Vicinity Motor Corp. Receives Follow on Orders for Three Vicinity Classic Clean Diesel Buses from Leading Quebec Transit Operators
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) has secured follow-on orders for three Vicinity Classic Clean Diesel buses from two Quebec transit operators. Robert Paquette Autobus et Fils Inc. ordered one bus, while Les Autobus Transcobec (1987) Inc. ordered two. These buses, set for delivery in 2025, will serve the communities of Mirabel and Saint-Jérôme under the Canadian public transit agency EXO.
The Vicinity Classic is noted for its 90% market penetration in the Canadian mid-sized heavy-duty segment, offering low upfront costs, durability, and fuel savings. This order reinforces the bus's status as a reliable choice for transit operators and provides a foundation for Vicinity's expanding product line, including electric vehicles.
- Secured follow-on orders for three Vicinity Classic Clean Diesel buses from Quebec transit operators
- Vicinity Classic has 90% market penetration in the Canadian mid-sized heavy-duty segment
- Low upfront cost, durability, and fuel savings of Vicinity Classic attract repeat customers
- Strong market position in transit buses provides a base for growing electric vehicle product mix
- None.
Insights
Vicinity Motor Corp.'s follow-on orders for three Vicinity Classic Clean Diesel Buses from Québec transit operators highlight the company's steady market presence. Repeat orders from established clients like Robert Paquette Autobus et Fils Inc. and Les Autobus Transcobec signal solid customer satisfaction and confidence in the product's reliability. While the order size is modest, it underscores a broader trend of consistent revenue streams from the transit bus segment.
Investors should note the 90% market penetration of the Vicinity Classic in the Canadian mid-sized heavy-duty bus segment. This dominance strengthens the company's ability to leverage its customer base while gradually transitioning to electric vehicles, such as the Vicinity Lightning. The integration of both diesel and electric offerings could enhance revenue diversity and stability in the long term.
However, these follow-on orders are unlikely to significantly impact short-term financial performance due to the small volume. Investors should watch for larger orders or strategic partnerships that could drive more substantial growth. For now, the continued demand for the Vicinity Classic suggests a stable outlook for Vicinity Motor Corp.
The order for Vicinity Classic Clean Diesel Buses from Québec transit operators reflects a trend in transit agencies' preference for cost-effective and reliable diesel options despite the industry's shift towards electrification. This trend can be attributed to the Vicinity Classic's low upfront cost and proven fuel efficiency.
However, the market's gradual pivot towards electric vehicles means Vicinity Motor Corp. must strategically balance its product offerings. The mention of their electric products like the Vicinity Lightning transit bus and the VMC 1200 Class 3 electric truck indicates the company's readiness to address future demands. The direct sales model further positions Vicinity to maintain close relationships with transit operators, fostering loyalty and facilitating a smoother transition to electric solutions.
Investors should consider the broader market dynamics, including regulatory pushes for electrification and potential subsidies for electric vehicles, which could impact demand for diesel buses. While current orders reflect stability, the future growth trajectory will likely depend on the company's ability to scale its electric offerings.
VANCOUVER, BC / ACCESSWIRE / July 17, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced the receipt of new follow-on purchase orders from two Québec, Canada transit operators for three (3) Vicinity™ Classic buses.
Per the terms of the supply agreements, Robert Paquette Autobus et Fils Inc. ordered one (1), and Les Autobus Transcobec (1987) Inc. ordered two (2) Vicinity Classic Clean Diesel buses, which will be in service with Canadian public transit agency EXO. The Vicinity Classic buses - for delivery in 2025 - will service the communities of Mirabel and Saint-Jérôme.
"Our flagship Vicinity Classic transit bus continues to serve as a reliable workhorse for our clients across the continent - driving a solid base of revenue for our fuel neutral, autonomous ready bus segment," said Brent Phillips, President of Vicinity Motor Corp. "Repeat and long-term blue-chip customers like these validate the Vicinity Classic's status as the market leader in the Canadian mid-sized heavy duty segment, with
"The Vicinity Classic's strong market position with transit operators also provides a solid base for our growing product mix, including the Vicinity Lightning electric transit bus and VMC 1200 Class 3 electric truck. As needs evolve, our direct sales model for transit buses and the resulting open line of communication puts us front and center for operators looking to begin their electrification journey. We look forward to working closely with Transcobec and Paquette to deliver these vehicles next year," concluded Phillips.
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 new orders did Vicinity Motor Corp. (VEV) receive in July 2023?
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