Arrival has confirmed it will focus all its efforts on the launch of the Van project, putting its Bus project (and likely the Car too) on hold until it raises more capital.

In its Q2 2022 financial results report, the startup said it has made "recent strategic decisions" that will allow it to start production of the Arrival Van this quarter in Bicester, UK, deliver the first vehicles to UPS this year and start production in Charlotte, North Carolina in 2023 at an optimised factory. The start of US production was initially forecast for Q3 2022.

Mind you, the commercial EV startup expects to build only 20 electric delivery vans this year, a dramatic decrease from the original production forecast of 400 to 600 vehicles for this year. That's because the company expects a slow ramp in Bicester to ensure the vehicles it produces meet its quality targets.

The startup is currently testing its electric vans on public roads, with customer trials scheduled to begin in Central London this quarter delivering packages. More trials will follow in Europe and North America in 2023. 

Gallery: Arrival Van revised prototype

In a press release, the company noted it had big achievements in Q2 including the European certification of the Van and Bus products and successful internal trials of both vehicles on public roads. Arrival said that customer trials and investment in the Bus microfactory will continue "once the company secures additional capital."

Interestingly, Arrival made no mention of its Car project, a vehicle designed for ride-hailing applications. According to a Financial Times report from earlier this month, Arrival has paused both the Bus and the Car projects, but the latter's absence from the company's press release may indicate that a final decision hasn't been made on it yet.

The startup ended the second quarter with a widening loss of $89.6 million compared to $56.2 million in Q2 2021 and said it no longer expects to generate significant revenue this year because of its sharply reduced production plans.

Arrival had approximately $513 million of cash and cash equivalents as of June 30, 2022 and non-binding orders for about 149,000 vehicles, which, if all completed, would bring over $6 billion in potential revenue.

The company expects the strategic changes will allow it to operate the business through at least 2023 without needing to raise additional capital—other than through a $300 million At-The-Market (ATM) platform—and prepare the company for growth.