Coventry firm in UK/US electric vehicle deal

Earlier this year US President Obama awarded a £23 million grant for the joint venture while Modec received a £4 million government loan which it has now repaid. Modec claims to be the first company in the world to design and build an electric commercial vehicle from scratch rather than bolting a battery onto an existing vehicle. On a visit to the factory, Business Minister Pat McFadden said companies like Modec were key to the government's vision for low carbon manufacturing and helping the UK automotive industry manage the transition from conventional to electric drive technologies. Modec's chief executive Bill Gillespie said the deal was a positive endorsement in the low carbon vehicle technology Modec had developed. He went on: "Through this deal we will be able to exploit our technological advances in Modec's existing European markets as well as the US. In 2010 Modec will see a significant increase in sales which will enable us to fund our extensive R&D efforts." Modec launched vehicle production in 2007 and is expanding into export markets, with dealers in France, Netherlands, Spain, Germany and Ireland. Navistar manufactures a range of vehicles including buses, trucks and motor homes. The joint venture has been named Navistar-Modec Electric Vehicle Alliance. The new urban-use trucks will have a two-ton plus carrying capacity and a range of up to 100 miles per charge. Pictured: A Modec electric vehicle