Vicinity Motor Corp. (TSX-V:VMC) has announced the receipt of a purchase order (PO) for 1,000 VMC 1200 Class 3 Electric Trucks from Pioneer Auto Group, Vicinity's exclusive dealer in the province of British Columbia, Canada.
The order, which exceeds $100 million in revenue, will see Vicinity delivering a minimum of 1,000 units of the electric trucks by the end of 2023, with deliveries expected to commence this month.
"We are incredibly pleased to announce this transformational milestone in Vicinity's evolution as a leading commercial EV manufacturer," said William Trainer, CEO of Vicinity in a statement.
READ: Vicinity Motor to supply four Vicinity Lightning electric buses for use at Honolulu International Airport
"Today's PO validates the years of innovation and development we have invested in expanding our capabilities beyond transit buses and into the commercial truck market. We have increased our credit facilities to accommodate this order and I am confident in our ability to fulfil this PO on-schedule in 2023,” he added.
Vicinity plans to shift the production of the electric trucks from British Columbia to its new facility in Ferndale, Washington, which can accommodate both buses and trucks, by the end of the year, Trainer said.
He noted that Ferndale’s production capacity could reach 10,000 vehicles per year given the simplified assembly of the VMC 1200 compared to a transit bus.
“Due to the fact we are not facing significant pressures in the VMC 1200 supply chain specifically, the VMC 1200 will prove to be a significant contributor to our 2023 revenue growth and profitability - enabling our goal of creating sustainable, long-term value creation for our shareholders," concluded Trainer.
Meanwhile, Ray Van Empel of Pioneer Auto Group noted that the company has continued to see intense customer demand for Class 3 commercial EVs, a segment that was largely unfilled prior to the arrival of the VMC 1200.
“This purchase order is a clear sign of our confidence, not only in our sales capabilities at Pioneer Auto Group, but in the superiority of Vicinity's product. Given the wide array of federal and province-level incentives for the adoption of electric vehicles, the VMC 1200 is truly a no-brainer to buyers from a financial perspective. I look forward to taking delivery of our first VMC 1200 vehicles in the months ahead, assembled right here in British Columbia," he added.
Vicinity Motor is a North American supplier of electric vehicles for both public and commercial enterprise use. It 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.
In addition, the company sells its proprietary electric chassis, alongside strategic partner J.B. Poindexter’s business unit EAVX, for upfitting into next-generation delivery vehicles.
Contact the author at jon.hopkins@proactiveinvestors.com