8:07 am, August 8, 2022
An EV start-up founded in the UK by one of Vladimir Putin’s former ministers has put two major projects on hold in a bid to reduce costs, just weeks after it was announced the firm was laying off hundreds of workers.
Arrival, founded by Russian billionaire Denis Sverdlov, has suspended work on its bus and car projects due to spiralling costs.
The Financial Times reports the firm will now focus on production of its debut van as it looks to recoup its losses and generate income.
It is hoped that both projects could be revived down the line, pending the result of a restructuring review scheduled to be completed in September.
Arrival’s electric car plans were backed by the likes of Hyundai and Kia, which ploughed a whopping £93.7m ($111m) into the firm last year.
It was also due to begin making vehicles for Uber next year as well as zero-emission buses for travel giant FirstGroup.
The news comes just over a year after the outfit was listed on the New York-based Nasdaq in March 2021.
Since then, the London-based company’s shares have lost more than 90 per cent of their value.
Last week, Car Dealer reported that the firm was slashing jobs in a bid to cut costs.
Around 800 of its 2,700 worldwide staff are currently facing the axe, including several in Britain.
Arrival has not commented on the latest news, which came to light after three sources ‘close to the news’ spoke to the FT.
The firm maintains that its money problems have nothing to do with sanctions being imposed on people who are known to be associates of Putin, following the invasion of Ukraine.
Sverdlov, who owns three-quarters of Arrival and is its CEO, was Russia’s deputy communications and mass media minister for 15 months before stepping down in 2013.
The company was facing possible losses of £190m ($225m) before withdrawing from its bus and car schemes.
Its factory in Bicester is due to start making 10,000 vans for UPS soon.
