was commercial vehicles, Canoo has gradually changed its business plan. Its basic product is set as serial Stylish electric delivery vans, including an initial 10,000-vehicle order from UPS spanning Europe and North America. UPS took a minority stake in Arrivals in a deal that sounds like a smaller version of Amazon’s initial commitment to Rivian.

It also aims at direct operation. With a modularized platform and core components set to be built in-house and a “microfactory” approach, Arrival was initially aimed at US production of electric buses, with its signature electric vans first to be manufactured in the UK.

Teaser for Canoo electric cars

Teaser for Canoo electric cars

Canoo previously had its eyes on a whole range of EVs, including passenger cars. Arrival was also working Arrival carA space-efficient, high-roofed car was the base Strategic relationship with UberBut in early signs of trouble in 2022 Arrival dropped the electric car Planning and electric bus projects.

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