WARRENVILLE, Ill. — Navistar International Corporation and U.K.-based Modec Limited have formed a joint venture to produce class 2-3 all-electric commercial trucks, which will be sold in North, Central and South America.

This zero emission all-electric delivery vehicle would primarily be designed for local deliveries that involve stop and go driving. With a range of up to 100 miles per charge, these trucks produce zero tailpipe emissions and rely solely on plug-in power.

"The commercial market is ready for electric vehicle technology to advance," said Dee Kapur, president of the Navistar Truck Group. "This vehicle is road ready for fleets to implement as a practical solution for many applications. It has an excellent, eye-catching design that says, ‘this is something different, the future is now.’ We see this as an ideal vehicle for the U.S. urban markets."

The new venture is made possible through a $39.2 million U.S. government grant, which is part of a $2.4 billion investment in 48 new advanced battery and electric drive projects, funded through the Recovery Act.

Navistar-Modec EV Alliance plans to produce about 400 electric vehicles in 2010 in Elkhart County, Ind.