Nikola, the U.S. truckmaker, has announced a recall of all the battery-powered electric trucks it has delivered to date and is suspending sales after an investigation into recent fires revealed a coolant leak inside a battery pack as the cause. The company is recalling a total of 209 battery-powered electric trucks in the marketplace between dealers and customers and is in the process of contacting all parties involved. The preliminary findings of the investigation, conducted by a third-party investigator, were supported by a “minor thermal incident” on one pack on a parked engineering-validation truck, although no injuries were reported. Nikola stated that foul play or external factors were unlikely to have caused the incident and efforts are underway to provide a remedy.
The investigation was initiated by Nikola in June after trucks at its Phoenix, Arizona, headquarters caught fire. One damaged truck, kept at the Phoenix site for monitoring, re-ignited last month. Internal investigations conducted by Nikola’s safety and engineering teams pointed to a single supplier component within the battery pack as the likely source of the coolant leak that caused the fires.
Nikola has been facing challenges due to supply chain bottlenecks and weaker demand, leading the company to focus on making battery electric trucks only to order and shift its focus to hydrogen fuel cell trucks. On August 4, Nikola appointed Chairman Stephen Girsky, a former General Motors executive, as its chief executive, marking the fourth CEO change in four years.
The company has expressed “substantial doubts” about its ability to continue as a going concern for the next 12 months, reiterating its warning for the third time since February, as it awaits “critical” additional capital. In response to the recall, Nikola has asked customers and dealers of its Tre battery electric trucks to take immediate safety measures, including considering parking the vehicles outside. Following the announcement, Nikola’s shares fell by as much as 5.6%.
The recall and suspension of sales are significant setbacks for Nikola as it strives to address safety concerns and secure its financial stability. The company will need to take swift action to rectify the coolant leak issue and regain the trust of its customers and investors.
What steps is Nikola taking to address the coolant leak issue and ensure the safety of their battery-powered electric trucks
Nikola, the U.S. truckmaker, has made the decision to recall all its delivered battery-powered electric trucks and halt sales due to an investigation into recent fires. The investigation revealed that a coolant leak within the battery pack was the cause of the fires. A total of 209 trucks are being recalled, and all parties involved are being contacted. Although no injuries were reported, the investigation affirmed the findings with a “minor thermal incident” on one of the trucks. Nikola stated that foul play or external factors are unlikely to have caused the incident and is working on finding a solution.
The investigation was initiated by Nikola after trucks at their headquarters in Phoenix, Arizona caught fire. One of the damaged trucks reignited last month while being monitored. Internal investigations conducted by Nikola revealed a single supplier component within the battery pack as the probable source of the coolant leak.
Nikola has been facing challenges due to supply chain bottlenecks and weaker demand, which prompted the shift to focusing on making battery electric trucks only to order and shifting their attention to hydrogen fuel cell trucks. On August 4, the company appointed Chairman Stephen Girsky as the CEO, the fourth CEO change in four years.
The company has expressed doubts about its ability to continue as a going concern for the next 12 months, as it awaits critical additional capital. In response to the recall, Nikola has urged customers and dealers to take immediate safety measures, including parking the vehicles outside. As a result of the announcement, Nikola’s shares fell by as much as 5.6%.
The recall and sales suspension are significant setbacks for Nikola as they work to address safety concerns and ensure financial stability. The company must take swift action to fix the coolant leak issue and rebuild trust with customers and investors.
