Volta Trucks faces bankruptcy

However, the insolvency will not only affect the Swedish unit. The group’s main trading company, Volta Trucks Limited, will also file for insolvency in England shortly, according to the company. Other group companies will also soon file for insolvency with the relevant courts.

Volta’s battery supplier Proterra filed for Chapter 11 bankruptcy protection in the US in August. This “had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce”, Volta Trucks wrote. The uncertainty with the battery supplier also made it difficult “to raise sufficient capital in an already difficult capital environment for electric vehicle suppliers”.

It was, therefore, “with deep and sincere regret” that the board of directors decided to go before the insolvency judge. While other companies have been emphatically optimistic about turning the company around after the insolvency filing, there is little sign of this in Volta Trucks’ announcement. “The Board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce, as well as customers and partners. We would like to sincerely thank the Volta Trucks team and are incredibly proud of their pioneering work to deliver such an innovative zero-emission commercial vehicle,” the letter reads.

Instead of pushing the search for new investors or partners for the fully developed Volta Zero, the communication reads in part like a swan song for the electric truck before it has taken off. Yet production of the Volta Zero only started this April at Steyr in Austria. At the Oktoberfest in Munich, the electric truck made an appearance when the Paulaner beer tent received an emissions-free delivery of fresh beer.

The Volta Zero is a truck specially developed as an electric truck. Most electric trucks on the market are conversions of corresponding diesel vehicles. Volta Trucks, on the other hand, has designed its model for inner-city distribution traffic from the very beginning – in addition to the locally emission-free electric drive, this also includes the special cab with a large windscreen and centrally positioned driver to improve visibility – and thus safety in urban traffic. Among others, DB Schenker had ordered 150 units.

Whether these will ever be delivered, however, seems to be open after the latest news from Sweden.

Update 20 October 2023

The management of the insolvent electric truck manufacturer Volta Trucks is urgently looking for a buyer to take the company out of bankruptcy and help it realise series production. A source familiar with the matter told Reuters news agency. “We were 30 days out from production” when bankruptcy occurred, the source said. Volta Trucks has received enquiries from ten to 20 potential investors so far, he said.

Management has “a very short period of time” during the company’s bankruptcy to find a suitable rescue bid for the company before liquidators try to minimise creditors’ losses by selling assets. There is talk of talks being held over the weekend – with the aim of having a concrete offer early next week.

Meanwhile, the Volta Trucks website shows only a brief reference to the insolvency administrator Alvarez & Marsal Europe. The latter initially stated that he wanted to “examine the options for the company while we look for a potential buyer to secure the future of the company”. In the meantime, the reference has been replaced by a more general formulation, according to which one has been “entrusted with the management of the company’s affairs, business and property”. The original press release on the insolvency is also no longer available because of the reference.

voltatrucks.com, reuters.com (update)