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Electric van maker Arrival misses quarterly production goal

Agencies
01 Oct 2022 00:00:00 | Update: 01 Oct 2022 00:19:16
Electric van maker Arrival misses quarterly production goal

British electric van and bus maker Arrival said on Friday it had missed its third-quarter target to start van production because of supply chain problems, but was on target to meet its goals for the end of 2022.

“The supply chain is broken and we’re a new company,” chief executive Denis Sverdlov told Reuters. “We are going through our own production hell ... but we expect we can go through this much quicker than traditional companies.”

Elon Musk, CEO of Tesla, famously complained of “production hell” as the electric carmaker struggled to scale up the manufacturing of its mass-market Model 3 sedan, reports Reuters.

Arrival and other commercial electric vehicle (EV) startups are burning through cash as they race to bring vans or trucks to market before the funds run out or customers choose to buy from legacy automakers instead.

In July, Arrival said it would reorganise its business, possibly resulting in up to a 30% reduction in its workforce. In August, the company said it would delay spending on its bus project as it seeks fresh funds.

By the end of the third quarter, Arrival said it had managed to build a “production verification vehicle” at its British “microfactory” in Bicester and would still deliver 20 vans to customers by the end of 2022 as previously announced.