Bankrupt EV startup Arrival sold its assets to Canoo

Bankrupt industrial EV startup Arrival has bought a few of its property, together with superior manufacturing tools to Canoo, one other struggling startup attempting to construct and promote electrical autos.

The acquisition, which was touted as a cost-saving measure that may scale back capital expenditures by 20%, comes as Canoo struggles to maneuver past prototypes towards industrial manufacturing. Canoo stated the bought property, packed into greater than 20 container ships, can be despatched to the corporate’s facility in Oklahoma. The corporate beforehand acquired all the new, and “like-new” property owned by Arrival’s enterprise unit in the US. It’s unclear if Canoo additionally acquired any of Arrival’s IP.

Canoo didn’t reply to a request for remark.

Arrival introduced in January that it deliberate to unload property and IP from its U.Ok. division after submitting for chapter safety within the U.Ok. Arrival, as soon as valued at greater than $13 billion and backed by Hyundai and UPS, claimed it was going to revolutionize the manufacturing of electrical autos by constructing them in compact “microfactories” that may very well be positioned in metropolis facilities.

These plans, which included an electrical bus, vans and even a purpose-built automobile for Uber, fell aside because it burned by way of money and numerous executives. Arrival restructured at the least thrice — in every occasion, shedding staff — and shifted its focus to the US and away from the U.Ok. market to protect capital. Arrival by no means produced any industrial autos at scale and its market valuation is now round $7.7 million. After years of volatility and a share worth that misplaced almost all of its worth, the corporate filed for chapter.

Canoo, in the meantime, has had its personal struggles. After going public through a merger with a particular function acquisition firm, the corporate struggled to provide its EV, an attention-grabbing design primarily based on a “skateboard” structure that homes the batteries and the electrical drivetrain in a chassis beneath the automobile’s cabin.

Canoo beforehand reported it has greater than $1 billion in its gross sales pipeline, a determine largely attributable to a take care of Walmart to buy 4,500 models, with an choice to purchase as much as 10,000 models. Nonetheless, the corporate has struggled to transform these gross sales into deliveries.

Canoo is basically a pre-revenue firm burning by way of money and has needed to revert to inventory splits and issuing extra shares to remain afloat. Final yr, the corporate moved to a unique tier within the Nasdaq Trade after its inventory worth languished beneath $1 and triggered a delisting discover.