Arrival CEO takes a step back from electric van startup's financial struggles

Denis Sverdlov, CEO and founder of struggling EV startup Arrival, has taken a step back from the company's day-to-day operations, according to The Financial Times and Bloomberg >. Sverdlov won't leave the company altogether, but will switch places with Arrival president Peter Cuneo, who served as CEO of Marvel Entertainment prior to its acquisition by Disney.

Arrival had big plans for the EV space and was developing an electric van, bus and car. In mid-2022, however, the company downsized as it ran out of cash. It also announced it was shutting down its bus and car projects altogether to focus on developing its vans for the US market, citing electric vehicle tax credits offered by the US as a major factor. in his decision. Cuneo will lead the company as it seeks to raise funds under threat of bankruptcy.

Arrival likely decided on the trade, hoping Cuneo could use his expertise — after all, he's been known to orchestrate successful corporate turnarounds and helped bring Marvel out of bankruptcy during his tenure as CEO. Whatever Cuneo decides to do, it will have to accomplish it without the help of a key executive: Avinash Rugoobur, the company's chairman and chief strategy officer, has stepped down but will remain a member of the board.

The EV startup partnered with UPS to build a new generation of electric delivery vans in 2018, and in 2020 UPS placed an order for 10,000 vehicles to be deployed over the next few years. Arrival said in September that despite production issues, construction of a "production verification vehicle" was complete and it would be able to deliver 20 vans to customers by the end of the year.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.