models to focus on the electric Van, planned for UPS fleets and slated to be built in one of Arrival's microfactories. The EV startup had already set up its US headquarters in Charlotte, North Carolina, and announced plans for a second microfactory stateside, after the first one had opened in South Carolina.
This week the company appointed a new CEO, and maintains plans to begin assembly of the Van in South Carolina in 2024, albeit"subject to raising additional capital." But to get there, it is cutting costs and shedding hundreds of employees just a few months after letting go almost all of its UK staff. At the end of 2022, the company still had $205 million in cash.
Back in November, Arrival cited the Inflation Reduction Act , expected to offer between $7500 and $40,000 in tax credits, as a motivating factor in its move stateside. But even in a more favorable setting from a tax perspective, Arrival still faces many of the same issues including a raft of competitors including