Exit from the End Customer Business
pepper’s Clear Focus as a Technology Supplier for Zero-emission Drive Systems in the Commercial Vehicles Sector
Denkendorf, November 2nd 2023 – The restructuring of pepper motion GmbH, announced recently in May 2023, is now being taken consistently forward in a next step. In light of the ongoing dynamic situation on the utility vehicles market, the pioneer and technology leader in the electrification of commercial vehicles is ending its activities on the end customer market for buses and trucks and in the development of proprietary vehicles. The company will in future be positioning itself as a pure technology supplier for manufacturers, retrofitters, and special vehicle builders. As a result, pepper will be focusing on its core area of expertise, the development and marketing of its innovative, modular drive system for the cost-effective and sustainable electrification of new and used buses, trucks and special vehicles.
This move goes hand in hand with, among other things, the dissolution of sales and product marketing divisions and a further streamlining of the workforce. “We are grateful to our team for the dedication and pioneering service they have given us”, says Andreas Hager, Managing Director of pepper motion GmbH. With immediate effect, pepper will focus with a core team on software and technology development, as well as on the marketing of series-ready drive systems for BEV and FCEV that are already available. “Working closely with our strategic partners, we will be playing to our strengths in the development of zero-emission drive systems, and we will continue to maintain our position as a technology leader on the international market”, Hager continues. “With these steps, we are parting company with the idea of selling our own vehicles to end customers for the time being. Our unique selling point, the rapid development and adaptation of drive systems to individual needs and according to the most demanding requirements of the automotive industry, is at the same time the guarantor for our future organic growth and a safeguard of economic efficiency and profitability within the context of the realignment.”
Despite the recently announced 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 advantage will be leveraged successfully
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 trucks based on the Mercedes Benz Atego as part of the cooperation with Paul Nutzfahrzeuge in 2023. The small-series vehicle fleet is currently undergoing end-customer trials following approval 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 systems supplier
The requirement of the Clean Vehicles Directive for “clean” commercial vehicles and the currently negotiated, threatened tightening of the climate targets set by the EU by 2030 are increasing the pressure on the CO2 fleet targets that will have to be met in the transport sector and for public transport. Accelerated electrification of commercial vehicle fleets in higher numbers will be inevitable in this context.
“With its state-of-the-art drive system, pepper is definitely on a par with the major OEMs in terms of functional safety – except that pepper can realize new drive developments and adaptations to specific vehicle types in a significantly shorter time thanks to the technologies, development tools and processes it uses. As digitization increases, cyber security aspects are also moving into the focus of future developments, and these are already being taken into account in pepper’s product design,” emphasizes Christian Wagner, Friedrich & Wagner Holding GmbH, as 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, retrofitting 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 builders, pepper as a preferred technology supplier with its tier-1 electrification kit, is sure to offer the best and most cost-effective, state-of-the-art zero-emission drive solution for their vehicle range in the long term.”
About pepper motion GmbH:
pepper – electrifying transportation!
pepper electrifies – Innovative modular drive solutions for used and new commercial vehicles (buses, trucks, special vehicles). As a system supplier and strategic partner in development for manufacturers, retrofitters and special vehicle builders, the company offers key technology for the electrification of trucks, buses and special vehicles for the sustainable mobility transformation.
Both existing fleets and new commercial vehicle series can be electrified quickly, cost-effectively and flexibly with the pepper kits and thus make an active contribution to reducing emissions in traffic and implementing the Clean Vehicles Directive. pepper is certified to ISO 9001 and guarantees operational safety in accordance with international automotive industry standards such as functional safety ISO 26262.
pepper motion GmbH employs around 100 people and is headquartered in Denkendorf/Bavaria, with offices in Garching near Munich and Paderborn. The subsidiary pepper motion Austria GmbH, based in Vienna, is the pepper Group’s software development center. pepper is represented by sales partners in France, Italy, and Poland.
Tel.: +49 89 5436994 00