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Canoo revs up U.S. EV manufacturing plan and drops abroad deal

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EV startup Canoo Inc on Wednesday mentioned it was accelerating its manufacturing plans within the U.S. and ending its deal for VDL Nedcar within the Netherlands to function its contract producer in Europe.

Canoo shares had been up 3 p.c in after hours buying and selling.

The Arkansas-based firm mentioned the shift from utilizing VDL Nedcar abroad to counting on the crops it’s constructing in northwest Arkansas and Pryor, Oklahoma, was made to cut back supply-chain vulnerabilities and abroad transport prices, and enhance velocity to marketplace for its autos.

“The initiatives introduced immediately are one other step in executing our technique of decreasing threat and growing certainty,” Chief Government Tony Aquila mentioned in an announcement. “We have now concluded that constructing in America is healthier aligned with our mission.”

Canoo mentioned beginning manufacturing in Oklahoma stays on monitor for late 2023, nevertheless it additionally now expects to start constructing electrical autos in Arkansas subsequent 12 months, as a substitute of utilizing the VDL Nedcar plant.

It added that whereas the cope with VDL Nedcar was useless, it was nonetheless exploring partnership alternatives in Europe with the Dutch firm’s father or mother, VDL Groep BV.

Canoo mentioned VDL Nedcar will return Canoo’s prepayment of $30.4 million, however VDL Groep will purchase $8.4 million value of Canoo inventory.

Canoo mentioned it now expects to construct 3,000 to six,000 EVs subsequent 12 months in Arkansas, up from its earlier goal of as much as 1,000 abroad. It additionally plans to supply 14,000 to 17,000 EVs in 2023, in contrast with its prior goal of 15,000.

The corporate additionally offered manufacturing targets of 40,000 to 50,000 autos for 2024, and 70,000 to 80,000 for 2025. Canoo has beforehand mentioned the Oklahoma plant will construct greater than 150,000 a 12 months at full capability.

Canoo mentioned in November it could add a plant in Arkansas to construct small package deal supply autos, however a spokesman mentioned the ability will have the ability to flex between that car and the corporate’s seven-seat, pod-shaped vans it calls “life-style autos.”

In December 2020, Canoo went public by way of a reverse merger with a special-purpose acquisition firm (SPAC). In April, it modified CEOs, with Aquila, a former software program government and considered one of Canoo’s largest shareholders, taking up.

Canoo developed a “skateboard,” or a low-rise platform bundling batteries and electrical motors with such chassis elements as steering, brakes and wheels, on which a wide range of car physique varieties could be constructed. The corporate additionally plans to construct a pickup truck.


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