Canoo Abandons Its European Plans And Builds Electric Vehicles In The U.S.

Canoo has opted to boost manufacturing in the United States rather than construct some of its vehicles in Europe. The electric vehicle company had entered a deal with contract manufacturer VDL Nedcar to construct vehicles in the Netherlands, but it just announced that it will not proceed with the agreement and will instead focus on Oklahoma and Arkansas.

Canoo also stated that moving production to the United States will decrease supply chain threats, speed up the process at which vehicles are delivered to customers, give it more authority over innovative ideas, create more local manufacturing jobs, and save cash by removing warranty risks, tariffs, and abroad shipping costs.

Canoo plans to start manufacturing automobiles in Arkansas next year.  The company's choice to produce all of its automobiles in the United States has allowed them to improve production estimates from 500-1,000 units in 2022 to between 3,000-6,000 units.  It also plans to produce 14,000–17,000 automobiles in 2023, 40,000–50,000 vehicles in 2024, and 70,000–80,000 vehicles in 2025.