UK-based electric van manufacturer Arrival has announced it is shifting focus to the US market as it opens a new micro-factory in North Carolina next year and scales back its UK operations in Bicester. The company started production of the battery-powered van in Q3 2022, with parcel-giant UPS taking the first trial vehicles, but has now announced it is focusing on the more lucrative North American commercial vehicle sector. ”

Arrival_van

Arrival_van

”The major factors in the Company’s decision to shift focus to developing its US business included the tax credit recently announced as part of the Inflation Reduction Act - expected to offer between $7,500 to $40,000 for commercial vehicles, the large addressable market size, and substantially better margins,” says the company.

In August, Arrival annnounced it was shelving plans for an electric bus and car to focus on van production, the latest news will involve job losses at the UK base with company confirming in the announcement ”…the result of these proposals is expected to have a sizable impact on the Company’s global workforce, predominantly in the UK”. The company will retain a small presence in the UK and will continue to produce a small number of vans in order to support customer trials and optimise microfactory processes.