AMP Electric Vehicles Ceases Car Conversions, Will Focus On Fleets
A lot of people and companies bet that the new wave of electric vehicles would have a lot more buyers than there turned out to be. This has led many companies to reevaluate their product portfolio, including AMP Electric Vehicles. The Ohio-based company announced this week that they would cease converting passenger vehicles, and would instead focus on the more-lucrative fleet conversion business.
This revelation came via a conference call, where AMP executives revealed that the market for personal electric vehicles just isn’t mature enough to support a fledgling business. But all hope is not lost. Truck builder Navistar was so impressed with the AMP-converted all-electric trucks and vans that AMP is switching gears and focusing mostly on fleet sales of medium and heavy-duty trucks. AMP had been focusing on electrifying premium SUVs like the $60,000 Jeep Grand Cherokee above, as well as some Mercedes SUVs, but that wasn’t quite paying the bills.
While the upfront cost is definitely more, AMP claims that over ten years these electric vehicles can save companies upwards of $100,000 each just in fuel and maintenance costs. Most trucks don’t travel more than 100 miles a day anyways, especially in the case of companies like FedEx, with many trucks driving the same routes every day. This business model seems to make the case for electric vehicles over gas-guzzling trucks.
AMP also announced a $7.5 million commitment from the Kodiak group, as well as deals to provide electric vehicle fleets to both Caribbean island nations and Iceland. These deals could prove quite lucrative should they materialize, setting AMP up as one of the leading electric truck conversion companies. But they’ll have plenty of competition, especially from more-established players like Smith Electric Vehicles and even Navistar itself.
Who’d have thought it’d be electric trucks, rather than cars, that got the EV movement going again?
Source: Green Car Reports