Vicinity Motor Corp. (Vicinity) designs, builds, and distributes a full suite of mid-size transit buses for public and commercial use, including electric, CNG and clean diesel buses, and commercial electric trucks (collectively, the ‘Vicinity Vehicles’).
The company has been successful in supplying Canadian and U.S.-based municipal transportation agencies and private operators with a full suite of transit buses for public and commercial use, including electric, CNG, and clean diesel buses (coll...
Vicinity Motor Corp. (Vicinity) designs, builds, and distributes a full suite of mid-size transit buses for public and commercial use, including electric, CNG and clean diesel buses, and commercial electric trucks (collectively, the ‘Vicinity Vehicles’).
The company has been successful in supplying Canadian and U.S.-based municipal transportation agencies and private operators with a full suite of transit buses for public and commercial use, including electric, CNG, and clean diesel buses (collectively, ‘Vicinity Buses’).
The company conducts its active operations in Canada through its wholly owned operating subsidiary, Vicinity Motor (Bus) Corp. (VMCBC). The company conducts its active operations in the United States through its wholly owned operating subsidiary, Vicinity Motor (Bus) USA Corp. (VMUSA).
The company has worldwide strategic partnerships and supply agreements to manufacture Vicinity products in Europe, Asia, Canada, and the United States. The company completed the construction of an assembly plant in Ferndale, Washington State in early 2023 (the 'Washington State facility'), a location in proximity to the border between Canada and the United States. The Washington Facility produces EV truck units and can produce electric, CNG, and clean diesel buses across various sizes and powertrains compliant with the ‘Buy America’ Act.
In a large and unsaturated market segment, the company is poised for continued sales growth with its Vicinity Vehicles sizes across Canada and the United States. The company is at the forefront of the changeover of industrial combustion engines to electric vehicles for the bus and truck markets.
The company has established a Disadvantaged Business Enterprise program in accordance with regulations of the U.S. Department of Transportation, 49 CFR Part 26.
Products
Vicinity Vehicles
Vicinity Buses were born from a need expressed by transit systems looking for a durable, reliable, customer oriented mid-size vehicle at a reasonable price point. The company designs the Vicinity buses with affordability, accessibility, and global responsibility in mind. The Vicinity buses cost significantly less than a 40 foot bus and are considerably more durable than cut-away buses which are based on a truck chassis.
The VMC Truck line builds on the in-house expertise of electric commercial vehicle development the company has invested in the transit bus business expanding product reach into the broad commercial truck market, specifically Class 3 low cab forward chassis solutions.
Vicinity Classic
Vicinity’s flagship bus offers significant fuel savings, lower upfront costs, low operating costs, and provides a smoother ride than competitors providing greatly improved overall value. The Vicinity Buses are designed to meet North America’s rigorous operating conditions and are durability tested by the Federal Government at Altoona, Pennsylvania. Vicinity Buses are ranked ‘Best in Class’ in the U.S. Federal Transit Administration’s Bus Test Program.
Vicinity Lightning
The Vicinity Lightning is the company’s first fully electric bus and the newest bus model in its product portfolio. The Vicinity Lightning is an environmentally friendly alternative to diesel buses used in a broad product segment. Uniquely positioned to offer the size and maneuverability of small buses with the durability and capacity of larger buses, the Vicinity Lightning places the company in a position to capture market share as customers and policy drive demand for zero emission transportation solutions.
The Vicinity Lightning is a low-floor transit bus, scaled down for a diverse range of uses, including transit, airports, community shuttles, para-transit, university shuttles, corporate, and other unique applications. The Vicinity Lightning is designed from the ground up and purpose-built to use commercially available high-volume, reliable components from the automotive industry. It features 19.5-inch tires and hydraulic disc brakes, high-power AC direct on-board charging and DC fast charging options.
The Vicinity Lightning uses proven zero emission technology supporting a cleaner and more sustainable planet and drives community prosperity through increased access to mobility. The size and design of the bus provides maximum versatility supporting multiple transportation applications. The Vicinity Lightning incorporates high quality, proven, and commercially validated technology along with standardized electric-vehicle charging solutions. The Vicinity Lightning delivers ease of use without high-cost proprietary technology and charging systems. The smart intentional design allows a diverse range of users to adapt the Vicinity Lightning platform conveniently into operations with very low transition burden.
VMC 1200 Electric Truck
The VMC 1200 is a fully electric Class 3 commercial EV which has the power and potential to transform the freight industry in North America. Powered by cutting edge Li-Ion battery technology the VMC 1200 is a 11,000 gross vehicle weight rating medium-duty electric truck with a 5,000-pound load capacity and range up to 150 miles on a single charge. The popular cab-over design provides ease of operation, maneuverability, visibility and simplified body integration.
Parts Sales
The company earns additional recurring revenues by selling aftermarket parts. Aftermarket parts sales are expected to continue to increase as the existing Vicinity bus fleet ages and new vehicles are placed into service. Aging of the installed fleet base in addition to ongoing expansion into the passenger transportation and freight market naturally increases the reach of aftermarket parts and continued improvements in volume pricing expand the company’s competitiveness in this high-margin business segment.
Marketing
The company’s sales team focuses on the goal of securing purchase orders from commercial transportation companies, transit operators, government agencies, and universities.
The company’s priority is to generate customers across all sectors targeted by it, including transit, shuttle, universities, government, and commercial sectors. Many of the company’s existing customers or potential new customers have other buses in their fleet that it may potentially replace with the Classic and the Vicinity Lightning. Ultimately, the company intends to be choice for buses in this segment regardless of the fuel type that the customer chooses.
The company’s bus sales plan in Canada is to meet with the top potential customers and obtain purchase orders for new buses for their production vehicle requirements.
United States bus distribution strategy involves localized bus dealers that actively engage and promote the sales of the company’s buses, leveraging client relationship, and market presence. The company works with dealers and their customers to address customer needs by responding with technical information and competitive proposals to generate sales.
In Canada, the company is expanding its VMC 1200 truck dealer distribution network to promote the sales and service of VMC trucks throughout the country. VMC truck dealers will inventory and sell the VMC 1200 trucks to end-users. The company has engaged Dealer Solutions Mergers and Acquisitions to support it in developing its Canadian dealer distribution network.
The company employs a small and specialized sales force and in February 2023 signed a dealer network development services agreement with Dealer Solutions Mergers and Acquisitions (DSMA) to enhance its North American market penetration for its VMC 1200 trucks.
Competitive Market Conditions
The company’s principal competition for their traditional medium and heavy-duty buses come from manufacturers of buses with internal combustion engines powered by diesel, CNG fuels and battery electric power. This includes New Flyer, Nova, Gillig and Rev Group, and other automotive manufacturers. The company also competes with GreenPower, Lion Electric, and others, are manufacturing and selling battery electric buses.
Foreign Operations
The company has worldwide strategic partnerships to manufacture its products in Europe, Asia, Canada, and the United States. As the company continues to grow, it expects to expand its U.S. operations. The Washington Facility began production during the third quarter of 2023.
History
The company was founded in 2008. It was incorporated under the Business Corporations Act (British Columbia) (the BCBCA) in 2012 under the name Grande West Transport Group Inc. In 2013, the company changed its name to Grande West Transportation Group Inc. and Vicinity Motor Corp. in 2021.
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