Canoo revs up U.S. electric vehicle production plan as drops overseas deal

A Canoo Lifestyle Vehicle is displayed during the 2021 LA Auto Show in Los Angeles, California, U.S. November, 17, 2021. REUTERS/Mike Blake/file photo

DETROIT, Dec 15 (Reuters) – Electric vehicle startup Canoo Inc (GOEV.O) on Wednesday said it was accelerating its production plans in the United States while ending its deal for VDL Nedcar in Netherlands to serve as its contract manufacturer in Europe.

Canoo shares were up 5.4% in after hours trading.

The Arkansas-based company said the shift from using VDL Nedcar overseas to relying on the plants it is building in northwest Arkansas and Pryor, Oklahoma, was made to reduce supply-chain vulnerabilities and overseas shipping costs, and increase speed to market for its vehicles.

Canoo said starting production in Oklahoma remains on track for late 2023, but it also now expects to begin building electric vehicles in Arkansas next year, instead of using the VDL Nedcar plant.

It added that while the deal with VDL Nedcar was dead, it was still exploring partnership opportunities in Europe with the Dutch company’s parent, VDL Groep BV.

Reporting by Ben Klayman
Editing by Marguerita Choy

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