Vicinity Motor Corp. (TSX-V:VMC) has told investors it has received a letter of intent (LOI) from Pioneer Auto Group, a leading retail automotive dealer in British Columbia (BC), for an order for 100 VMC 1200 Class 3 electric trucks worth approximately C$14 million.
Vancouver-based Vicinity noted Pioneer Auto retails over 6,000 vehicles a year from 17 locations mostly in BC, making them an excellent strategic partner for its electric trucks. The company 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 the first quarter, Vicinity added.
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"With a specialty focus on trucks and SUVs, Pioneer will be able to offer an EV alternative for customers interested in a commercial vehicle design for urban environments with a 6,000-pound load capacity, 150-mile estimated range and a popular cab-over design - all at an attractive price,” Vicinity founder and CEO William Trainer said in a statement.
"We are seeing strong indicative demand from our continent-wide dealer network and expect to see continued momentum in the months ahead," he added.
Pioneer Auto Group said the addition of the VMC 1200 popular cab-over chassis design with an EV powertrain is a major milestone for its vehicle product line.
“VMC is a well-known name in the municipal transit space, and it's exciting to see their crossover to industrial trucks," Pioneer Auto president and CEO Ray Van Empel said. "We look forward to selling these new VMC 1200 throughout our dealerships.”
Vicinity Motor’s flagship line of Vicinity buses, which maintains a market segment leadership position in Canada, are produced by the firm’s world-class manufacturing partners and will be assembled at its soon-to-be-completed Buy America Act compliant facility in the State of Washington.
Vicinity's innovative Vicinity Lightning EV bus enabled through a strategic supply agreement with BMW for batteries and components, seeks to lead the global transition to more sustainable transit vehicles.
Contact the author at stephen.gunnion@proactiveinvestors.com