News

The government will announce "shortly" the winners of its tender competition to develop low-carbon and all-electric vans for the public sector.

The Department for Transport (DfT) says Ashwoods, Citroën, Ford , Land Rover, Mercedes-Benz, Allied Vehicles electric vehicles, LDV, Modec, Nissan and Smith Electric Vehicles are currently on its shortlist to receive funds to develop environmentally friendly vehicles for local authorities and central government departments, as part of its Low Carbon Vehicle Public Procurement Programme.

The £20m scheme aims to use the public sector's purchasing power to accelerate the market introduction of lower-carbon vehicles.

Taking part in the project are local authorities including Liverpool, Newcastle, Gateshead, Coventry, Leeds and Glasgow, along with Royal Mail, HM Revenue and Customs, the Metropolitan Police, Transport for London, the Environment Agency and the Government Car and Despatch Agency.

A spokesman for the Department of Business, Enterprise and Regulatory Reform (BERR), says: "We expect to announce the winning companies shortly. The vans will be delivered later this year and in 2010."

Robin Dickeson, commercial vehicle affairs manager at the Society of Motor Manufacturers and Traders (SMMT), says: "If the scheme works, and proves to be practical and commercially viable, then we welcome it."

Meanwhile, vans and trucks will not be covered by the government's latest £250m plan to incentivise the take-up of electric vehicles, announced this week. The proposals will offer motorists subsidies of up to £5,000 over the next five years to encourage them to buy electric or plug-in hybrid cars.