Around 170 jobs at risk as electric van company in Banbury enters administration

Arrival, which has its Banbury facility on Chalker Way, has announced that nearly 40 employees have already been made redundant, and a further 172 UK jobs are at risk.

The company, which was founded by British-based Russian billionaire Denis Sverdlov in 2015, initially received high praise for its innovative approach to manufacturing electric vehicles.

Only three years ago, the company was reportedly valued at more than $15 billion and was championed as the future of the UK automotive industry.

However, the company, which also has a facility in Bicester, has now selected consulting firm EY as the administrator for both of its two Oxfordshire premises.

Last February, Arrival cut its 800-strong global workforce by half and moved its focus from the UK to the USA after encountering problems launching its first electric van in the UK.

The company also hoped to benefit from President Joe Biden’s Inflation Reduction Act, which offered a deal of $369 billion in subsidies and tax credits to US manufacturing companies investing in electric vehicles and renewable energy.

A van fire during a demonstration held at the Banbury site in November 2022 and struggles producing the designs for electrical vehicles caused the company to significantly lose money.

In January, Arrival announced that its shares had been suspended from trading on the Nasdaq and that the company would be removed from the stock market index.

The business and assets of the company, including the designs for the range of electric vans, cars, buses, and taxis will now be put up for sale.