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GreenPower (GP) to Build Electric School Buses in West Virginia

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GreenPower Motor Company Inc. (GP - Free Report) recently signed an agreement with the state of West Virginia for leasing/purchasing a manufacturing facility in South Charleston to manufacture zero-emission, all-electric school buses. Per the agreement, the state will purchase a minimum of $15 million of GreenPower vehicles built at the facility.

Per the terms of the lease, no upfront cash payment is required and monthly lease payments will commence nine months after production begins. All lease payments will be applied in full for the purchase of the property. According to the deal, GreenPower will acquire properties located in South Charleston spanning 9.5 acres and an 80,000 square foot building. The facility will be deployed by the company for manufacturing carbon-neutral, all-electric school buses by the second half of 2022.

The facility will create new employment opportunities in the state when manufacturing begins later this year, for which the state will provide up to $3.5 million in employment incentive payments to GreenPower. Ownership of the properties will be transferred to GreenPower once total lease and incentive payments come to $6.7 million.

West Virginia’s government is thrilled to have GreenPower transform its economy by bringing in new state-of-the-art technologies, which will open up a world of opportunities for them. This partnership will also accelerate the state’s transition to green modes of transportation, which is the need of the hour. Moreover, the state considers GreenPower a terrific addition to its diversified economy.

Per the Environmental Protection Agency, exposure to NOx exhaust can cause serious health problems like asthma, bronchitis and other respiratory issues. The primary source of NOx is motor vehicles, including school buses. The majority of school buses expel tons of toxins into the air releasing hazardous pollutants that affect children’s health. The first purpose-built, all electric school buses that are produced in South Charleston will directly benefit the health and well-being of the families in West Virginia.

Thus, the $15-million investment by West Virginia is crucial for the state to enhance the long-term health, development and academic performance of school-aged children, while reducing carbon emissions. The project will prove to be an environmental solution and a health solution for residents of West Virginia.

GreenPower is equally ecstatic about being part of an economy where electrified transportation is the new solution and is overwhelmed to contribute to the development of clean energy transportation in West Virginia through this project.

Canada-based GreenPower, which went public in August 2020, designs and manufactures a range of buses, shuttles and other commercial vehicles in the United States. The company is a leading manufacturer and distributor of zero-emission, electric-powered, medium and heavy-duty vehicles. The firm has been expanding its geographic footprint to boost sales and business infrastructure.

Though the company’s product portfolio includes EV Star Buses, Synapse School Buses and AV Star Buses, the company is primarily focused on developing its EV Star line of buses as it can produce the same in the shortest time compared to any of its other products.
This Zacks Rank #5 (Strong Sell) company reported a loss of 12 cents per share for the second quarter of fiscal 2022, wider than the loss of 9 cents recorded in the prior-year quarter. Nonetheless, the company is optimistic about the progress made on its manufacturing changes that have expedited its production to delivery processes resulting in accelerated deliveries. Also, the firm recently inked an OEM agreement with autonomous vehicle technology provider, Perrone Robotics, to integrate the latter’s LIDAR, radar, wiring harnesses and optical sensors to accelerate autonomous shuttle offerings for transit properties.

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