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Grande West Receives City of Saskatoon Contract

VANCOUVER, Oct. 17, 2016 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) - ("Grande West" or the "Company"), a Canadian manufacturer of heavy-duty mid-sized transit buses for sale in Canada and the United-States, is pleased to announce it has received a new contract and order from the City of Saskatoon totalling approximately $1.9 million CAD.

The initial order is for four (4) 30 foot Vicinity buses for 2017 delivery. However, the potential exists to extend this contract for an additional order of buses for delivery in 2018.

Additionally, the Company received new orders from Welland Transit for two (2) 30 foot Vicinity buses and the  City of Cobourg for one (1) 30 foot Vicinity, for a total of approximately $1.5 million CAD.

Current total firm orders for 2017 delivery are for one hundred sixty-six (166) buses valued at over $57 million CAD. Firm orders and options for 2018-2020 delivery are currently at ninety (90) buses.

William Trainer, President and CEO of Grande West stated, "It is an honour to be partnering with great municipalities across Canadato provide a solution for rightsizing their fleets in order to reduce costs and increase operating efficiencies. The Company is very excited about our strong momentum and positive response we are receiving from our customers."

 

http://www.newswire.ca/news-releases/grande-west-receives-city-of-saskatoon-contract-597293401.html

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Grande West receives City of Prince Albert order

VANCOUVER, Oct. 18, 2016 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) - ("Grande West" or the "Company"), a Canadian manufacturer of heavy-duty mid-sized transit buses for sale in Canada and the United-States, is pleased to announce it has received a new  order from the City of Prince Albert, Saskatchewan totalling approximately $2.95 million CAD.

The order is for seven (7) 35 foot Vicinity buses for 2017 delivery.

Current total firm orders for 2017 delivery are for one hundred seventy-three (173) buses valued at over $60 million CAD. Firm orders and options for 2018-2020 delivery are currently at ninety (90) buses.

Keri Sapsford, Transportation Manager stated, "The City of Prince Albert is pleased to announce the purchase of the new 35 foot Vicinity buses for its conventional fleet. The Grande West Vicinity provided the City with the opportunity to rightsize its fleet with a reliable bus to meet ridership demands in the most cost efficient, safe and environmentally friendly method. We are very much looking forward to the delivery of the new buses in 2017."

William Trainer, President and CEO of Grande West stated, "We are pleased that Prince Albert has committed a sizeable allocation of Vicinity buses to its fleet. We are also pleased to include Prince Albert as a new member of a rapidly growing number of Canadian Transit Agencies who are choosing Vicinity. Grande West is honoured to be a part of the Federal Transit plan that recognizes the needs of all communities across Canada." 

 

http://www.newswire.ca/news-releases/grande-west-receives-city-of-prince-albert-order-597431941.html

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I wonder if Grande West is considering introducing a 40' bus. They could become the Canadian Gillig, an alternative to NFI and Nova for smaller agencies with lower ridership and that don't run their buses as hard.

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5 hours ago, IRT_BMT_IND said:

I wonder if Grande West is considering introducing a 40' bus. They could become the Canadian Gillig, an alternative to NFI and Nova for smaller agencies with lower ridership and that don't run their buses as hard.

Maybe, though that market generally isn't large. For example, the ElDorado Axess.

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On 10/29/2015 at 0:04 PM, Cimon8000 said:

which transit systems will they be serving?

On 10/29/2015 at 9:21 PM, MAX BRT said:

My guess is they still have to find buyers for them, but I don't know. Alliance Bus Group looks like a middle man. Thats why it refers to a marketing campaign to come. I'm guessing very small TAs and/or Universities.

On 11/5/2015 at 9:53 AM, TheAverageJoe said:

If they placed an order of that size they would have at least half sold if not all of them.

A press release issued by Grande West states that (some) of the 50 buses that were ordered by Alliance Bus Group have been sold. 13 of them will be going to Hartsfield-Jackson Atlanta International Airport and will be operated by Standard Parking.

Grande West Secures First US Customer

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22 hours ago, Mr. Transit said:

Grande West has received its Buy America certification from the US government...the news is on Metro magazine's website...bad news for El Dorado National.

I wonder how though... doesn't that require 60 percent of it to be made in the States? 

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Wow no kidding i wasn't expecting that. I suppose they'll probably assemble some components such as the body shell in China, and then ship it to the US for final assembly (I heard that CRRC might do a similar thing with the subway cars for MBTA, CTA, and possibly soon LA). It would be interesting though if they do as well as they did in Canada (if more of it is made in the US, the costs could be higher, thus causing them to lose their cost-competitive advantage). 

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18 hours ago, Mr. Transit said:
  • Grande West is now offering a CNG option for it's buses...the story is on Metro magazine's website.

Yes Standard Parking ordered some for its ATL (Atlanta Airport) shuttle contract.

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BC Transit orders 39 more Vicinity buses bringing their total order to 97 buses for 2017/early 2018 delivery. 

 

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Grande West receives $13 million Vicinity order

VANCOUVER, Jan. 30, 2017 /CNW/ - Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) ("Grande West" or the "Company"), a Canadian bus manufacturer of heavy-duty mid-sized transit buses for sale in Canada and the United States, is pleased to announce it has received a new order from BC Transit totalling approximately $13 million CAD.

The order is for thirty-nine (39) Vicinity buses for delivery starting late 2017 through early 2018.

Grande West's total firm orders for 2017 and early 2018 delivery are for two hundred-fourteen (214) buses valued at over $74 million CAD. Firm orders and options for 2018-2020 delivery are currently at ninety (90) buses.

http://www.newswire.ca/news-releases/grande-west-receives-13-million-vicinity-order-612197633.html

As well, Edmonton ordered an additional 33 Vicinity buses, with the 16 already on order they will receive 49 Vicinity buses. 

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Grande West Receives $13 Million Order From City Of Edmonton

VANCOUVER, Feb. 2, 2017 /CNW/- Grande West Transportation Group Inc. (TSXV: BUS; OTC PINK: GWTNF) ("Grande West" or the "Company"), a Canadian bus manufacturer of heavy-duty mid-sized transit buses for sale in Canada and the United States, is pleased to announce it has received a new order from the City of Edmonton totalling approximately $13 million CAD.

The order is for thirty-three (33) Vicinity buses for delivery in Q1 2018.

Jean-Marc Landry, Vice President Business Development stated, "We are extremely pleased to be providing 33 additional buses to the City of Edmonton. This is the third order from the City since September 2016, bringing their total firm orders for Vicinity buses to 49 units."

Grande West's total firm orders for 2017 and early 2018 delivery are for two hundred forty seven (247) buses valued at over $87 million CAD.

http://www.newswire.ca/news-releases/grande-west-receives-13-million-order-from-city-of-edmonton-612540703.html

 

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I love how ETS has committed to 49 buses with none of the original 6 that were ordered having arrived yet.
As a taxpayer, I would hope that we actually get some revenue service under our belts before committing to that many buses. Like, say, a full Winter.
Never the less, looking forward to these.

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2 hours ago, TheAverageJoe said:

This is really gonna hurt New Flyer's MiDi line

I don't think that the MiDi really ever got much traction in Canada or the US. In Canada, they lost pretty much every tender against Vicinity.

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32 minutes ago, TransitFocus said:

I don't think that the MiDi really ever got much traction in Canada or the US. In Canada, they lost pretty much every tender against Vicinity.

They did sell in the US, but once the Vicinity start getting delivered in the US it will be nice to see how they do. If New Flyer does not get a large order for them once the current production run is done they may discontinue the line

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I think NFI can learn a lot from Grande West in a lot of different areas, they should pay close attention to Grande West's every move. Especially in terms of bidding and marketing considering the vast polarity of how many units are being sold(Vicinity vs Midi). If the Vicinity turns out to be a very reliable bus and a heavy staple on the market, NFI and Novabus may have more competition in the future if Yaxing decides to add more bus models to Grade West's lineup(especially in the 40ft market).

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One question that remains for this business: Are they making enough money? Because it is possible to sell a lot of buses but sell them too cheaply to make money on them. Especially if they run into warranty claims down the line.

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21 hours ago, MaT said:

I think NFI can learn a lot from Grande West in a lot of different areas, they should pay close attention to Grande West's every move. Especially in terms of bidding and marketing considering the vast polarity of how many units are being sold(Vicinity vs Midi). If the Vicinity turns out to be a very reliable bus and a heavy staple on the market, NFI and Novabus may have more competition in the future if Yaxing decides to add more bus models to Grade West's lineup(especially in the 40ft market).

Grande West is the driver and innovator of the different Vicinity models. Yaxing is no longer doing the manufacturing for GW, they are using a different subsidiary of Weichai. Weichai will have less and less to do with the manufacturing as GW opens its US facility this year to produce Buy America Vicinity buses.

17 hours ago, MAX BRT said:

One question that remains for this business: Are they making enough money? Because it is possible to sell a lot of buses but sell them too cheaply to make money on them. Especially if they run into warranty claims down the line.

With its lean manufacturing model, margins will be higher than the larger companies and will be profitable in Q1. There are also funds that are put into trust for warranty - but most of those are pass through claims. So transit claims with GW, then GW claims with the manufacturer of the component.

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On 11/9/2016 at 3:30 PM, Silly Tilley said:

A press release issued by Grande West states that (some) of the 50 buses that were ordered by Alliance Bus Group have been sold. 13 of them will be going to Hartsfield-Jackson Atlanta International Airport and will be operated by Standard Parking.

Grande West Secures First US Customer

Some are still for sale at different locations of Alliance Bus Group (at least 3 in stock) . I also see some former ATL Gilligs for sale from ABG

http://www.alliancebusgroup.com/vehicles/full-inventory?bustype=Transit

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7 hours ago, TransitFocus said:

Grande West is the driver and innovator of the different Vicinity models. Yaxing is no longer doing the manufacturing for GW, they are using a different subsidiary of Weichai. Weichai will have less and less to do with the manufacturing as GW opens its US facility this year to produce Buy America Vicinity buses.

With its lean manufacturing model, margins will be higher than the larger companies and will be profitable in Q1. There are also funds that are put into trust for warranty - but most of those are pass through claims. So transit claims with GW, then GW claims with the manufacturer of the component.

Hi TransitFocus, Are you affiliated with Grande West?

What are the details about the Grande West lean manufacturing model? And where will the US facility be?

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10 hours ago, Mr. Transit said:

Bottom line is that Gillig wins most 30ft US bus contracts...Grande West, ENC and NF Midi have minimal impact in the marketplace.

Looks like Grande West wants to change that. I wonder how they will do? Might be fun to compare performance data from Altoona. Seems like Grande West might have newer engineering. MiDi too.

Offering CNG and electric will be important.

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14 hours ago, MAX BRT said:

Hi TransitFocus, Are you affiliated with Grande West?

What are the details about the Grande West lean manufacturing model? And where will the US facility be?

Yes, I am a shareholder and do some contract work for GW.

GW outsources their labour so they can scale up or back depending on demand without having to commit to high fixed costs. The facility has not been announced yet, but i expect it to be in the midwest.

12 hours ago, Mr. Transit said:

Bottom line is that Gillig wins most 30ft US bus contracts...Grande West, ENC and NF Midi have minimal impact in the marketplace.

Grande West is just entering the US marketplace. If the success in Canada is any indication of how it will go in the US, the Vicinity will be very disruptive starting in 2017.

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