Electric vans, Arrival to get $300 mln funding
According to Reuters, the capital raised "will not provide for investments in production of its van in its Charlotte, North Carolina facility". Fundraising efforts to support the U.S. production plan might be promoted afterwards.
Arrival, one of the newcomers in the field of electric vans, is expected to get further $300 mln funding, in order to support the business until the end of the year. The British manufacturer is clearly in trouble as for cash flow, as reported by several media and also admitted by former CEO, Denis Sverdlov, in turn replaced last month by Igor Torlov.
Arrival: only electric vans for the U.S. market
The company is currently cutting workforce, after announcing the intention to focus the business only on van production and only for the U.S. market. Initially, the plan was quite different, as Arrival showed the intention to build electric vans, but also buses and even cars, in microfactories spread all over Europe and North America.
According to a very reliable source such as Reuters, the $300 mln funding comes from equity financing line from Westwood Capital after “U.S.-listed shares of the company closed 13.5% lower”. Reuters points out that at the end of 2022, Arrival had about $205 million in cash and cash equivalents.
However, the capital raised “will not provide for investments in production of its van in its Charlotte, North Carolina facility”. Fundraising efforts to fund the U.S. production plan might be promoted afterwards.
