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Canoo, a high-tech advanced mobility company, has acquired new and like-new manufacturing assets at its Oklahoma City facility, previously owned by Arrival Automotive UK This includes 44 containers with 226 lots of advanced manufacturing equipment, such as state-of-the-art robots. These assets aim to enhance production scalability, reduce lead times, and lower unit costs for Canoo's electric cargo vehicles, LDV130 and LDV190. Canoo emphasizes a domestic-focused supply chain with over 90% of parts from the U.S. or allied nations and plans to continue opportunistic acquisitions of advanced equipment. The initiative is part of Canoo's strategy to bolster automation and scale 'Made-in-America' EV production.
Positive
- Acquisition of advanced manufacturing assets will streamline production processes.
- Increased production scalability and reduced lead times expected for 2025.
- Lower capital expenditures and unit costs anticipated.
- Focus on a domestic supply chain with over 90% of parts sourced from the U.S. or allied nations.
- Facility uses a skilled American workforce and is powered by clean energy.
Negative
- Possible dependency on the timely and effective integration of newly acquired assets.
- Uncertainties around the successful scaling of production volumes as planned.
The acquisition of advanced manufacturing assets by Canoo at a discounted rate represents a significant step towards improving their production efficiency. These high-tech assets, including state-of-the-art robots and infrastructure, will not only streamline their processes but also reduce capital expenditures and lead times. This move aligns with Canoo’s strategy to leverage automation to enhance scalability and lower unit costs.
For a retail investor, this could mean a potential reduction in operating expenses and a stronger competitive position in the EV market. These improvements could help Canoo achieve higher production volumes and better profit margins in the future. However, it's important to monitor how effectively these assets are integrated into their existing operations and the actual cost savings realized.
Moreover, the focus on a domestic supply chain and utilization of clean energy aligns with current market trends favoring sustainability, which could enhance Canoo's brand appeal. Overall, while this news is promising, the long-term benefits will depend on execution and market conditions.
Canoo's acquisition of discounted manufacturing assets can positively impact its financial health by reducing future capital expenditures. These savings could be reallocated towards other strategic initiatives or used to strengthen the company’s balance sheet. Additionally, the anticipated lower unit costs and improved scalability could translate into higher margins and profitability in the long run.
From an investor's perspective, these developments suggest a prudent capital management approach and a focus on long-term growth. However, it’s important to consider the potential risks, such as the cost and time required to integrate these assets and achieve the desired efficiencies. Investors should keep an eye on upcoming financial reports for indicators of these benefits materializing.
The move to enhance manufacturing capabilities through discounted assets is strategic for Canoo as it positions itself in the highly competitive electric vehicle (EV) market. By improving production efficiency and scalability, Canoo can respond better to market demands and potentially increase its market share.
For retail investors, it is essential to recognize the broader market trends, such as the growing demand for EVs and the increasing importance of sustainable manufacturing practices. Canoo’s focus on a domestic supply chain and clean energy usage could resonate well with consumers and investors looking for environmentally responsible companies. However, the competitive landscape remains challenging and Canoo will need to continue innovating and managing costs effectively to maintain a competitive edge.
Bolsters Automation and Scale for Made-in-America EVs
JUSTIN, Texas, June 24, 2024 (GLOBE NEWSWIRE) -- Canoo Inc. (Nasdaq: GOEV), a high-tech advanced mobility company, today announced that it has received the first of two tranches of new or like-new advanced manufacturing assets, formerly owned by Arrival Automotive UK Limited, at its Foreign Trade Zone (FTZ) designated facility in Oklahoma City, OK. The received assets will bolster in-house processes and enable higher cabin line production volumes in 2025.
Canoo received 44 containers with 226 lots of advanced manufacturing assets including state-of-the-art robots along with a suite of comprehensive production infrastructure. These assets will streamline Canoo’s production processes, leading to reduced lead times, enhanced production scalability, lower capital expenditures, and eventually lowering unit costs.
The Oklahoma City Facility manufactures Canoo’s electric cargo vehicles - LDV130 and LDV190.
Canoo has a domestic-focused supply chain with over
Canoo will continue to pursue opportunistic purchases of advanced manufacturing equipment as it becomes available using a disciplined approach.
About Canoo
Canoo Inc.'s (NASDAQ: GOEV) mission is to bring EVs to Everyone. The company has developed breakthrough electric vehicles that are reinventing the automotive landscape with their pioneering technologies, unique design, and business model that spans multiple owners across the full lifecycle of the vehicle. Canoo designed a modular electric platform that is purpose-built to maximize the vehicle interior space and is customizable for all owners in the vehicle lifecycle, to support a wide range of business and consumer applications. Canoo has teams in California, Texas, Oklahoma, and Michigan. For more information, visit www.canoo.com and investors.canoo.com.
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements about our plans, expectations and objectives with respect to the results and timing of the reverse stock split and the effect the reverse stock split will have on the Company’s ability to regain compliance with the Nasdaq Listing standards. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Canoo's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circ*mstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circ*mstances are beyond the control of Canoo. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; Canoo's ability to access future capital, via debt or equity markets, or other sources; the rollout of Canoo's business and the timing of expected business milestones and commercial launch; future market adoption of Canoo's offerings; risks related to Canoo's go-to-market strategy and manufacturing strategy; the effects of competition on Canoo's future business, and those factors discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Canoo's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC") on April 1, 2024, as well as its past and future Quarterly Reports on Form 10-Q and other filings with the SEC, copies of which may be obtained by visiting Canoo's Investors Relations website at investors.canoo.com or the SEC's website at www.sec.gov. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Canoo does not presently know or that Canoo currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Canoo's expectations, plans or forecasts of future events and views as of the date of this press release. Canoo anticipates that subsequent events and developments will cause Canoo's assessments to change.
However, while Canoo may elect to update these forward-looking statements at some point in the future, Canoo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Canoo's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Note to Editors:
- Canoo Acquires Additional Advanced Manufacturing Assets at Deep Discount (March 25, 2024)
- Canoo's Oklahoma City Manufacturing Facility Approved as Foreign Trade Zone (March 18, 2024)
- Canoo Acquires Manufacturing Assets to Increase Vehicle Assembly Capacity (January 8. 2024)
FAQ
What new assets did Canoo receive at its Oklahoma facility?
Canoo received 44 containers with 226 lots of advanced manufacturing assets, including state-of-the-art robots and comprehensive production infrastructure.
How will the new assets impact Canoo's production?
The new assets will enhance production scalability, reduce lead times, lower capital expenditures, and eventually decrease unit costs.
What are Canoo's electric cargo vehicles manufactured in Oklahoma?
Canoo's Oklahoma facility manufactures the LDV130 and LDV190 electric cargo vehicles.
What is the source of parts for Canoo's production?
Over 90% of Canoo's parts are sourced from the U.S. or allied nations.
What is Canoo's strategy for purchasing advanced manufacturing equipment?
Canoo will continue to pursue opportunistic purchases of advanced manufacturing equipment using a disciplined approach.
