Modec, the British manufacturer of electric commercial vehicles, and Navistar International Corporation, a US-based truck manufacturer, are finalising a joint venture.

Navistar was recently awarded a grant of $39m, which will be used to accelerate electric vehicle production.

The deal will see a Navistar-Modec joint venture produce and sell electric commercial vehicles in North, Central and South America.

The zero emission all-electric delivery vehicle would primarily be used for urban-suburban pickup and deliveries, which is the ideal application for this commercial electric van.

Modec vehicles are manufactured at the Coventry-based plant and are already used by companies such as FedEx and UPS as well as Tesco.

“The all-electric delivery vehicle is a concrete example of what business and government can do when we work together.” said Daniel Ustian, Navistar chairman, president, and CEO.

“The future is now with this electric vehicle.

"In fact, we already have interested customers, including some of the most respected names in the industry.”