SOUTHBOROUGH, Mass., Dec. 9, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV) today reported that it has entered into an agreement with a Tier-1 automotive supplier based in South East Asia, to supply motor controllers for a new line of hybrid electric passenger cars.
Under the contract, which could produce up to $50 million of revenue through 2020, Sevcon, who has been working with the supplier for some time, will design, manufacture and supply an advanced motor controller for a new line of hybrid electric 4-door sedans. Sevcon expects initial prototypes for fleet test vehicles to be available in June 2015. Thereafter, Sevcon will supply controllers as ordered by the customer, with production shipments expected to begin in the first quarter of 2016.
"Following last month's announcement of our Chinese joint venture's first success, signing this contract with a respected Tier-1 supplier in the Far East is another milestone for our growing on-road electric vehicle business in the Asia Pacific region," said Sevcon President and CEO Matt Boyle. "It is also an example of how our electrification focus is enabling us to capitalize on the global automotive industry's transition from internal combustion to hybrid electric drivetrain technology. One of the first variants of the new generation of products that we plan to roll out over the next several years, this controller is designed to provide the advanced motor control functionality required for hybrid electric passenger car applications, while also complying with the latest EV safety requirements."
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of controls for zero emission electric and hybrid vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. The Company supplies customers throughout the world from its operations in the USA, the U.K., France, China and the Asia Pacific region and through an international dealer network. Sevcon's customers are manufacturers of on and off-road vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. For more information visit www.sevcon.com.
Statements in this release about Sevcon's future financial results are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate. In particular: Sevcon may not receive the orders it expects under the new contract; capital markets are cyclical and weakness in the United States and international economies may harm our business; global demand for electric vehicles incorporating our products may not grow as much as we expect; our customers' products may not be as successful as those of other entrants in the electric vehicle market who are supplied by our competitors; we may not be able to attract and retain the level of high quality engineering staff that we need to develop the new and improved products we need to be successful; we are dependent on a few key suppliers and subcontractors for most components, sub-assemblies and finished products, and we may not be able to establish alternative sources of supply in time if supplies are interrupted; and companies we acquire may be more costly to acquire and integrate, or may not generate as much revenue and earnings, as we anticipate. Please see the Company's most recent Forms 10-K and 10-Q on file with the SEC for further information regarding Sevcon's risk factors.