Leading UK electric van maker collapses

Modec, one of the UK’s largest electric delivery van makers, went into administration in March

Modec, one of the UK’s largest electric delivery van makers, went into administration in March.

The Coventry-based company will continue trading while UK corporate restructuring company Zolfo Cooper seeks a buyer.

Modec was one of four UK suppliers to the government’s £20m Low Carbon Vehicle Public Procurement Programme, which has so far delivered 201 vans to organisations such as Royal Mail and the Environment Agency. It delivered just four vehicles through the scheme, receiving £300,000.

Global freight and logistics giants FedEx and UPS were among Modec’s private customers. In 2007, Tesco took the first 15 of the company’s vans, but did not place further orders. 

Zolfo Cooper has made 26 of Modec’s 53 staff redundant “to protect the value of the business for potential buyers”. “Modec is a market leader in its field and represents an attractive purchase for the right buyer”, it said.

Business minister Mark Prisk said Modec’s collapse was “concerning” but  in areas of new technology “some will succeed and some will not”.

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