United Kingdom’s Tanfield Group is inolved in two major deals for the development of electric vehicles in the U.S.
The company announced the establishment of Smith Electric Vehicles US Corporation (SEV US Corp), in which it will own a 49% stake in exchange for the North American rights to sell its vehicles and per-vehicle royalties. As a 51% American-owned business, SEV US Corp will qualify for Federal and regional funding for electric vehicle manufacturers.
Tanfield also will be working with Ford Motor Company (NYSE: F), to help the U.S. automaker launch its first electric vehicle in 2010, according to a release from Ford.
Ford will work with Tanfield’s European division Smith Electric Vehicles to convert light commercial vehicles to fully electric vehicles with a range of 100 miles.
"The new Transit Connect light commercial vehicle with battery electric power represents the next logical step in our pursuit of even greater fuel economy and sustainability," said Derrick Kuzak, Ford’s group vice president of Global Product Development.
Smith Electric Vehicles US Corporation Details
SEV US Corp will be privately-owned.
Tanfield will licence to SEV US Corp the North American intellectual property rights relating to the production of its Smith product range.
SEV US Corp intends to commence production of the Smith Newton truck
for sale in North America during 2009, with further zero emission
product lines to follow in the truck, van and light van sectors.
SEV Corp will pay a per-vehicle royalty fee to Tanfield based on the sales price of each commercial vehicle with an initial advance of £1 million.
The Heads of Terms anticipates a total fund raising of $10 million, which will be achieved through the issue of new shares in SEV US Corp to investors and through the availability of State funding.
SEV US Corp has received firm expressions from two States, of funding support for a production facility. It will announce a final location for this facility shortly.
Tanfield expects that SEV US Corp will produce a moderate number of Newton trucks in 2009, for sale as seed vehicles into targeted major fleet operators.
"North America represents potentially the largest single market for our commercial electric vehicles. The establishment of Smith Electric Vehicles US Corporation will provide Tanfield with a fast, efficient and economically prudent route to market," Darren Kell, CEO of The Tanfield Group Plc, said.
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