Hopium: Is the hydrogen car saved by Normandy?
This page is translated from the original post "Hopium : la voiture à hydrogène sauvée par la Normandie ?" in French.
- 28/02/2023 10:51
Under financial difficulties, the startup Hopium aiming to launch a hydrogen car receives an exceptional aid from the Normandy region.
The Normandy Region lends a helping hand to Hopium, a startup aiming to launch a hydrogen car by 2025. But behind the glitz of the latest Auto Show, the company is suffering financially.
The Auto Show and a promise of order
Founded by Olivier Lombard, a former race car driver, Hopium is a car manufacturer. Well, it aims to become one, because the startup is currently only at the development stage of its first vehicle.
And not a conventional car, not even electric, but hydrogen-powered, using a fuel cell. In October 2022, Hopium played it straight by purchasing a stand at the Auto Show. The brand proudly displayed a prototype of its “Machina Vision”, a luxury sedan similar to a Tesla Model S.
This attracted crowds, French President Emmanuel Macron, and especially investors. Indeed, a few weeks later, Crédit Agricole announced its intention to order 10,000 units! It already seemed odd that a company was betting on such a volume, with each car priced at around €120,000! But potentially €1.2 billion in revenue is incredible for Hopium.
Financial troubles for Hopium
According to Les Échos, Hopium’s situation is concerning. The media reports that expenses skyrocketed starting in 2022, with nearly €18 million in the published accounts “a few days after the show”. Worryingly, the company reportedly had only €20,000 in cash last year, along with rumors of unpaid suppliers or late salaries. The startup is also reportedly planning to lay off nearly half of its staff (60 out of 130). Meanwhile, its stock market valuation plummeted by -80% since September.
Thus, the Normandy Region is stepping in to assist Hopium. The company plans to build its factory in Douains (Eure) to produce its hydrogen car at a rate of 20,000 units per year. The local authority is lending €2 million in the form of a zero-interest loan. President Hervé Morin emphasized that he wants to “allow the company to continue its growth in a highly competitive global market,” according to Paris-Normandie, and “to pursue a real ambition for the promotion of the Normandy hydrogen sector.”
We also suggestthese articles:
Also read
