Vicinity Motor Corp. Signs VMC 1200 Distribution Agreement for Peninsula VMC Truck Centre in South Toronto, Canada
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Insights
The establishment of Peninsula VMC Truck Centre in the southern Toronto region represents a strategic expansion for Vicinity Motor Corp. (VMC) into a significant Canadian market. This move is poised to capitalize on the growing demand for commercial electric vehicles (EVs), which is being driven by increasing environmental concerns and the push for carbon emission reductions. The partnership with Kelly Jennings, leveraging his extensive experience in the Canadian automotive sector, is expected to enhance VMC's distribution capabilities and market penetration.
By focusing on the custom-upfit all-electric VMC 1200 trucks, VMC is targeting a niche segment that could see substantial growth as businesses look to transition their fleets to more sustainable options. The distribution agreement could potentially lead to increased sales volume and market share for VMC in the commercial EV space. However, competition in the EV market is fierce and VMC will need to differentiate its offerings and ensure high-quality service to maintain a competitive edge.
The announcement of the new distribution agreement could have positive implications for VMC's financial performance, especially if the VMC 1200 trucks gain traction in the targeted territories. The partnership with an established dealer like Kelly Jennings may provide a more efficient entry into the market, reducing the need for heavy marketing investments and capital expenditures typically associated with dealership establishment.
Investors should monitor the adoption rate of the VMC 1200 within the fleet operations in the specified regions, as this will be a key indicator of the agreement's success. It is also crucial to evaluate the long-term profitability of the dealership, considering factors such as the total cost of ownership of electric trucks versus traditional vehicles, government incentives and the evolving regulatory landscape concerning commercial EVs.
The proliferation of electric vehicle infrastructure, such as the new Peninsula VMC Truck Centre, aligns with broader environmental objectives at both the federal and provincial levels in Canada. The distribution of the VMC 1200 trucks supports the transition to a low-carbon economy, which is increasingly being mandated by policies aimed at reducing greenhouse gas emissions.
Businesses adopting VMC's electric trucks may benefit from environmental incentives and improve their corporate sustainability profiles. This could provide a competitive advantage as consumer and regulatory pressures mount for companies to demonstrate environmental responsibility. However, the actual impact on carbon emissions will depend on the scale of adoption and the sources of electricity used to charge the vehicles.
Peninsula VMC Truck Centre to Serve South Toronto Market with VMC 1200 Sales & Service
VANCOUVER, BC / ACCESSWIRE / January 17, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced that it has signed a new distribution agreement with automotive industry executive Kelly Jennings to launch Peninsula VMC Truck Centre, a new VMC specific dealership for the territory located in the southern Toronto, Canada region.
Kelly Jennings is the owner of Peninsula Ford Lincoln, a leading automotive dealership in Owen Sound and Port Elgin, Ontario, Canada with a storied 40 year history. Per the terms of the agreement, Peninsula VMC Truck Centre will distribute Vicinity VMC 1200 trucks throughout the cities of Hamilton, Burlington, Brantford and Niagara.
"Kelly's experience and focus on the Canadian automotive market makes his family of companies a perfect fit for a new VMC dealership to help fleet operators seamlessly transition to an all-electric future," said William Trainer, Founder and CEO of Vicinity Motor Corp. "Peninsula VMC Truck Centre will support fleet operators in their electrification journey, offering the purpose-built, custom-upfit all-electric VMC 1200 to a new generation of customers. We look forward to helping Kelly and the dealership share how the VMC can deliver immediate cost savings while concurrently reducing carbon emissions for commercial fleet operators."
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, the success of Vicinity's operational strategies, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, 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.
View the original press release on accesswire.com
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