January 31, 2023

Wire Service Canada

Complete Canadian News World

The car company is in danger of bankruptcy: the latest model has put everyone in crisis

From the supposed reveal of the year to the failure that risks carrying a lot of money invested: this is how the small company that wanted to change the motorcycle world ended up falling into the nightmare of financial collapse.

Apparently, produce electric car In this Historic moment Too sensitive is not a guarantee of success. The small detached house that caused so much talk about its project when it was presented is no longer on the crest of the wave, on the contrary, it risks staying below it. It all started with the brand’s latest model that was practically ignored by everyone.

On the verge of a crisis (mondofuoristrada.it)

From stars to rags

to find A successful brand In the auto industry, it might sound like a joke according to all those inspiring Instagram pages featuring quotes from Elon Musk that the Tesla CEO might not have thought of who had the idea to bet a lot of money on the project before seeing billions and billions in profits in return thanks Its electric cars but that’s not how they operate at all.

In fact, now establishing a brand is an investment and therefore it is very dangerous Above all because if in a few years the amount spent does not pay for itself, the manufacturer’s fate is really doomed. This is exactly what happens to Acrimoto, a North American town house that seemed destined for success but only ended up destroying itself.

Bankruptcy Web Source 22_1_2023 MondoFuoristrada
The path to success…was wrong! (MondoFuoristrada.it)

From Arcimoto to Archi-fiasco

It was established in 2009 in Eugene, and it is not a foreign friend of ours, but the name of a region in the US state of Oregon, known for its huge forests that cover its surface and is inhabited by four million people. Independent home At the time of its conception, it had all eyes of the world on it especially because of its out-of-the-box way of thinking compared to other apps of this type.

READ  This is the first time this has happened - Corriere.it

Instead, according to the latest news obtained about the brand, it appears that archmoto Closer than ever to bankruptcy after a poor decade of activity. But how could a brand with places like this end up so badly? Let’s just say there’s a good reason if you’ve practically not heard of the American brand in recent years.

desperate situation

The brand’s products consist almost exclusively of small three-wheeled electric vehicles called FUV or recreational vehicle, a kind of truck with two front wheels and one rear wheel that is completely environmentally friendly and capable of accommodating two people and transporting materials of various kinds and which, in the intentions of the brand, was to be of great interest to private companies in the tourism sector. Which made the price of the brand rise to a billion, but that did not really happen.

Web Source Villa 22_01_2023 MondoFuoristrada
The FUVs did not turn out to be the bomb that should have been in the sector (MondoFuoristrada.it)

The house which has recently begun to be developed New car The capable sports car had to stop everything after firing 100 employees and producing just 252 cars in the past six months. The reason is the lack of orders and funds, since the long-awaited start of mass production did not come. Cars that test drivers dubbed “fun as sports karts” failed to be a hit with the public.

The house has issued what appears to be an ultimatum to its investors, saying through a spokesperson: “We have stopped producing for It protects us from dangers bankruptcy If no further orders or money arrive, we will have to stop operations.”. What a bad end for a brand that had a great idea long before electrification was the fashion that it is now. But so is the ruthless world of the free market.

READ  Italiana Stock Exchange, commenting on today's session (January 14, 2022)