At Ebusco, the manufacturer of electric buses from Deurne, 2024 ended on a minor note.
The company announced on New Year's Eve that 102 of its approximately 620 jobs will disappear, a measure that is necessary to improve the financial situation. This job loss, which amounts to more than 16 percent of the total workforce, is one of the many challenges that Ebusco has to deal with.
The news about the reorganization comes shortly after the announcement that a major shareholder, Van Der Valk Investments (VDVI), was fined millions by the Netherlands Authority for the Financial Markets (AFM) for market manipulation with Ebusco shares.
loss figures
Ebusco's financial situation has been worrying for some time. In the first half of 2024, the company recorded a loss of no less than 65 million euros. A shortage of essential parts has caused Ebusco to have difficulty finishing buses for months. In addition, the company lost a legal conflict with transport company Qbuzz last year. This conflict, which revolved around undelivered vehicles, led to a loss of millions and a further deterioration of the financial position.
Ebusco's debt mountain grew to at least 2024 million euros in November 33. To deal with this situation, the company conducted a share issue in the summer of 2024, raising 36 million euros. In addition, it announced a partnership with Chinese battery manufacturer Gotion. This partnership focuses on introducing Ebusco's lightweight bus concept to the Asian market.
savings
The reorganization, including the elimination of 102 jobs, is a necessary step according to CEO Christian Schreyer. It mainly concerns functions in production and support services. In addition to the reduction of the workforce, production locations are also being consolidated: the factories in Venlo and Deurne are being merged. With this, Ebusco hopes to save costs and work more efficiently.
Despite these measures, the financial pressure remains high. The company is estimated to need another 25 million euros in working capital to increase production. Whether this reorganization is sufficient to solve the financial problems structurally remains uncertain for the time being.
An additional blow came just before Christmas, when the AFM announced that it had imposed a fine of 3 million euros on VDVI. VDVI, once a major shareholder in Ebusco, was accused of price manipulation. According to the AFM, the brothers artificially inflated Ebusco's stock price by simultaneously buying small shares while selling larger packages behind the scenes.
The AFM emphasises that this practice ‘disrupts fair pricing and undermines confidence in the financial markets’. An employee of the bank involved discovered the unusual transactions and reported them to the supervisor, who then launched an investigation.
VDVI is according to NRC appealed the fine imposed and contested the charges. The brothers previously tried to prevent the fine from being made public through the courts, but this objection was rejected.
future
The situation at Ebusco underlines the vulnerability of the company, which once started as a promising start-up. Although the company is trying to survive with measures such as a share issue, a strategic partnership and a reorganization, the outlook remains uncertain. The question remains whether Ebusco will succeed in weathering the financial storm and maintaining its position as an innovative bus manufacturer.
