Vicinity Motor Corp. Announces CARB Certification for VMC 1200 Class 3 Electric Truck
Vicinity Motor Corp. announced that its VMC 1200 class 3 electric truck has received CARB (California Air Resources Board) certification as a zero-emission vehicle for the 2024 model year.
This certification permits the sale of the VMC 1200 in California and other states adopting CARB standards, including New York, New Jersey, and Massachusetts. Consequently, the VMC 1200 can be sold nationwide.
The certification also qualifies the VMC 1200 for various incentive programs, like California's HVIP, which offer monetary vouchers to reduce the purchase cost of commercial electric vehicles. Vicinity aims to finalize U.S. dealer relationships and capitalize on its early market presence as many competitors are still in pre-production.
- CARB certification for VMC 1200 enables sales across all U.S. states.
- Qualification for HVIP and other state incentive programs that reduce purchase costs.
- None.
Insights
CARB Certification for the VMC 1200 is a significant milestone for Vicinity Motor Corp. It enables the company to sell this electric truck in all U.S. states, expanding its market reach substantially. This is particularly noteworthy as California and states following CARB standards constitute a large portion of the U.S. market. Additionally, the certification qualifies the vehicle for incentive programs, potentially lowering the purchase cost for buyers and increasing the vehicle’s attractiveness.
From a market perspective, entering new states can drive sales
The company’s focus on partnerships with U.S. dealers also suggests a strategic approach to market penetration. Establishing relationships with dealers can provide a reliable distribution network and improve sales velocity. However, the effectiveness of these partnerships will depend on the company’s ability to deliver quality and support post-sale services, important for maintaining dealer and customer satisfaction.
The CARB certification of VMC 1200 is likely to have a positive impact on Vicinity Motor Corp.'s financials. By qualifying for various incentive programs, the company can offer a
Revenue growth is a key metric to watch. With access to a larger market and incentives that lower purchase barriers, revenue could see a significant uptick. However, investors should monitor the company’s ability to manage increased production demands and maintain margins. Higher sales volumes should translate into better fixed-cost absorption, but this assumes that the company can ramp up production efficiently.
Another point of interest is the impact on cash flow. With incentives in play, upfront cash flow might improve, but the company will need to manage working capital effectively, particularly inventory and receivables, to sustain long-term growth. Investors should also scrutinize potential capital expenditures required to scale production and meet increased demand.
Certainly, the CARB certification underscores Vicinity Motor Corp.'s alignment with environmental regulations and its commitment to reducing emissions. This certification is significant not only because it allows the VMC 1200 to be sold in all U.S. states but also because it aligns the company with stringent environmental standards. As states adopt CARB standards, the demand for compliant vehicles will likely rise, giving Vicinity a strategic advantage.
The participation in incentive programs such as California’s HVIP can accelerate adoption rates for electric trucks. These programs often offer financial vouchers that lower the effective cost for fleet operators, making it easier for them to switch from traditional fuel-based vehicles to electric ones. This shift has broader implications, contributing to reduced national emissions and supporting state and federal environmental goals.
From an investor’s perspective, being in a position to capitalize on these incentives is a positive sign. However, it is important to observe how well the company can navigate the regulatory landscape across different states while maintaining compliance and leveraging incentives effectively.
CARB Certification Enables Sale of VMC 1200 in Every U.S. State; Concurrently Qualifies VMC 1200 for Various Incentive Programs Nationally
VANCOUVER, BC / ACCESSWIRE / July 12, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced that the VMC 1200 class 3 electric truck has received certification from the California Air Resources Board ("CARB") as a zero-emission vehicle for the 2024 Model Year.
CARB certification allows the sale of the VMC 1200 in California, as well as other states that have adopted CARB standards including Connecticut, Colorado, Delaware, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington. With this certification, the VMC 1200 can now be sold in every U.S. state.
In addition, CARB certification allows Vicinity to participate in California's HVIP incentive program, as well as comparable programs in other states, which provide incentives to reduce the purchase cost of commercial electric vehicles.
Brent Phillips, President of Vicinity Motor Corp., said: "We are thrilled to announce the receipt of CARB certification for the VMC 1200, which now allows this incredibly compelling vehicle to be sold in every state throughout the country. In addition, the VMC 1200 now qualifies for various incentive programs - such as the HVIP program in California - which provide monetary vouchers to reduce the total cost for the purchaser.
"We can now begin to finalize U.S. dealer relationships and sell VMC 1200 vehicles throughout the entirety of the United States, leveraging our early mover advantage as many commercial EV competitors are still in the pre-production stage. I look forward to continued operational execution in the months ahead as we strive to deliver sustainable value for our shareholders over the long-term," concluded Philips.
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("VMC") is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com
Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, market prices and supply for parts and materials, the success of Vicinity's operational strategies, the vehicle assembly facility in the State of Washington being capable of operating in the manner intended by management, the effect of the COVID-19 pandemic, the recoverability of the Optimal intangible asset and other macro economic factors on supply chain recovery to pre-pandemic levels, related government-imposed restrictions on operations, the success of Vicinity's strategic partnerships, the ability of the Company to extend or modify existing debt terms; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE: Vicinity Motor Corp.
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FAQ
What certification has Vicinity Motor Corp.'s VMC 1200 received?
How does the CARB certification affect the sale of the VMC 1200?
What incentive programs is the VMC 1200 eligible for after CARB certification?
What advantages does Vicinity Motor Corp. have with the early CARB certification of VMC 1200?
