Pepper discontinues end customer business

German conversion specialist Pepper Motion is continuing to change the core of its business. After the company shifted its focus from German public transport to customers abroad and lorry orders in May, the company is discontinuing its end customer business altogether to become a pure technology supplier. To this end, the workforce is to be "streamlined."

In a company statement, Pepper Motion describes the move as a continuation of the restructuring announced earlier this year. The management justifies the step with the “ongoing dynamic situation on the utility vehicles market.” Pepper Motion will thus no longer convert buses and trucks or develop its own vehicles.

Instead, the Bavarian company is positioning itself purely as a technology supplier for manufacturers, retrofitters and special vehicle builders. “As a result, pepper will be focusing on its core area of expertise, the development and marketing of its innovative, modular drive system for the cost-effective and sustainable electrification of new and used buses, trucks and special vehicles.”

According to Pepper, ending activities on the end customer market also means the dissolution of sales and product marketing divisions and a further streamlining of the workforce. Effective immediately, Pepper will have a core team focussing on software and technology development, as well as on marketing the already available production-ready drive system for BEVs and FCEVs.

“Working closely with our strategic partners, we will be playing to our strengths in the development of zero-emission drive systems, and we will continue to maintain our position as a technology leader on the international market,” says Andreas Hager, Managing Director of Pepper motion GmbH. “With these steps, we are parting company with the idea of selling our own vehicles to end customers for the time being. Our unique selling point, the rapid development and adaptation of drive systems to individual needs and according to the most demanding requirements of the automotive industry, is at the same time the guarantor for our future organic growth and a safeguard of economic efficiency and profitability within the context of the realignment.”

That this was a rather sudden change of direction is evident from the fact that the company agreed to take over the BAX 7.5 electric truck developed by BPW in August. Pepper now says that “Despite the recently announced takeover of sales for the Bax 7.5-tonne truck and the exciting market segment behind it, Pepper will also refrain from further sales and end customer activities in this project with immediate effect now that the marketing of the vehicle no longer fits in with the new strategy.”

As an example of where the journey is going instead, the company refers to a cooperation with Paul Nutzfahrzeuge, which involves the construction of 25 hydrogen trucks based on the Mercedes Benz Atego. Pepper Motion is contributing its so-called “Pepper Kit” to the project – consisting of a powertrain with a Toyota fuel cell, battery system and control/management software. The contribution includes the delivery and integration of the kits.

peppermotion.com