Management of Volta Trucks Seeks Buyer to Complete Mass Production
Bankrupt Volta Trucks Urgently Searches for a Buyer
The management of Volta Trucks, a bankrupt electric truck maker, is in dire need of a buyer to rescue the company from administration and facilitate the mass production process, according to a source familiar with the matter. The company, based in Sweden with operations in the United Kingdom, filed for bankruptcy due to the insolvency of its supplier Proterra in August and uncertainty surrounding its battery supplier, making it challenging to raise sufficient capital.
Volta Trucks’ Struggle and Plan for Mass Production
Despite selecting a factory in Austria to manufacture its trucks, Volta Trucks encountered a setback when bankruptcy struck just 30 days before the planned production. The source revealed that the startup had managed to secure a total of around 460 million euros ($488 million) from investors. While the company had received over 5,000 vehicle orders, customers are still eager to take delivery of their vehicles.
Management Seeks Suitable Buyers
Volta Trucks’ management has already received initial inquiries from 10 to 20 strategic or financial investors interested in acquiring the company. However, time is of the essence as the management has a limited period to find a suitable buyer before administrators begin selling off assets to minimize creditors’ losses. To expedite the process, the startup’s management has started approaching potential investors and aims to generate a bid by the following week.
Administrators’ Perspective and Struggling Electric Vehicle Startups
The bankruptcy administrators for Volta Trucks’ UK operations, Alvarez & Marsal Europe (A&M), have emphasized their commitment to exploring options for the company and finding a potential buyer to secure its future. This move comes as many electric vehicle startups, which once attracted significant investments, face challenges due to rising inflation and limited access to funding. Other companies, such as Proterra and Lordstown Motors, have also initiated bankruptcy proceedings.
The management of Volta Trucks is racing against time to find a buyer that can help the company overcome its financial woes and resume mass production. With initial inquiries from potential investors, the hope for a successful rescue bid remains. However, the outcome is uncertain, and the future of Volta Trucks hangs in the balance.
