HUNDREDS of UK jobs are at risk after a major EV manufacturer filed for bankruptcy this week.
The Swedish-based brand announced it was winding up after its battery supplier collapsed in August.
Instgram/VoltatrucksHundreds of UK jobs are at risk after Volta Trucks went bust this week[/caption]
Volta Trucks blamed “uncertainty” over supply chains and “challenges” in sourcing funds as the key reasons behind the decision.
A spokesperson announced on Tuesday that bankruptcy proceedings had would soon begin in Sweden, where it is based.
However, this also means that Volta’s UK operations will be put into administration.
Most of the manufacturer’s 850 staff are in this country, with the majority posted to the Midlands.
All in all, 600 workers are at risk of redundancy over the bankruptcy.
The failure is all the more surprising given the relatively good position the company enjoyed as an innovator in EV truck technology.
It was set to bring the first purpose-built electric 16-tonne truck to Britain and had even rented a 30,000 sq ft service hub in central London, announced by Mayor Sadiq Khan and used as a testing space by M&S.
On top of that, it had secured £312 million of funding to develop its trucks, including grants from the German government.
However, the company was rocked two months ago when Proterra, which supplied the battery packs for their HGVs, went bust.
The statement from Volta read: “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.
“With deep and sincere regret, the Board has therefore taken the difficult decision to take steps to file for bankruptcy proceedings in Sweden.
“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.”
Now, an expert has revealed what the two related bankruptcies could mean for the wider motoring industry.
Matt Lichtash of PA Consulting claimed they would make it harder for investors to trust new EV startups.
He told GreenBiz: “This will be a challenge for the industry, but it’s not a death knell or anything catastrophic.
“This unquestionably makes it harder for city transit agencies to trust in their suppliers.
“But it’s definitely not impossible to gain that trust back.”
It comes after it was revealed that EV prices may spike by over £3,000 in just weeks if the EU cannot be persuaded to delay new tariffs.
Meanwhile, a car dealer explained how to avoid common traps set by salesmen.