Lunaz Group suspends operations as it begins restructure
Classic car electromodder suspends operations days after placing bin lorry electrification arm in administration
Vehicle electrification specialist the Lunaz Group has halted it operations, including its classic car 'upcycling' business, while it undergoes a restructuring process and has filed a note of intent to appoint administrators.
The Silverstone-based group, which was founded in 2021, comprises two separate companies: commercial vehicle electrifier Lunaz Applied Technologies (LAT) and classic car electromodder Lunaz Design.
LAT entered administration recently, with the loss of around 40 jobs, which it said was a result of a restructuring of its business operations. At the time, the Lunaz Group said that its passenger car operation would continue.
But the Lunaz Group has now stopped operations entirely and will appoint administrators to undergo a restructuring process.
It intends to restart operations once the business is restructured.
A spokesperson said: "The Lunaz Group is currently restructuring to adjust its business and operations in response to shifting market dynamics. These are caused by delays to the legislative requirement for fleets to transition to zero-emissions vehicles.
"All operating entities of the company have stopped operations with an intent to restart under a new structure to meet current and future demand for the company’s passenger and commercial vehicle products.
"An announcement on the long-term future of the business will be made in due course.”
*Why Lunaz Applied Technologies halted production*
Earlier this week, LAT ceased operations, with Autocar understanding that it had failed to obtain the necessary funding to begin production of its electric bin lorry, dubbed the Lunaz Upcycled Electric Vehicle.
At the time, Lunaz said its retains the intellectual property relating to its HGV electrification process and planned to restart the programme when the market environment is more hospitable.
A spokesperson told Autocar at the time that "the Lunaz Group is currently restructuring its business to rescope timelines for the start of production for commercial vehicle products. This means the business entity Lunaz Applied Technologies has stopped operations."
The spokesperson added that "it is intended that engineered commercial vehicle platforms will commence production at a later date, in response to confirmed and anticipated delays on the legislative requirement for fleets to transition to zero-emissions vehicles.
LAT planned to ultimately convert 1100 diesel-engined industrial vehicles to electric drivetrains each year, "to meet surging demand for electrified vehicles in the run-up to the 2030 [now 2035] ban on the sale of fossil-fuelled vehicles".
Last year, it agreed to supply waste management company Biffa with 10 Upcycled Electric Vehicles, in a deal that it said would save up to 210 tonnes in embedded carbon.
It then agreed a supply deal with Buckinghamshire Council, with plans to deliver the first lorry last autumn.