Electric vehicle leasing group with fleet of 7,000 Fiat, Peugeot & Vauxhall cars collapses after failing to find buyer
AN EV leasing firm with a fleet of over 7,000 cars has collapsed after failing to find a buyer.
Onto, which leased cars from big-name brands like Fiat, Peugeot and Vauxhall was forced into administration today after racking up millions in debt.
Based in the UK, they offer a wide range of electric cars to subscribers on lease agreements.
CEO Rob Jolly described the company as "the pre-eminent market leader in electric car subscriptions" last month.
He added that he was "confident that our proposition can continue to play a key role in the UK's net zero transition".
The firm had received new cash injections as recently as three months ago but was unable to stay afloat.
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Major backers Legal and General pulled out earlier in the summer triggering a sales process as company bosses struggled to balance the books, reports.
Despite total funding of over £279 million ($350 million) since its 2018 launch, the company was forced to call in the administrators earlier today.
Gavin Maher, who is one of the administrators, said that many of the issues were caused by the "steep fall in electric vehicle residual value in the first half of 2023."
EV prices have been plunging in recent months, particularly on the resale market, as the cost of living drives customers away and evolving tech makes older models obsolete.
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Mr Maher also cited "rising interest rates and the squeeze on disposable income" as key factors in the collapse of the company.
He confirmed that Onto will continue to serve its 20,000-strong subscriber base while "exploring strategic options".
It is likely to be stripped of its assets, which will then be sold off to pay its debts.
Potential bidders are expected to be contacted in the coming days.
It comes The Sun Online unveiled the nation's EV charging fiasco, with long queues at service stations and sky-high prices.
Meanwhile, a major car brand has announced it will discontinue two of its most iconic models as they have a new EV in the works.