Volta Trucks closes in on potential investor
According to information from Sky News, the deal could be announced in the coming days. If the deal goes through, most of the 600 or so British jobs could be saved.
Volta Trucks had to file for insolvency in October: This not only affected the Swedish unit but also the group’s most important trading company, Volta Trucks Limited, which is based in England. The background to this was apparently the insolvency of Volta’s battery supplier Proterra in August, which led to a “significant impact on Volta’s production plans”. The de facto halt to production then meant that Volta was unable to raise new money in an already difficult capital environment.
The hoped-for quick agreement with an investor could not be reached in October. Now the insolvency administrators of Alvarez & Marsal Europe could present a deal after all – even if the sources from Sky News stated that the timetable for the announcement could still be delayed. Alvarez & Marsal Europe declined to comment.
Luxor Capital increased its stake in Volta Trucks in February 2022 as part of a financing round – the exact investment amount or shares were not disclosed at the time. It is still unclear how much the takeover of the insolvent company will cost.
With the 16-ton version of the Volta Zero, which has been in series production since April, Volta Trucks has a competitive asset. However, it is not yet clear where the all-important battery will come from in future. It is possible that it will continue to come from Proterra: In November, the Volvo Group acquired Proterra’s battery division. The Swedish company is taking over the development centre for battery modules and packs in California as well as Proterra’s battery assembly factory in South Carolina, which opened in January 2023. It is not yet known exactly how Proterra will be continued and integrated into the Volvo structure.
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