Vicinity Motor Corp. Secures Follow-On Order for 12 Vicinity(TM) Classic Buses from La Québécoise
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Insights
The recent purchase order for twelve Vicinity™ Classic buses by Autobus La Québécoise from Vicinity Motor Corp. signifies a strengthening relationship between the supplier and the transportation service provider. This deal not only reinforces Vicinity's standing in the Canadian mid-sized heavy-duty vehicle market but also indicates a growing demand for clean-diesel buses in urban transit systems. From a market perspective, this order may be viewed as a positive indicator of Vicinity's product acceptance and a testament to its competitive pricing strategy.
While the immediate financial impact of this deal on Vicinity's revenue stream is evident, the long-term implications are multifaceted. The company's focus on expanding its electric vehicle (EV) lineup alongside its existing diesel fleet shows strategic positioning in anticipation of a market shift towards sustainability. This diversification may appeal to a broader range of municipal and commercial clients who are balancing cost with environmental considerations.
The follow-on order of diesel buses comes at a time when there is an increasing global push towards electrification of transport to mitigate climate change impacts. Although the Vicinity™ Classic clean-diesel buses are positioned as a more economical short-term option, it is important to note the environmental implications of investing in diesel technology. Regulatory trends are leaning towards stricter emissions standards and incentivizing zero-emission vehicles (ZEVs), which could affect the long-term viability of diesel buses.
Investments in clean-diesel technology may be a pragmatic short-term solution for Autobus La Québécoise, but the shift towards EVs, as suggested by Vicinity's development of the Vicinity Lightning EV bus, aligns with broader environmental policy goals. Stakeholders should monitor developments in environmental regulations and subsidies for EVs, as these factors will likely influence the pace at which companies like Vicinity need to adapt their product offerings and business strategies.
Analyzing the financial implications of Vicinity Motor Corp.'s announcement, the follow-on order from Autobus La Québécoise can be seen as a positive signal to investors regarding the company's revenue prospects and market penetration. Repeat orders from a significant player in the Quebec transportation sector suggest confidence in Vicinity's product reliability and customer service. This could potentially lead to increased investor confidence and a positive stock market reaction.
However, it is essential to contextualize this order within the company's overall financial health and the competitive landscape. Investors should consider the company's ability to manage production costs, maintain profit margins and navigate the transition towards electric vehicles. The capital expenditure associated with this transition and the timing of returns on these investments, will be critical factors influencing the company's financial trajectory and stock performance.
VANCOUVER, BC / ACCESSWIRE / February 12, 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 a follow-on purchase order from Autobus La Québécoise for twelve (12) Vicinity™ Classic buses to service the cities of La Prairie, Candiac, Saint-Philippe, Delson, Saint-Constant and Sainte-Catherine in Quebec.
Per the terms of the supply agreement, Autobus La Québécoise has ordered an additional twelve of the Company's 32-foot Vicinity™ Classic clean-diesel buses for delivery in 2025. Autobus La Québécoise is part of Groupe La Québécoise, which consists of approximately twenty companies offering various types of transportation services, including school bus, municipal, paratransit, shuttle, intercity, charter, helicopter, residual materials pick-up, executive aircraft charter, regional airline service and aeromedical evacuation. The business operates primarily in Quebec, but its service extends into other parts of Canada as well as the United States.
"This follow-on order by La Québécoise, which is in addition to the eight bus order received in December, continues to validate our position as the market leader in the Canadian mid-sized heavy duty segment," said William Trainer, Founder and Chief Executive Officer of Vicinity Motor Corp. "As a leader in Quebec's passenger transportation industry, La Québécoise is well positioned to service the immediate-term needs of their riders with our Vicinity™ Classic buses - which offer lower entry and running costs compared to the competition. For Vicinity, our transit buses continue to play an important role in our backlog, providing an important pillar while we concurrently grow our electric vehicle business.
"While the Vicinity™ Classic buses remains a strong option contender for the foreseeable future, we believe supportive regulatory developments, infrastructure investments, government incentives and corporate sustainability goals are converging to accelerate diversification of fleets with electric vehicles as well - such as our Vicinity Lightning EV bus - that offer additional efficiencies, greenhouse gas emission reductions and support long-term sustainability targets. We look forward to working closely with La Québécoise to deliver these vehicles next year," concluded Trainer.
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 document 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, including without limitation, statements regarding anticipated vehicle deliveries, future sales, vehicle market acceptance, warranty claims and strategic partnerships, 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.
These forward-looking statements may include statements regarding the perceived merit of the product offered by Vicinity; sales estimates; manufacturing capabilities; capital expenditures; timelines; strategic plans; market prices and supply for parts and material; or other statements that are not statements of fact. 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 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; 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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