Duracar Delivers with Eco-Trucking

Duracar Delivers with Eco-Trucking
A Dutch startup has found a promising niche: fleets of battery-powered light commercial vehicles for short-range city deliveries

by Mark Scott
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Soaring gas prices have focused attention as never before on electric cars. From Nissan's (NSANY) plan to sell zero-carbon vehicles in Japan and the U.S. to General Motors' (GM) efforts to develop a battery-powered hybrid, the world's top automakers are scrambling to introduce greener vehicles.

Some of the most interesting developments aren't coming from industry giants, though. Former SAP (SAP) executive Shai Agassi has made waves with his bold plan to introduce electric cars in Israel (BusinessWeek.com, 1/25/08). And a Dutch startup called Duracar is pursuing an ingenious plan to sell an eco-friendly light commercial vehicle roughly the size of a Mini (BMWG.DE) that could be used for deliveries and other short-range travel in Europe's bustling city centers.
Riding the Eco-Wave

This niche may lack the sex appeal of sports cars or SUVs, but it's a big business opportunity. Analysts figure that 330,000 new light commercial vehicles (defined as those weighing less than 3,850 pounds) are sold each year in Europe—a market worth hundreds of millions of dollars annually. Replacing even some of the gas-powered vehicles with electric models would cut noise, pollution, and carbon emissions in cities. And with oil topping $140 per barrel, it also would save money for fleet operators—whether government agencies, field service operations, or delivery firms such as FedEx (FDX).

"We're riding the wave of growing interest in eco-friendly cars," says Duracar Chief Executive Officer Wim Steenbakkers. "For this to work, the vehicle must be economically competitive [with gas-powered vehicles], and we think we've done that."

Duracar will officially unveil its electric car, dubbed the Quicc, at the Paris Motor Show this fall, but the Dutch company already has big plans for the pint-sized vehicle. Steenbakkers aims to book $7.6 million in pretax profits next year on revenues of $83 million, and hopes to sell more than 13,000 units over the next three years.
Innovative Modular Plant

The startup has recruited an impressive lineup of managers, investors, and partners to help hit its targets. It has raised about $37 million from backers including Dutch venture capitalists Ecoventures—a subsidiary of leading green investment firm Econcern—and is finalizing an additional $20 million in funding to expand production capacity.

CEO Steenbakkers worked previously at Dutch life sciences and materials company Royal DSM (DSMN.AS), some of whose technology is being used in the car. He's joined by Chief Technology Officer John Lodge, an auto industry veteran of 25 years who worked previously for Mitsubishi (MMTOF) and Volvo (F), and Johann Tomforde, the developer behind Mercedes Benz's (DAI) miniature Smart car, who consults eight days a month for Duracar.