LONDON – Arrival, a pioneer in the design and production of electric vehicles by local Microfactories, has confirmed that it has proposed a reorganization of its business in response to the challenging economic environment. The company is focused on its next major milestone – starting production of the Arrival Van in Q3 2022.
Arrival has proposed a realignment of the organization that would enable it to deliver business priorities until late 2023, primarily utilizing the $500mn cash on hand. Arrival’s proposal includes a targeted 30% reduction in spending across the organization and anticipates that it could potentially impact up to 30% of employees globally.
Arrival is continuing to see a great deal of interest in its products and believes that its current proposals are the right step to take in order to ensure the long-term success of the business. This will enable it to service demand adequately in the face of a number of unique challenges, such as those posed by new players entering the market, traditional OEMs facing supply chain issues, an ongoing pandemic, geopolitical tensions and rising inflation. Arrival believes that it is necessary to address these challenges now, as opposed to later down the line when production is already underway.
The company’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.