Exclusive: GM plans-electric, for business users, in an attempt previously Tesla s

DETROIT (Reuters) – General Motors co. is developing an electric van is aimed at business users, joining a growing list of car brands and planning Service for the same segment includes customers such as Amazon.com Inc., and United Parcel Service, Inc., five people familiar with the plans told Reuters.

The Multi-billion-dollar strategy could allow to build GM, Ford Motor co. and at least two of the EV-start-ups and to deliver, the more electric vehicles at a time when consumer demand for the battery-powered models, it’s still only a fraction of the total industry sales, while targeting a potentially lucrative market, Tesla, Inc., has yet to address.

To develop GM’s plans, the electric van, which is not reported previously leg. The “No”. 1 U.S. auto manufacturer not confirm the van, but has said it plans at least 20 new full-electric vehicles by 2023, in a variety of body styles including sedans, trucks, and crossovers.

Suppliers familiar with such plans at GM and Ford, Reuters, ” the Detroit car manufacturer for trucks and commercial vehicles under their most profitable business areas, “do not want to leave the door open for a rate” as used in the consumer car.

Scott Phillippi, UPS senior director of fleet maintenance and engineering, said the package shipping company, believes that electric cars have the potential to disrupt the commercial market.

“It will be similar to what the model 3 has been said for the consumer market,” Phillippi, based on the Tesla is small in the vicinity of-luxury-electric sedan. “Now all of a sudden, we are out of the race.”

The GM of the code-name BV1 starts production at the end of 2021, the said sources. It is believed that BV1 share some components with GM, the future of electric pickups and SUVs, and the automaker’s new Ultium an advanced battery system. It is expected to be built next to the electric truck at GM’s Detroit-Hamtramck plant.

GM is to consider whether to sacrifice the electric van through its traditional truck brands-Chevrolet and GMC, or the market under a different brand such as Maven,” the official said. The first GM electric pickup truck, due to the end of 2021, is sold GMC dealer, under the Hummer brand.

In a statement, GM said it is “committed to an all-electric future, and the implementation of a multi-class, scalable, and EV-strategy to get there. At this time, we do not make any announcements about electric vehicles.”

The GM electric, the project is aimed at an important segment of the emerging EV market, commercial delivery truck. For established players, this is a very profitable business segment, driven by a cost-of-ownership, no fancy tech or star power. It is also a segment in which Tesla and its high-profile CEO, Elon Musk, a lack of an entry in the competition for sales and CO2 credits, with which the car manufacturer netted with the sale of the non-electrical vehicles, as well as the high-margin pickups and SUVs.

“The buyers of commercial vehicles for reliability and not necessarily a flashy brand,” said Sam Fiorani, vice president of global vehicle forecasting at auto forecast solutions. “The reduced maintenance and fuel consumption of electric vehicles very attractive to a business customer is where the current limitations of EVs, but the price premium is less attractive to the individual consumer.”

In January, Ford said it would be the introduction of an electric version of the Transit van for the model year 2022. “The most critical bet we will be in the next few years, on our commercial vehicles,” Ford chief financial officer), Jim Farley, told Reuters at the time.

Ford also has an investor in Michigan-based start-Rivian, which is planned to start the construction of the first of the 100,000 in the middle-class electric car, for the Amazon next year

Amazon-rival UPS has class in the order is more than 10,000 medium-E-cars from the British startup’s arrival, which is secured by Korea’s Hyundai Motor co. and its sister company Kia Motors Corp. (a).

The combined value of Amazon and UPS have contracts with the Rivian, and the time of arrival is estimated at $4 billion or more.

And the more players in the segment is likely to follow, as well as Daimler AG, Volkswagen AG,VOWG_p.DEand Fiat Chrysler Automobiles NV, said Samit Ghosh, the chief executive of the Americas for the consulting and engineering office, u-umlaut.

“The delivery truck, it is the volume that are not to be underestimated,” he said. “I wouldn’t exactly call it a” niche.”