TAIWAN – Smith Electric Vehicles, a global producer of all-electric medium-duty commercial vehicles, has signed a letter of intent to form a joint venture with Taikang Technology Corp. in Taiwan. Taikang Technology Corp., a leading commercial vehicle manufacturer in Taiwan, has 25 years of automotive experience, as well as experience upfitting specialized municipal commercial vehicles.
Smith Electric and Taikang Technology intend to enter into a definitive licensing agreement, which will cover the assembly and distribution of all-electric vehicles in Taiwan, opening up an important new market for Smith Electric. The vehicles will be Smith Electric branded and the joint venture will help Smith Electric to strengthen and further build its global manufacturing presence. The JV’s first three years of production is anchored by a 5,000-vehicle commitment, including transformation of a significant portion of the country’s municipal garbage truck fleet.
The initial trucks will be Newton and Edison model vehicles configured for garbage pickup and transport. Smith Electric will have the sole sourcing and procurement rights for its proprietary Smith Drive, Smith Power and Smith Link components. Taikang Technology Corpo. has been working closely with a number of Taiwanese government agencies, including the Environmental Protection Agency (EPA), on transforming its fleet of refuse trucks to all-electric, and represents an excellent local partner for Smith Electric, the company says.
The JV agreement also will cover the creation of a new manufacturing plant in Taiwan, which will create a number of new jobs over multiple years.
"This is another significant milestone for Smith. With this letter of intent, we are eager to complete our first-ever licensee agreement for the company,” said Bryan Hansel, CEO of Smith Electric. “Smith Electric plans more licensee agreements to support its long-term global growth strategy to meet growing demand for fleet transformation through electrification around the world.”
Smith Electric believes that short-haul urban transport is the current greatest market opportunity for fleet electrification, a market in which operator demand, logistical viability, political support and environmental benefit are all aligned.
Medium-duty gas and diesel trucks are expensive to operate and are one of the biggest contributors to urban pollution. These vehicles typically travel on fixed routes of fewer than 100 miles in a single day, and are based in a centralized depot, making them ideal for conversion.
Customers who work with Smith Electric to transform their fleets save an estimated 70 percent annually on fuel and maintenance during the life of the vehicle and eliminate all vehicle-based emissions, according to Smith. Across a large fleet, this can mean millions of dollars in annual operational savings, hundreds of thousands of gallons of fuel offset and sparing the air of tens of thousands of tons of greenhouse gases.
