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Arrival to delay spending on bus project after posting wider loss

Arrival to delay spending on bus project after posting wider loss

FILE PHOTO: Engineers at UK electric van and bus maker Arrival test a specially developed autonomous robot at the startup's low-cost "microfactory" in Bicester, Britain, August 3, 2021. Picture taken August 3, 2021. REUTERS/Nick Carey

British electric vehicle start-up Arrival SA reported a wider quarterly loss on Thursday and said it would delay spending on its bus project as it looks to secure more capital, sending its U.S-listed shares down 13 per cent.

The news comes after the company laid out a plan last month to cut jobs and reorganize itself around making vans in the face of a challenging economic environment.

Electric vehicle startups that promised to disrupt the automotive industry are now scrambling to keep a lid on costs amid supply chain issues and rising raw material prices.

London-based Arrival, which expects to start producing its vans in the third quarter and deliver them by the year-end, had received the EU's approval to operate its electric buses on public roads.

Top boss Denis Sverdlov, however, said the company would defer spending on bus-producing "microfactories" and customer trials until it secures additional capital.

The company's net loss in the second quarter widened to $89.6 million from $56.2 million a year earlier.

Arrival shares were trading at $1.61 in morning session.

Source: Reuters

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