Volta Trucks has today revealed it is set to file for bankruptcy in Sweden, where the firm is based, and appoint Alvarez & Marsal as administrators of its UK operations, including its manufacturing and research facilities.
The creator of the world’s first purpose built 16-tonne all-electric truck said its plans had been derailed after battery supplier Proterra filed for bankruptcy this summer, denting Volta’s production forecasts, and undermining its ability to raise further capital in an already challenging market environment.
Other entities within the Volta Trucks group, which has raised more than €360m funding to date and launched operations in five European countries, are also expected to shortly file for insolvency proceedings in the relevant jurisdictions, according to a statement from the company.
Founded in 2019 with a mission to slash emissions from urban logistics and freight deliveries in city centres, Volta had been trialling its flagship Volta Zero all-electric 16-tonne vehicle in both the UK and Europe and had recently opened a new service hub in north London.
The vehicle, which offers a pure-electric range of up to 125 miles, features a central driving position, which Volta claimed reduces manufacturing costs by avoiding the need for separate left or right-hand drive versions.
The decision to file for bankruptcy leaves 850 jobs under threat, 600 of which are in the UK. It also follows the announcement of a series of partnerships, including a truck-as-a-service deal with Societe Generale Equipment Finance and a partnership with Paulaner Brewery Group to provide all-electric deliveries to Oktoberfest in Munich.
“Volta Trucks accomplished a great deal from a standing start in 2019, revolutionising commercial vehicle operations for a sustainable future,” a statement from Volta’s board released today read.
“We created the world’s first purpose built 16-tonne all-electric truck, including a unique cab and chassis design, that would have contributed to decarbonising the environment and enhanced the health and safety and air quality of urban centres.
“Piloting in five countries in Europe, we received fantastic feedback, which led to a strong pipeline of highly reputed customers who wanted to introduce our Volta Zero Trucks into their fleets.”
However, it added that “like all scale-ups in the EV manufacturing sector, Volta Trucks has faced challenges along the way”.
“The recent news that our battery supplier (Proterra) has filed for Chapter 11 Bankruptcy, has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce,” the board said. “The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players.”
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