- Phoenix Motorcars secures Proterra Transit, ensuring the continued presence of Proterra electric buses on the roads.
- The agreement comes just months after Proterra filed for Chapter 11 bankruptcy protection.
- The $10 million offer follows Volvo Group’s acquisition of Proterra’s battery business.
Phoenix Motorcars announces the acquisition of Proterra Transit, keeping Proterra electric buses in circulation
Phoenix Motorcars has revealed the acquisition of Proterra Transit, ensuring the continued operation of Proterra electric buses. This 10-million-dollar offer follows Volvo Group’s acquisition of Proterra’s battery business, which involved a 210-million-dollar deal just under two weeks ago. These agreements materialise within a few months of the US emobility manufacturer filing for Chapter 11 bankruptcy protection.
Volvo will take control of the development centre for battery modules and packs in California. Notably, they’ll also take control of Proterra’s battery assembly plant in South Carolina, inaugurated in January 2023. Volvo Group is yet to integrate Proterra’s assets into their structure fully.
In its agreement with Proterra, Phoenix Motors will acquire battery lease assets valued at $6.5 million. Additionally, the remaining $3.5 million is designated for Phoenix to assume control of Proterra Transit. Anticipating that this acquisition will broaden its product offerings, Phoenix foresees the inclusion of heavy-duty transit buses to complement its existing lineup of medium-duty shuttle and school buses.
Denton Peng, CEO of Phoenix Motorcars, said:
“Proterra has built a strong market share in the full-size, zero-emission transit bus market, just as Phoenix has done in the medium-duty market. We are excited about the attractive business synergy and growth opportunities as we add a full suite of transit bus offerings to our fleet customers across North America.“
In August, Proterra initiated a Chapter 11 bankruptcy protection filing in the United States, marking a self-administered restructuring process.
Phoenix and Proterra must obtain approval from the US Bankruptcy Court to finalise the sale. The court hearing will take place on November 28. Upon receiving approval, the parties aim to accelerate the conclusion of the transaction.