German electric vehicle developer ElectricBrands has filed for insolvency under self-administration as part of a strategy to completely reorganize the company. Based in Eppertshausen, ElectricBrands is on the verge of launching its lightweight electric vehicles in the market.
The company filed an application for insolvency under self-administration with the Darmstadt Local Court, and provisional self-administration was ordered by the court on January 29, 2024. The restructuring process will also involve affiliated companies ElectricBrands Financial Service GmbH, Evetta GmbH, and XBUS GmbH.
ElectricBrands, active in electric light vehicle development since 2018, attributes the insolvency to a recent increase in development costs and a challenging economic environment. Max Brandt, CEO of ElectricBrands AG, expressed determination in the company’s press release, stating, “We are moving forward and will be launching a new lightweight vehicle on the market in the coming weeks. Salaries are secured for the coming months, and we are in close contact with our partners and other stakeholders. The transformation to electromobility is a major challenge that we are facing with creative vehicle solutions and a motivated team.”
Brandt, appointed co-CEO and later Chairman of the Board of Management in September, had confirmed plans for the start of XBUS model production in late 2024 or early 2025, with initial deliveries slated for 2025. The intended production site was Dutch contract manufacturer VDL Nedcar. The insolvency announcement did not specify whether this production plan remains unchanged.
In early 2023, ElectricBrands had announced its collaboration with Dutch car manufacturer VDL Nedcar to produce its XBUS and Evetta light electric vehicles. The XBUS production was initially scheduled to commence in the summer of 2022 at ElectricBrands in Itzehoe. The current insolvency filing adds uncertainty to the production timeline and manufacturing location for the company’s electric vehicle lineup.
