The launch of commercial electric ELMS has cut production plans for 2021, citing supply chain constraints.

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© Reuters. FILE PHOTO: Electric Last Mile Solutions UD-1 electric commercial van is seen in Auburn Hills (Michigan, USA) in this undated photo. REUTERS / Ben Klayman / Photo file
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DETROIT (Reuters) – U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc. (ELMS) on Wednesday cut the target for the number of electric delivery vans it will build this year, citing supply chain limitations.
The Troy, Michigan-based company said it now expects to build between 300 and 500 of its small class 1 electric delivery vans, instead of the 1,000 it said in August. ELMS said it would deliver those remaining orders in the first quarter of 2022.
James Taylor, CEO of ELMS, said suppliers had suffered restrictions, including narrower availability of shipping vessels, port congestion and delays in the freight system.
“We had a very good view from 300 to 500, based on where the parts came from the system … but the number 1,000 was out of place,” he said in an interview.
ELMS has not yet announced its 2022 production targets.
Taylor also told ELMS that it was launched in June through a reverse merger with a special purpose purchasing company (SPAC) that is in the process of launching a production version of the Urban Delivery van certified in December.
The startup, which has an assembly plant in Mishawaka, Indiana, said capital expenditures by 2021 will be between $ 20 million and $ 25 million.
After launching the small van, ELMS said it plans to build a larger Class 3 truck in the second half of 2022, but Taylor said customers are pushing the company to speed up that timeline.
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