Manufacturer behind CapMetro's electric buses files for bankruptcy
One of the electric bus manufacturers CapMetro entered into a procurement agreement with two years ago has filed for bankruptcy.
AUSTIN (KXAN) -- One of the electric bus manufacturers CapMetro entered into a procurement agreement with two years ago has filed for bankruptcy.
California-based Proterra said in court filings it was navigating issues in being financially profitable while making custom-designed buses, The Washington Post reported in August.
“While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic head winds, that have impacted our ability to efficiently scale all of our opportunities simultaneously,” chief executive Gareth Joyce said in a news release announcing the bankruptcy.
In September 2021, the CapMetro board of directors approved the procurement of 197 electric buses manufactured by both Proterra and New Flyer. The purchase came as the transit authority was advancing efforts to become a zero-emissions public transit fleet.
A CapMetro spokesperson said Thursday there is "no indication" the bankruptcy would have an immediate impact on the transit authority's customers and service.
CapMetro has been in conversations with Proterra and they have committed to fulfilling the needs and requirements of our contract. We have no indication this situation has any immediate impact on our customers or service. While this news is unfortunate, we are steadfast in our transition to a zero-emission fleet, an important part of our plans to become fully carbon-neutral by 2040.
CapMetro spokesperson
The spokesperson added that the 2021 procurement involving both Proterra and New Flyer-manufactured buses is still being fulfilled.