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Canoo acquires manufacturing equipment from bankrupt EV OEM Arrival at a deep discount

March 26, 2024

Canoo Inc. announced they acquired a significant portion of the manufacturing assets previously owned by Arrival Automotive UK Limited, and those assets will be transported to Canoo’s manufacturing facilities in Oklahoma. This follows Canoo’s acquisition of assets from Arrival Automotive USA, Inc. in January 2024.

The newly acquired assets will enhance Canoo’s manufacturing capabilities for its 2025 production, reducing costs. The assets will also accelerate Canoo’s transition to automated processes, shortening purchase lead times by over 40%, reducing capital expenditures by 20%, and eventually lowering unit costs. Canoo aims to improve its processes and product quality while producing at low volumes, allowing for simultaneous completion of supply chain harmonization and implementation of customer feedback before entering high-volume production.

The advanced manufacturing assets include equipment supporting cabin production processes such as robots, dispensing systems, advanced control equipment, PLC controllers, and equipment supporting general assembly capacity expansion such as advanced safety equipment, manipulators, high-tech dynamic vehicle testing equipment, and other spare equipment parts. These assets were purchased at a discounted price of over 80 percent of the estimated value and are new and like-new assets that were carefully reviewed, inspected, and selected by Canoo’s team on multiple on-site visits conducted over several months.

“Our current strategy will save our shareholders tens of millions of dollars, which today, is not properly reflected in the value of our company. We remain focused on capital discipline and the smartest way to invest and create value,” said Tony Aquila, Investor, Executive Chairman, and CEO of Canoo.