U.S. Plant of Bankrupt Vicinity Motor Sold for $10.5 Million

UPDATE: The U.S. plant of Vicinity Motor Corp, based in Aldergrove, has officially been sold for $10.5 million as part of the company’s bankruptcy proceedings. This urgent move comes three years after the factory in Ferndale, Washington was opened, marking a significant moment in the company’s troubled history.

The December 19 order filed in the B.C. Supreme Court confirms the sale to C & Y Investment LLC, a California-based firm. The sale includes the 62,000 sq. ft. manufacturing facility along with 148 all-electric VMC 1200 trucks. This transaction is vital for Vicinity, which owes a staggering $69 million to various creditors, including $22.4 million to the Royal Bank of Canada (RBC) and $11.9 million to Export Development Canada (EDC).

Vicinity Motor’s Ferndale plant was touted as a “Buy America compliant” assembly site with the capacity to produce up to 850 low- and zero-emission buses and 6,250 Class 3 all-electric trucks. Real estate listings described the facility as “virtually new” and equipped with state-of-the-art technology, situated on a 4.4-acre site in the Pacific Fern Business Park. The location was particularly notable for its designation as a foreign trade zone, providing advantages for import/export activities.

The company’s financial struggles have led to significant legal battles, including a lawsuit from BC Transit, which is claiming $5 million in damages. The transit authority alleges that numerous Vicinity buses suffered water damage due to leaking, resulting in deteriorated plywood floors. Reports indicate that water intrusion stemmed from improperly applied window sealants and unsealed body openings.

Founded in 2008 as Grande West, Vicinity Motor was established to meet demands for smaller and mid-sized buses. However, the recent bankruptcy and asset sale signal a critical turning point for the manufacturer, which had high hopes for its U.S. operations just a few years ago.

As the situation develops, all eyes will be on how Vicinity Motor navigates this challenging landscape and the implications for its remaining operations and employees. The unfolding story has significant stakes, not just for the company but also for its creditors and the communities that rely on its products.

Stay tuned for more updates as this situation continues to evolve.