Vicinity Motor Corp. Announces First Public Deployment of its Automated Transit Bus at Sleeping Bear Dunes National Lakeshore

Rhea-AI Summary

Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) has announced the first public deployment of its Autonomous Lightning Electric Transit Bus at Michigan's Sleeping Bear Dunes National Lakeshore, starting August 14th, 2024. This initiative, in partnership with ADASTEC, is part of a National Park Service Mobility Challenge Program grant. The SAE Level-4 automated bus will operate on a 4.1-mile route, offering free rides to NPS pass holders.

The project combines Vicinity's electric low-floor transit vehicles with ADASTEC's flowride.ai automated driving software. It aims to study automated bus technology in an outdoor recreational setting, potentially enhancing safety and reducing congestion. Vicinity's buses are also eligible for up to $85,000 in incentives from California's HVIP program, positioning the company to drive adoption of electric, autonomous bus solutions.

Positive

• First public deployment of Vicinity's Autonomous Electric Transit Bus
• Partnership with ADASTEC for SAE Level-4 automated driving software
• Eligibility for up to $85,000 in incentives from California's HVIP program
• Potential to enhance traffic safety and reduce congestion in high-visitation areas

Negative

• None.

Technology Analyst

The deployment of Vicinity Motor Corp's automated electric transit bus at Sleeping Bear Dunes National Lakeshore marks a significant milestone in the evolution of public transportation. This initiative, combining Vicinity's electric vehicle expertise with ADASTEC's SAE Level-4 automated driving software, represents a pioneering step in sustainable and autonomous transit solutions.

Key technological aspects to consider:

• The integration of ADASTEC's flowride.ai platform with Vicinity's electric bus demonstrates the feasibility of high-level automation in public transit, potentially revolutionizing the industry.
• The bus's ability to respond in real-time to changing passenger demands, including flexible routing and dynamic scheduling, showcases advanced AI capabilities that could significantly enhance transit efficiency.
• The deployment in a national park setting provides a unique testing ground for automated vehicles, offering insights into their performance in diverse environmental conditions.

From an investor's perspective, this deployment could signal strong growth potential for Vicinity Motor Corp in the autonomous vehicle market. The partnership with ADASTEC and the support from federal funding indicate confidence in the technology's viability. Moreover, the qualification for up to $85,000 in incentives from California's HVIP program could accelerate adoption and boost Vicinity's market position.

However, investors should also consider the challenges ahead, including regulatory hurdles, public acceptance of autonomous vehicles and potential competition from larger automotive players entering the space. The success of this initial deployment will be important in determining the long-term viability and scalability of Vicinity's autonomous bus technology.

Environmental Policy Analyst

The introduction of Vicinity Motor Corp's automated electric transit bus at Sleeping Bear Dunes National Lakeshore represents a significant step towards sustainable transportation in environmentally sensitive areas. This initiative aligns with broader efforts to reduce carbon emissions and minimize the environmental impact of tourism in national parks.

Key environmental considerations include:

• The use of electric vehicles in national parks can significantly reduce local air pollution and noise, enhancing the visitor experience while preserving the natural environment.
• Automated routing and scheduling capabilities have the potential to optimize vehicle usage and reduce overall energy consumption, further minimizing the environmental footprint.
• The deployment serves as a real-world test case for sustainable transit solutions in high-visitation areas, potentially informing future policies for national parks and other protected areas.

From a policy perspective, this project demonstrates the government's commitment to supporting innovative, environmentally friendly transportation solutions. The use of federal funding through the National Park Service Mobility Challenge Program indicates a willingness to invest in sustainable technologies that could be scaled to other national parks and public spaces.

For investors, this deployment highlights the growing market for sustainable transit solutions in both public and private sectors. The success of this project could lead to increased demand for Vicinity's electric and autonomous vehicles, not only in national parks but also in urban areas seeking to reduce their carbon footprint.

However, it's important to note that the long-term success of such initiatives will depend on factors such as infrastructure development (e.g., charging stations), ongoing maintenance costs and the ability to scale the technology to meet diverse transportation needs across different environments.

Transportation Industry Analyst

The deployment of Vicinity Motor Corp's automated electric transit bus at Sleeping Bear Dunes National Lakeshore represents a significant milestone in the evolution of public transportation. This initiative has several implications for the transportation industry and investors:

• Market Expansion: This deployment opens up a new market segment for automated electric buses in recreational and tourism settings. Success here could lead to similar deployments in other national parks and tourist destinations, potentially creating a substantial new revenue stream for Vicinity.
• Technological Leadership: By partnering with ADASTEC to integrate SAE Level-4 automated driving capabilities, Vicinity is positioning itself at the forefront of autonomous public transit technology. This could give the company a competitive edge in the rapidly evolving electric vehicle market.
• Public Sector Opportunities: The involvement of the National Park Service and support from federal funding demonstrate the potential for increased public sector contracts. This could provide a stable revenue base for Vicinity as governments increasingly prioritize sustainable transportation solutions.
• Regulatory Influence: As one of the first deployments of its kind, this project could help shape future regulations for autonomous public transit, potentially giving Vicinity an early-mover advantage in compliance and certification.

However, investors should also consider potential challenges:

• Scalability: The success of this single deployment needs to be replicated on a larger scale to significantly impact Vicinity's bottom line.
• Competition: As the autonomous electric bus market grows, larger, more established manufacturers may enter the space, potentially squeezing margins.
• Technology Risks: Any technical issues or safety concerns during this high-profile deployment could negatively impact public perception and future adoption rates.

Overall, while this deployment represents a promising step forward for Vicinity Motor Corp, investors should closely monitor its performance and the company's ability to leverage this opportunity into sustainable growth and market leadership in the autonomous electric bus sector.

Vicinity Autonomous Electric Transit Bus to See First Deployment with National Park Service in August 2024; New Capability Enabled by Partnership with Automated Driving Software Platform Provider ADASTEC

VANCOUVER, BC / ACCESSWIRE / July 30, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced the first public deployment of a Vicinity Autonomous Lightning Electric Transit Bus in partnership with automated driving software platform provider ADASTEC at Michigan's Sleeping Bear Dunes National Lakeshore, beginning service on Wednesday, August 14^th, 2024.

As announced by Michigan Lieutenant Governor Garlin Gilchrist at a launch event at the Michigan State Capitol Building today, through a National Park Service Mobility Challenge Program grant, ADASTEC and Vicinity will deploy an automated, electric low-floor, accessible transit bus that will transport passengers along a 4.1-mile route on Pierce Stocking Scenic Drive at Sleeping Bear Dunes National Lakeshore. The deployment - supported by federal funding - aims to study how the next generation of automated bus technology performs in an outdoor recreational setting. The vehicle will be available for public use and is free to riders with a 7-day, annual or lifetime NPS pass during its deployment period.

The partnership brings together Vicinity's expertise in medium-duty, accessible, fully electrified low-floor transit vehicles with ADASTEC's SAE Level-4 automated driving software platform, flowride.ai. Vicinity automated transit buses are capable of responding in real-time to changing passenger demands, with capabilities such as flexible routing and dynamic scheduling. This initial deployment aims to demonstrate how automated, electric transit buses can significantly enhance traffic safety and reduce congestion in areas with high visitation rates.

Brent Phillips, President of Vicinity Motor Corp., said: "We at Vicinity Motor are absolutely thrilled to have an Autonomous Vicinity Lighting bus in federally funded service at such a prominent site, representing what we believe could be the future of public transportation in time. I would like to thank our valued automation partners at ADASTEC, whose advanced automated driving software platform makes our first SAE Level-4 automated bus deployments such as this possible. When paired with our qualification for up to $85,000 in incentives from California's HVIP program, we are well positioned to drive adoption of electric, autonomous bus solutions."

Dr. Ali Peker, CEO of ADASTEC Corp., stated: "We are proud to partner with Vicinity Motor Corp. and the National Park Service to deploy our SAE Level-4 automated driving software, flowride.ai, at the iconic Sleeping Bear Dunes National Lakeshore. The first automated bus compliant with FMVSS regulations, this deployment aims to showcase how automated transit can enhance safety, efficiency, and environmental sustainability in public transportation."

Cemre Kavvasoglu, Product Management Director, North America at ADASTEC, added: "The deployment of the first SAE Level-4 automated bus at Sleeping Bear Dunes National Lakeshore is a significant milestone for us. This project exemplifies how innovative partnerships can bring advanced technology to public transit, enhancing both the passenger experience and operational efficiency. We are committed to driving forward the future of transportation with solutions that prioritize safety, sustainability, and accessibility."

"We look forward to working closely with the Sleeping Bear Dunes team and ADASTEC, as well as future automated bus deployment partners in the months to come, as we seek to revolutionize the future of transportation with next-generation solutions that are safer, more efficient and lower-cost," concluded Phillips.

About ADASTEC Corp.‍

Established in 2018, ADASTEC Corp is a leading US-based provider of Level-4 automation solutions for full-size buses and commercial vehicles. Our flagship product, the SAE Level 4 automation platform flowride.ai, sets the standard in full-size bus automation with its advanced capabilities and has achieved key regulatory approvals, distinguishing ADASTEC as an industry pioneer. With a commitment to quality and innovation, ADASTEC holds prestigious ISO certifications and is headquartered in East Lansing, Michigan, with a global presence in Turkey and The Netherlands.

ADASTEC is dedicated to transforming public transportation into a more sustainable and efficient system with a proven track record of international deployments and strong industry partnerships. Our expertise in delivering factory-fitted full-size buses and commercial vehicles automation and integration into public transport systems underscores our commitment to providing scalable, cost-effective, and safety-focused solutions to meet the evolving needs of modern cities.

For more information, please visit www.adastec.com.

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.

View the original press release on accesswire.com

FAQ

When will Vicinity Motor Corp. (VEV) deploy its first autonomous bus at Sleeping Bear Dunes National Lakeshore?

Vicinity Motor Corp. (VEV) will deploy its first autonomous bus at Sleeping Bear Dunes National Lakeshore on August 14th, 2024.

What is the route length for Vicinity's autonomous bus at Sleeping Bear Dunes?

The autonomous bus will operate on a 4.1-mile route on Pierce Stocking Scenic Drive at Sleeping Bear Dunes National Lakeshore.

How much incentive is Vicinity Motor Corp. (VEV) eligible for from California's HVIP program?

Vicinity Motor Corp. (VEV) is eligible for up to $85,000 in incentives from California's HVIP program for its electric, autonomous bus solutions.

What level of automation does Vicinity's autonomous bus use according to SAE standards?

Vicinity's autonomous bus uses SAE Level-4 automation, powered by ADASTEC's flowride.ai automated driving software platform.