Arrival Announces Plans to Restructure and Focus on the US Market

 Arrival has announced a proposal that would see the company refocus its resources on the US market. It will restructure its business to focus resources on a family of van products for the US market as well as its enabling technologies - including core components, composite materials, mobile robotics, and software-defined factories.

The result of these proposals is expected to have a sizable impact on the company’s global workforce, predominantly in the UK.

The major factors in its decision to shift focus to developing its US business included the tax credit recently announced as part of the Inflation Reduction Act - expected to offer between $7,500 to $40,000 for commercial vehicles, the large addressable market size, and substantially better margins.

The business plans to raise capital to fund the commercialisation of these vehicle programs in the US and is exploring all funding and strategic opportunities needed to bring the vans designed for the US into production at the company’s second Microfactory in Charlotte, North Carolina.

Arrival has achieved critical milestones this year including Bus and Van certification in Q2 and produced the first production verification L Van in the UK's Bicester Microfactory in Q3 which proves a vehicle can be assembled in a microfactory.

It will continue to produce a small number of vans in Bicester to optimise microfactory processes and support trials with customers.

In a press statement, Arrival says: 'Scaling production in the Bicester microfactory requires significant further investment in hard tooling and working capital and the Company has determined that the benefits of such an investment would be best directed to the US market'.

Arrival's in-house technologies enable a unique approach to produce vehicles using rapidly-scalable, local Microfactories