A British-based electric van maker which aimed to become a leader in EV manufacturing has filed for administration, placing around 400 jobs at risk.
In a statement, joint administrators EY said they were now exploring options for a sale of the business and its assets, including its “electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors.”
“The Group’s liquidity position has been impacted by challenging market and macroeconomic conditions resulting in delays in getting the Group’s products to market,” EY said.
The formerly Nasdaq-listed company had been struggling for cash for months and received a notice in January from the exchange warning it was not in compliance with the listing rules.
Shares had fallen by over 95 per cent in the last year, with the company’s market capitalisation at around $20m, having been valued at around $5.4bn on its first day of trading.
EV firms that went public during the pandemic benefitted from soaring investor demand. However, they have since faced high interest rates, inflation, supply chain issues and problems down the production line.
Rival Volta Trucks filed for insolvency in October while Essex-based Tevva Motors has also struggled for cash and explored a move to the US.
Arrival, whose research and development facility is based in Banbury, Oxfordshire, had aimed to build cutting-edge electric vans, taxis and other vehicles. It slashed around 800 jobs in 2023 as it cut costs and increased its focus on US markets.