The outlook appears bleak for the David Beckham-backed EV firm as it embarks on a restructuring process
- Lunaz Group ceases operations, citing delays in UK’s zero-emission vehicle regulations.
- Both commercial and classic car electromod projects halted, future of passenger car division uncertain.
- Company seeks to adjust its business model in response to the shifting market dynamics.
The electromod specialist Lunaz Group, known for turning gorgeous classics into EVs and its production of upcycled electric garbage trucks, has announced the cessation of its operations. The company cites the delay in the UK’s upcoming sales ban of ICE-powered vehicles as the primary reason for suspending production. Administrators will be appointed to initiate a restructuring process.
The British company, founded in 2021 with the backing of former soccer star David Beckham who took a 10 percent stake, operated under two divisions: Lunaz Design, responsible for the fancy electromod projects, and Lunaz Applied Technology, which produced the electric trucks.
The latter recently entered administration, resulting in the layoff of 40 employees from its Silverstone Park premises in Northamptonshire. Initially, it was announced that the passenger car department would continue operations, but a few days later, the entire group collapsed.
More: Lunaz’s 007-Inspired Classic Range Rover Safari Has A License To Electrify
A former Lunaz employee told BBC that the company recently informed them “they had not hit their targets” and that “investors had pulled out”, before announcing that the whole staff was made redundant.
A spokesperson for Lunaz stated: “The Lunaz Group is currently restructuring to adjust its business and operations in response to shifting market dynamic. 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.”
The UK government’s plan to ban sales of new ICE-powered vehicles has been pushed back from 2030 to 2035, matching the target set by the European Union.
Besides the zero-emission garbage trucks, Lunaz has completed several electromod projects based on sought-after classics by Aston Martin, Bentley, Jaguar, and Range Rover. It remains to be seen if the restructuring will allow some sort of reincarnation of the passenger division.
