After bumpy 2022, Arcimoto hopes for smoother roads come 2023
2022 has been a topsy-turvy year for Eugene-based manufacturer, Arcimoto. However, the outlook is optimistic for 2023.
Last February, a new, expansive production space was unveiled for Arcimoto’s Fun Utility Vehicles (FUVs.) Dignitaries and shareholders toured the 250,000-sq. ft.space, as new models, innovations, and production goals were presented.
But in September, a restructuring plan was announced, including a 32% payroll reduction. Arcimoto has also dialed back some production goals, and currently has maintained staffing at pre-pandemic levels.
Interim CEO Jesse Fittipaldi said like many other manufacturers, supply chain issues and Wall Street upheavals challenged the company.
“And Arcimoto, we are a publicly-traded company,” he told KLCC. “We’re different than most companies in Oregon, and hits on the stock market definitely affect the way we can operate. So we have to change and adapt to that, and that’s what we did.”
A ray of sunshine for Arcimoto’s sales prospects comes in the form of recent rental agreements in tourist-heavy sites including Las Vegas, Los Angeles, Orlando, and Kauai.
“Part of the initiative is doing things that make money now,” said Fittipaldi. “Rentals, do that. And we think next year, we're going to see a really positive return on that.
“The other benefit of rentals is that people get to experience the FUV and some percentage of will end up ordering it. So it's a key plan to reduce the cost of getting people into the vehicle to drive it which is required for somebody generally to purchase.
“So kind of a double win.”
Fittipaldi said he and other Arcimoto executives believe this to be a healthy business model that’ll generate revenue.
With inflation easing and the economy seeing a robust turnaround so far this holiday retail season, he says he’s optimistic for fourth-quarter earnings to wrap up 2022.