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EV maker Arrival enters administration with 400 jobs at risk

 (Arrival)
(Arrival)

British electric vehicle maker Arrival has entered administration, putting around 400 jobs at risk.

The formerly New York-listed company, which had two manufacturing plants in Oxfordshire, said it had been impacted by tough economic conditions and delays to bringing its prototype vehicles to market.

The firm has appointed EY as administrators.

In a statement, EY said: Arrival's "liquidity position has been impacted by challenging market and macroeconomic conditions resulting in delays in getting the group’s products to market.

"As such, the joint administrators are now exploring options for the sale of the business and assets of the companies, including its electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors."

Launched in London in 2014, Arrival had been tipped as one of the most promising British tech firms by the UK government, which invited the firm to give a presentation at its Global Investment Summit to "show why the UK is a global hub for green technology."

The firm would go on to become one of the UK's most valuable tech unicorns, hitting a peak valuation of over $13 billion following its IPO on the Nasdaq stock exchange in early 2021, with Russian founder Denis Sverdlov's stake worth as much as $7 billion. The company counted top carmakers Hyundai and Kia among its biggest early investors.

But a series of setbacks, delays and cancellations to bringing its EVs to market has seen its shares tumble 98% over the past year, forcing the company to delist last week amid delays to the publication of its financial statements.

The company had planned to develop a range of cutting-edge electric vehicles including vans, taxis, cars and buses -- but in early 2023 it cut around 800 jobs in a bid to slash cost and tighten its focus on developing electric vans in the US.

Interested parties have been invited to contact EY to bid for the company's remaining assets.