Tevva vows to "emerge stronger" after ElectraMeccanica merger breaks down

Tevva Motors has vowed to “emerge even stronger” after a merger with Canadian vehicle manufacturer ElectraMeccanica Vehicles Corp broke down.

The Canadian company pulled the plug on the deal with the UK-based electric and hydrogen truck firm following “failures by Tevva” to share “material information”.

Tevva has since re-engaged with a number of investors and public companies looking for a merger.

A statement from Tevva said: “The Tevva team was deeply disappointed by this abrupt decision and had no opportunity to respond to ElectraMeccanica’s claims before they went public.

“Tevva gave full and open access at every point in the process to ElectraMeccanica’s advisors and management, with full financial due diligence prior to signing the definitive agreement and senior members of the ElectraMeccanica executive team in residence for many weeks at Tevva’s UK facility.

“Tevva strongly refutes the basis under which the planned merger was terminated, with no regard to the agreement termination protocol, and will be seeking recourse through due legal process.”

Tevva said it will shortly go public on its rebuttal of the ElectraMeccanica claims via the company’s advisors.

It added: “The termination of the deal has galvanised the entire Tevva team and board and the company has immediately laid down plans to regroup from this event and emerge even stronger.”

To this end, Tevva said it has restructured the leadership team with David Roberts taking the role of CEO and Ken Scott becoming managing director, under the chairmanship of Ian Harnett.

The company has also re-engaged with a number of investors and public companies looking for a merger with Tevva.

“The company is confident that from these various opportunities it will secure both medium and long-term financing to complete its business plan of commercialisation and ramp up sales.”

Tevva said it continues to attract interest from customers in its 7.5-tonne battery electric truck and has held a number of open days and customer demonstrations in recent weeks.

One of these has been with TG Lynes, which is a supplier to the mechanical services, heating, plumbing and air movement industries, and is due to take delivery of the truck in December for use in central London.

Under the merger plans with ElectraMeccana, the combined company was due to operate under the Tevva name from a new HQ in Delaware, USA.

Tevva’s existing 110,000-square-foot EV manufacturing facility in Tilbury, United Kingdom, would be complemented by ElectraMeccanica's recently-commissioned 235,000-square-foot facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.