Canoo has decided against building some of its vehicles in Europe and will accelerate its production plans in the United States instead.
The electric vehicle startup had inked a deal with contract manufacturer VDL Nedcar to build vehicles in the Netherlands but in a recent statement confirmed that it will not move forward with the deal and will exclusively build vehicles in Oklahoma and Arkansas.
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Canoo added that bringing production to the U.S. will reduce supply chain vulnerabilities, increase the speed at which it brings vehicles to customers, provide it with more control over new innovations and IP, increase local manufacturing jobs, and “save thousands of dollars per unit by eliminating warranty risks, tariffs, and overseas shipping costs.”
Canoo expects to begin producing vehicles in Arkansas from next year while its ‘Mega Micro’ factory in Pryor, Oklahoma will be operational in late 2023. The decision to build its cars solely the U.S. has allowed the company to increase production estimates from 500-1,000 units in 2022 up to between 3,000 and 6,000 units. It also intends on producing 14,000 – 17,000 vehicles in 2023, between 40,000 and 50,000 in 2024, and upwards of 70,000 to 80,000 in 2025.
“Canoo is now in a position to issue guidance at a time when many others in the industry are reducing targets and projections,” Canoo chairman and chief executive Tony Aquila said. “The Company has now refined its manufacturing strategy and assembled a team to execute the production roadmap for 2022 – 2025. In addition, we will be 100% built in the heartland of America, and we have proudly achieved another major milestone of having sourced 96% percent of our parts from U.S. and Allied Nations.”
