Arrival, a British electric van and bus manufacturer, said on Friday that it had missed its third-quarter target for starting van production due to supply chain issues, but that it was on track to meet its goals by the end of 2022.
"The supply chain is broken and we're a new company," chief executive Denis Sverdlov said. "We are going through our own production hell ... but we expect we can go through this much quicker than traditional companies."
Tesla CEO Elon Musk famously lamented "production hell" as the electric carmaker struggled to ramp up production of its mass-market Model 3 sedan.
Arrival and other commercial electric vehicle (EV) startups are burning through cash as they race to get vans or trucks to market before funds run out or customers opt to buy from legacy automakers.
Arrival announced in July that it would restructure its business, potentially resulting in a 30% reduction in workforce. In August, the company announced that it would postpone spending on its bus project while it sought new funding.
Arrival said at the end of the third quarter that it had built a "production verification vehicle" at its British "microfactory" in Bicester and that it would still deliver 20 vans to customers by the end of 2022, as previously announced.
Arrival still does not anticipate any revenue in 2022.
Arrival, like many others in the auto industry, stated that it had supply chain issues, including difficulties obtaining metal and parts such as lights and wire harnesses.
Arrival said it still expected to generate revenue in 2023 and would need to raise capital for its second van microfactory in Charlotte, North Carolina, which will primarily focus on fulfilling an order for up to 10,000 vans from package delivery company UPS.
(Source:www.reuters.com)
"The supply chain is broken and we're a new company," chief executive Denis Sverdlov said. "We are going through our own production hell ... but we expect we can go through this much quicker than traditional companies."
Tesla CEO Elon Musk famously lamented "production hell" as the electric carmaker struggled to ramp up production of its mass-market Model 3 sedan.
Arrival and other commercial electric vehicle (EV) startups are burning through cash as they race to get vans or trucks to market before funds run out or customers opt to buy from legacy automakers.
Arrival announced in July that it would restructure its business, potentially resulting in a 30% reduction in workforce. In August, the company announced that it would postpone spending on its bus project while it sought new funding.
Arrival said at the end of the third quarter that it had built a "production verification vehicle" at its British "microfactory" in Bicester and that it would still deliver 20 vans to customers by the end of 2022, as previously announced.
Arrival still does not anticipate any revenue in 2022.
Arrival, like many others in the auto industry, stated that it had supply chain issues, including difficulties obtaining metal and parts such as lights and wire harnesses.
Arrival said it still expected to generate revenue in 2023 and would need to raise capital for its second van microfactory in Charlotte, North Carolina, which will primarily focus on fulfilling an order for up to 10,000 vans from package delivery company UPS.
(Source:www.reuters.com)
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