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Canoo Inc., an advanced mobility company, announced a major milestone with the activation of its Oklahoma City manufacturing facility as a Foreign-Trade Zone (FTZ). This designation, granted by U.S. Customs and Border Protection (CBP), allows Canoo to benefit from deferred import tariffs and other cost-saving measures as the company scales its global production efforts. The FTZ status will streamline operations, lower costs, and improve profit margins as Canoo continues to expand its electric vehicle production.
Key Highlights:
- FTZ status insulates Canoo from import tariffs, allowing for deferments and exemptions.
- Immediate cost benefits include a 5% reduction in the Bill of Materials (BOM) costs for imported parts, significantly improving profit margins.
- Canoo has worked with CBP for over a year to finalize this activation, completing the final milestone in September 2024.
- The Oklahoma City facility now qualifies as one of the largest Foreign-Trade Zones in the state.
- The approval allows other vendors and partners to relocate into Canoo’s user-driven site, broadening the FTZ benefits for the company and its partners.
- The activation supports Canoo’s expansion into markets across the U.S., the United Kingdom, Europe, and the Middle East.
Canoo’s FTZ activation marks an important step in optimizing its supply chain by shielding the company from fluctuating tariffs and reducing operational costs. These advantages will be crucial as Canoo continues to innovate and deliver electric vehicles globally.
About Canoo:
Canoo Inc. (NASDAQ: GOEV), founded in 2017, specializes in producing electric vehicles for commercial and government clients worldwide. The company’s modular platform is designed to maximize interior space and provide flexible, software-driven solutions for a wide range of applications. Headquartered in Justin, Texas, with facilities in Oklahoma City, Canoo continues to expand its presence across the U.S. and internationally. For more details, visit www.canoo.com.
This new FTZ designation represents an essential part of Canoo’s strategy to remain competitive in the fast-evolving electric vehicle market while optimizing costs and improving margins.
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