Electric van maker Modec runs out of juice
Set up in 2004, Coventry-based electric light commercial vehicle manufacturer Modec has gone into administration following poor sales and growing debts. Half of the workforce has been made redundant.Administrators at Zolfo Cooper say they were left with no alternative but to make 26 employees redundant with immediate effect. “Unfortunately, the business has experienced severe cashflow difficulties in recent times,” said Ryan Grant, partner administrator. “This, combined with the tough economic climate, has led to the need for administration. We regret that we were left with no choice but to make some employees redundant in order to protect the value of this business for potential buyers.”
Modec secured a £23m grant from the US government in 2009 to build electric vans for the North American market in conjunction with US truck manufacturer Navistar. Founder Lord Borwick said the deal had not produced as many orders as he expected and only 400 vehicles had been made since its launch in 2007.Prior to going into administration it was hoped that stakeholder and partner Navistar would bail-out the UK company. It may still be in the frame, but perhaps a more likely scenario is that Chinese companies will be eyeing-up the hi-tech zero carbon LCV technology with the intention of shipping production overseas.









