Electric Delivery: A Clever Approach to Logistics

This van is compact, capable and electric. And it has a hell of a price-point

This is nothing if not clever.

Even were it not for COVID-19, the success of e-commerce was driving all manner of commercial delivery vehicles into neighborhoods across the U.S. The pandemic has only accelerated that growth, and suddenly even businesses that never imagined that they’d be in the delivery business (e.g., restaurants that aren’t based on pizza) suddenly are if they want to stay in business.

One of the characteristics of electric vehicles is that because they have fewer parts than a vehicle with a combustion engine, there are fewer things that could break. In addition to which, there are fluids, like oil, that need to be changed.

Companies that have fleets of vehicles (even if that fleet consists of, well, one), know that maintenance is both costly and time consuming.

So that’s on the good side of the ledger for an electric delivery vehicle.

So James Taylor, who is the founder and CEO of Electric Last Mile Solutions (and a man who has run operations with names that you might be more familiar with, like Cadillac and Hummer), says that a right-sized delivery vehicle that happens to be electric can be a cost-effective game-changer for many companies.

The vehicle that will be offered by Electric Last Mile Solutions (ELMS) is a Class 1 delivery van. It is based on a model that is on the road in China, the Sokon EC35. It has a cargo capacity of 170 cubic feet and a maximum payload of 2,403 pounds. It is compact, with a 120-inch wheelbase and a length, width and height of 177, 66 and 78 inches, respectively.

The ELMS Class 1 delivery vehicle. (Image: ELMS)

It has a 100 kW electric motor from JJE and a 42-kWh battery from CATL.

It has a range of 150 miles.

Back to that cost of equipment issue.

According to Taylor, the vehicle is going to be priced at about $32,500. When you take the $7,500 federal tax credit off of that, it is at $25,000, a price, he says, that someone can get a combustion-powered Class 1 van for. So because of the reduction in required maintenance and other factors, Taylor says the total cost of ownership is about 35% better than the traditional approach.

The vehicles will be produced in Mishawaka, Indiana, in the 675,000-square-foot factory that used to be the Hummer plant. It has the capacity to build over 100,000 vehicle per year, which is probably a good thing for Taylor because he says that they have more than 30,000 reservations for the vehicle.

The bodies-in-white will be delivered to the plant so there is no stamping, welding or painting involved. It will be all about assembly.

Because there is a vast array of requirements in the commercial space, Taylor says upfitters will actually work within the Mishawaka plant so customers will get their van from the factory.

It is very clever.

Taylor talks about what ELMS is doing on this edition of “Autoline After Hours” with “Autoline’s” John McElroy, Christie Schweinsberg of Wards Intelligence and me.

In addition, McElroy, Schweinsberg and I discuss a variety of other subjects including the need for better and more extensive EV charging infrastructure, the introduction of the Chevrolet Bolt EUV, Jaguar Land Rover’s plans to go electric, Ford of Europe’s electrification plans, and a whole lot more.

All of which you can see right here.

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