Ebusco

Ebusco unveils key elements of turnaround plan to address challenges

24 October 2024

Ebusco has released further details of its Turnaround Plan, outlining steps to overcome ongoing operational and financial difficulties. The plan, which was presented at the general shareholders' meeting, is designed to restore trust and stabilize the company's operations.

Core of the turnaround plan

Ebusco is shifting to an Original Equipment Design (OED) model, where the company will continue to design and engineer its buses, but outsource assembly to contract manufacturers. By focusing exclusively on the European market, Ebusco aims to boost efficiency and reduce costs. The goal is to increase production to 40-50 buses per month by the end of 2025 (up from around 15 buses currently) and achieve annual cost savings of €30 million.

 

Production Streamlining

As part of the plan, Ebusco will consolidate its production locations, reducing from seven to five sites. This includes merging the Deurne and Venray facilities in the Netherlands, while maintaining operations in France and outsourcing some manufacturing to external partners. 

 

Workforce and process optimization

The company has already begun streamlining its workforce, reducing full-time positions and simplifying internal processes to create a leaner, more cost-effective organization.

 

Governance and leadership

A dedicated steering committee, including the CEO, COO, and CFO, will oversee the implementation of the plan. Transformation Director Michel van Maanen will manage daily operations, ensuring that all milestones are met and reported on regularly.

 

Exploring new revenue streams

In addition to operational changes, Ebusco is exploring opportunities to license its lightweight 3.0 technology, particularly in North America, which could provide a new source of income. The company is also in talks with a strategic partner for an equity injection to strengthen its financial position.

 

Rights issue and financial outlook

Ebusco plans to raise €36 million through a rights issue, allowing existing shareholders to invest at a discount. This capital will support the full implementation of the Turnaround Plan and help bridge a potential cash shortfall expected in early 2025.

 

Despite facing significant challenges, including stalled production and financial pressure, Ebusco’s leadership remains committed to turning the company around. CEO Christian Schreyer emphasized the untapped potential of Ebusco's products, and with the Turnaround Plan in place, the company aims to regain stability and meet the increasing demand for electric buses in Europe.

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