The Aachen-based electric vehicle manufacturer e.GO has gone bankrupt for the second time. “Next.e.GO Mobile” has filed an application to open insolvency proceedings at the Aachen district court, the company announced on Friday afternoon. The court appointed lawyer Claus-Peter Kruth from the law firm AndresPartner as provisional insolvency administrator (case number 93 IN 46/24).
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In a statement, the company cited “developments and challenges in the electric vehicle industry as well as the volatility of the capital markets” as reasons for filing for bankruptcy. The equity-based financing instruments could not have been used to the extent and speed expected. Alternative financing is difficult to obtain due to the market situation.
Second bankruptcy
It is the second insolvency of the car manufacturer, which was founded in 2015 from the Rheinisch-Westfälische Technische Hochschule (RWTH) Aachen. In a mandatory report for the US stock exchange, the company also announced that the insolvency of the Dutch parent company Next.e.GO NV and other of its subsidiaries was also expected.
e.GO set out to build a fully electric small car in series. A few examples of the e.GO life were built and some were also sold. In addition, the company developed an autonomous “people mover” together with supplier ZF.
The first financing problems arose in 2019, followed by bankruptcy a year later. With a Dutch investor, the new name “Next.e.GO Mobile” was to continue in 2021 with the e.Go Life and its successor model e.wave X. The new investor organized fresh capital again. In October 2023, the company went public on the US technology exchange Nasdaq.
Only 1350 cars sold
According to a report in the Aachener Zeitung, delays in the EU model approval of the e.wave X are, among other things, responsible for the crisis. There were reportedly already 11,000 pre-orders for the small electric car. However, e.GO has only sold 1,350 vehicles from its predecessor.
A total of 320 people are employed at e.GO. The production employees were put on short-time work a few weeks ago, and other parts of the workforce were also put on short-time work last week, the Aachener Zeitung reports.
Insolvency administrator Kurth now wants to “get an overview of the economic situation” and then examine all options. “We intend to continue the ongoing investor discussions and negotiations in order to find solutions for the continued existence of the company,” says Kurth, expressing optimism “that we could succeed in this.”
(vbr)