Tanfield Loses Money on Electric Cars
Tanfield, the British company producing commercial electric cars and height access platforms, has run into significant losses. Hit by the global recession, the company reported £11 million operating loss in the first 6 month of this year. The same period last year - profit of £10 million. During this difficult period they have had to cut staff expenses by almost a half. This, however, hasn’t disrupted the cash flow, which is a good sign. We don’t really have to be worried yet.
It is possible that a rebuilding of the business will be necessary. Splitting Tanfield into two companies would probably boost the electric car business and put the ailing access platform operation under a better control.
Tanfield is one of the biggest commercial electric vehicle producers in the world. Their delivery trucks (better known to public under the trade name of Smith Electric) are popular worldwide. A small batch of Smith Electric vehicles has been delivered to such American companies as Coca Cola, Frito-Lay and AT&T. In Britain Sainsbury’s and Scottish Electric among others are the most notable clients of Tanfield.
It takes resolve and patience to stay afloat in a situation where there is no strictly defined market for EVs.
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There is definitely a market for electric cars, but maybe now is not the time for it, although personally I feel electric cars should be rolled out universally by some bigger companies such as Ford to develop awareness. With all the news surrounding oil spills, fuels prices and carbon emissions, it could be a good opportunity to market some ‘green’ fuel cars.
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