USA / Sweden – Having recently filed for Chapter 11 bankruptcy in the U.S and gone up for auction, it arose that the Volvo Group has emerged as the winning bid to take over the assets of the Proterra Powered business unit (and Proterra Operating Company) of Proterra Inc, based in Burlingame, California, for a fee of USD 210 million. The deal includes the Proterra development centre for battery modules and packs in California and an assembly factory in South Carolina. Whilst details remain sparse at this point, the deal is expected to close in early 2024 and remains subject to the approval of the U.S. Bankruptcy Court. The acquisition should accelerate the development of Volvo’s battery-electric portfolio.
In August 2023, Proterra listed its assets and liabilities in the range of USD 500 million to USD 1 billion. Looking at the 2022 financial results, sales were positive but the company suffered a USD 238 million net loss for the year and adjusted earnings before interest, taxes, depreciation, and amortisation came to minus USD 172.8 million. This has been the trend of year-on-year losses for the company. Challenges cited by the company included parts shortages, inflation, and other costs associated with starting up production at the new battery plant in South Carolina.