ELECTRIC automaker Canoo has gone bankrupt after just eight years in the business.
Canoo Inc. has shuttered following years of building electric vans for clients including Walmart and the USPS.
The EV startup, which started in 2017, announced last week they were filing for Chapter 7 bankruptcy.
The company failed to get funding from the US Department of Energy’s loan program office as well as “foreign sources,” according to a statement from CEO Tony Aquila.
Drivers were let down by the news of Canoo stopping their operations immediately as of January 17.
“Not surprised, but still disappointed,” one X user shared.
“Pity – had such cool cars – was really looking forward to their pickup,” another wrote.
“Very sad, I like their design. It was cool,” a third commented.
Another said they “hate to see it.”
“We should root for the underdogs who take big risks,” they added.
“It was a pretty cool design, after all.”
Aquila also shared his disappointment with the end of the business.
“We would like to thank the company’s employees for their dedication and hard work,” the company’s chairman said.
“We know that you believed in our company as we did. We are truly disappointed that things turned out as they did.”
Aquila thanked Walmart and USPS, along with Nasa and the Department of Defense, for believing in the minivan company.
“This means a lot to everyone in the company,” he said.
CEO's statement
Tony Aquila, one of Canoo Inc.'s largest investors and the company's CEO and chairman, shared a statement about the EV startup filing for bankruptcy.
“We would like to thank the company’s employees for their dedication and hard work,” Aquila said.
“We know that you believed in our company as we did. We are truly disappointed that things turned out as they did.
“We would also like to thank NASA, the Department of Defense, The United States Postal Service (“USPS”), the State of Oklahoma and Walmart for their belief in our products and our company.
“This means a lot to everyone in the company.”
Source: Canoo
Walmart agreed to buy 4,500 Canoo vehicles in 2022, but the automaker never made that many vehicles.
Canoo also announced last year that USPS bought six EVs and that a few of them were in Atlanta.
It’s unclear how many Canoo vans were tested for both companies throughout the years, but the trials had problems of their own.
The company came under fire for allegedly testing their Walmart vehicles without airbags, according to Fortune.
BAD PLANT
The writing was on the wall for the startup, headquartered in Texas, after they abruptly closed an Oklahoma production facility and furloughed all of its employees last month.
An anonymous former employee plant revealed the plant’s problems with local NBC affiliate KFOR-TV at the time.
“I’ve seen a company go from the bottom up and I was really excited to see this one grow,” the former employee told the outlet.
However, they said the plant’s workers had little motivation, despite the state awarding more than $100 million in performance-based incentives in 2023.
“Nobody really cared,” the employee said.
“I really didn’t see any type of motivation at all. Just kind of, you know, showing up, and we’re doing a lot of preventative maintenance.”
The worker said the robots in the factory never produced an entire EV, saying “there was not one robotics line that actually worked to fabricate a part.”
Electric vehicles vs gas
Pros and cons of EVs vs gasoline-powered vehicles
EV PROS:
Convenient (when charging at home) Cheaper (depending on state or city) Cheaper maintenance, due to lack of mechanical parts Great for commuting Reduced CO2 emissions Federal and state tax incentives More performance (speed, handling – depending on the make and model)EV CONS:
Higher initial cost Higher insurance rates More frequent tire and brake replacement intervals Higher curb weight (thus causing more rapid wear on crucial parts) Low resale value High depreciation rates Lack of charging infrastructure Unreliable public charging (related: slow charging times) Poor winter and summer performance Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources Range anxietyGAS PROS:
Highly developed refueling infrastructure Fast refueling Cheaper insurance rates, depending on make, model, and configuration Established repair industry Lower initial cost Higher range before refueling, especially with hybrids Many manufacturers produce nearly emission-less engines Cheaper refueling, depending on the locationGAS CONS:
Finite resource (related: heavy dependence on petroleum) Carbon emissions/greenhouse gases Higher repair costs Higher insurance rates, depending on make, model, and configuration Varying costs at the pump, depending on state, city, and countySource: Car & Driver, Perch Energy, AutoWeek
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