EV startup Canoo has bought up manufacturing equipment belonging to Arrival after the British EV company went under. The machinery will be shipped to Canoo’s plant in Oklahoma using 20 containers from the UK.
Canoo is firming up its production process with second-hand equipment sourced from Arrival. The American automaker will ship units including robots, dosing systems, control units, PLC controls, and other assembly equipment. Other items coming from the UK include safety and vehicle testing equipment and spare parts.
Canoo struck a bargain as it had to pay only 80 percent of the equipment’s appraised value.
This is not the first transaction of this nature between the two companies. Canoo bought “substantially all of the new and like-new assets of Arrival Automotive USA, Inc.,” which are being installed in Oklahoma after arriving from Arrival’s North Carolina plant.
Canoo hopes to cut production costs in its 2025 fiscal year while meeting its targets for this year.
According to a press release, “The assets purchased in this opportunistic transaction will accelerate Canoo’s transition to automated processes by shortening purchase lead times by over 40%, reducing capital expenditures by 20%, and eventually lowering unit costs.”
While Canoo is busy racking up orders for its Lifestyle Vehicle and Lifestyle Delivery Vehicle EVs, Arrival’s fortunes are going in the opposite direction. The British company filed for bankruptcy last month and is in the process of disposing of its assets, including its EV platform, software, and other intellectual properties. A $300 million cash injection last year was not enough to keep it afloat.
