Modec secure £3m French order for electric vans

Jun 25 2009 by John Cranage, Birmingham Post

AUTOMOTIVE

The battered West Midland automotive industry received a rare shot of good news yesterday when electric van manufacturer Modec won an order from France for 100 vehicles.

The Coventry pioneer announced the deal after its distinctive urban delivery van – the first of its kind to be designed specifically as a battery-powered vehicle – became the first to gain EC Whole Vehicle Type Approval.

That means the van can be sold throughout the European Union without having to go through separate homologation procedures in different country. It is currently seeking similar federal approval in the US.

Modec said yesterday it had received an initial order for 100 vehicles from a new French distributor, ElecTruckCity based in Paris, 40 of which have already been sold to customers.

Based on a list price of about £30,000, the French order is worth some £3 million to Modec, the March winner of The Birmingham Post Enterprise Award, with the total value of the new dealership to the business likely to be about £6 million.

ElecTruckCity, the sole distributor for Modec in France, has been set up by Frederic Deret, president of logistics giant Deret Group, and Michel Albrand, former president of MAN France.

Modec chief executive Bill Gillespie said: “International demand for Modec is extremely strong. ElecTruckCity has taken the lead by setting up a distribution network in France and we are very excited about the future of the French market.

“At a time when the automotive industry is full of doom and gloom we are pleased to announce our international expansion. This proves the future of the UK auto industry is green.”

Mr Deret said he discovered Modec at the 2007 Commercial Vehicle Show at the NEC. This year’s show was cancelled because of the recession.

“As soon as I saw the iconic vehicle I knew the demand for Modec would be strong in France,” he said.

“The launch of ElecTruckCity is a significant milestone for the French commercial vehicle market. The interest in electric vehicles is significant and with Modec we can meet the needs of urban vehicle operators.”

Modec says that unlike fuel cell vehicles or electric cars, electric commercial vehicles such as its van are available today.

Each one of its vehicles saves more than nine tonnes of CO2 per year, which has significantly reduced emissions from customers such as Tesco, FedEx and UPS.

More than 150 vehicles are now on the road and production is set to increase in the near future.

Four years after it was launched by Lord (Jamie) Borwick, the former chairman of Manganese Bronze, the company that owns Coventry cab maker London Taxis International, Modec is beginning to ramp up production to an initial level of 2,500 vans a year.

After producing 100 vans last year, output is expected to rise to 400 in 2009 and to hit 1,200 in 2010.

Lord Borwick told the Post in March that he envisages Modec ultimately producing 50,000 vehicles a year on three continents with five years.

On the back of demand from customers such as ElecTruckCity, the 80-strong company has recruited a further five production workers and plans to operate a two-shift production cycle from next year.

The vans, designed specifically to operate within cities, have a range of 100 miles, a top speed of 50mph and a payload of two tonnes. Overall running costs work out at 15p a mile compared with 37p a mile for an internal combustion vehicle, and the lithium-ion battery pack, which is leased separately, has to be charged overnight at a typical cost of £5.

Rather than converting an existing diesel or petrol van to battery power, Modec designed its box vans, chassis cab and drop-side vehicles around the battery. That means each vehicle is “future proof” against improvements in battery technology.

The latest addition to the range is a tipper vehicle designed for local authority refuse collections.

West Midland MEP Malcolm Harbour, who helped frame the EC Whole Vehicle Type Approval legislation in 2006, said Modec’s French order highlighted the potential for zero carbon vehicle manufacturers.

But with the UK Government having been “very slow” to begin promoting zero and low carbon transport, European countries and cities are proving to be Modec’s biggest markets, Mr Harbour said. “I think this announcement is terrific news,” he said of the ElecTruckCity deal.

The UK began to catch up this week with the launch of the Government’s £20 million Low Carbon Vehicle Procurement Programme (LCVPP), in which Modec is taking part.

Sales director Roger Atkins said: “Export business for Modec is currently very good. This is partly driven by European government incentives to buy electric vehicles.

“As a British manufacturer, Modec is delighted the UK Government has recognised the opportunity to invest in the commercial electric vehicle market.”

Mr Harbour is due to speak today at a seminar aimed at helping niche vehicle manufacturers such as Modec and West Midland sports car specialist Westfield to take advantage of the new single market legislation.

The event at the National Motorcycle Museum is organised by the Niche Vehicle Network, which is part of the Loughborough-based Cenex (Centre of Excellence for Low Carbon and Fuel Cell Technology), an R&D organisation backed by regional development agency Advantage West Midlands.