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Canoo CEO confirms $300 million incentives number from state for Pryor factory
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Canoo CEO confirms $300 million incentives number from state for Pryor factory

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The head of a electric vehicle maker scheduled to build a plant at MidAmerica Industrial Park in Pryor acknowledged this week that the state has proposed hundreds of millions of dollars in incentives for the project.

“The state of Oklahoma has committed approximately 300 million (dollars) in non-diluted financial incentives to support our facility,” Canoo CEO Tony Aquila said in an earnings call. “Approximately one-third of the incentives are anticipated to come during the first 36 months.”

The $300 million figure is what Aquila shared with the Reuters news agency at the time of Canoo’s Oklahoma announcement in June. The Oklahoma Department of Commerce declined a request by Tulsa World for details of those incentives, citing an exemption in the state’s Open Records Act.

A MAIP official has said Canoo’s $400 million investment in Oklahoma will be a “mega microfactory” for its pickup truck and multipurpose delivery vehicle. It will include a full commercialization facility with a paint, body shop and general assembly plant. The campus also will include a low-volume industrialization facility and vocational training center.

The initial build-out begins this year, with the plant becoming operational within 12 to 13 months and fully completed by 2024. Canoo has chosen Netherlands-based VDL Nedcar as its contract manufacturing partner for its lifestyle vehicle.

In this week’s earnings call, Aquila singled out the recruiting work of Oklahoma Gov. Kevin Stitt, Cherokee Nation Principal Chief Chuck Hoskin Jr., and Dave Stewart, head of MAIP.

“… We are currently targeted to bring up to 2,000 high-paying jobs to our facility, with a goal of hiring at least 40% of the workforce from the local community, which consists of Native Americans and veterans,” Aquila said.

Brent Kisling, a trustee on the Oklahoma Ordnance Works Authority, which operates MAIP, has characterized Canoo’s average pay scale in Oklahoma to be “well above” $45,000 annually.

“Launching this facility in the U.S. is good for Oklahoma, good for America and it’s the right thing to do for Canoo,” Aquila said. “We are in the final process of selecting a construction manager, architect, engineering firm, and more. Multiple high-quality providers are bidding for these contracts, and there is a potential that we will select one in the coming quarter.”

For the second quarter, Canoo reported a net loss of $112.5 million, or 50 cents per diluted share, compared to a net loss of $23.2 million, or 28 cents per diluted share, for the same period a year ago.

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California electric car maker, Canoo, to invest $400 million into MidAmerica Industrial Park mega-microfactory in Pryor, OK.

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