Arrival (NASDAQ: ARVL), developer of a new design and production of equitable electric vehicles (EVs) by local Microfactories, has this week suggested a reorganization of its business in response to the adverse economic environment as it concentrates on its next key milestone – beginning production of the Arrival Van in the third quarter of 2022.
Arrival has presented ideas that involve a restructuring the oganization to allow the company to deliver business priorities until late 2023 by utilizing the $500 million in available capital. Arrival’s proposal includes a targeted 30 percent reduction in expenditures across the organization and predicts that it may affect up to 30% of employees worldwide.
Arrival continues to see a great deal of interest in its prodcts, and believes that its proposals are the right move at this time to ensure the long-term success of the business and enable it to meet this demand despite a unique economic environment in which both new players and traditional OEMs are experiencing supply chain issues, an ongoing pandemic, geopolitical tensions, and rising inflation. As production begins this year, Arrival feels it must solve these issues immediately.
Arrival’s vertical integration and revolutionary approach to the production of electric vehicles using Microfactories puts it in a unique position to respond to global concerns such as these; the proposed adjustments will enable Arrival to be even more adaptable in the face of continuous global uncertainty. Arrival remains dedicated to beginning production of the Van in the third quarter of this year and to preparing for the great opportunity that lies ahead.