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Kia and Hyundai added €100m into the United Kingdom’s car industry. It is the biggest investment in the United Kingdom’s car industry since 2016. In 2016, it has voted to leave the EU and after that, it is the biggest investment till the date. This money help is going to be a nutritional injection to the startup company and will value it at €3bn. It will definitely make Arrival one of the most important start-ups. The trading relationship between Europe and the United Kingdom has already created lots of tension and investment ratio fell down. In this kind of situation, this large investment will surely boost the car industry.
According to the updates of Society of Motor Manufacturers and Traders, after the Brexit, overall spending in the industry has reduced sharply because of diverting funding or delay by international investors. Although Japanese carmakers Toyota and Nissan has invested a quite good amount in order to craft new models in the United Kingdom.
Arrival is taking preparation to create thousands of electric vans at plants inside the United Kingdom and other places outside the country. Apart from this, it is also planning to develop a new range of vehicles with the help of the Korean manufacturer.
AvinashRugoobur, Arrival’s chief strategy officer, said, “This will lead to significant collaboration, this is far more than just an investment,”
It can be said that this partnership is a good example that renowned car manufacturers are focusing on start-ups to help them crafting battery electric vehicles as it is a way to plug the gap in their technical knowledge.
Chief innovation officer of Hyundai, Youngcho Chi said that his company is fast-tracking with investment and cooperation with the companies which have new technology specialization such as Arrival. The first set of Arrival vans was used by some big companies such as B.T and Royal Mail. These were existing conventional vehicles added with battery electronic technology.
Its new set is different has been designed from scratch and uses a ‘stake board’ framework that Hyundai and Kia can use easily and make it as a base for the new range of battery vehicles. Arrival was founded in 2015 and previously it focused only on the development of inner-city vans. These were mainly dependent on diesel and faced problems as city authorities question over air quality concerns. In Bicester, it has an under-construction plant and another one in Oxfordshire too. Nearly four hundred employees are working in the United Kingdom and another four hundred are working across Israel, the United States, Germany, the Netherlands, and Russia.
Arrivals says that its new range of vehicles will be cheaper with a range up to 200 miles in comparison with conventional diesel vans. Denis Sverdlov, chief executive at Arrival said, “Our objective was how to make electric vehicles at parity”. It has used new technology and that’s why it can be made in ‘micro-factories’. In this way, tooling costs will be saved that existing carmakers used to spend to run vast plants.