Canoo, the EV manufacturer in Oklahoma City, is taking advantage of a competitor’s bankruptcy and acquiring its manufacturing equipment to be used in Oklahoma.
Canoo has acquired what is labeled as “advanced” manufacturing equipment from bankrupt commercial EV startup Arrival headquartered in Europe.
A report indicates that the equipment is packed into more than 20 container ships and is being sent to the Oklahoma City manufacturing plant located along Interstate 40. It should help the struggling EV maker with manufacturing costs as it tries to develop its commercial production and turn a profit.
Arrival is a British electric vehicle manufacturer with headquarters in Howald, Luxemberg. It had North American headquarters in Charlotte, North Carolina and raised $118 million from US funds manager BlackRock in the fall of 2020. Previous investments were made by Korean automaker Hyundai Motor Co and sister company Kia Motors Corp. and UPS.
But things didn’t go well and last year, Arrival cut 800 UK jobs to reduce costs and was left with 400 employees worldwide. Last month, the company stock was delisted from Nasdaq and the company sought bankruptcy protection in the UK.
A report by TechCrunch explained that as a result of Canoo’s acquisition, Canoo’s capital expenditures could be reduced by 20%. It previously had acquired all of the nearly new assets owned by Arrival’s operations in the U.S.