On Thursday, the City of Chicago announced that electric delivery truck maker Smith Electric Vehicles has agreed to open a new factory, "creating hundreds of direct and indirect jobs and boosting the already rapidly growing battery and electric vehicle sector in the City."

Headquartered in Kansas City, Mo., Smith maintains a manufacturing facility in New York City. Chicago will therefore be the company's third major U.S. location. The City won Smith's business, in part, by offering certain "development incentives" to the company, but the package has not yet been finalized. Smith said in a statement that it was also attracted by Chicago's "innovative voucher system," which subsidizes companies that purchase electric vehicles in order to convert their fleets away from diesel.

Smith, which in September canceled its plans to conduct a U.S. IPO, is a widely-known manufacturer of all-electric trucks for the delivery fleets at companies such as DHL, FedEx (NYSE:FDX) Coca-Cola (NYSE:KO)and PepsiCo's (NYSE:PEP) Frito-Lay. It also provides electric trucks to the U.S. military.

 
 

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend FedEx, The Coca-Cola Company, and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.