Vicinity Motor Corp. (TSX-V:VMC) announced it has entered into a Master Goods and Service Agreement with Sustainability Partners LLC (SP) to utilize its Electric Vehicles as a Service (EVaaS) program to finance the conversion of traditional government fleets to Vicinity's electric vehicles.
The company noted that SP is focused on environmental, social, and governance (ESG) principles and is committed to eliminating deferred maintenance infrastructure by enabling sustainability.
Under the terms of the agreement, Vicinity said SP will engage it as an independent contractor to purchase its portfolio of electric vehicles including Vicinity Lightning buses, VMC Optimal vehicles and VMC 1200 Class 3 electric trucks for government and corporate fleets utilizing its EVaaS program.
READ: Vicinity Motor says to jointly showcase vehicles with partner EAVX at California clean transport expo
“SP's month-to-month use-based service is a uniquely structured, OpEx-oriented alternative to the traditional purchase of government fleets," Vicinity founder and CEO William Trainer said in a statement. "The program enables institutions and private industry to modernize their fleets while benefitting from high-performance, cost-effective Vicinity electric vehicles. SP is a clear alternative to traditional purchase or public works procurement with financing, bonding, PPPs (public-private partnerships), leasing, EPCs (engineering, procurement and construction), and Shared Savings arrangements.”
Vicinity said SP works with government institutions including municipalities, airports, universities and schools, hospitals and water/rail/power districts to convert essential fleet infrastructure into a monthly utility service in a manner that protects institutions, the assets and taxpayers.
The EVaaS program replaces unreliable, unsafe, and costly fleet infrastructure with modern electrified solutions from Vicinity, robustly engineered with embedded long-term support, the company added. SP can pay 100% of the purchase price while concurrently ensuring the vehicles are continually maintained in a state of good repair.
"Vicinity products are a great addition to our EVaaS program as our customers increasingly look for electrified options to meet their sustainability and ESG goals,” SP CEO and founder Thomas Cain added. “Our customers' electric vehicle needs and priorities continue to evolve, and we believe Vicinity's product line has the diverse and compelling range of EV options they require - all from a widely-respected leader in the expanding EV market.”
Vicinity said its wide portfolio of commercial electric vehicles can be used across the vast spectrum of SP customers and fleets.
“We look forward to helping their sales team share the benefits of our heavy-duty, light-duty and special-purpose electric vehicles with their significant customer base," concluded Trainer.
Vicinity Motor 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, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. It sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the company's strategic partner, for upfitting into next-generation delivery vehicles.
Contact the author at stephen.gunnion@proactiveinvestors.com