GM has one less potential competitor in the electric vehicle market as EV startup Canoo, noted for its distinctively bulbous compact vehicles and its modular EV platform, has filed for Chapter 7 bankruptcy.
The company’s press release indicates Canoo will cease operation and all its assets will be sold off to pay its creditors under the oversight of a federal bankruptcy trustee.
Canoo notes that it received orders from both private and government organizations for its electric vehicles and delivered at least some units to these purchasers. Among the buyers were retail giant Walmart, along with the state government of Oklahoma, NASA, the Department of Defense and the U.S. Postal Service.
However, despite these orders, Canoo was unable to secure any money to continue its operations. The U.S. Department of Energy declined to back any loans to the startup through its Loan Guarantee Program, which supports manufacturing loans for clean energy vehicles. Following this failure, foreign investors talked with the company but decided not to finance it, either.
Chairman, CEO and major company investor Tony Aquila – who has founded or participated significantly in multiple software and automotive technology companies – remarked “we are truly disappointed that things turned out as they did.” He also thanked the organizations that bought Canoo vehicles “for their belief in our products and our company.”
The product lineup of Canoo included a pickup truck said to offer 600 horsepower, 200 to 300 miles of range on a single charge, and a six-foot bed capable of extension to eight feet. The startup also revealed a pair of delivery van models, the MPDV1 with 200 cubic feet and the MPDV2 with 450 cubic feet of cargo space. These vehicles theoretically rivaled GM’s BrightDrop Zevo 400 and BrightDrop Zevo 600 EV vans.
Back in 2022, we polled GM Authority readers on whether they thought it would be a good idea for GM to build an EV van similar to Canoo’s LV (Lifestyle Vehicle). Respondents were 64 percent in favor and 36 percent against.
Canoo has ceased all operations effective immediately.
Comments
The vehicle in the top picture looks like the Tartan Prancer used in the 2015 Vacation movie.
Yes but canoo really be surprised by this?
Interesting design ideas. Shame it may not happen.
Geez…that profile photo.
You don’t know if it’s coming or going.
It looks kinda like a Hiace from Japan (previous gen) but it isn’t a cabover seating position, so much of the benefits are lost with the windshield that far in front of the driver.
I still liked the look of it tho.
It’s unfortunate every time we lose a competitor because more options help drive up innovations, and down price.
Another failure due to incapable top management issues.