Canoo’s Oklahoma City facility approved as Foreign Trade Zone

Canoo announced that the U.S. Department of Commerce has approved its Oklahoma City facility as a Foreign Trade Zone. The approval marks a significant milestone that will accelerate Canoo’s Made in America electric vehicle manufacturing strategy, improve unit profitability and enable a faster path to breakeven. Canoo’s Oklahoma City facility currently employs more than 100 workers and will support as many as 1,100 good-paying manufacturing jobs at full capacity. FTZ designation allows for the elimination of all customs duties on vehicles sold to customers overseas and for deferral of customs duties on imported parts used in vehicles sold domestically. The company proudly sources more than 90% of its parts from the U.S. and allied nations. Approximately 70% of parts come from North America, and the remaining from the rest of the world. For international sales, the FTZ will significantly enhance profitability by lowering the vehicle cost by up to 5% on parts imported from the rest of the world. This cost reduction will occur when these Made-in-America vehicles are exported to international markets, which we plan to announce in the near future. For domestic sales, the FTZ designation improves working capital by millions of dollars by deferring customs, duties and tariffs related to imports from the time of port-of-entry of the parts until the vehicle is delivered to its customers. Furthermore, Canoo anticipates additional cost savings and benefits through a simplified customs process, a streamlined supply chain, and overall enhancements to its site security.