The British electric vehicle startup Arrival reported the suspension of the electric bus and car development projects, which would enable it to reduce costs by one third and focus on launching its debut electric van.
According to the news sources of the Financial Times, a London company has postponed testing of its electric bus and is suspending work on the electric car project, which could reduce to 800 jobs out of a total of 2,700 personnel.
Arrival is one of the more than ten car companies that have entered the stock market over the past two years through a SPAC deal. Almost all new businesses have experienced difficulties in starting car production, and now have to review their plans. Arrival stock has lost more than 90% of its value since its entry into the stock market last March, owing to a decline in investor optimism about the prospects of new road market participants.
Arrival reported that it has an order from the express delivery and logistics company UPS for the supply of 20,000 electric vans to transport cargo. The supply of Arrival electric vans is expected to start in the third quarter. This will allow the company to improve its financial position and possibly return to other forms of electric transport.