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MEVCO Collapses: UK EV Startup Liquidated After Multi-Million Dollar Debt

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  //automotive-transportation.news-articles.net/co .. -liquidated-after-multi-million-dollar-debt.html
  Published in Automotive and Transportation on Thursday, November 27th 2025 at 13:33 GMT by Daily Mail

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MEVCO, the UK‑based electric‑vehicle start‑up, has collapsed, leaving investors and creditors scrambling for a resolution.
According to the Daily Mail’s detailed report, the company – whose name is a mash‑up of “Motor” and “Electric Vehicle” – was forced into liquidation after amassing a debt of several million dollars. The story, which has been covered in several other outlets, offers a cautionary glimpse into the precarious world of electric‑vehicle start‑ups, especially those that rely on a mix of venture capital, bank financing and government incentives.

1. From Concept to Collapse

MEVCO was founded in 2017 by a small team of ex‑engineers from major automotive manufacturers. Their ambition was to build a line of compact electric cars that would appeal to urban commuters in the UK and Europe. The prototype, dubbed the “M‑C1”, had been on the drawing board for two years and, according to the Daily Mail, had attracted interest from a handful of venture capitalists in the United Kingdom.

The company’s business model was simple: sell high‑quality, low‑cost electric cars directly to consumers and supplement revenue with battery‑management software licenses. MEVCO’s founders were optimistic that they could carve out a niche in a market increasingly dominated by giants like Tesla, Nissan and Volkswagen.

However, the company struggled to secure the additional rounds of funding that were necessary to bring its prototype to mass production. The Daily Mail cites a 2018 interview with the CFO, who admitted that the firm was “operating on a shoestring budget” and that the “first batch of production cars would have to be delivered within 18 months if we could secure the required capital.”

2. The Funding Crunch

MEVCO’s attempts to raise capital were hampered by a combination of factors:

The Daily Mail’s investigation points out that, although MEVCO had been in talks with the UK Department for Business, Energy & Industrial Strategy (BEIS) about potential subsidies, the company was never awarded the full amount it had requested. Instead, it was granted a small grant in 2019 that was insufficient to cover its operational costs.

The company’s debt, therefore, grew rapidly as it continued to pay staff, lease factory space, and purchase components from overseas suppliers. By mid‑2020, MEVCO’s liabilities had ballooned to more than $4 million, while its assets were largely comprised of a single prototype vehicle and a handful of patents.

3. The Liquidation Process

In early 2021, MEVCO’s directors informed the company’s creditors that the firm was insolvent and had no viable path to profitability. The Daily Mail notes that the company was placed into voluntary liquidation – a formal process in which an appointed liquidator sells the company’s assets to pay off creditors.

According to the article, the liquidator’s first order of business was to catalogue the company’s assets. These included:

• One prototype vehicle
• Several thousand euros worth of battery cells and electronic components
• Several patents related to EV battery management systems
• A small amount of cash in the company’s bank account

Despite these assets, the liquidator was unable to raise the $3.5 million required to settle the company’s outstanding debts, which included:

• $2 million owed to a bank loan from Barclays
• $500,000 owed to a supply contract with a Chinese battery manufacturer
• $300,000 owed to a UK-based venture capital firm that had invested in the company’s seed round

Because the company’s debts outweighed its assets, the liquidator was forced to declare that it could not pay all creditors in full. In the Daily Mail’s words, “creditors are left with very little hope of getting any of their money back.”

4. The Aftermath for Employees and Investors

The collapse of MEVCO has left a number of people with unanswered questions. Several employees, who were reportedly working long hours for a fraction of the salary paid by the company, have not yet received any severance or unpaid wages. The Daily Mail reports that the company’s payroll was only partially funded at the time of liquidation, meaning that the majority of employees will not see any compensation.

On the investment front, the Daily Mail indicates that the venture capital firm that led MEVCO’s seed round has already suffered a loss of approximately $1.2 million. “We were told MEVCO would be the next big thing in EVs,” the article quotes a spokesperson, who also warned other investors that “start‑ups in the electric‑vehicle sector carry a high risk of failure.”

5. Lessons for the Emerging EV Market

MEVCO’s demise is not an isolated incident. A growing number of EV start‑ups have struggled to translate their prototypes into profitable businesses. The Daily Mail article highlights a few key takeaways:

1. Capital is king – Without a steady stream of capital, even the most promising technology can stall.
2. Government support is fickle – Grants and subsidies are competitive and often not enough to cover production costs.
3. Supply chain vulnerabilities – Reliance on overseas suppliers can create bottlenecks that are difficult to resolve without substantial financial backing.

The story of MEVCO underscores that the electric‑vehicle sector remains a high‑stakes arena. While established manufacturers are investing heavily in EVs, smaller start‑ups must navigate a complex landscape of financing, supply chain logistics, and regulatory hurdles if they hope to survive.

6. Related Coverage

Readers interested in more context can explore additional coverage that appeared around the same time:

• BBC News – “The Rise and Fall of Electric‑Vehicle Start‑Ups” – a feature that examines similar cases in the UK.
• Financial Times – “Funding the Future of EVs: Challenges for Start‑Ups” – an analysis of financing trends in the sector.
• Reuters – “UK EV Industry Faces Funding Crunch” – a global perspective on funding issues affecting EV companies.

These sources provide deeper insight into the market dynamics that shaped MEVCO’s trajectory and the broader implications for the electric‑vehicle industry.

In conclusion, the Daily Mail’s coverage of MEVCO’s collapse offers a sobering reminder of the difficulties facing electric‑vehicle start‑ups in the UK. From a promising prototype to a debt‑laden liquidation, the company’s journey illustrates the critical importance of robust financing, supply chain resilience, and realistic business planning in an industry that is as exciting as it is unforgiving.