Call for more eco-friendly transport incentives

Oct 1 2009 by Karen Dent, The Journal

THE founder of electric vehicle manufacturer Tanfield is calling for more incentives for people to make the switch to eco-friendly transport as the company reported an £11m loss and a 68% slump in turnover.

Roy Stanley, who also chairs the Washington-based Tanfield Group, wants the Government to take a leaf out of America’s book and make electric-powered vehicles more attractive to buyers.

Tanfield – the world’s biggest commercial vehicle maker which also manufactures aerial lifts under its Powered Access division – made an operating loss of £11m in the six months to the end of June, compared to a £10.3m profit in the first half of last year. Its turnover dropped by 68% to £29.9m from £92.8m.

The results come despite a restructure which saw the company shed 170 jobs and instigate short-time working to reduce staff costs by 40%.

But losses in its Powered Access division meant that was insufficient to keep the company out of the red. The aerial lifts operation’s market fell by 70% but Mr Stanley said it had held its own in the tough market, which was hit by customers’ difficulties in obtaining credit from the banks.

Tanfield is now considering de-merging its two divisions into two separate companies.