Modec, the Coventry based manufacturer of commercial electric vehicles, is joining forces with America’s leading commercial vehicle manufacturer Navistar by setting up a US joint venture company to exploit Modec’s cutting edge technological innovation in the Americas.
Navistar has taken an equity investment in Modec Ltd, as well as forming a joint venture partnership with the UK manufacturer to create a US based manufacturing company, Navistar-Modec Electric Vehicle Alliance, LLC. The joint entity will direct the production and sale of Class 2c-3 all electric trucks in North and South America. This will also provide benefits for the innovative West Midlands and UK businesses which comprise the Modec supply chain.
Modec has expanded its European network rapidly and now has a series of international dealerships in France, Denmark, The Netherlands, Spain, Germany and Ireland. This growth will help transform the commercial vehicle sector and have a significant effect on the automotive industry as a whole. It is a leader in the use of the very latest battery technology and LEAN manufacturing techniques.
Modec vehicles are designed for urban applications involving heavy stop and go driving, they are aerodynamically styled with a two-ton plus carrying capacity, relying solely on plug-in power, with a range of up to 100 miles per charge. They produce zero tailpipe emissions. Under the Joint Venture agreement they will become the latest in a series of advanced, clean technology vehicles that have become part of Navistar’s portfolio.
Modec has received significant financial support from Advantage West Midlands since its formation in 2004. In the first instance it has received nearly £1.1 million from a £1.4 million Grant for Business Investment (formerly Selective Finance for Investment in England) made in 2006 to enable the Company to set up its manufacturing operation in Coventry and take the product to market.
At the end of 2008, as the recession hit the automotive sector and financial markets became difficult, Modec approached Advantage West Midlands for bridging finance to allow Modec to continue its investment in R&D and manufacturing. Modec used this breathing space to secure full European homologation for its vehicle (the first electric commercial vehicle to achieve this) and to deepen its relationship with Navistar, culminating in the Joint Venture and investment announced today. The investment now secured has enabled Modec to repay the Advantage West Midlands loan in full.
Lord Jamie Borwick, Modec founder, said:
“This is fantastic news for Modec and Navistar. Through this deal we will be able to exploit our technological advances in a new market, drive up sales and continue to fund our extensive R&D efforts. Modec has a lead in the purpose-built zero emission commercial sector and we are delighted Navistar has recognised the key advantage of combining Modec electric vehicle technology with their dominant position in the US truck market. Navistar’s market leadership, coupled with their proven track record of clean vehicle technology, makes them a perfect strategic alliance for Modec.
“Advantage West Midlands have been with us from the start and we’re extremely grateful for their funding and support, particularly in the last six months as the economic situation has been so challenging. It is only because of their continued support that Modec is in such a good position to enter into this Joint Venture and continue to develop the technologies to enter the low carbon, high technology era.”
Ian Austin MP, Regional Minister for the West Midlands, said:
“As the country’s leading automotive region the fact that Navistar is working so closely with Modec to take West Midlands’ know-how to the Americas is brilliant news in the current climate.
“It reinforces the fact that the West Midlands does have the breadth of capabilities from manufacturing to high tech R&D to attract a globally significant company such as Navistar.”
Mick Laverty, Chief Executive at Advantage West Midlands said:
“Congratulations to Modec on this deal. It shows the region continues to lead the way in the new technologies needed for a low carbon economy and that this leadership has been internationally recognised by a world renowned multi-national company.
“Navistar are America’s leading electric vehicle manufacturer and Barak Obama’s administration recently announced a grant of $39.2 million to Navistar as part of the US government’s stimulus to promote the development and manufacture of all-electric trucks.
“This is also great news for the automotive supply chain across the region and the UK, hopefully meaning more jobs and a more prosperous industry. This is why Advantage West Midlands has been very pleased to have invested the money, time and effort in supporting Modec towards its current success. “