In order to better consolidate onshore manufacturing capabilities and operations at its recently opened Mesa, Arizona headquarters, ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) (“ElectraMeccanica” or the “Company”), a designer and manufacturer of electric vehicles that are revolutionising the urban driving experience, today announced cost-reduction initiatives. These actions will quicken the company’s road to profitability by enforcing a new standard of financial restraint that protects the ability to scale operations and commercialise products while also cutting unnecessary expenses.
Separately, the company declared that starting December 20, 2022, Ms. Docherty had been added to its board of directors. ElectraMeccanica is also delaying its Investor Day to June 14, 2023 as a result of its top-to-bottom evaluation of the firm in order to concentrate solely on near-term execution and to give shareholders the most thorough analysis of its operations and future goals.
Since she started working for ElectraMeccanica on December 5, 2022, Susan Docherty, the company’s new CEO and interim chief operating officer, has overseen an ongoing, comprehensive review of the company’s current operations, product portfolio, product development, investment, capital allocation, and employee distribution, skills, and efficiency. The Company has chosen to reduce its personnel size by 98 positions while this study is still in progress. This results in a 57% decrease in the number of employees based outside of Arizona and an improvement in operating costs of about $10 million per year. The company points out that both the market demand for the SOLO and its balance sheet are still strong.
- To streamline and expedite onshore manufacturing, ElectraMeccanica announced cost-saving initiatives
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