Founder and CEO of electronic vehicle startup Arrival, Denis Sverdlov, has stepped back from the company's day-to-day operations, according to Engadget.
With this, he will be replaced in the interim by Peter Cuneo, the former CEO of Marvel Entertainment before the company was acquired by Disney. Cuneo is currently the chair of the board of Arrival.
He was known to lead the stock market listing early last year. At the height of a global electric vehicle investment frenzy, it injected $660m into the company.
According to reports, Sverdlov will still be part of the company. He will not leave the company completely, instead, he will be swapping roles with Cuneo as chair of the board.
Arrival Could Possibly Go Bankrupt by the Third Quarter of 2023
Sverdlov's decision to step down from Arrival comes amid mounting concerns that the startup could possibly go bankrupt by the third quarter of 2023.
Sverdlov is a Russian telecoms billionaire. He will remain a major shareholder of the company, according to The Guardian.
According to Sverdlov, he is more committed to ensuring the success of Arrival. Similarly, he said that he plans to continue acting in the best interests of the company, shareholders, partners, customers, and employees.
In addition, strategy boss Avinash Rugoobur has also left his role for "personal reasons." Despite leaving his post, he remains a board member of the company
Rugoobur will be replaced by Rexford Tibbens. He will take the reins on the company's fundraising efforts.
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Peter Cuneo Will Seek to Raise Funds to Save the Company From Bankruptcy
Arrival had great plans for the EV industry. The company was also developing an electric van, bus, and car.
However, In the middle of 2022, the company decided to cut its workforce. According to reports, the company was already running out of cash.
The company also said it will focus on developing its vans for the US market instead, so, it was shuttering its bus and car projects completely. It cited the EV tax credits that the US offers as a major factor in its decision.
As part of the switch in position, Cuneo will run Arrival while the company is seeking to raise funds under the threat of bankruptcy.
The company likely decided on the swap with the hope that Cuneo could utilize his expertise to turn around the financial problem that the company is experiencing.
Cuneo is known for implementing successful corporate turnarounds. He had helped guide Marvel out of bankruptcy during the time that he was its CEO. Helping Cuneo accomplish his goal is another key executive, Rugoobur.
In 2018, the EV startup partnered with UPS to build a new generation of electric delivery vans. Meanwhile, in 2020, UPS placed an order for 10,000 vehicles that are expected to roll out over the next few years.
In September, Arrival said that despite issues with production, the company has finished building a "production verification vehicle." By the end of the year, it claimed that it would be able to deliver 20 vans to customers.
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