Huge jobs blow for Hull as electric truck firm set to go bust
Plans for a Hull manufacturer to create hundreds of new jobs appear to be in tatters following the collapse of pioneering electric vehicle manufacturer.
Paneltex, a truck body builder based in Somerden Road, was gearing up for a major expansion after winning a “game-changing” contract[1] to serve Swedish start-up Volta. Under the deal, Paneltex was due to build cargo bodies for electric trucks.
However, Volta is now in the process of filing for bankruptcy after the loss of its battery supplier severely dented investor confidence. The Swedish firm has confirmed that its main trading entity, Volta Trucks Ltd, will shortly file for administration in England.
The news looks set to be a huge blow to Paneltex, which won the contract early last year. The firm had been creating a new factory at a site just off the A63 between Newport and North Cave, where it hoped to create 240 jobs when fully operational.
Chris Berridge, the managing director of Paneltex, was told the news early on Tuesday morning. He said: “Until we have a more detailed statement from them it is hard to say exactly what will happen. It’s obviously a blow to us, particularly as our new factory is almost complete and has only recently started series production of Volta bodies for assembly in Austria.
“For now we have stopped production and are awaiting more information to enable us to determine plans for the future at North Cave. We are in the fortunate position of having a very strong order book with other customers, which is obviously helpful.”
Paneltex had seen the “exciting development” as a “game-changer” in the mid-term, with a 40 per cent hike in turnover forecast. The Volta work came on the back of a demand surge for last-mile delivery for supermarkets, following rapid acceleration of the home delivery model during the Covid pandemic.
Manufacturing of the Volta Zero truck began in April, with Paneltex serving initial orders from Hull as planning consents were finalised for the new factory in the East Riding. It was not initially clear whether there might be potential for another vehicle manufacturer to take on the Volta brand.
A statement from the board at Volta Trucks said: “Volta Trucks accomplished a great deal from a standing start in 2019, revolutionising commercial vehicle operations for a sustainable future. We created the world’s first purpose built 16-tonne all-electric truck, including a unique cab and chassis design, that would have contributed to decarbonising the environment and enhanced the health and safety and air quality of urban centres. Piloting in five countries in Europe, we received fantastic feedback, which led to a strong pipeline of highly reputed customers who wanted to introduce our Volta Zero Trucks into their fleets.
“However, like all scale-ups in the EV manufacturing sector, Volta Trucks has faced challenges along the way. The recent news that our battery supplier – Proterra – has filed for Chapter 11 Bankruptcy, has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce. The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players.”
Get breaking news in Hull straight to your phone
Don’t miss a thing. Get all the latest breaking news in Hull straight to your mobile via WhatsApp by clicking here[2].
If you don’t like our community, you can leave any time. We also treat members to special offers, promotions, and adverts from us and our partners. Read our privacy notice here.[3]
On the “difficult decision”, reached “with deep and sincere regret,” the Volta board added: “The board has not taken this course easily or lightly and is fully aware of the significant impact this will have on the organisation’s dedicated workforce, as well as customers and partners. We would like to sincerely thank the Volta Trucks team and are incredibly proud of their pioneering work to deliver such an innovative zero emission commercial vehicle.”