Canoo, the quirky electric vehicle startup with one of the most unusual names in the automotive business is in dire financial trouble. In fact, the situation is so bad, on Friday, the company announced it’s voluntarily filed for relief under Chapter 7 in the Bankruptcy Court of Delaware. According to a media release shared by the company, this move will “result in the federal appointment of a Bankruptcy Trustee to oversee the liquidation of the Company’s assets and the distribution of proceeds to creditors.”
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The End Of The Line
Unable to secure any funding from the U.S. Department of Energy’s Loan Program Office (or, apparently from other sources, including international investors), Canoo will cease all operations effective immediately, an ignominious end to what was a promising automotive startup. The company was focused on building spacious commercial EVs fitted with “by-wire” technologies for steering, braking, and the powertrain. Having no physical connection between these vehicle systems and the driver’s controls greatly enhanced the versatility and flexibility of Canoo’s products.
Tony Aquila, the automaker’s chairman, CEO and major investor said in the same media release, “We would like to thank the company’s employees for their dedication and hard work. We know that you believed in our company as we did. We are truly disappointed that things turned out as they did.” He also thanked the Department of Defense, NASA, and the U.S. Postal Service for their support. “This means a lot to everyone in the company.”
In addition to those organizations, Canoo also delivered vehicles to the state of Oklahoma and Walmart. This is an impressive list of customers, but ultimately it proved to be insufficient to keep the company afloat, which is why executives have filed for insolvency.
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What Could Have Been
Had Canoo succeeded, our roads could have been dotted with the company’s bulbous but space-efficient vehicles. The company was developing a rounded, slab-sided van and even a pickup truck. Additionally, a lineup of purpose-built delivery vehicles similar to the Ford Transit range was in the works.
The company’s light-duty vehicles were supposed to be built on a modular skateboard-style chassis, a design that improves interior space and streamlines repairs and maintenance. This is very similar to what other EV manufacturers are doing, but Canoo’s drive-by-wire technology was supposed to set them apart from the crowd.
Designing, engineering, manufacturing, and selling modern vehicles is a colossal challenge. Established OEMs with a century of know-how and experience struggle to do this, which makes Canoo’s unfortunate failure unsurprising. The best way to make a small fortune in the automotive industry is to start with a large one.
