Finance

Canoo finally pulls the plug from VDL Nedcar production plan

However, the company will continue to work with the owner of the assembly line, the industrial group VDL Groep.

VDL Nedcar now has to repay an amount of 25 million euros that Canoo had paid as an advance. At the same time, VDL is purchasing 7.5 million euros from the American start-up.

Manufacturing in USA

“We have decided not to continue with VDL Nedcar, but have come to the conclusion that we want to continue working with the VDL Groep and the Van der Leegte family,” said Canoo CEO Tony Aquila.

According to Aquila, the production of cars in the United States involves fewer risks than in Europe. This is partly due to support from the states of Arkansas and Oklahoma, which, according to the director, invest a lot in high-quality technology. “This creates American jobs and innovation.”

Departure BMW

Canoo was VDL Nedcar’s first new customer this summer after BMW decided to transfer the production of BMW and MINI models to its own factories.

The plan was to have some kind of electric SUVs made by the factory until at least 2028. But earlier this month, the company already said it wanted to get rid of the agreements with the Eindhoven parent company about car production.

VDL Nedcar was already looking for other clients, because the production of Canoo’s electric cars was not enough to fully utilize the factory.

VDL has until 2023 at the latest to win orders from new car manufacturers, because then production for BMW will stop. The company is very confident in a successful outcome of that search, a spokesperson said. “We speak with many parties.”

Collaboration

However, the company will continue to work with the owner of the assembly line, the industrial group VDL Groep.

Willem van der Leegte, president-director of the VDL Groep, stated that he was particularly looking forward to further cooperation with Canoo. It is not yet clear exactly how it will take shape. A spokesperson explains that in addition to the assembly line in Born, the company is also active with other applications for the car industry.

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