Nikola pauses production and ends relationship with Iveco

Nikola has announced that it will be pausing production of its zero-emission heavy duty trucks for several weeks. The pause will be used to adjust the company’s vehicle mix and to alter its relationship with a key European partner.

According to the company Nikola will temporarily halt production at its Coolidge factory in Arizona at the end of May, with manufacturing expected to resume in July. During this period, the company will retool the factory to accommodate both hydrogen fuel-cell and battery-electric trucks. The move comes as the company looks to diversify its product offerings.

For the first quarter Nikola reported it was able to produce 63 Tre battery electric trucks, selling just 33 of those. With production outpacing demand, Nikola says they have enough trucks in inventory to shut down for two months. Despite this, Nikola says that it will not be laying off any of its 1,500 employees, who are mainly based in Arizona.

“As we have sufficient inventory of the battery electric truck, we will temporarily pause production in Coolidge as we modify the assembly line to accommodate both hydrogen fuel-cell and battery-electric builds on the same line,” the company said. (via AZCentral)

Nikola is also expanding its Coolidge factory, with completion scheduled for the end of June. In addition to its zero-emission heavy trucks, the company is working on developing a hydrogen-fueling network and a network of electric charging stations.

Along with the pause in production, Nikola and Iveco Group are ending their four-year partnership, with Iveco taking full ownership of their joint venture in Ulm, Germany. Nikola will sell its stake in the European manufacturing joint venture for $35 million and 20.6 million shares of Nikola common stock that will be returned by Iveco, which will remain a key supplier.

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