Dive Brief:
- Proterra Inc., a major U.S. manufacturer of electric transit buses, filed for Chapter 11 bankruptcy Monday evening.
- The company said in a press release that it “intends to continue to operate in the ordinary course of business” as it looks to restructure its operations.
- “We have faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously,” Proterra CEO Gareth Joyce said in the press release.
Dive Insight:
More than a year ago, Proterra reported in its Q4 2021 financial report a growing backlog of orders due to supply chain disruptions and pandemic-related labor absenteeism. The California-based company first launched battery-electric transit buses in North America in 2010; it also provides electric vehicle technology to other manufacturers of medium- and heavy-duty commercial vehicles along with EV charging and fleet management solutions.
Proterra has manufacturing facilities in Silicon Valley and Los Angeles as well as two locations in South Carolina. Joyce said in the press release that the company was “taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
NFI Group, a Canada-based electric and traditional bus and coach manufacturer, also faces financial challenges as it seeks to refinance its debt. In a July 25 press release, NFI said it expects a net loss of $48 million to $52 million in the second quarter of 2023 as it also struggles with cash flow. It cited supply chain disruptions and delivery delays related to electric buses as reasons for high inventories of some buses.
