Modine and RYDE Racine Collaborate to Fortify Zero-Emission Bus Fleet in Wisconsin

Rhea-AI Summary

Modine (NYSE: MOD) has announced a collaboration with RYDE Racine to enhance the zero-emission bus fleet in Wisconsin. The initiative involves equipping Racine's nine all-electric buses with Modine's EVantage™ Thermal Management Systems, with plans to add up to four more. This technology aims to improve the range, longevity, and reliability of the buses, which serve nearly 700 stops. The project is funded by the FTA's Low or No Emission Vehicle Program, enabling Racine to expand its fleet to 13 buses. This partnership aligns with Racine's goal to reduce its carbon footprint and supports Modine's strategy to grow in the EV market.

Positive

• Collaboration to enhance zero-emission bus fleet in Wisconsin.
• Equipping nine all-electric buses with Modine's EVantage™ Thermal Management Systems.
• Plans to add up to four more electric buses.
• Technology improves range, longevity, and reliability of buses.
• Project funded by FTA's Low or No Emission Vehicle Program.
• Enables Racine to expand fleet to 13 buses.
• Supports Racine's goal to reduce carbon footprint.
• Aligns with Modine's strategy to grow in the EV market.

Negative

• Potential financial risk if the collaboration does not yield expected results.
• Dependence on continued government funding for expansion.

Insights

Market Research Analyst

The collaboration between Modine and RYDE Racine to equip zero-emission buses with Modine EVantage Thermal Management Systems is noteworthy for several reasons. Firstly, the integration of advanced thermal management systems is critical in improving the reliability, range and longevity of electric buses. This directly impacts the operational efficiency of the public transit system, potentially reducing maintenance costs and minimizing downtime.

The support from the Federal Transit Administration's Low or No Emission Vehicle Program also underscores the increasing trend and governmental push towards sustainable transportation solutions. For investors, this collaboration highlights Modine's commitment to innovation in the EV market and its active involvement in sustainable urban solutions. Additionally, the ability to meet the Buy America criteria indicates potential preferential treatment in future federal funding allocations, which could benefit Modine's business prospects.

In the short term, this initiative is expected to enhance Modine's market presence in the EV sector, likely increasing its revenue streams from thermal management systems. In the long term, continued support from federal programs and successful implementation could solidify Modine's reputation as a key player in thermal management for electric vehicles, fostering steady growth in this segment.

Financial Analyst

From a financial perspective, Modine's collaboration with RYDE Racine presents a favorable outlook. The company's involvement in equipping electric buses with its EVantage Thermal Management Systems suggests a strategic expansion into the growing EV market. This could diversify Modine's revenue base beyond its traditional thermal management solutions.

The partnership leverages federal funding to propel Modine's products, potentially increasing its sales and market share. Furthermore, the emphasis on using American-made components aligns well with government initiatives, which might lead to more contracts and funding opportunities. Financially, this can translate into increased revenue and improved profitability over time.

A critical point for investors to watch will be the execution and performance of these systems in the field. Effective performance could result in repeat orders and further collaborations with other transit systems, while any technical issues could negatively impact Modine's reputation and financials.

Racine transit system zero-emission buses equipped with Modine EVantage™ Thermal Management Systems to increase longevity and range.

RACINE, Wis., May 29, 2024 /PRNewswire/ -- In support of sustainable mobility solutions across the City of Racine, Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced a collaboration with RYDE Racine, the city's comprehensive public transportation system. As part of an initiative to modernize and reduce public transit fleet emissions, the City of Racine operates nine all-electric buses with the Modine EVantage Thermal Management System, with up to four additional EVs on order. The Modine EVantage thermal management system will optimize inverter temperatures and improve the range, longevity, and reliability of the city's electric bus fleet along the nearly 700 stops it serves.

The City of Racine recently received funding from the U.S. Department of Transportation's Federal Transit Administration (FTA) Low or No Emission Vehicle Program to expand its EV fleet up to 13 buses.  These all-electric buses have integrated into the fleet, meeting range requirements for standard city routes. To meet the Buy America standard set forth in the funding guidelines, RYDE Racine has selected all-electric buses containing Modine EVantage thermal management systems to ensure they feature American-made components and systems from a hometown supplier.

"Racine has set an ambitious goal to reduce the carbon footprint of our public transit system, and we're achieving this objective bus by bus. As we increase the size of our zero-emission bus fleet, Modine's sophisticated thermal management system is essential for maintaining our transit program's smooth operation, reliability, and efficiency," said Trevor Jung, Transit & Mobility Director at the City of Racine. "Through this collaboration, Modine has helped RYDE Racine fortify our electric buses with a hometown solution, demonstrating our combined commitment to enhancing service reliability for our passengers and environmental sustainability."

With more than a century of expertise in thermal management, the Modine EVantage Thermal Management Systems combine state-of-the-art, proprietary heat exchanger technology with smart electronic products to deliver complete solutions designed to fit any chassis. EVantage thermal systems optimize inverter temperatures in all environments, from hot summer afternoons to icy winter mornings. EVantage systems offer best-in-class temperature management, improving performance, range, and longevity for various zero-emission medium- and heavy-duty vehicles, including transit and school buses.

"Integrating our thermal management technology into the RYDE Racine electric buses marks a brilliant collaboration to achieve our shared goal of reducing transportation emissions and supporting our community," said Terry Petersen, Market Development Manager at Modine. "By partnering with RYDE Racine, we are proud to contribute to the sustainability efforts and innovation happening right in our backyard."

The collaboration between Modine and RYDE Racine aligns with the company's overall strategy of expanding into the EV market while supporting local communities like Racine in their efforts to modernize their transportation systems through green initiatives.

To learn more about Modine Evantage thermal systems, please visit www.modineEV.com.

About Modine
At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them. Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and environmentally-friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe and Asia. For more information about Modine, visit www.modine.com.

CONTACT INFORMATION:
Technica Communications
Cait Caviness
modine@technica.inc

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SOURCE Modine

FAQ

What collaboration has Modine announced?

Modine has announced a collaboration with RYDE Racine to enhance the zero-emission bus fleet in Wisconsin.

How many all-electric buses does Racine currently operate with Modine's technology?

Racine currently operates nine all-electric buses equipped with Modine's EVantage™ Thermal Management Systems.

What is the goal of the collaboration between Modine and RYDE Racine?

The goal is to enhance the zero-emission bus fleet in Wisconsin, improving bus range, longevity, and reliability.

How is the project funded?

The project is funded by the FTA's Low or No Emission Vehicle Program.

What is the expected fleet expansion for Racine's all-electric buses?

Racine plans to expand its fleet to 13 all-electric buses.

What advantage does Modine's EVantage™ Thermal Management System provide?

The system optimizes inverter temperatures, improving range, longevity, and reliability of electric buses.

What environmental goal is Racine aiming to achieve with this collaboration?

Racine aims to reduce the carbon footprint of its public transit system.

How does this collaboration align with Modine's overall strategy?

The collaboration supports Modine's strategy to expand into the EV market while supporting local communities.