David Beckham-backed electric vehicle company halts operations

Electric vehicle company Lunaz, which had received backing from soccer legend David Beckham, has officially ceased operations. The company, based at Silverstone Park in Northamptonshire, cited the delay in the ban on petrol and diesel vehicle sales as the reason for its decision. Last year, Prime Minister Rishi Sunak announced that the ban originally set for 2030 had been pushed back to 2035.

The company’s subsidiary that focused on converting bin lorries into electric vehicles went into administration last week. In a statement, Lunaz explained that they were currently restructuring to adapt to changing market dynamics brought on by delays in the transition to zero-emission vehicles for fleets. All operations within the company have ceased with plans to restart under a new structure to meet the demand for both passenger and commercial electric vehicle products.

Employees were reportedly instructed to go home and not return to work. An anonymous employee revealed that new staff had been hired just two weeks prior to the announcement. According to the source, staff members were informed in a meeting that they had not met their targets, leading investors to pull out and resulting in the redundancy of all employees.

The company took steps to change the name of its bin lorry conversion subsidiary from Lunaz Applied Technology to App Tech Productions on 13th March. Buckinghamshire Council, which had a contract with Lunaz for the conversion of a bin lorry, expressed disappointment upon learning about the cessation of operations. Steven Broadbent, the deputy leader of the council, stated that discussions were ongoing regarding the impact of Lunaz’s decision on their agreement to transition one of their refuse vehicles to an electric variant and on the local economy.

Additionally, Lunaz had a deal with waste management company Biffa to convert 10 lorries into electric vehicles. Anthony Holley, Biffa’s fleet and facilities director, emphasized their continued commitment to expanding their net zero fleet as part of their broader decarbonization plans. He reassured that Biffa would resume collaboration with the Lunaz Group when operations for their commercial vehicle products recommenced.

The news of Lunaz halting operations serves as a reminder of the challenges faced by companies in the electric vehicle sector amidst regulatory uncertainty and shifting market dynamics.