1,300 E-JEEPNEY ORDER COMMITMENTS IN THE PHILIPPINES FOR TEMBO FRANCISCO MOTORS JOINT VENTURE
Tembo E-LV BV, a subsidiary of VivoPower International PLC, has received 1,300 order commitments from leading jeepney co-operatives in the Philippines, worth an estimated US$30 million, as part of its joint venture with Francisco Motor Corporation to electrify 200,000 existing jeepneys, estimated to be worth US$10bn+.
The announcement of 1,300 order commitments for e-jeepneys in the Philippines represents a significant step for VivoPower's subsidiary, Tembo and its joint venture with Francisco Motors. The estimated value of these orders, US$30 million, indicates a robust demand within the niche market of electric transportation in Southeast Asia. This region has been experiencing a surge in demand for environmentally friendly transportation solutions due to increasing awareness of climate change and supportive government policies.
From a market research perspective, the total addressable market (TAM) of electrifying 200,000 existing jeepneys, estimated to be worth over US$10 billion, showcases the vast potential for growth in this sector. The commitment from leading jeepney cooperatives suggests a strong market appetite and customer validation of the e-jeepney product. It's essential to monitor the adoption rate post-delivery to gauge the long-term sustainability of this venture.
Furthermore, the strategic partnership taps into the cultural significance of jeepneys in the Philippines, which could enhance customer loyalty and brand recognition. However, challenges such as infrastructure readiness, financing options for cooperatives and competition from other electric vehicle manufacturers should be closely examined to assess the venture's viability.
The financial implications of the joint venture's recent order commitments are multifaceted. For VivoPower and its subsidiary Tembo, the US$30 million in order commitments could translate to a substantial revenue stream, diversifying their income and potentially improving their financial position. This move could positively influence VivoPower's stock market performance, as investors often respond favorably to expansion into emerging markets and sectors with high growth potential.
However, it is imperative to consider the capital expenditures associated with scaling up production to meet the order commitments and the impact on the company's cash flow. Investors should also be aware of the risks involved, including execution risk and the ability of Francisco Motors and Tembo to fulfill the orders on time and within budget. The non-refundable deposits indicate a commitment from the jeepney cooperatives, reducing some financial risk for the joint venture.
Long-term benefits could include recurring revenue from maintenance and potential future orders if the transition to e-jeepneys gains traction. Nonetheless, it will be crucial to monitor the joint venture's operational efficiency and cost management to maintain profitability.
The transition to e-jeepneys aligns with global trends toward sustainable transportation, which can have far-reaching environmental and social impacts. The electrification of a traditional mode of transport like the jeepney represents a significant reduction in carbon emissions and air pollution, contributing to cleaner air quality and public health benefits.
Moreover, the initiative by Tembo and Francisco Motors has the potential to revitalize the local economy by creating jobs and improving livelihoods, as highlighted by the Chairman of Francisco Motors. It is essential to evaluate the lifecycle environmental impact of these e-jeepneys, including battery production and end-of-life disposal, to ensure the sustainability claims hold up under scrutiny.
For stakeholders, including investors and local communities, the emphasis on an environmentally friendly and sustainable business model could enhance the corporate image and lead to stronger community relations. However, the long-term success of this venture will depend on the durability and performance of the e-jeepneys and the joint venture's commitment to continuous improvement in sustainability practices.
01/17/2024 - 08:45 AM
Orders pursuant to Tembo’s previously announced joint venture with Francisco Motors
Established in 1947, Francisco Motor Corporation is the original pioneering jeepney manufacturer
Total addressable market to electrify 200,000 existing jeepneys estimated to be worth US$10b n+
LONDON, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Tembo E-LV BV (“Tembo”), a subsidiary of the NASDAQ listed B Corp, VivoPower International PLC (Nasdaq: VVPR, “VivoPower”), announced today that, pursuant to its definitive joint venture agreement with Francisco Motor Corporation (“Francisco Motors”), it has been advised by Francisco Motors of a total of 1,300 order commitments received from several leading jeepney co-operatives in the Philippines, including Laguna, First Isabela, Progressive and Cazanova.
Elmer Francisco, Chairman of Francisco Motors, said: “We are excited to have procured 1,300 order commitments worth an estimated US$30 million from leading jeepney co-operatives that have paid or committed to paying non refundable deposits to secure their slots for the assembly of e-jeepneys that we are building with the support of our partner, Tembo. Our shared purpose of wanting to revive the Philippines jeepney industry in an environmentally friendly and sustainable manner, improve livelihoods and create jobs for local Filipinos is a fundamental driver of what we see as an enduring long term relationship between our customers, E-Francisco Motors as well as Tembo.”
About VivoPower
VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for customised and ruggedised fleet applications, battery and microgrids, solar and critical power technology and services. The Company’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are the premier 100% electric solution for ruggedised and/or customised applications for fleet owners in the mining, agriculture, energy utilities, defence, police, government, humanitarian, and game safari industries. Tembo provides safe, high-performance off-road and on-road electric utility vehicles that meet exacting standards of safety, reliability, and quality. Its core purpose is to provide safe and reliable electrification solutions for utility vehicle fleet owners -globally, helping perpetuate useful life, reduce costs, maximise return on assets, meet ESG goals and activate the circular economy. Tembo is a subsidiary of the NASDAQ listed B Corporation, VivoPower International PLC.
About Francisco Motors
Founded in 1947, Francisco Motors is the pioneering creator and manufacturer of the jeepney in the Philippines. Headquartered in Manila in the Philippines, Francisco Motors is leading the transition from manufacturing traditional diesel-powered jeepneys to modern electric jeepneys to help the Philippines in transitioning to cleaner modes of public transportation.
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Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.
What is the total addressable market for electrifying existing jeepneys?
The total addressable market to electrify 200,000 existing jeepneys is estimated to be worth US$10bn+
How many order commitments has Tembo received?
Tembo has received a total of 1,300 order commitments from leading jeepney co-operatives in the Philippines, worth an estimated US$30 million.
Who is the subsidiary of VivoPower International PLC involved in the joint venture?
Tembo E-LV BV, a subsidiary of VivoPower International PLC, is involved in the joint venture.
What is the ticker symbol for VivoPower International PLC?
The ticker symbol for VivoPower International PLC is VVPR.
What is the purpose of the joint venture with Francisco Motors?
The purpose of the joint venture is to revive the Philippines jeepney industry in an environmentally friendly and sustainable manner, improve livelihoods, and create jobs for local Filipinos.
How much is the estimated worth of the 1,300 order commitments received?
The estimated worth of the 1,300 order commitments received is US$30 million.
Who is the Chairman of Francisco Motors?
Elmer Francisco is the Chairman of Francisco Motors.
