E-car startup Canoo files for insolvency
Following failed talks with investors, Canoo is insolvent. The US company builds electrically powered delivery vans.
(Image: Canoo)
The US start-up Canoo, which is now based in Arkansas, has filed for insolvency under Chapter 7 of the US Bankruptcy Code. The assets are to be sold and the resulting proceeds distributed to creditors.
Canoo, which is based in the USA, was originally founded in 2017 by managers from the German automotive industry (BMW, Opel). Canoo had abandoned its original plan not to sell vehicles, but only to rent them out on a subscription basis. Among other things, it developed a battery-powered van and presented a similarly powered delivery van in 2020, which was intended to be particularly suitable for small businesses and last-mile delivery of goods. In mid-2022, Canoo announced a major order from Walmart, but at the same time ruled out a collaboration with Amazon.
One of the co-founders, Ulrich Kranz, who was previously responsible for the development of electric vehicles at BMW, moved to Apple in 2021. Canoo had aspired to work with Apple, but nothing came of it. However, Canoo says it has supplied NASA, the US Department of Defense, the United States Postal Service (USPS) and the state of Oklahoma.
No fresh investments, no loans
Canoo now explains its failure by stating that talks with foreign investors, which the company's managers had conducted, were unsuccessful. In addition, it was not possible to secure financial support from the Loan Program Office (LPO) of the US Department of Energy. The LPO provides loans and loan guarantees to support the implementation of U.S. clean energy, advanced transportation and indigenous energy projects.
Canoo will cease operations with immediate effect. (axv)
