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Pepper exits the end customer business – new focus on technology supply

In recent years, Pepper has repeatedly tried to offer electric retrofit solutions for diesel buses - now the company is withdrawing from the end customer business I © UTM

The restructuring of pepper motion GmbH recently announced in May 2023 will now be systematically continued in the next step. The pioneer and technology leader in the electrification of commercial vehicles is ending its activities in the end customer market for buses and trucks and in the development of its own complete vehicles due to the ongoing dynamics in the commercial vehicle market. In future, the company will position itself purely as a technology supplier for manufacturers, retrofitters and special vehicle builders. As a result, pepper is concentrating on its core competence, the further development and marketing of its innovative modular drive system for the cost-efficient and sustainable electrification of new and used buses, trucks and special-purpose vehicles.

Among other things, this involves the dissolution of sales and product marketing areas and a further streamlining of the workforce. “We would like to thank our employees for their dedicated cooperation and pioneering work,” emphasises Andreas Hager, Managing Director of pepper motion GmbH. From now on, pepper will have a core team focussing on software and technology development and on marketing the drive system for BEVs and FCEVs, which is already available and ready for series production. “In close cooperation with our strategic partners, we are thus playing to our strengths in the development of emission-free drive systems and will continue to assert ourselves as a technology leader on the international market,” Hager continued. “With these steps, we are moving away from the idea of selling our own vehicles to end customers for the time being. Our unique selling point, the rapid development and customisation of drive systems to meet individual needs and the highest requirements of the automotive industry, is also the guarantee for our future organic growth and the safeguarding of our economic efficiency and profitability as part of our realignment.”

In the past, Sono Motors has tested its solar modules on a Pepper e-bus I © Sono Motors

Despite recently announcing the 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.

Technological lead is successfully utilised

As a supplier of key technology for the electrification of commercial vehicles, pepper has already supplied and integrated the complete pepper kit (drive train with Toyota fuel cell, battery system and control/management software) for 25 hydrogen lorries based on the Mercedes Benz Atego as part of the cooperation with Paul Nutzfahrzeuge 2023. Following approval, the small-series vehicle fleet is currently being trialled by end customers and represents the largest number of fuel cell vehicles produced in Germany to date. Further orders are already planned for 2024.

Accelerating the mobility transition as a system supplier

The Clean Vehicles Directive’s demand for “clean” commercial vehicles and the impending tightening of the climate targets set by the EU by 2030, which are currently being negotiated, are further increasing the pressure to meet CO2 fleet targets in the transport sector and for local public transport. In this context, accelerated electrification of commercial vehicle fleets in larger numbers is unavoidable.

“With its state-of-the-art drive system, pepper is definitely on a par with the major OEMs when it comes to functional safety – except that pepper can realise new drive developments and adaptations to special vehicle types in a significantly shorter time thanks to the technologies, development tools and processes it uses. In the context of increasing digitalisation, cyber security aspects are also moving into the focus of future developments, which pepper is already taking into account in its product design,” emphasises Christian Wagner, Friedrich & Wagner Holding GmbH, the company’s main investor. “For the major OEMs, the pepper drive system is at least a transitional solution for certain scenarios until the full ramp-up of their own electric vehicle production by the end of the decade. At the same time, with existing customers and suitable vehicle series, the conversion can open up a new market segment for OEMs and support the achievement of fleet targets with corresponding CO2 certificates. For smaller OEMs and special vehicle manufacturers, pepper as a preferred technology supplier with its Tier 1 electrification kit certainly offers the best and most cost-efficient emission-free drive solution for their state-of-the-art vehicle range in the long term.”

06.11.2023
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