Bankrupt EV startup Arrival sold its assets to Canoo

Failed industrial electric vehicle startup Arrival has sold a few of its assets, including advanced manufacturing equipment, to Canoo, one other struggling startup trying to construct and sell electric vehicles.

The acquisition, which was touted as a cost-saving measure that may reduce capital spending by 20%, comes as Canoo seeks to move beyond prototypes and into industrial production. Canoo said the purchased assets, packed into greater than 20 container ships, shall be shipped to the corporate’s facility in Oklahoma. The company previously acquired all latest and “almost new” assets owned by its Arrival business unit within the United States. It is unclear whether Canoo also acquired any Arrival IP addresses.

Canoo didn’t respond to a request for comment.

In January, Arrival announced it planned to sell the assets and mental property of its U.K. division after filing for bankruptcy protection within the U.K. Arrival, once valued at greater than $13 billion and backed by Hyundai and UPS, claimed ​​will revolutionize the production of electrical vehicles by constructing them in compact “micro-factories” that might be positioned in city centers.

Those plans, which included an electrical bus, delivery trucks and even a automobile custom-built for Uber, fell apart once they burned money and lots of managers. Arrival has restructured no less than thrice – in each case shedding employees – and has shifted its focus to the US, away from the UK market, so as to preserve capital. Arrival has never produced any large-scale industrial vehicles, and its current market valuation is around $7.7 million. After years of fluctuations and a stock price that lost just about all of its value, the corporate filed for bankruptcy.

Meanwhile, Canoo was battling its own problems. After going public through a merger with a special purpose vehicle, the corporate struggled to produce an electrical vehicle – an eye catching design based on a “skateboard” architecture that houses the batteries and electric drivetrain in a chassis beneath the vehicle’s cabin.

Canoo previously said it was targeting sales of greater than $1 billion, which was largely attributable to its cope with Walmart to purchase 4,500 units with an option to buy up to 10,000 units. However, the corporate had difficulty converting these sales into deliveries.

Canoo is actually a non-revenue company that burns money and had to return to stock splits and issuing more shares to stay in business. The company moved to one other level on the Nasdaq last yr after its share price fell below $1, prompting a delisting notice.