Canoo Inc. (GOEV), the high-tech company crafting fully electric lifestyle vehicles, has achieved a significant milestone in its Oklahoma City operations. The company’s facility has been designated as the first Foreign-Trade Zone (FTZ) in the state by the U.S. Customs and Border Protection (CBP).
Foreign-Trade Zones are strategically located sites near U.S. ports, offering unique advantages to importers and exporters. These zones facilitate the smooth movement of goods in and out of the country while minimizing duties, taxes, and fees. The benefits of FTZs are substantial, enabling U.S. companies to compete more effectively on the global stage. This is achieved by streamlining logistics, mitigating regulatory hurdles, and providing greater control over inventory management.
Oklahoma City’s FTZ presents a plethora of advantages for Canoo. These include duty elimination on previously imported materials, re-exported materials, rejected or scrapped components, wasted materials, return-to-vendor imported materials, and sales of imported materials or finished products containing imported components to other U.S. FTZ operators. Additionally, duties are deferred for manufacturing in the U.S. and domestic sales. Other perks encompass just-in-time delivery, quota management, reduced customs delays, and the ability to hold merchandise indefinitely within the foreign-trade zone.
Canoo’s Oklahoma plant, inaugurated last April, occupies a substantial 500,000 square feet with the potential for expansion, and has the capacity to employ over 500 people. Recently, the company has further bolstered its Oklahoma presence by relocating its engineering workforce from California. This strategic move brings engineering and manufacturing under one roof, fostering greater collaboration and driving operational efficiencies, as Canoo continues its journey towards achieving its ambitious manufacturing ramp-up goals.
Canoo’s Oklahoma plant has received a significant boost with the acquisition of two tranches of new or like-new advanced manufacturing assets, previously owned by Arrival Automotive UK Limited. This acquisition strengthens in-house processes and lays the foundation for increased cabin line production volumes in 2025.
Tony Aquila, Investor, Executive Chairman, and CEO of Canoo, expressed his enthusiasm for this achievement, stating, “We thank Oklahoma City Customs Port Director Pequano and the Dallas U.S. Customs and Border Protection Area Port office for the work, support and direction for the activation approval. It’s great to get this milestone completed as it’s part of a larger strategy with more to come.”
Canoo emphasizes that the FTZ designation is a pivotal step in harmonizing its supply chain, shielding it from external uncertainties. It also provides stability against potential tariff changes anticipated in 2025.
Canoo specializes in crafting a suite of fully electric delivery vehicles (LDVs), built on a modular design. This adaptable platform prioritizes maximizing interior space, allowing for customization across owners and applications. With a diverse range of electric LDVs, including delivery vehicles, pickups, and lifestyle vehicles (LVs), Canoo aims to disrupt the commercial transportation market in a similar vein to Tesla’s impact on the consumer EV market with its lineup of sedans, SUVs, and trucks.
Canoo’s dedication to sustainability is evident in its use of eco-friendly materials and minimal environmental footprint in the production of its LDVs. Its delivery vehicles are designed for global roads and a variety of commercial applications, leveraging modularity for adaptability. The company focuses on driving value for fleets by reducing total cost of ownership and maximizing utilization through innovative software solutions and customized upfitting. Canoo’s clean, minimalist design has garnered recognition, most recently receiving several Red Dot Design Awards, a testament to its commitment to aesthetic excellence.
