e.Volution GmbH Files for Provisional Insolvency After StreetScooter Production Halt

e.Volution GmbH, the parent company of StreetScooter, has filed for provisional insolvency after announcing the discontinuation of production at its Düren plant. Despite the insolvency proceedings, the company has confirmed that its business operations will continue as it works on restructuring.

The Aachen Local Court confirmed the application for provisional insolvency on November 14, 2024. Lawyer Mark Boddenberg, a partner at Eckert Rechtsanwälte, has been appointed as the provisional insolvency administrator. The company stated that the aim of the proceedings is to secure wages and salaries for employees through insolvency substitute benefits.

In a statement, e.Volution explained that the decision was prompted by “high investment requirements as well as strong competition and the loss of order options,” leading to a “sharp drop in sales.” According to the company, the move to insolvency court was deemed “ultimately unavoidable.”

Earlier this year, Günther Schuh, the inventor of StreetScooter, and e.Volution acquired the rights to the electric delivery vehicle from B-ON GmbH, which filed for bankruptcy in 2023. Production at the Düren plant resumed but was suspended in the summer. It was confirmed last week that production at the Düren site will cease, with the StreetScooter set to be manufactured in Thailand starting in 2025. The company expects production costs in Thailand to be reduced by nearly half.

While the future of e.Volution and its operations in Düren remains uncertain, Boddenberg expressed optimism about restoring the company’s solvency. “We will do everything in our power to restore e.Volution GmbH’s solvency,” he said. “We are pursuing this goal by drawing up a customised insolvency plan, which we will develop with the necessary speed in the next steps.”

Günther Schuh, managing director of e.Volution, also commented on the situation, acknowledging the difficult circumstances. “The step of transferring our company to insolvency proceedings was unavoidable due to the liquidity situation,” Schuh said. “We are saddened that the prevailing external circumstances have so severely hampered the plans for our future-oriented and sustainable mobility solution. Even during the insolvency process, I will continue to do everything I can to ensure that the production of our electric delivery vehicles can continue together with our employees under the guidance of the provisional insolvency administrator.”