Hi guys,

this weekly update is a bit difficult. On one hand we want to share exciting news in detail with our investors and supporters,  on the other we can't be to detailed unless all is "safe". However, there is a dynamic development happening in the last couple of weeks and we are quite carefully  optimistic that we might be able to speed things up.

Our current plan, due to COVID-19, is to build the beta in Europe and then proceed in parallel into homologation/certification for Europe and the US. 

That means that we are currently focusing on to build the needeed infrastructure (R&D, future asembly options) in Europe first, always trying to be as much as compatible as possible, to reduces efforts and resources for the US part.

I am flying again to the US next week (fortunately the US Embassy got me another NIE - national interest exception) to prepare grounds for extending the team over there and talking to suppliers as well. We feel the need to expand the US team with an experienced CFO type individual, and we are starting to look out for a CEO and/or COO as well. Things might move quickly and we need to be prepared. Below, I am listing  the latest developments and you can judge by yourself. We got all parts of the puzzle on the table now and  the key is to join them together in the right way:

Development Status Vehicle:

  • Chassis development is moving smoothly, working on vehicle parameters and packaging. Need to do changes on front suspension due to Cab over Design approach. 
  • reached an agreement with Dassault on Catia 6 start-up package
  • The LA automotive design team started to work on updated cabin design 
  • Working on system architecture,  towards a centralized system with OTA  (over-the-air ) update capability

Development Status European organization:

  • planning to setup CityFreighter Western Europe entity with R&D center in the most western part of  Germany -main shareholder CityFreighter Inc. 
  • started to look out for  automotive professionals
  • in final negotiations for  a long term partnership with an automotive supplier who will manufacturer for us chassis and cabin (state of the art laser cutting and welding technologies will provide us with flexibility, fast manufacturing methods, and less spending on expensive and time-consuming tooling) 
  • in final negotiations for a long term commitment with an experienced automotive assembly facility for production start in Q1 2022.
  • Looking to create a win/win with both companies, receiving funding/credits from them, in return, besides the long term contract, they might even become minority shareholders - in the Europe entity only. There could be political support/grants involved as well. And we will create new jobs. Those collaborations are limited to the Western-European market only and we can still move and use all developments, IP etc. freely at our own discretion. I believe this is good base to secure funding till SOP.

Global Drivetrain Supplier:

This is a big move. We will be supplied with the complete drivetrain system (motor, battery and thermal management) from a well-known company. 

It will add reliability, leverage and more options for future collaboration. Details will be announced once all agreements are finally set.

Given all recent developments, I feel that we will be able to secure  funding to SOP in the next months.

Demand 

It is obvious that the demand is steadily increasing. CA's ban of combustion engines by 2035 has accelerated that further.

Recently we had a CC with a global service company and they can't wait to see the beta. More companies are looking out now. All OEMs are planning with a panel van. Our cab/chassis approach will be unique.......


I will keep you updated if things are getting more concrete.


Michael

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