Canoo does not manufacture at VDL in the Netherlands, focus on the USA

Canoo does not manufacture at VDL in the Netherlands, focus on the USA-focus

The e-car start-up Canoo from the USA and the Dutch VDL Group, known among other things for the production of electric buses, will not pursue the talks about the European contract production of the Canoo Lifestyle Vehicle, as the Americans officially announced. “We appreciate the months of effort that VDL Nedcar has invested in offering us a contract manufacturing option. But we have concluded that US manufacturing is better suited to our mission and current focus,” said Tony Aquila, Canoo’s Investor, Chairman & CEO.

Production in the USA has the advantage for Canoo that it can be implemented more quickly and is less risky. In the planned plants in Arkansas and Oklahoma, the production capacities are now to be significantly increased. Whereas previously only 500 to 1000 electric vehicles were planned to be produced in 2022, Canoo is now aiming for between 3000 and 6000 units. By 2025, production is to be gradually increased to 70.000 to 80.000 rise.

Although contract manufacturing is off the table, Canoo and VDL are not going their separate ways: the two companies would like to “enter into an ongoing partnership”, as Aquila says. This is also emphasized by the VDL CEO: “We look forward to continuing our relationship with Tony Aquila and the Canoo team as we explore new possibilities together,” said Willem van der Leegte, President & CEO of VDL Nedcar . “We see electric vehicles as a significant economic driver. We are excited to invest in Canoo and look forward to a long and mutually beneficial relationship.To underline this new relationship, the VDL Group will buy the equivalent of EUR 7.5 million in Canoo shares.

The background to the failed deal could be that VDL Nedcar could cede said Dutch plant to the US start-up Rivian, which produces electric SUVs and e-pickups and is looking for a production facility in Europe. However, the talks on this are not yet complete.

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