This is part of a broader analysis of Vicinity Motors. For more click here.
Vicinity went through strong sales momentum in Q2 2021 with the addition of 46 new VMC 1200 Class 3 electric truck, Vicinity Classic, and Lightning™ EV bus purchase orders.
Guiding 2021 deliveries to be a minimum of 150 buses for revenues of at least $55 million.
Contracts to be delivered by 2021
Vicinity Motors a leading supplier of electric, CNG, gas and clean diesel buses, today announced the receipt of a new order for 17 Vicinity™ Compressed Natural Gas (CNG) buses totaling more than $5 million. These buses are expected to be delivered in Q4 2021.
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The new Vicinity Lightning™ EV bus brings a unique 28' low floor offering to the U.S. market. With a flexible floorplan utilizing proven components such as BMW sourced battery packs, modules and components, public and private customers will be able to offer zero emission transportation to a variety of passengers. The 10 new Vicinity Lightning™ EV orders are scheduled to be delivered to ABC in the third and fourth quarters of 2021 for resale into the U.S.
"The size, flexibility and quality of the Vicinity Lightning™ EV bridges the gap between larger buses and lower passenger shuttles, with a very compact footprint which benefits the operators, drivers and passengers. We think it is a real win-win-win," said Roman Cornell, President and Chief Commercial Officer of ABC Companies. "The Vicinity Lightning™ EV joins the portfolio of zero emission vehicles ABC sells and services to meet the rapidly evolving battery electric market."
The order is the first from ABC, who recently entered an agreement with Vicinity Motors to distribute its full line of products which currently includes the Vicinity™ heavy duty mid-size bus, the Vicinity Lightning™ EV and Vicinity™ LT light duty models in the United States. The Vicinity line fills key transit and private shuttle roles within the ABC vehicle portfolio, enhancing its offerings to current customers while expanding sales further into the US transit market.
"As our customers transition to and adopt electric vehicles, the Vicinity Lightning™ EV provides maximum versatility to support multiple transportation applications utilizing high quality, proven and commercially available technology and industry standardized charging solutions. With our production ramp up, we now have 25 Vicinity Lightning™ EV buses in the production phase and are gearing up for significant growth. We look forward to expanding our reach and sales in the U.S. through our partnership with ABC, driving forward a more sustainable public transit system," concluded Trainer.
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VMC is pleased to announce that it has received an order from Keolis Canada ("Keolis") for over $5,000,000.
The order from Keolis is for thirteen Vicinity clean diesel buses for delivery in 2021 and will be used for servicing the L'Assomption sector east of Montreal and includes the municipalities L'Épiphanie, L'Assomption, Saint-Sulpice, Repentigny, Charlemagne and Lavaltrie.
Contracts to be delivered by 2022
Pioneer Auto Group, a leading retail automotive dealer in British Columbia, for 100 VMC 1200 Class 3 Electric Trucks worth approximately CAD $14 million.
Pioneer is a well-respected Canadian dealership group with 17 locations located chiefly throughout British Columbia, Canada. The company has retails over 6,000 vehicles per year. Carries over 1,500 vehicles in its network including Mitsubishi, Honda, Chrysler, Dodge, Jeep and RAM models. The 100 VMC 1200 Class 3 Trucks specified in the LOI are expected to be delivered in 2022, subject to the execution of a dealer agreement, with first orders starting in Q1. The dollar value of the vehicle purchase is approximately CAD $14 million.
$15.5 million in new purchase orders from three Québec, Canada transit operators for a total of 38 Vicinity™ Classic buses.
Pursuant to the terms of the supply agreements, Robert Paquette Autobus et Fils Inc. ordered 18, Transcobec (1987) Inc. ordered 11, and Autobus Yves Seguin et Fils Inc. ordered 9 Vicinity™ Classic buses, which will all be in service with Canadian public transit agency EXO. The Vicinity™ will be serving the cities of Oka, St-Joseph-du-Lac, Pointe-Calumet, Sainte-Marthe-sur-le-Lac, Doux-Montagnes, Saint-Eustache, Boisbriand, Sainte-Thérèse, Blainville, Rosemère, Bois-de-Fillions, Saint-Jérôme, and Sainte-Anne-des-Plaines. These orders are for delivery in 2022 and join the current operating fleet of 79 Vicinity™ buses in the Province of Quebec.
14 Vicinity Lightning™ EV buses valued at over $6.0 million from Calgary Transit, the City of Calgary's transit authority.
Calgary Transit connects people, communities and businesses across Calgary through cost-effective, sustainable public transit. In 2020, Calgary Transit provided 51.1 million passenger trips with a fleet of 1,048 high-capacity, heavy, medium and light duty buses. Emissions Reduction Alberta (ERA) committed $7 million to the City of Calgary's overall battery electric bus pilot project.
The order of 14 new Vicinity Lightning™ EV buses are for delivery in 2022 to Calgary Transit, with the option to purchase supplemental vehicles at a set price over a 5-year period.
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15 Vicinity™ CNG buses for a total value of over $6.0 million from a leading Canadian provincial public transportation provider.
Per the terms of the supply agreement, the transit authority will order 15 of the Company's 30-foot Vicinity™ buses powered by compressed natural gas ("CNG"). VMC expects delivery of the buses in the first half of 2022.
"We are pleased to have secured this substantial supply agreement with one of our long term transit customers.
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Four Vicinity™ buses for a total value of over $1.6 million from the County of Simcoe in Ontario, Canada.
Per the terms of the supply agreement, the County of Simcoe will order three (3) of the Company's 30-foot Vicinity™ buses as well as one (1) larger 35-foot Vicinity bus for delivery in the first half of 2022.
"We are pleased to have secured this $1.6 +million agreement with the County of Simcoe, continuing our strong legacy as a leading bus supplier within the robust Canadian market,"
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Three clean-diesel Vicinity™ Classic buses from Québec Private Transit Operator Le Groupe Transbus.
Per the terms of the supply agreement, Le Groupe Transbus has ordered three of the Company's 30-foot Clean-Diesel Vicinity™ Classic buses. The Vicinity buses are in service with Canadian public transit agency EXO, serving the city of Varennes, a suburb of Montreal. Transbus currently owns and operates nine Vicinity™ Classic buses, with this order bringing the total to 12 in its fleet.
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Received an initial order from a private operator in British Columbia for 10 VMC 1200 Class 3 electric trucks valued at over $1.0 million
The order of 10 VMC 1200 Class 3 Trucks are scheduled for delivery in Q1 2022.
Undetermined agreements, TBA.
Vicinity Motor Corp. Selected for California Statewide Contract announced that the MBTA has authorized an award on behalf of the California Association for Coordinated Transportation ("CALACT") consortium members to select Vicinity buses in a statewide purchasing contract that gives State transit agencies authority to purchase "Buy America" compliant buses directly from the Company's diverse portfolio through its distribution partner ABC Companies.
CALACT is the largest state transit association in the United States, representing California small, rural and specialized transportation providers statewide. CALACT has over 300 members and is dedicated to promoting professional excellence, stimulating ideas and advocating for effective community transportation.
"The California market represents the largest in the United States, and this contract allows all CALACT members the ability to choose Vicinity as an OEM supplier for their growing fleets," said William Trainer, Founder and CEO of Vicinity Motor Corp. "CALACT forecasts this contract may include up to 8,000 vehicles over 5 years, representing a major opportunity for Vicinity to expand in California. Leveraging our partnership with ABC Companies, we believe we can offer competitive bids for our innovative line of Vicinity high efficiency buses. We look forward to working with CALACT members to match our unique vehicle offering with their requirements, creating long-term value for both our customers and shareholders," concluded Trainer.
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VMC today announced the State of Washington has selected Vicinity buses in a statewide purchasing contract that gives State transit agencies the right to purchase from the Company's diverse bus portfolio.
Vehicles for selection can be produced from the Company's planned "Buy American Act" compliant assembly facility in Washington state, which will be capable of producing 1,000 electric, CNG, gas and clean-diesel units annually across all sizes and powertrains.
"We are pleased to announce that Vicinity Motor Corp. has been chosen as an OEM supplier for Washington state's growing fleet of buses - driving forward the transition to a more sustainable public transportation system," said William Trainer, Chief Executive Officer of Vicinity Motor Corp. "This contract win marks yet another exciting milestone in our expansion into the significant U.S. market, where our purpose-built Vicinity™ line of products' quality and consistency allows us to capture market share.
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VMC announced the State of New Mexico has selected Vicinity buses in a statewide purchasing contract that gives State transit agencies the right to purchase directly from the Company's diverse bus portfolio.
"We are privileged to have our Vicinity buses included in this contract allowing New Mexico transit agencies the ability to choose Grande West as an OEM supplier for their growing fleets," said William Trainer, President and Chief Executive Officer of Grande West.
"We believe we can offer competitive bids to New Mexico for our innovative line of buses. We look forward to working with New Mexico officials to match our vehicles with their requirements, creating long-term value for both our customers and shareholders," concluded Trainer.
Conclusion
With sales all over Canada, the current ICE and CNG bus lines are turning Vicinity motors into a noticeable player in the light and medium duty bus segment. With a continuous news flow about new purchase orders, the company seem poised to sustain their sales momentum, especially as they try to enter the American market with a brand new production line of Electrical buses and trucks. With a possible market of thousands of vehicles per year, Vicinity $130m CAD market cap as of September 2021 might seem like a good opportunity for people that can withstand volatility.
Disclaimer: We are long $VEV, not investment advice, not a registered professional. You could lose everything, buy at your own risks.
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