Business

Diesel debate drives interest in DHL’s Streetscooter

The group is producing and selling its own elextric delivery vans

The electronic delivery car “Street Scooter” of German postal and logistics group Deutsche Post DHL. Photograph: Thilo Schmuelgen/Reuters

Tue Aug 8 2017 - 08:12

Deutsche Post DHL Group is seeing increased interest in its new electric delivery van after a debate on diesel emissions has gathered pace in Germany.

The group is producing and selling its own electric delivery vans, known as Streetscooter and in June said it was teaming up with Ford as a components supplier for a new line of larger vehicles.

The move to sell to external customers has taken on new significance given the debate over diesel and petrol engines in Germany, with politicians and car bosses last week agreeing measures to cut pollution and repair the car industry’s battered reputation.

"For us the timing is good in terms of our decision to sell it to third parties," Deutsche Post chief financial officer Melanie Kreis told journalists.

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“We are in very intense discussions with different potential customers and the talk of diesel bans has fuelled those,” she said.

Kreis was speaking after the group reported a bigger than expected rise in second-quarter profit, driven by parcel deliveries and its Express business.

She also said the group was seeing increased volumes this quarter in Europe as rivals cope with the after-effects of a cyber attack in Ukraine at the end of June.

The attack slowed deliveries at rival FedEx's TNT Express unit, which has said it is expecting a "material" effect on its full-year numbers as a result.

“We were affected to a very small extent for a very short time, but we got it under control quickly,” Kreis said.

Overall, Deutsche Post DHL posted earnings before interest and tax (EBIT) of €841 million, beating expectations for €823 million in a Reuters poll.

It maintained a target for EBIT to reach around €3.75 billion this year.

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