British EV manufacturer Arrival has entered administration, jeopardising 170 jobs, just three years after achieving a valuation exceeding $15 billion.
The company, with two manufacturing sites in Oxfordshire, appointed EY as administrator following its failure to launch its inaugural electric van.
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Last week, trading of Arrival’s shares was suspended on New York’s Nasdaq stock exchange, accompanied by a notification of its removal due to non-compliance with listing standards and failure to file 2022 accounts.
EY administrators cited Arrival’s liquidity challenges, attributing them to difficult market conditions and macroeconomic factors causing delays in product launches. The administrators are now exploring options for selling the company’s business and assets, including electric vehicle platforms, software, intellectual property, and R&D assets, for the benefit of creditors.
Founded in 2014 in west London by Denis Sverdlov, a Russian telecoms billionaire, Arrival invested significantly in robot-heavy factories in Banbury and Bicester. Originally planning to launch a bus, car, and European van, the company later shifted focus to the US van market after cutting 800 UK jobs.
With 400 current staff, including 172 in the UK directly affected by the administration, Arrival recently laid off 39 employees and faced challenges in cost management. The company, which received a $660 million cash injection during its 2021 stock market listing, was valued at over $15 billion at its peak on the Nasdaq.
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By GlobalDataArrival’s demise contributes to recent setbacks in the UK’s EV market, following the collapse of Britishvolt, an electric vehicle battery maker, last year. However, Tata, the owner of Jaguar Land Rover, committed £4 billion to establish a battery gigafactory in Somerset.
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