Volta Trucks, which had been conducting customer trials across Europe, says it has been struggling to secure funding due to problems with its battery supplier.
By James Sillars, Business reporter @SkyNewsBiz
Volta, the electric truck start-up, has revealed it is to collapse after supplier difficulties made it hard to raise funds.
Volta said it would file bankruptcy proceedings in Sweden, where the group is based, and seek to appoint Alvarez & Marsal as administrators for its main UK operation where it has manufacturing and research and development facilities.
The decision leaves 850 jobs under threat – 600 of them in the UK – but its assets could be seen as attractive to potential buyers given the race towards net zero to fight climate change.
The company had been conducting customer trials of its all-electric truck, the Volta Zero, in both the UK and on the continent and had only recently opened a service hub in north London.
The emission-free model, which has a range of up to 200 kilometres (124 miles), is designed for multiple deliveries within a large town or city.
It features a central driving position, saving costs by easing pressure on the manufacturing process by having no need for left or hand-hand drive versions.
A series of cameras replace mirrors which, it argued, meant improved safety for cyclists and pedestrians.
The company said of its looming demise on Tuesday: “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, 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 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.”
The statement said of its decision to declare insolvency: “The board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce, as well as customers and partners.
“We would like to sincerely thank the Volta Trucks team and are incredibly proud of their pioneering work to deliver such an innovative zero-emission commercial vehicle.”
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