DHL is closing down production at its StreetScooter electric van subsidiary, saying scaling further does not fill its overall strategic goals.
The shipping and delivery giant said that “global economic uncertainties” meant that it was no longer looking for a buyer for the division.
It said it was focusing on operating its existing StreetScooter fleet, which will number around 15,000 once current orders are completed.
DHL said the move would generate savings of between €300 and €400 million this year.
“Thanks to StreetScooter, we have set up one of the largest electrically powered delivery fleets in the world and given significant impulses in terms of electric mobility,” said Frank Appel, CEO of DHL.
“We have always said that we don’t want to be an automaker. Further scaling without the right partner does not correspond to our long-term strategic goal. We will continue to push ahead with the switch to e-mobility regardless of today’s decision.”
StreetScooter said in a statement on Twitter: “Unfortunately it is true: our mother (DHL) sees itself forced to discontinue the production of StreetScooters later this year for economic reasons.
“We are very sad about it but also proud of what we have achieved.”