Joining Borwick at Modec will be the Manganese Bronze Electric Mercury project team.
Modec will produce a range of electric and hybrid delivery vehicles with a two tonne pay load. They have a range of 150 miles with a top of speed of 50mph.
This project has been in progress for two years and the team have produced three working demonstrators. These vehicles are currently in use in the field with fleets from 20 major operators.
Borwick says: "These are very exciting times for both the team and myself. Modec vehicles have massive potential in an area which can only expand, particularly as there is great political impetus behind environmentally friendly projects like this.
"We will now be allowing the project to concentrate on the further development, test and production phases of the Modec vehicles. We are thrilled that Investment is now available for these phases and start of production is expected in mid 2006."
The vehicles are powered by an Azure Dynamics power train and have been partly funded by the Energy Saving Trust.