Electric van maker Arrival collapses into administration after failing to sell a single vehicle, UK

A British electric van maker, once valued at £10bn, has collapsed into administration after failing to sell a single vehicle and burning through £1.5bn. Arrival, based in Oxfordshire, has appointed administrators at EY to find a buyer for the business, citing challenging market and macroeconomic conditions. The company’s shares plummeted by 99.98% following its Nasdaq flotation last year, as it became evident that Arrival couldn’t meet its financial obligations. The administrators are now exploring options for the sale of Arrival’s assets, including its electric vehicle platforms, software, intellectual property, and R&D assets, to benefit creditors. Arrival had secured substantial investments from prominent firms such as BlackRock, BNP Paribas, and Hyundai before going public. However, despite seeking cost reductions through repeated job losses, the company defaulted on its debts. Arrival had plans to produce electric vans and buses using small, automated microfactories in an effort to reduce costs compared to traditional car plants. The company had signed agreements with UPS and Uber to deliver thousands of vehicles tailored for their specific needs. Last year, Arrival shifted its manufacturing plans to the US to take advantage of subsidies offered by the Biden administration, but production never commenced. The collapse of Arrival comes after several other electric vehicle companies, such as Lordstown Motors and Nikola, encountered significant challenges.