Vicinity Motor Corp. Secures VMC 1200 Distribution Agreement with VMC Laval in Laval, Canada
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Expanding into the commercial electric vehicle (EV) market represents a strategic move for Groupe Taddeo Auto, which has a well-established presence in the passenger EV market. The partnership with Vicinity Motor Corp. to open VMC Laval is significant because it signals a diversification of offerings that could cater to a growing segment of the EV industry. The commercial EV sector is poised for growth, driven by increasing environmental awareness, regulatory pressures and economic incentives for businesses to transition to greener fleets.
Moreover, the Quebec Ministry of Transport and Sustainable Mobility's Écocamionnage Program offers a substantial financial incentive, which could accelerate adoption rates. This program is a key differentiator in the Quebec market, potentially impacting the competitive landscape and making electric commercial vehicles more financially viable for businesses. The collaboration between Groupe Taddeo Auto and Vicinity Motor Corp. could leverage this opportunity to gain a significant market share in the region.
The introduction of the VMC 1200 trucks in the Montreal-Laval area through the new VMC Laval dealership could have a positive impact on Vicinity Motor Corp.'s financial performance. The CAD$85,000 incentive per vehicle under the Écocamionnage Program is likely to stimulate demand and improve the unit economics of each sale. This strategic expansion into commercial EVs could enhance revenue streams and contribute to the bottom line, especially if the uptake of VMC 1200 trucks is strong.
For investors, the potential increase in sales volume and market penetration is an important consideration. The partnership with a reputable group like Groupe Taddeo Auto, which has a history of success with Volvo and Polestar, could provide confidence in the execution of this new venture. The financial implications of this distribution agreement will be closely monitored, as they could signify a broader trend of traditional dealerships venturing into the commercial EV space and the potential for Vicinity Motor Corp. to capitalize on this shift.
The alignment of Vicinity Motor Corp.'s commercial EV offerings with the Quebec government's Écocamionnage Program reflects a growing synergy between corporate initiatives and environmental policies. By incentivizing the purchase of electric commercial vehicles, the program aims to reduce greenhouse gas emissions in the transportation sector, which is a significant contributor to overall emissions. The partnership between Vicinity and Groupe Taddeo Auto not only supports the province's sustainability goals but also serves as a model for how businesses can work within government frameworks to achieve mutual environmental objectives.
The long-term implications of this program and similar initiatives could lead to a substantial shift in the transportation industry's carbon footprint. As more businesses adopt EVs for their fleets, there could be a cascading effect on supply chains, urban planning and energy infrastructure. The role of such incentives in driving the transition to a low-carbon economy cannot be understated and the success of the VMC Laval dealership could serve as a benchmark for the effectiveness of these policies.
Established Montreal-Area Passenger EV Dealership Moves into Commercial EV Market with Launch of VMC Laval
VANCOUVER, BC / ACCESSWIRE / January 23, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced that it has signed a new distribution agreement with Groupe Taddeo Auto to open VMC Laval, a new VMC specific dealership, by the owners of successful Volvo and Polestar dealerships in the Montreal territory.
Groupe Taddeo Auto was founded in 2002, growing from a simple family dealership to a major automotive group in Quebec, bringing together Volvo Laval, Volvo West Island, Polestar Montreal and a certified center. These four strategic locations are supported by a team of over 120 dedicated, growth-oriented employees.
With the opening of VMC Laval, Groupe Taddeo Auto will expand into fleet solutions for businesses and government with its inventory of VMC 1200 vehicles. Per the terms of the agreement, VMC Laval will distribute Vicinity VMC 1200 trucks throughout Montreal-Laval.
"Groupe Taddeo Auto plays a major role in the automotive industry in Quebec with a reputation for excellence and extensive EV expertise," said William Trainer, Founder and CEO of Vicinity Motor Corp. "Leveraging their passenger EV expertise with Volvo and Polestar, including fleet and business options, the new VMC Laval brand will add another strong partner to our growing portfolio of VMC 1200 dealerships. The VMC 1200 provides an ideal entry into the commercial EV space for dealerships, especially in Quebec, with the VMC 1200's recent inclusion in the Quebec Ministry of Transport and Sustainable Mobility's Écocamionnage Program. This program incentivizes the electrification of the commercial freight and heavy vehicle transportation industry by offering VMC 1200 buyers in Quebec an CAD
Anthony Taddeo, Founder of VMC Laval, added: "With strong sales of our EV passenger vehicles, we have seen in tandem a growing interest and demand for commercial EV trucks. As we looked to expand our EV lineup into commercial vehicles, Vicinity and its VMC 1200 class 3 all-electric truck stood out as an ideal choice for us. Beyond environmental and operational benefits, commercial EVs are rapidly reaching parity with internal combustion vehicles due to lower operational expenses, reduced maintenance, and significant government incentives like the Écocamionnage Program in Quebec. We look forward to the launch of our newest EV dealership, VMC Laval, and expanding our offering to commercial and fleet customers with the VMC 1200."
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) ("VMC") 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, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com
Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, related government-imposed restrictions on operations, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE: Vicinity Motor Corp.
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FAQ
What is the new distribution agreement announced by Vicinity Motor Corp. (VEV)?
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What is the Écocamionnage Program and how does it benefit VMC 1200 buyers in Quebec?
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