Canoo has filed for chapter after shedding its remaining workforce over the previous two months. Based in 2017, Canoo as soon as boasted a peak employment of 800 however struggled financially, counting on loans and by no means attaining profitability. The corporate plans to liquidate its property to settle money owed and collectors.
Canoo was among the many electrical automobile startups that appeared to have a promising future because of its revolutionary merchandise. Nonetheless, it not too long ago introduced its Chapter 7 chapter attributable to failure in securing the capital wanted for operations. The corporate had already minimize almost 1 / 4 of its workers (roughly 30 workers) in November as a part of a method to stabilize financially. By 2024, its workforce had considerably decreased from the 800 workers it had in 2021. A former worker expressed doubt about Canoo’s longevity, predicting it won’t final past the next 12 months.
In a placing flip, Canoo dismissed its remaining 82 workers a month later, highlighting considerations about its viability. As 2025 begins, the corporate confirmed its chapter and rapid cessation of operations, committing to liquidate its property solely to pay collectors and settle excellent payments.
CEO Tony Aquila, a big investor within the firm, expressed gratitude to the staff for his or her dedication and acknowledged their perception within the agency. He additionally thanked a number of companions, together with NASA, the Division of Protection, the U.S. Postal Service, the State of Oklahoma, and Walmart, for his or her assist.
Canoo had developed an adaptable skateboard electrical automobile platform able to accommodating numerous physique kinds, attracting curiosity from Hyundai, which sought a partnership for joint EV platform improvement. Though Hyundai introduced the partnership in 2020, it in the end faltered inside a 12 months, failing to supply significant help to Canoo.
The U.S. Postal Service positioned an order for six Way of life Supply Car 190 vans in early 2024 to judge their performance inside its mail supply fleet. Equally, the Royal Mail in Britain started testing two Canoo vans, with plans to obtain 2,000 items if the trials had been profitable.
Canoo stood out from many EV startups with tangible merchandise and substantial curiosity behind them. Its manufacturing facility in Oklahoma Metropolis had the potential to supply round 1,100 well-paying jobs when working at full capability, and the corporate sourced 90% of its components from North America, 70% of which had been sourced from the USA.
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