Vendor Options Mergers and Acquisitions (DSMA) has signed an settlement with Canada’s Neighborhood Motor Corp. (VMC) to create a nationwide seller community for a brand new line of Class 3 to Class 5 electrical industrial autos.

For Toronto-based DSMA, which focuses on discovering certified patrons in Canada and america for dealerships, the deal represents new territory. For VMC, it’s an opportunity to develop past its compact EV transit buses to promote autos in a rising market.

VMC is predicated in Aldergrove, B.C., 60 kilometres east of Vancouver, close to Abbotsford, and its manufacturing plant is in northern Washington.

“The bus enterprise is kind of lumpy,” mentioned John LaGourgue, VMC vice-president of promoting and gross sales. “After we began growing our EV bus, we began to consider how we might work with the present platform, with EV expertise, to offer a car in that midsized vary, Class 3 to five.”

The result’s the VMC 1200, a cab-over-chassis design that may be outfitted for a number of roles: supply, trades, or as a service car for utilities and municipalities.

When DSMA heard of VMC’s efforts to construct out a dealership community, “We put ahead a really compelling case,” mentioned CEO Farid Ahmad. “We’ve got the expertise and are very competent on the dealer-network-development facet to make DSMA VMC’s exterior dealer-development division.”

PLENTY OF INTEREST

The deal was signed in late February, Ahmad mentioned. 

“What shocked us was the broad spectrum of people that confirmed curiosity in partaking with us on a VMC dealership — private-equity companies, new-car sellers, trucking sellers, massive leasing companies, in addition to one or two non-public people with no retail expertise,” he mentioned.

When VMC started sourcing sellers for its new truck, LaGourgue mentioned, it began with British Columbia-based Pioneer Auto Group, which has 19 new-vehicle dealerships and the unique rights within the province to promote VMC autos. Pioneer introduced VMC and DSMA collectively, he mentioned. 

“The good factor about DSMA is that they know the entire market,” LaGourgue mentioned. “They’ll exit and determine a number of sellers and determine who’s the very best match.

“It’s like getting married. You need to have the precise group, as a result of unwinding isn’t that comfy, not enjoyable.”

SEEKING ‘GOOD-QUALITY DEALER’

The preliminary focus will probably be on sellers with a observe report in fleet and gross sales of Class 3 to Class 5 autos.

“Folks with a giant footprint available in the market, the place we will see them as a good-quality seller,” mentioned Chris Julian, DSMA’s supervisor of community growth.

DSMA and VMC hope to announce the primary dealership exterior of British Columbia within the third quarter, Julian mentioned, with 9 extra by the top of the yr. The preliminary goal space would be the Hamilton-Montreal hall, however the firm plans to develop nationwide in addition to into america.

The VMC 1200 has a spread of about 250 kilometres on a full cost, mentioned the corporate, a load capability of two,700 kilograms (6,000 kilos) and a prime velocity of 105 km/h. A full cost takes 5 to seven hours with a 240-volt Degree 2 station, and about three hours utilizing a 480-volt DC Degree 3 quick charger. The bottom value is simply lower than $150,000, not together with choices that vary from a dry field for deliveries to a dump field or flat deck.

VMC, which was based in 2008, plans to construct 2,000 VMC 1200s this yr, 8,000 in 2024 and 20,000 in 2025, LaGourgue mentioned.