- Arrival’s second Microfactory in the US will initially produce zero-emission vans for UPS
CHARLOTTE, N.C., March 17, 2021 – Arrival, the global company creating electric vehicles (“EVs”) using its game-changing technologies, announced Wednesday that it will be building its second US Microfactory in Charlotte, North Carolina. This Microfactory will produce electric delivery vans, and is expected to bring more than 250 new jobs to Charlotte and Mecklenburg County. The Microfactory is expected to begin production by Q3 2022.
Arrival, founded in 2015, with North American Headquarters in Charlotte, is accelerating the transition to zero-emission commercial vehicles by creating best in class products that are comparable in price with fossil fuel equivalents, offering a substantially lower Total Cost of Ownership (TCO) for operators. The new Microfactory in Charlotte exemplifies this approach, bringing to the region fully electric Vans that excel across both payload and cargo volume.
Arrival’s ability to create vehicles with a competitive price point to fossil fuel equivalents and lower Total Cost of Ownership, stems from their pioneering new method of design and production. Arrival’s vertically integrated approach uses in-house developed hardware and software and combines it with assembly in Microfactories. The Microfactories are low CapEx, have a smaller footprint than conventional factories, have the ability to create significant unit economics and can be placed all over the world to serve local communities, bolstering local communities and economies.
The new Microfactory will be located in West Charlotte, North Carolina, near Charlotte Douglas International Airport, at Meadow Oak Commerce Center. Arrival is investing approximately $41.2 million in the modern production center that can assemble up to 10,000 electric delivery vans each year. Last fall, Arrival announced it would be opening a Microfactory facility for its electric buses in Rock Hill, SC and in December 2020, announced it would establish its North American headquarters in South End, creating over 650 jobs in the Charlotte region.
“Arrival is excited to expand its presence in Charlotte and we look forward to playing an even bigger role in contributing to the local community and bringing onboard the region’s local talent. Our newest Microfactory will be producing two different classes of EV Vans for our US customers, expanding the zero-emissions options for fleet operators and accelerating the mass adoption of electric vehicles. We are pleased to increase our investment as we extend our partnership with the City of Charlotte and believe we will continue to see strong demand for our vehicles as more operators transition to electric,” said Michael Ableson, CEO, Arrival Automotive. Many of the vehicles produced at the Charlotte Microfactory are expected to enter UPS’s North American fleet as part of its commitment to purchase up to 10,000 vehicles from Arrival in the US and Europe.
“We’re excited by this significant milestone that will enable UPS to economically deploy electric vehicles throughout our global operations at an increasing pace,” said Luke Wake, vice president of maintenance and engineering, UPS Corporate Automotive. “At UPS, we’re laser focused on finding operational efficiencies. Establishing factories that can quickly serve both the European and North American markets is a masterful use of logistics. We can’t wait to see UPS’s new electric vehicles roll out of this factory as this is also one of many paths UPS is taking to reduce its CO2 emissions.”
In the short few months since Arrival came to Charlotte, the company has forged strong partnerships with the City and community leaders in clean energy. In December, the City of Charlotte and Arrival unveiled a signed memorandum of understanding that demonstrates their shared vision, guiding principles, and goals to improve sustainability efforts and reduce greenhouse emissions. This MOU builds on the City of Charlotte’s Strategic Energy Action Plan that outlines strategies for clean energy focused on transportation, buildings, energy generation, and workforce development/equity.
“We are so excited to see that Arrival is already expanding in Charlotte. Their decision to locate their Microfactory in West Charlotte will have a major impact on our residents, bringing new, well-paying career opportunities to the neighborhood, in a high-tech environment that is rooted in sustainability,” said Mayor Vi Lyles. “These are the jobs of the future and we couldn’t be happier they choose to bring these opportunities to our residents.”
“We are pleased to partner with Arrival to bring new employment opportunities to the County, specifically to the West Charlotte area. As a County we have worked to build a thriving manufacturing sector to help bridge the economic mobility gaps in our community. Arrival’s forward-thinking leadership in the electric vehicle sector positions them for long-term growth and the ability to offer great entry level jobs with growth potential for our residents,” said George Dunlap, Chair of the Mecklenburg County Board of Commissioners. “Additionally, we look forward to partnering with Arrival to advance the goals of the County’s Environmental Sustainability Plan.”
On Thursday, March 18 at 10:00a.m ET, Arrival, along with Alisyn Malek, Executive Director at the Commission for the Future of Mobility, and Janet Labar, President and CEO at Charlotte Regional Business Alliance, will host a LinkedIn Live event to discuss the significance of this latest announcement. Members of the media and the public are encouraged to watch and engage by visiting www.linkedin.com/company/arrival.
The project was a collaborative effort between the City of Charlotte, Mecklenburg County, North Carolina Department of Transportation, North Carolina Department of Commerce, University of North Carolina Charlotte, North Carolina Community College System, Duke Energy, the Charlotte Regional Business Alliance and the Economic Development Partnership of North Carolina.
The City of Charlotte provides services to more than 870,000 residents. The city’s priorities are workforce and business development; transportation, planning and the environment; safe communities; and great neighborhoods.
Charlotte Regional Business Alliance
The Charlotte Regional Business Alliance is a nonprofit, business-led organization focused on the economic health of the region. The Alliance’s footprint encompasses the city of Charlotte and its surrounding 15 counties including 11 in North Carolina and four in South Carolina. The Alliance’s mission is to enthusiastically collaborate to promote and advance the Charlotte region, creating opportunity, economic growth and prosperity for all. To learn more, visit charlotteregion.com.
Arrival is reinventing the automotive industry with its entirely new approach to the design and assembly of electric vehicles. Low CapEx, rapidly scalable Microfactories combined with proprietary in-house developed components, materials and software, enable the production of best in class vehicles competitively priced to fossil fuel variants and with a substantially lower total cost of ownership. This transformative approach provides cities globally with the solutions they need to create sustainable urban environments and exceptional experiences for their citizens. Arrival is a global business founded in 2015 and headquartered in London, UK and Charlotte, North Carolina, USA, with over 1,500 global employ- ees located in offices across Germany, Netherlands, Israel, Russia, and Luxembourg. The company is deploying its first two Microfactories in South Carolina, USA and Bicester, UK in 2021. Arrival recruitment link: arrival.com/join
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding (i) expectations regarding new jobs to be provided, and (ii) expectations regarding Arrival’s production of its vans. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s belief or interpretation of information currently available. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including, but not limited to: (i) the impact of COVID-19 on Arrival’s business; (ii) the risk of downturns and the possibility of rapid change in the highly competitive industry in which Arrival operates, (iii) the risk that Arrival and its current and future collaborators are unable to successfully develop and commercialize Arrival’s products or services, or experience significant delays in doing so, (iv) the risk that Arrival may never achieve or sustain profitability; (v) the risk that Arrival experiences difficulties in managing its growth and expanding operations, (vi) the risk that third-parties suppliers and manufacturers are not able to fully and timely meet their obligations; (vii) the risk that the utilization of Microfactories will not provide the expected benefits due to, among other things, the inability to locate appropriate buildings to use as Microfactories, Microfactories needing a larger than anticipated factory footprint, and the inability of Arrival to deploy Microfactories in the anticipated time frame; (viii) the risk that the orders that have been placed for vehicles, including the order from UPS, are cancelled or modified; (ix) the risk of product liability or regulatory lawsuits or proceedings relating to Arrival’s products and services; and (x) the risk that Arrival is unable to secure or protect its intellectual property. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Arrival assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Arrival does not give any assurance that Arrival will achieve its expectations.