Modec rescue deal ‘imminent’
A RESCUE deal for Coventry based electric vehicle manufacturer Modec could be imminent after a rival firm confirmed it was in talks to salvage the company.
Barry Shrier, chief executive of Oxford based Liberty Electric Cars, said last night his firm was mounting a rescue bid.
Mr Shrier, chairing a Science Capital debate in Birmingham on the future of the motor industry, said it was vital that innovative firms such as Modec were encouraged.
“Modec is a perfect marriage between science and innovation and should be allowed to continue its work,” he said.
“We are mounting a rescue bid for the company and hopefully I will be able to say more soon, unfortunately for legal reasons I cannot say any more at the moment.”
He said that for the future of the electric vehicle industry Modec and other firms had to survive because they had an important role to play in the future of the motor industry.
“Modec’s work is significant – take for example its tie with US firm Navistar,” he added.
“Navistar is a $15bn vehicle manufacturer that had been trying for 10 years to sell its trucks to FedEx without success then as soon as Modec gets on board FedEx immediately takes out an order.
“It just shows that little connections can make all the difference and if the right product can be found at the right time then there is a market for it.”
It is thought a marriage between Liberty and Modec would be a good fit in the electric vehicle sector. Liberty works on innovative pure electric drivetrains for 4×4 vehicles. Its E-Range is based on the traditional Range Rover.
Modec went into administration earlier this month with the loss of around half of its 53-strong workforce. The remaining staff have been working normally.
TheBusinessDesk.com revealed last month how the market-leading firm was struggling with cash flow problems and liabilities of almost £29m.
Recovery specialist Zolfo Cooper was appointed administrator of the company.
