Bad economy prompts Smith Electric vehicles to curtail expansion
Even though the British Tanfield Group that manufactures Smith electric trucks has a product that should be seeing growing demand in a time of record oil prices, the overall economic malaise is hitting the bottom line. Battery powered Smith trucks are used primarily by commercial customers and since those customers are getting hit hard they are cutting back on capital expenditures. That means that although Tanfield's business is still growing, the ramp rate has declined. In addition Smith is having issues with suppliers for a number of critical components and the build rate of the electric trucks is slower than planned. As a result, the company has decided to shelve plans to build a new dedicated factory for the electric trucks. At current projected build rates they expect to have enough capacity for at least the next year and a half. Tanfield has also decided to scuttle plans for an expansion into the US market and is instead looking for a company already operating here to partner with. As things develop Tanfield plans to review these decisions and if the supply issues are resolved and demand picks up they may revive the factory plans.
[Source: Tanfield Group]
Reader Comments (Page 1 of 1)
jeffzekas 2:03PM (7/10/2008)
Attention, Walmart! Instead of pumping money into Red Chinese factories, how about buying these electric trucks? Heck, Walmart could INVEST their BILLIONS in the new, British (one of our allies) factory, instead of investing in Communist Chinese slave-labor factories! Just a thought.
Reply
Joce03 4:29PM (7/10/2008)
Isn't it a shame that the people who have to money to help develop new technology (Walmart in your example, or Oil coorporation) don't bother?
Everyone can see that the technology of transportation is changing - more hybrids, electric vehicles, etc. So why not take your gzillions of oil dollars, invest in companies like the British Tanfield group or companies developing battery tech. That way, you are helping us get our hands on electric vehicles and when your oil runs out, you'll still be making gzillions, but now, it'll be on electric vehicles!
Please, tell me if I'm crazy...
meme 5:49PM (7/10/2008)
Isn't it a shame that the people who have to money to help develop new technology (Walmart in your example, or Oil coorporation) don't bother?
If an oil company did invest in EV technology, don't you think there'd be people all over this blog clamoring that they're just doing it so they can suppress EVs?
Seriously, there's no way they can win. But yes, the truth is that oil company investments in renewables and alternative fuels are way up. They're especially big players in the wind and solar industries. Some oil companies are more bullish on renewables and alternative fuels than others, but there's been a strong industry-wide migration in that direction.
No matter which direction the world turns, they want to be making money on it.
Reply
Stan Wellaway 5:59PM (7/10/2008)
I don't think you're crazy Joce. You mention Walmart. Walmart own the UK supermarket chain Asda who have a couple of all-electric 7.5ton delivery trucks on trial. Not made by Smith, but by another UK company called Zeroed, who are copying the Smith formula - presumably because they see it working well enough to want a slice of the action. There is a third UK company called ZEVelectric (a subsidiary of Allied Vehicles) who have also started doing the same. And there is a UK company called Modec (no relation to Modec Inc) at modec.co.uk who also produce and sell all-electric 5.5ton delivery vehicles.
Website for Zeroed is http://www.zeroed.org.uk/range
These companies all recognize that there is a market big enough for them all to be pursuing - namely the depot-based delivery fleets which operate over back-to-base routes in every locality.
Smith is the only one of these companies in which it is possible to invest via the stockmarket (Tanfield Group shares are listed on the London market). And with the shares having taken a mighty hit, investors have been piling in again this week, pushing the share price up 167% this week, from a deep low of 4.86p on Friday to a price of 13p this evening! So there is scope for US companies and citizens to participate if the believe Tanfield's recovery might continue.
Reply