Arrival SA (NASDAQ:ARVL) founder Denis Sverdlov has handed the chief executive reins to former Marvel Entertainment boss Peter Cuneo as the electric van company increases its focus on the US.
Russian billionaire Sverdlov remains a major shareholder and will take the chairman role that Cuneo had been occupying since before the Oxfordshire-based company's stock market listing in the first quarter of last year.
While the IPO resulted in a US$660mln (£548mln) cash injection, Arrival said this month that although it had US$330mln in the bank, at its recent rate of cash burn, even with 800 job cuts this summer, there was not have enough cash to keep going until the end of next year.
This led to a screeching U-turn, with a production halt in the UK in order to concentrate solely on the US van market in the medium-term in order to preserve cash.
With the shares down 97% over the past year to $0.33, Arrival said it had not been able to complete its recently planned US$300mln fundraising that was intended to allow it to deliver its first vehicles in the UK this year and to launch a microfactory in the US next year.
As part of the management changes, Avinash Rugoobur, the former General Motors executive who was Sverdlov's automotive and technology mastermind, has left the group.
Cuneo, who ran Marvel Entertainment before its US$4bn purchase by Disney in 2009, will be interim chief executive
He said he wanted to ensure that “the company executes on its next set of strategic goals”.
Sverdlov said: “I am more committed than ever to ensuring Arrival’s success, and I will continue to act in the best interests of the company, shareholders, customers, partners and employees.”