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Gateshead electric vehicle firm lands German truck deal

Electric vehicle firm Sevcon has posted a 10% sales increase and unveiled a new deal to provide components to a major German truck and bus manufacturer.

For the first three months of its financial year the Gateshead-based company saw revenues increase 10% to $9.9m (£6.5m), from $9m (£5.9m).

Profits for the quarter up to January 3, this year, were $282,000 (£186,000). These were down from $710,000 (£468,000) in the corresponding period following a large investment in sales and engineering after a number of major recent contract wins.

President and CEO Matt Boyle said “Sevcon is off to a solid start in fiscal 2015 with sales up 10% from the first quarter of fiscal 2014.

“This was driven primarily by increased product shipments for on-road hybrid and pure EV (electric vehicle) applications in all three of the geographic regions we serve.

“In addition, the increase reflects the commencement of the electrification program with a large German on-road OEM we announced today. This is the third major on-road win in the last 90 days.”

Sevcon says foreign currency fluctuations decreased reported sales by $268,000 (£177,000), or 3%, mainly due to a stronger US Dollar compared with the Euro and Sterling.

The deal with the large German, on-road, OEM will see Sevcon develop and supply controllers for a new line of integrated starter generators, the key component in a new start/stop system being developed for heavy trucks and buses in Europe.

The development will take two years and will be partially funded by the customer. During the course of development, the company will provide prototypes and samples. Volume production is due to commence in 2018.

Mr Boyle said: “We have been working very hard on these electrification applications around the world. This success is another example of how our technology can be used to help customers with the electrification of their product.

“Our electrification focus is enabling us to capitalize on the global automotive industry’s transition from internal combustion to electric drivetrain technology. We see more opportunities with the increasing electrification of all classes of future vehicles, driven by the need for more efficient transport.”

Looking ahead to the rest of the year Mr Boyle added: “Our strategy to develop modular-based technology platforms that can be adapted across multiple applications is gaining acceptance.

“We are working on an expanding pipeline of projects related to the electrification of passenger cars and commercial vehicles with customers in the US, Europe and Asia.

“In addition, we are gaining momentum in pursuit of electrification of ancillary powertrain systems in motor vehicles and various industrial traction and power applications.

“Our broadening customer base is increasingly embracing the easily adaptable electrification solutions that only Sevcon’s engineering expertise and application knowledge can provide.

“Leveraging our expertise, we expect to continue expanding our business both organically and through acquisitions, and look forward to reporting continued growth and improved profitability as fiscal 2015 progresses.”