Arrival proposes business reorganisation
13 July 2022 - 06:15AM
Arrival (NASDAQ: ARVL), inventor of a unique new method of design
and production of equitable electric vehicles (EVs) by local
Microfactories, today confirmed that it has proposed a
reorganisation of its business in response to the challenging
economic environment as it focuses on its next major milestone -
starting production of the Arrival Van in Q3 2022.
Arrival has proposed plans that include a realignment of the
organisation that would enable it to deliver business priorities
until late 2023 primarily utilising the $500mn cash on hand.
Arrival’s proposal includes a targeted 30% reduction in spend
across the organisation and anticipates that it could potentially
impact up to 30% of employees globally.
Arrival continues to see a huge amount of interest in its
products, and believes that its proposals are the right step at
this time to ensure the long term success of the business and
enable it to service this demand in the face of a unique economic
environment that is seeing both new players and traditional OEMs
facing supply chain issues, an ongoing pandemic, geopolitical
tensions and rising inflation. Arrival believes it must address
these challenges now as it starts production this year.
Arrival’s vertical integration and new method for the production
of electric vehicles using Microfactories, puts it in a unique
position to respond to global issues such as these, with the
proposed changes enabling Arrival to be even more agile in the face
of ongoing global uncertainty. Arrival remains committed to
starting production of its Van in Q3 this year and preparing the
business for the unique opportunity ahead.
A business strategy update will be provided on Arrival’s second
quarter earnings call on 11th August 2022.
About ArrivalArrival was
founded in 2015 with a mission to make air clean by replacing all
vehicles with affordable electric solutions - produced by local
Microfactories. We are driving the transition to EVs globally by
creating products that are zero-emission, more desirable, more
sustainable and more equitable than ever before. Our in-house
technologies enable our unique new method of design and production
using rapidly-scalable, local Microfactories around the world. This
method facilitates cities and governments in achieving their
sustainability goals whilst also supercharging their communities.
This vertically integrated business model is how we can have the
radical impact our world needs today. Arrival (NASDAQ: ARVL) is a
joint stock company governed by Luxembourg law.
Forward Looking StatementsThis
press release contains certain forward-looking statements within
the meaning of the federal securities laws, including statements
regarding the products offered by Arrival and the markets in which
it operates. Such statements are made pursuant to the safe harbour
provisions of the Private Securities Litigation Reform Act of 1995
and are based on management’s belief or interpretation of
information currently available. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release.
Historical Stock Chart
From May 2023 to Jun 2023
Historical Stock Chart
From Jun 2022 to Jun 2023