Commercial EV startup ELMS cuts 2021 production plans, citing supply-chain constraints -Breaking
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DETROIT (Reuters – U.S.-based commercial electric vehicle manufacturer Electric Last Mile Solutions Inc. (ELMS) has lowered the target number of electric delivery vehicles it plans to build in the US this year due to constraints in the supply chain.
Troy-based company ELMS said that it expects to construct 300-500 of its Class 1 small electric delivery van. This is in addition to the 1000 it had stated it would build. ELMS claimed it would ship the remaining orders within the first quarter in 2022.
James Taylor, chief executive of ELMS said that constraints had caused suppliers to be affected, such as port congestion, tighter shipping availability and delayed freight systems.
He stated that he had a good view of 300-500 parts based on the location of the systems. However, the 1000 number seemed unreasonably far.
ELMS is yet to release its full-year 2022 production targets.
Taylor stated that ELMS went public through a reverse merger (SPAC) in June and is now on track for the certification production version to be launched in December.
A startup that has an assembly plant at Mishawaka in Indiana also stated its 2021 capital spendings will be between $20 million and $25 million.
ELMS announced that it will build a Class 3 truck after the launch of the small van, however Taylor stated that customers have been pushing the company for a faster timeline.
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