Xos Will Flex Manufacturing

Xos, Inc., a leading manufacturer of fully electric Class 5 to Class 8 commercial vehicles (“Xos” or the “Company”) that recently announced a planned business combination with NextGen Acquisition Corporation (NASDAQ: NGAC) (“NextGen”), highlighted how its flex manufacturing strategy, factory management systems and line design will reduce costs, development time and footprint across all stages of the manufacturing process.

Xos’ flex manufacturing strategy is an efficient and scalable strategy that leverages the Company’s strategic partners’ existing facilities and labor to assemble vehicles, enabling Xos to scale production in a capital efficient manner and in lockstep with market demand. Using this strategy, Xos will be able to assemble up to 5,000 vehicles annually per facility at a cost of approximately $45 million dollars per facility build out – approximately 80% less than a traditional large-scale automotive manufacturing facility. Xos is already building production vehicles through these facilities today.

Xos has established relationships with leading global and national commercial vehicle manufacturers that provide facilities and labor to assemble its vehicles. Xos has partnerships with Metalsa, a leading global manufacturer of frame and chassis systems for commercial vehicles, and Fitzgerald Manufacturing Partners, a manufacturing body in the Southeast United States.

“Xos uses a flexible manufacturing approach that is leaner and faster than the legacy assembly line approach to manufacturing. The facilities’ smaller footprint and the utilization of existing facilities and labor allows us to establish each flex facility in under one year, and for much less capital than a larger, traditional plant. We expect that we will be able to bring facilities online in lockstep with our order book and address market demand in real-time ahead of competitors with longer lead-time manufacturing strategies,” said Dag Reckhorn, Xos’ Vice President of Manufacturing. “Our flex manufacturing approach allows us to fulfill our customer orders faster and with greater cost efficiency.”

Xos plans to close its previously announced business combination with NextGen in the third quarter of 2021.