California start-up CityFreighter will leverage German automotive consulting firm’s engineering and business expertise to scale company and launch production in 2023
CityFreighter, developer of unique, modular electric delivery vehicles, is entering a strategic partnership with PEM Motion, one of Germany’s most successful mobility engineering consulting firms.
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The collaboration will enable CityFreighter to leverage PEM Motion’s team of engineers, developers and business experts in electrification and logistics to scale operations in the United States and Europe. PEM Motion’s team includes Professor Achim Kampker, who as CEO of StreetScooter was instrumental in designing the delivery van now used by Deutsche Post DHL Group, the world’s leading logistics company. With approximately 18,000 vehicles on the road in Germany, the Netherlands and Japan, Streetscooter has one of the largest commercial electric fleets operating in the world today.
“PEM Motion is well-known for its engineering talent and business acumen in electric-vehicle manufacturing and innovation,” CityFreighter Founder and President Michael Schoening said. “They are the right partner for us as we create a new customer-centric model to crack the last-mile delivery market.”
CityFreighter will disrupt urban logistics and last-mile delivery by working directly with customers to build highly specialized trucks and an integrated suite of logistics services. The company will provide fleet operators with everything needed to electrify and reduce total cost of ownership. Unlike typical OEM vehicle development strategies, which concentrate on high-volume production of one-size-fits-all trucks, CityFreighter will use strategic partners and contract manufacturers to be profitable at much lower sales volumes.
“We’ll use our knowledge of German and North American markets to bring CityFreighter’s ideas to life, the way we did with StreetScooter,” said Prof. Achim Kampker, partner at PEM Motion. “We’re experienced electric-vehicle developers and have worked with many customers to find lower-cost, practical ways to build a business.”
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CityFreighter expects to start serial production of the CF1, a zero-emissions Class 3 delivery truck by the third quarter in 2023. It projects to be profitable by 2024, with volumes of 30,000 vehicles by 2027.
CityFreighter debuted a beta version of the CF1 at the Advanced Clean Technology Expo in Long Beach, California in Aug. 2021. The CF1 features a unique, low-floor skateboard chassis with best-in-class payload. Its 86 kWh lithium-ion battery pack delivers 150 miles of range with heat-pump based thermo management. The CF1 will also be loaded with advanced safety features including a full suite of ADAS features and stability control.