Arrival (company) explained

Arrival
Type:Public
Traded As:NASDAQ:
Founder:Denis Sverdlov
Key People:Igor Torgov (CEO)
Location:Howald, Luxembourg
Area Served:Worldwide
Products:Electric vehicles
Owner:Denis Sverdlov (35%)[1]
Num Employees:800 (2023)
Footnotes:[2]

Arrival was a British electric vehicle manufacturer[3] [4] headquartered in Howald, Luxembourg that planned to build lightweight commercial vehicles.[5] Research and development took place at a facility in Banbury, Oxfordshire.[6]

Arrival raised $118 million from US funds manager BlackRock in October 2020, adding to previous investment from Korean automaker Hyundai Motor Co and sister company Kia Motors Corp of $111 million.[7] The company became listed on NASDAQ by merging with special-purpose acquisition company CIIG Merger Corp.[8]

In February 2024, after getting its stock delisted from the Nasdaq, Arrival's UK division entered administration, with future plans of a sale of Arrival and all of its affiliated assets.[9]

Vehicles

According to Arrival, four electric vehicle types are being developed: a bus, a van, a large van, and a small vehicle platform. Start of production of the bus is planned for the last quarter of 2021.[10]

Van

See main article: Arrival Van. The van will have a engine, giving a maximum speed of 120km/h, and a payload of up to . Depending on the battery option specified, the van will have a range of from 180km (110miles) to 340km (210miles) on a single charge.[11] U.S.-based United Parcel Service (UPS) has placed an order for 10,000 delivery vans from Arrival, with the option for an additional 10,000.[12] [13]

Bus

See main article: Arrival Bus. In June 2020, Arrival announced that the Arrival Bus was undergoing beta prototype testing.[14] The company unveiled its prototype in November 2021, and said that production would commence at its South Carolina plant in the second quarter of 2022.[15]

Car

Arrival has developed a car for the purpose of ride hailing. It has done so in partnership with Uber and in close consultation with Uber drivers. Arrival has also entered a partnership with Breathe, which will serve as the third-party distributor of the Arrival car.

History

Founded in 2015 by Russian telecom billionaire businessman Denis Sverdlov, the former Deputy Minister of Mass Communications to the Kremlin[16] who previously served as the General Director of the Yota Group, a Russian mobile service provider, Arrival is a global company with headquarters in Kensington, London and Charlotte, North Carolina, US. It has an R&D facility in Banbury, and offices in North America, Germany, Israel, Russia and the Netherlands.[17] In 2021 Sverdlov was the company's majority owner, holding 76% of shares following the company's public listing on the NASDAQ stock exchange.[18]

In August 2017, the Royal Mail announced an agreement with Arrival to trial nine vehicles in the ranges of 3.5, 6 and 7 tonnes GVW.[19]

In May 2019, United Parcel Service announced a deal with Arrival to trial 35 vehicles across London and Paris as part of a wider strategy to electrify their massive fleet of delivery vehicles.[20]

BlackBerry announced in October 2019 that they would be powering Arrival's Generation 2.0 intelligent electric vehicles. As part of the agreement, BlackBerry would license its BlackBerry QNX technology to Arrival, including its QNX SDP 7.0 real-time operating system, to serve as the secure foundation for ADAS features within the company's vehicle platform.[21]

Mike Ableson, former Vice President of EV Infrastructure and Global Strategy at General Motors, joined Arrival in October 2019 as CEO of Automotive and North America.[22]

In December 2019, Cubic Telecom, a connectivity management software provider, partnered with Arrival to deliver intelligent connectivity software to their electric vehicle fleets.[23]

Arrival announced in January 2020 that Hyundai Motor Group and Kia Motors had invested €100 million in the company, marking the start of a strategic partnership between the automakers to accelerate the adoption of commercial electric vehicles globally.[24] Following the investment, Arrival revealed that they had achieved "unicorn" status, valuing the start-up at €3 billion.[25] Arrival plans to use "microfactories" to build their electric vehicles having developed a "skateboard" platform containing a drive train and batteries.[26]

On 29 January 2020, Arrival announced that UPS had invested in the company and placed an order for 10,000 Generation 2 electric vehicles to be rolled out across the UK, Europe and North America before 2024 as part of their transition towards a zero-emissions fleet.[27] The deal was reported to be worth $400m along with an equity stake in the company of an undisclosed size.[28] The purpose-built electric vehicles have been co-developed by Arrival and UPS in order to meet UPS's exact specifications, including the latest advanced control and safety features.[29]

Arrival acquired a new factory in Bicester in March 2020, with plans to be operational by 2021 and start production in 2022.[30]

Arrival announced a new passenger bus in June 2020, designed for coronavirus-era social distancing.[31] The comopany said the bus would be priced the same as a comparable diesel bus; lower running costs would make operating it cheaper for operators in the long term.[32]

In December 2020, Arrival established its North American headquarters in Charlotte, North Carolina, US.[33]

On 25 March 2021, the company went public on NASDAQ under ARVL symbol.[34] The company was valued at more than US$15bn on the Nasdaq at its peak, dropping from 2022 to $250M in January 2023.

Arrival has established operations in the United States, with the Charlotte, North Carolina metro area serving as the company's U.S. base of operations. Arrival's first U.S. office was in the South End neighborhood.[35] The company's first U.S. microfactory in the nearby South Carolina suburb of Rock Hill was to produce buses.[36] The company was investing $41.2M for its second microfactory in West Charlotte, where it planned to produce UPS delivery vans from mid-2022, with a workforce of 250.[37] [38] [39] [40]

In late May 2021, Arrival announced that it would be building electric cars for Uber ride-hailing drivers, with production expected in Q3 of 2023.[41] [42] In August 2021, Arrival President Avinash Rugoobur stated that the company would open a product development R&D center in India due to increasing interest from that market.[43] In November 2021, the company announced that it would start production the following year.[44] In November 2021, it was reported that Arrival had non-binding orders or letters of intent for 64,000 vehicles.

In January 2023, the company cut 800 UK jobs, about half the remaining workforce, to reduce costs while seeking extra funding and planning to expand in the US to take advantage of green energy subsidies. It still employs 400 employees worldwide.[45]

In October 2022, the company announced job cuts amid relocation of its van production from Bicester to the US.[46] It also announced restructuring of its business to focus on the US market by capitalising on the incentives from Inflation Reduction Act of 2022.[47] In January 2023, it reduced its remaining UK workforce by half, to 800, to concentrate on the US and take advantage of green energy subsidies.[45] The company also appointed Igor Torgov as its CEO.[48]

In Spring 2023, Arrival announced a second merger with special purpose acquisition company (SPAC) Kensington Capital Acquisition Corp V for $283 million dollars.[49] The deal was later cancelled due to concerns about Arrival's production delays. Arrival also lost out on a $25 million dollar investment by US hedge fund Antara Capital. The agreement to purchase an additional $25m in equity was terminated before the deadline of June 30th, 2023.[50]

Arrival was delisted from Nasdaq in January 2024 and shortly afterward began insolvency proceedings.

Leadership

List of former chairmen

The position of chairman was first formed in November 2020, when Arrival publicly listed on the NASDAQ.

  1. Peter Cuneo (2020–2022)[52]

List of former chief executives

  1. Denis Sverdlov (2016–2022)
  2. Peter Cuneo (2022–2023); interim CEO

External links

Notes and References

  1. News: Lambert . Yannick . 26 June 2023 . Luxembourg e-car maker Arrival reeling as owner dumps shares . . subscription . Whilst Sverdlov's Kinetik still owned more than 60% in Arrival in January, according to the register, his stake went down to just above 35%.
  2. Web site: Arrival Registration Statement (Form F-3) . 24 February 2023 . US Securities and Exchange Commission.
  3. Web site: Arrival's electric van is ready for testing. ca.finance.yahoo.com. 3 March 2021 .
  4. Web site: Ex-Russian minister stands to gain 3,000% from electric vehicle maker Arrival SPAC, report says. finanzen net. GmbH. markets.businessinsider.com.
  5. Web site: Arrival is the Tech Company that's Decided to Make Electric Vans . Jones . Mark . 20 October 2019 . TechHQ . Hybrid . 14 January 2020.
  6. Web site: Our factory is in Banbury, Oxfordshire. . ARRIVAL . 13 March 2020 . . 13 March 2020.
  7. News: BlackRock invests $118 million in UK electric vehicle startup Arrival . . 14 October 2020 . 10 February 2021.
  8. Web site: UK electric vehicle maker Arrival is going public via SPAC at a $5.4 billion valuation . Browne . Ryan . . 18 November 2020 . 18 November 2020.
  9. News: 2024-02-05 . Arrival: Electric van maker's UK arm enters administration . 2024-02-06 . en-GB.
  10. Web site: Arrival Analyst Presentation . 10 February 2021.
  11. Web site: New British-built Arrival electric van: in-depth info, official pics and more. https://web.archive.org/web/20220815082947/http://www.parkers.co.uk/vans-pickups/news/2021/arrival-electric-van/. 15 August 2022. 12 August 2022. C.J.. Hubbard . Parkers. Page replaced by "New British-built Arrival electric van: major blow to UK plans", Tom Webster, 20 October 2022, same URL
  12. Web site: UK electric van maker Arrival secures £340m order from UPS . The Guardian . January 30, 2020 . December 26, 2021.
  13. Web site: Arrival Van . techcrunch.com . March 18, 2021 . September 9, 2021.
  14. Tomlinson . Victoria . 17 June 2020 . Arrival Bus Reimagines Public Transportation for a New Normal . London, UK . Arrival . 30 July 2020.
  15. Web site: UK's Arrival unveils pre-production prototype electric bus . yahoo!finance . November 18, 2021 . December 26, 2021.
  16. Web site: Henni . Adrien . 2021-04-05 . Former Russian Government Official Denis Sverdlov Scores $10Bln With Electric Vehicle Startup . 2022-04-17 . The Moscow Times . en.
  17. Web site: Arrival Time: How the White Van Went Green . Jolly . Jasper . 17 September 2019 . . 14 January 2020.
  18. Web site: Dawkins . David . 25 March 2021 . The Founder Of Electric Vehicle Maker Arrival Is Worth $10.6 Billion After SPAC IPO . . https://web.archive.org/web/20210325215155/https://www.forbes.com/sites/daviddawkins/2021/03/25/the-founder-of-electric-vehicle-maker-arrival-is-worth-106-billion-after-spac-ipo/ . 25 March 2021 . live.
  19. Web site: Royal Mail's New Electric Vans Unveiled . 23 August 2017 . . 14 January 2020.
  20. Web site: UPS to Deploy a Fleet of New Neat-Looking Custom-Built All-Electric Delivery Trucks . Lambert . Fred . 9 May 2018 . . 14 January 2020.
  21. Web site: Arrival's Intelligent EVs to be Powered by BlackBerry's QNX Technology . Smith . Adrian . 19 November 2019 . Auto Futures . 14 January 2020 . 5 February 2021 . https://web.archive.org/web/20210205210314/https://www.autofutures.tv/2019/11/19/arrivals-intelligent-evs-blackberrys-qnx-technology/ . dead .
  22. Web site: Former GM Executive Mike Ableson to Lead Arrival's North American Operations . 1 October 2019 . Auto Futures . 14 January 2020 . 15 January 2020 . https://web.archive.org/web/20200115010716/https://www.autofutures.tv/2019/10/01/former-gm-executive-mike-ableson-to-lead-arrivals-north-american-operations/ . dead .
  23. 14 January 2020 . Cubic Telecom Partners with Arrival . Cubic Telecom . 11 December 2019.
  24. 16 January 2020 . UK Electric Vehicle Unicorn Arrival Receives €100M Investment from Hyundai and Kia . Arrival . 16 January 2020 . Tomlinson . Victoria . London, UK and Seoul, South Korea.
  25. News: UPS Orders 20,000 Vehicles from Electric-Van Maker Arrival . . 29 January 2020 . subscription . 24 February 2020. Campbell . Peter .
  26. Web site: British Electric Van Company Arrival Claims "Unicorn" Status as Hyundai and Kia Invest . Tovey . Alan . Field . Matthew . 16 January 2020 . . 16 January 2020.
  27. Web site: UPS Orders 10,000 Electric Vans from British Start-Up Arrival . Page . Felix . 29 January 2020 . . . 31 January 2020.
  28. Web site: UK Electric Van Maker Arrival Secures £340m Order from UPS . Jolly . Jasper . 29 January 2020 . . 31 January 2020.
  29. Tomlinson . Victoria . 29 January 2020 . UPS Invests in Arrival and Orders 10,000 Generation 2 Electric Vehicles . London, UK and Atlanta, USA . Arrival . 31 January 2020.
  30. Web site: British Electric Van Manufacturer Acquires New Factory in Bicester . Tyrrell . Michael . 13 March 2020 . Production Engineering Solutions . MIT Publishing . 2 April 2020.
  31. Web site: Arrival's Electric Bus is Designed for Coronavirus-Era Social Distancing . Szymkowski . Sean . 17 June 2020 . Roadshow . . 29 June 2020.
  32. Web site: Electric Truck Unicorn Arrival Revamps the Transit Bus for a Post-Coronavirus Era . https://web.archive.org/web/20200617155835/https://www.forbes.com/sites/alanohnsman/2020/06/17/electric-truck-unicorn-arrival-revamps-the-transit-bus-for-a-post-coronavirus-era/ . dead . 17 June 2020 . Ohnsman . Alan . 17 June 2020 . . 29 June 2020.
  33. Web site: 9 December 2020. British electric vehicle maker to open HQ in Charlotte, bring 150 jobs. The Charlotte Observer. https://web.archive.org/web/20201209153036/https://www.charlotteobserver.com/news/business/article247716240.html. 9 December 2020. live.
  34. Web site: Arrival Lists its Shares on Nasdaq With the Symbol "ARVL"; First Electric Vehicles due Q4 2021. 2021-03-29. arrival.com.
  35. Web site: Fahey . Ashley . London electric vehicle company to open U.S. corporate office in Charlotte . Charlotte Business Journal . American City Business Journals . 19 October 2020.
  36. Web site: Fahey . Ashley . Electric vehicle company Arrival to establish first U.S. microfactory in Rock Hill, creating 240 jobs . Charlotte Business Journal . American City Business Journals . 19 October 2020.
  37. Web site: Electric vehicle maker to build UPS delivery trucks at new Charlotte factory. 2021-03-30. wcnc.com. 23 March 2021. en-US.
  38. Web site: Arrival to open a second US microfactory to build electric vans for UPS. 2021-03-30. TechCrunch. en-US.
  39. Web site: Clifford. Tyler. 2021-03-23. British EV start-up Arrival is setting up in North Carolina to build a UPS fully electric fleet. 2021-03-30. CNBC. en.
  40. Web site: Arrival EV Van Startup Will Build Second US 'Microfactory' To Meet UPS Order. 2021-03-30. InsideEVs. en.
  41. Web site: Arrival to make an electric car for Uber drivers. 2021-06-06. www.fleetnews.co.uk. en.
  42. Web site: Arrival Will Build an EV Passenger Car—for Uber Drivers. 2021-06-06. www.msn.com.
  43. Web site: Arrival is on track to begin production of its electric bus and van next year . TechCrunch . 12 August 2021 . 21 August 2021.
  44. Web site: UK's Arrival unveils pre-production prototype electric bus. 18 November 2021 .
  45. Web site: Lawson . Alex . Electric vans startup Arrival to cut 800 jobs amid focus on US market . the Guardian . 30 January 2023 .
  46. Web site: Campbell . Peter . 20 October 2022 . EV start-up Arrival to cut UK jobs in production shift to US . . limited.
  47. Web site: Savyata . Mishra . Akash . Sriram . EV startup Arrival to focus on U.S. market to rein in costs . 20 October 2022 . Reuters.
  48. News: British EV startup Arrival to lay off half its staff, names insider as CEO . 30 January 2023 . Reuters.
  49. Web site: Simister . George . Arrival pushes ahead with second SPAC merger amid cost-cutting . UKTN . 16 May 2023 . UK Tech News . 9 February 2024.
  50. Web site: Agarwal . Kabir . Arrival loses key finance lifelines as troubles mount . Sifted . 9 February 2024.
  51. Web site: Board of Directors . https://web.archive.org/web/20220519210236/https://arrival.gcs-web.com/corporate-governance/board-of-directors . 19 May 2022 .
  52. Web site: Management team . https://web.archive.org/web/20221015220634/https://arrival.gcs-web.com/corporate-governance/management . 15 October 2022 .

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