GreenPower Motor Company, Inc. (OTCQX:GPVRF) Q4 2018 Earnings Conference Call July 18, 2018 4:30 PM ET
Colby Richardson - Business Development Manager
Brendan Riley - President
Fraser Atkinson - Executive Chairman/Director
Well it sounds like we have everyone here. Now Brendan and Fraser if you guys are ready should we begin?
Fantastic. Well welcome and good afternoon everyone my name is called the Colby Richardson I'm the Business Development Manager for Greenpower and I will be conference moderator today. At this time I would like to welcome everyone to the Greenpower Motor Company, Inc. Q4 2018 shareholders call where we will be discussing our most recent President's letter, our fourth quarter results and the year-end MD&A. After speakers have concluded we will hold a question and answer period so those interested in asking a question of our management team please pay attention to these important instructions. In order to best facilities to Q&A I would request that any caller wishing to ask a question to please e-mail me at firstname.lastname@example.org. I'll say again that's email@example.com which can also be found on our websites with an appropriate subject line such as question or shareholder call.
In the body of the email you need only have your name and your company or an indication that you are a private investor if you prefer. Questions will be answered in the order that they are received. If a caller wishes to ask another question after we have already moved to another caller's questions I would request that they send an email so that callers are not competing over the line. At this time all lines have now been placed on mute to prevent any background noise. Thank you.
Moving on to our forward-looking statements I would like to note that this conference call will include forward-looking statements relating to among other things Greenpower's business operations and the environment in which it operates which are based on Greenpower's operations, estimates, forecasts and projections. Forward looking statements are not based on historical facts but rather on current expectations projections, future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward looking statements. These statements generally can be identified by the use of forward looking words such as may, should, will, could, intend, estimate, plan, anticipate, expect, believe or continue or the negative thereof or similar variations. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Greenpower's control such as the regulations and requirements in different jurisdictions.
A number of important factors including those set forth in other public filings filed on the company's profile on www.cedar.com could cause actual outcomes and results to differ materially from those expressed in these forward looking statements. Consequently listeners should not place any undue reliance on such forward looking statements. In addition these forward looking statements relates to the date on which they are made, Greenpower disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information future events or otherwise.
On this call we may refer to non-IFRS financial matters such as adjusted EBITDA which reflects not net income or loss before interest, taxes, share based payments depreciation and amortization. For full description you can refer to our MD&A file on CEDAR.
With that I will now turn over to Brendan Riley, Greenpower's President and Fraser Atkinson, Chairman of the Board who are located at our sales office in California to begin the conference call. Gentlemen you have the floor.
Thank you, Colby. A very hearty welcome to fellow shareholders of Greenpower Motor. Thank you for joining us today. My name is Brendan Riley and I'm the President of Greenpower Motor and here in [indiscernible] about 90 degrees and we are definitely enjoying some of the summer weather in California. Recently I issued a President's letter to all of you discussing some of the topics that are very upfront and personal to Greenpower right now and really some of the important items that discuss our progress, our sales pipelines, our new relationship that is of our production facility and really -- excellent.
So I'd really like to start with recapping my President's letter. So this will be a short recap and then I'll be heading the phone over to Fraser to talk about our financials, but right now I wanted to tell you that the future is very exciting for Greenpower Motor. We have recently started a relationship or exclusive representation by Creative Bus Sales otherwise known as CBS, the largest bus dealer in the U.S. and they will represent the entire line to bring our products from coast to coast. Now that means that Greenpower now has over 200 people working to take orders and service vehicles and a sales staff of just under a 100 people so Creative Bus Sales which has 19 locations, brick and mortar locations that can store parts, store vehicle, provide service for and active hubs to disseminate information are now at our disposal and will shortly here be making orders for Greenpower Bus. The relationships for dealers is very important and critical and we really feel that we found an excellent partner. There is not a manufacturer of cutaways, shuttle buses or school buses that is not utilizing the dealership model and again Greenpower is an alternative fuel technology company. We only make battery electric buses but still we make buses we need to deliver them in the customer's hands, they need to be serviced and maintained and they need the support that typically comes from dealerships. Our customers are used to interfacing with their providers and buses.
So we're very excited and pleased it's a three year agreement and along with that agreement comes with an order immediate order for 15 buses that's 10 of the school buses and five of our EV Stars, our newest product, our micro bus. Now to add to that good news California state which Fraser and I are located right now has a group called California Energy Commission, a public entity that has put forward $78.7 million into replacing old diesel school buses with zero emission school bus. Now there are only a few manufacturers of these buses Greenpower happens to be one of them. We really expect and hope to get a portion, decent sized portion of that and all of these orders are going to be placed not in a typical one to two year selling cycle but before the end of September for these vehicles. So its exciting and we'll be able to gauge our performance on this very quickly. $60,000 is available on top of the money that they're paying for the bus they are giving people free buses, $60,000 is available just for the vehicle infrastructure alone that's charger and charger installation. Now the biggest issue that most people have is when they go to buy a battery electric bus is not really buying the chargers, chargers are not the most expensive components, it's getting the power to the charger and this grant took that into consideration, it's the first of its type that I know of that really addresses that per unit cost and is very aggressive and [indiscernible] on a very realistic part of it. So it's a very, very important component of this compelling program.
CEC also provide work force training and development resources at no charge in the schools and every school, public school and Office of Education is eligible for this program. On our transit side of things Greenpower has now delivered two buses to Porterville which have been accepted and paid for and has delivered an invoice to three additional buses that are getting upgraded and incorporated into the fleet as we speak. So by the end of this month we expect to see five buses parked over Porterville transit that Greenpower supplied and this is very important in that of the 10 buses we got orders for we've already managed to deliver and invoice for five of them so we're about through half of our commitment to Porterville transit and we are performing on our end. The buses are delivered on time and they've already been approved for use in California by the CHP, already been certified, another important hurdle in bus delivery.
Speaking of Porterville, our production facility is moving the facility that we're building from scratch has been all the plans and permits have been approved by the City of Porterville and that facility is coming together. The problem is it's not coming together fast enough for us Greenpower and we've decided to find a temporary facility to begin production hardcore full production of these vehicles in Porterville, so Fraser has been working with several property owners and very shortly we should be able to announce that we have a facility under contract where we can start building buses from ground up either complete knockdown or semi-knockdown assembly of these vehicles as soon as September or October of this year. So that’s very exciting we are able then to deliver buses that will meet the Buy America requirements that transit properties require if they're using federal funds.
Now in Canada, we've delivered two of our EV 5 50 double deckers to CVS Tours and we have commitments for seven more of those units be delivered by 2020 to that customer. These 100 passenger buses will continue to take passengers from the cruise ship terminal in Victoria through the Butchart Gardens, and other tourist attraction the beautiful city of Victoria on Vancouver Island. We do expect even more presence on Vancouver Island as we bring new products to Canada. The Port of Oakland will be receiving their first EV Star, actually our first delivery next month and that's a very small, well small for us 25 foot long micro bus all battery electric for their shuttle that's going to be used on the campus and terminal of the Port of Oakland. We're also expecting two more buses to be delivered in September we've already got the order and the contract for those to UCSF that’s the University of California San Francisco and that's for two shuttle buses to be used in downtown San Francisco again to shuttle San Francisco, UCSF students to and from their classes and various campuses.
Now in the article that was recently published by Forbes they were talking about very important data like price of batteries coming down the fact that automotive accessory manufacturers and automotive component manufacturers, tier one suppliers, tier two suppliers, tier three suppliers were expecting a great portion of their businesses to be at least 30% for electric vehicles again this is by 2030. Now that's important that they're expecting to have that level of sales but if we can add to that that battery prices are coming down between 15% to 20% year over year, battery performance and energy density is increasing by 15% to 20% year over year giving us a net effect of 25% to 35% battery improvement at the blended cost and energy density year-over-year. What that means for us in our industry and for Greenpower specifically is that battery electric buses will be the dominant technology. We expect the dominant technology sold in the U.S. by 2025, the buses will be able to go as far as their diesel counterparts and they will cost the same to buy as a diesel counterpart producing zero emissions and having a less cost of ownership right away and to the life of it.
Now I am extremely excited to recap some of this great news and I'm looking very looking very forward to hearing your questions and comments. If there is anything that you folks would like to know more about what I've discussed or even other issues that pertain to Greenpower Motor's I'm very interested in hearing about it. This is Brendan Riley and I'm passing the call over to Fraser Atkinson, Chairman of the Board for Greenpower Motor's. Thank you.
Thank, Brendan. Good afternoon everyone. I'm just down from Porterville where the last few days the temperature was well over 100 degrees so actually I'm enjoying lower temperatures in Los Angeles here today. I would like to thank our fellow shareholders, employees, customers and other stakeholders as literally no pun intended it's been a ride from Greenpower's inception eight years ago to where we posted our first quarterly results so we're profitable. My discussion today also includes those of our CFO, Mark Achtemichuk who is on the call and available for questions when we reach the Q&A.
First let's discuss the fourth quarter results and I should note that all the amounts are in U.S. dollars. For the fourth quarter Greenpower revenues of 3.435990 million, cost of sales of 2.2 million generating a gross profit of 1.168225 million or 34% of revenues. The revenue was derived from the sale of four buses, two EV, 350 40 foot low floor transit buses and 2 EV 550 double decker buses. These are Greenpower's two largest vehicles and as such have higher margins on our corporate average. Expenses amounted to little over 1.1 million and including noncash items over $400,000 which after a tax recovery and other items resulted in net income of $655,059 or $0.01 a share. The adjusted EBITDA for the fourth quarter amounted to $466,707 or 13.6% of revenues.
Next we would like to discuss the production during the year ended March 31, 2018. Greenpower completed the Synapse 72 school bus which started demonstration tours in the summer of 2017. The company completed and sold its second EV 550 all electric double decker bus for operations in Victoria Canada as Brendan referred to earlier. Greenpower started production on 10 of our EV 350 40 foot low floor transit buses for Porterville with an additional bus as a spare and for demonstration purposes. Two of these were completed and delivered in the fourth quarter of the 2018 fiscal year and production had started on the remaining EV 350s and were in various stages of production at March 31, 2018. Greenpower received orders and started production on six Synapse 72 school buses as of March 31, 2018 the rolling chassis had been substantially completed for the first three and we had started production on the remaining three. Greenpower also completed the design and started production on 10 of its EV Star mini buses.
So to recap at the year end of March 31, 2018 the company was at various stages of productions with eight of our EV 350 vehicles, six Synapse 72 school buses and 10 EV Star mini buses, a total of 24 buses in various stages of production. Other highlights of the year include as a result of the demonstrations of the Synapse 72 all electric school bus we obtained orders with a number of school districts including L.A. Unified, the largest school district in the State of California. We opened a sales office in Los Angeles in January 2018 and hired a seasoned industry veteran to head sales and marketing. We established a facility for a final assembly in Porterville, company as Brendan referenced submitted plans and obtained the grading permit for the civil work which needs to be completed prior to the construction of 144,000 square foot manufacturing facility. At the year end the company had over a $1 million of cash in the bank in positive working capital of 2.2 million. Subsequent to the year-end as noted by Brendan Greenpower entered into a three year exclusive factory representative agreement with creative process bus sales, the U.S's largest bus dealer for sales parts and service, companies secured orders for the EV Stars from the Port of Oakland and UC San Francisco the second largest employer in the City of San Francisco and finally the company arranged a line of credit for $2 million from Bank of Montreal, one of Canada's largest chartered banks. As noted earlier in the call the company had 24 buses in various stages of production at March 31, 2018. The source of capital are funds for the production of these buses that was either from private placements of the company's done up to last fall or non-dilutive loans from directors of the company or more recently from the recepts for the delivery of buses pursuant to sales orders. In many cases the company has had to prepay for components or parts which is required significant funding to cover working capital requirements.
What the line of credit with Bank of Montreal provides Greenpower is the credibility of a senior lender allows our management team to engage a suppliers for more traditional payment terms which will help realign our working capital requirements. Obtaining the facility also allows BMO Bank of Montreal to learn about our business first hand such that as our order book grows we can seek to increases this facility in order to fund our growth and by way of example a traditional diesel bus manufacturer recently increased their facility with the senior lender that had started at under a $1 million about three years ago to where they've increased it to $20 million. So that gives you a scope in terms of what our view or vision is in terms of this facility.
And at this time I'd like to turn it back to Brendan Riley to talk a little bit more about the product and future with our product groups.
Thank you, Fraser. Thank you for that exciting news. Hello again this is Brendan Riley, President of Greenpower Motor's. I wanted to do a little bit of a deep dive into several products and the future of these several products for Greenpower. Now we can talk about our past performance but I'd really like to tell you folks now really about what we have on the very near and close horizon. One of the products that you've heard about is the Synapse school bus line of Greenpower. The Synapse is one of the most compelling new products in the EV space, it starts as all Greenpower products with a clean sheet design and it's the first entirely newly designed school bus that's hit the market for the past 30 years. We do not use -- Greenpower does not use existing truck technology in other words old fashioned truck chassis to build their buses and then stuff batteries in the whatever space they can claim. We start out with battery and the traction motor and build the bus around so we actually have a structure those around me higher perimeter of the bus provides an envelope for safe and proper layout of the batteries and drive trains. It also gives us a very compelling story for the passengers experience, it's quiet, comfortable and above all it's safe.
So Greenpower has three of the synapse products available. We've got a accessible version which is shorter 32 feet that can hold up to eight wheelchair position plus an additional 20 students on board or any variation of the above and that's for special needs students that may have some challenges when it comes to moving around walking and alike. The other bus we have that you know about is a Synapse 72 that's 36.5 foot long, 72 passenger vehicle and then we have the newest version and then that's the Synapse 90, that vehicle is 40 feet long and seats 90 passengers. This is very important that we have this 90 passenger vehicle because that's the highest seating density, the highest passenger count student count school bus on the market today and it will help in places where they have high population density of students, bring them to schools not only in a zero emission fashion but the greatest number of them in the zero emission fashion.
Now in California alone it's just a California market I just told you that we had $78.7 million by the CEC available for funding of these buses, that’s actually half of it. That money has to be, will be, is coupled with California Air Resources Board or CARBs money hold [indiscernible] which will add an additional $220,000 per school bus at a minimum and there we have over $120 million available for this program. So together we have a blend of over $200 million available for school buses and those orders aren't just happening again two years into the future when people get around to buying these buses, these orders are going to be placed -- have to be placed by the end of September. So it's very exciting, it's very near term business that we've got for one of the most compelling product on the market. And again these school buses will not only be sold in California they will be sold all over the country, in Canada and beyond but if we just focus on California alone and it's just amazing, amazing feet.
The other product I'd like to really do a deep dive into is our EV Star. I know we've talked about this product, it's a very compelling micro bus the first purpose built micro bus battery electric micro bus sold in the U.S. again this vehicle is on the HVIP, which means that CARB is paying down at minimum $90,000 per unit which is over half of the vehicle price itself but what this does is this allows this vehicle to go into places where regular internal combustion diesel cutaways, CNG cutaways have been sold and that product hasn't even been touched by any of us in the EV space. So now Greenpower has a product that can actually go into the transit property, shuttle bus properties, airports, student transportation you name it we get into it with this product, it really opens a lot of doors and makes a very compelling argument for replacing internal combustion vehicles when Greenpower, battery electric technology. Now two of these customers, one UCSF, the other Port of Oakland are going to be running these buses from very high profile service but what we haven't touched on yet is a new concept in public transit that this vehicle is ideally suited for and that's called micro trams and what micro transit is and say it's a concept that's in response to the shared mobility, uber-less of the world where they're actually able to do a better job responding to the first mile and last mile most transit operation and transit properties have been losing ridership over the years and it's gotten to the point where they're looking for a solution to get back some of these customers and they believe have gone over to these shared mobility platforms for their transportation needs.
We will get into more details later hopefully there will be a question on the EV Star I don't want to take too much of your time this valuable time in discussing these things and maybe if you got some pointed questions you can refer them but I'd like to tell you that we have some amazing products that are really ready to be deployed and are being deployed in the market place. These products will be the leaders in their sector and I believe that Greenpower by this time next year will have a combination of orders in deployment of over 200 buses.
I'm going to pass this line back to Fraser. Sorry, I'm going back to Colby. Thank you again.
Thank you very much gentlemen. This concludes the formal presentation and at this time we will begin the question and answer period. As stated before in order to best facilitate the Q&A I would request that any caller wishing to ask a question to please email me at firstname.lastname@example.org. I'll say again that email@example.com with the subject line question or shareholder call. In the body of the email you need only have your name and your company or an indication that you're a private investor if you prefer. Questions will be answered in the order that they are received. If a caller wishes to ask another question after their's has been answered and after we have moved to another caller's question I would request that they send second email so that callers are not competing over the line. Now before beginning to speak please press star, 69 to unmute your call.
Our first questions come from Jacob Dawson and Alex [indiscernible] from Hybrid Financial. Gentlemen if you could please press star 69 before beginning your question and go ahead.
Q - Unidentified Analyst
I was just looking into the sector, I was wondering what are some of the advantages that Greenpower's product line has over some competitors, New Flyer, Grande West and why should you know various purchasers be looking at a GPV products over the competitors.
This is Brendan Reilly and thank you so much for asking that question that's a very important question. The competitive advantages of Greenpower products are first and foremost that we are the only company out there that has a complete zero emission offering all of our vehicles are zero emission and all of our vehicles are built from ground up zero emissions. So we are a battery electric bus company that only makes battery electric buses and no other types of buses. Our vehicles are equipped with a very critical and important safety components and systems including the ability control, ABS and anti-skid restraint or ASR, these programs, software and hardware modifications to vehicles allow our vehicles to handle and perform more safely than your conventional or typical bus. Our buses are the only buses that incorporate completely integrated telematics, hello? Telematics, monocoque chassis for large buses all the way down to our school bus and air ride suspense front and back if you look at all of our competitors in the high floor space they all have [indiscernible] spring, coil springs in the front, possibly air ride as options in the back. We provide full air ride suspensions to all our vehicles down to the Synapse shuttle which gives safe, smooth handling, great performance and also help keep safe and sound all of the electronics that are on board these vehicle. So our vehicles are designed for comfort and they're designed for safety.
Our last point that really gives us a leg up is our durability, Greenpower uses best of breed components that have a huge track record, enormous track record, our Siemens electric drive have over a billion miles on them, our TM4 traction movers those have millions of miles on and all of the other components that we use are best of breed components that have the warranty backed up by major OEMs are available for spares in a timely fashion and you have the security of knowing that they've been vetted and proven in the industry.
Actually one thing to add Jacob is that very high level, we are the only EV bus manufacturer heavy duty EV bus manufacturer in North America that truly does have the full suite of products you know where it's from a 25 or 7.5 meter mini bus upto a 45 foot double decker bus and everything in between covering school buses, shuttle buses and little for transit buses.
Right. I think diversity is important. Another quick question is I've on the line, you guys mentioned the micro transit market earlier and maybe EV Star fits in that, I was wondering if you could maybe expand on just some of applications like what does micro transit mean I think you said it mentioned ride sharing, does it fit in with like a model like Uber somehow or something like that?
Yes so what micro transit is again, thanks again that’s a great question. This Brendan Riley responding. Micro transit is the transit industry response to use the overwhelming popularity that's actually eroding transit ridership and transit space that Uber and Lyft and some of the shared mobility, shared use really disruptive technologies have brought to the world and what micro transit does is it provides a system that’s integrated with all forms of high technology GPS location. We've got cloud access, we've got connectivity to customers, all these things that are required that the Lyft's and the Uber's already do in this world those are already incorporated in the Greenpower as a vehicle and these technologies and others allow us to seamlessly integrate into this concept a micro transit where they don't have to add this stuff on to the vehicle and figure out how to engineer the end of the vehicle, Greenpower is bringing the vehicle to market with this technology already engineered into it. So our vehicles can be used again in micro transit which is -- transit has always been another issue you hear is kind of again I say this in kind of a jokingly way transit was of a service that brought you from where you don't live to where you don’t work it also is a way of referring to the first mile last mile of transits that especially older people and people that don't have the mobility they have trouble with and Ube really was an answer to that or Lyft was an answer to that.
Now transit properties have regular transit and then they've got this paratransit, dial a ride type service, those services, the dial a ride service is just being surplanted completely by these Lyfts and these Ubers so the transit properties are trying to find something in between a paratransit and a Uber service that they themselves can operate, that requires a smaller vehicle that has maybe up to 19 passengers that can navigate small streets, load people fairly quickly and disload them - embark them and disembark them quickly and really have a vehicle that doesn't often require the airbrake endorsement, the other licenses that are required to operate these expensive large buses to operate more like vans and our EV Star although it's a mini bus it has a lot of these features and is ideal again not only doing this but doing this with a zero emission footprint. Quiet again in the city streets and creating no form of any pollution. So again the transit properties are trying micro transit, I personally believe it's a very important piece of the puzzle but public transit in the U.S. and Canada and it's all the buzz in the transit world and once we see some of these deployments and how successful they are I think that it's not only a great market for Greenpower's product but it's just a great solution for the transit riding public.
Okay, so if I can read between the lines, you're saying there is some natural synergies built into products like the EV Star and where this micro transit market is headed?
I couldn't have said more elegantly myself.
Thank you, Jacob. Just for those joining us this is the Q&A portion of the Greenpower 2018 Q4 conference call. I will just repeat the instructions. I would request that any caller wishing to ask a question to please email me at firstname.lastname@example.org with a subject line question or shareholder. In the body of the email you need only have your name and your company or an indication that you are a private investor if you prefer.
Moving forward we have received a question from a private investor who asks what has allowed Greenpower to expand its product lines to so many numerous vehicles?
Well this is Brendan Riley responding. The main thing is the talent that Greenpower has. We've got amazing resources internally and we've got engineers, designers and visionaries that are able to really not only design these vehicles but help execute them also. Using our clean sheet design and our approach to building these vehicles it's really allowed the expansion of our product line very quickly similar to what Tesla has been able to do with their clean sheet design and their expansion of their product line starting out with one model now having four or five model depending on how you look at it. Same kind of process the Greenpower has employed. Again clean sheet of paper, batteries, motor and then you build a vehicle around that.
Thank you, Brendan. We have another question from in a private investor who would prefer to remain anonymous. This person asks with regards to VW funds when do we expect to see those begin to roll out and how has Greenpower prepared itself to best take advantage of those available funds?
Well this is Fraser Atkinson and we've recently issued press release that just captured the initial plans and rolls out of 10 of the 50 states just as a quick summary for the benefit of those that aren't fully familiar with this. There's 2.9 billion that has been allocated to various states as well as the Native American Indian tribes and within that allocation each state has to decide which mitigation actions are going to achieve choose and how they're going to allocate those funds within those mitigation actions. There's a few states that has decided that they're going to go 100% of an allocation to category two which is effectively the purchase of all electric transit school or shuttle buses, it also has a few other categories but that is the only one that has a 100% funding availability with the VW money and whereas others have a mix of mitigation actions but what we have found with the first 10 states that we summarized is that there is by and large a significant skewing to the benefit of all electric buses whether it's transit or school in particular with a heavy focus on school busses. In talking to some of these states what they have indicated is that it has one of the broadest reaches in terms of educating the public about electrification of fleets and in doing so within a shuttle or a private operator there isn't perhaps nearly the same outreach as having an electrification strategy around school buses. So we see and the $400 million that we summarized in our press release related to just what the announcements that have come out over the last 90 days and we certainly see the other states coming on board over this summer and into the early fall where they are starting the initial receipt of proposals and the deployment and utilization of those funds as early as this fall and winter. So huge impetus to the industry in terms of the availability of funds for the electrification of buses.
Thank you, Fraser. We have another question coming from John Stokes, Haywood Securities [ph]. John if you could please plus star 69 before beginning your question then you have the floor.
I was just wondering what is the current cost of per kilowatt hour in your battery packs and how that compares with last year and how you kind of see that trending down going forward?
This is Brendan Riley calling. John right now we're not sharing our cost per kilowatt hour for the battery packs, its not totally proprietary but bordering on proprietary. We do talk about our final cost of the vehicles and then we also referred to as I refer to it as the decrease in overall cost year-over-year or large lot procurement of our large lot procurement and we have noticed a 15% to 20% drop in price so if I was paying $1 per kilowatt hour a year ago this year I'm paying between $0.85 and $0.80 per kilowatt hour for that same pack. I wish I could be more specific but again this is one of the things that a lot of us bus manufacturers keep to ourselves mostly because it is kind of a competitive not secret information but one of the things that allows us to competition, but yes thanks for asking the question and that is a very good question.
All right we have another question again from someone who would prefer -- a private investor who would prefer to remain anonymous. Fraser, this is someone you've spoken to with regard to the Bloomberg projections for EV bus sales, new bus sales. Could you please speak to that and speak to when you think that's EV bus sales will overtake alternative or diesel bus sales in North America?
Thanks, Colby. Yes the Bloomberg which issued a report a little over a month ago a very detailed report had a number of interesting revelations at a very high level what they proposed was that they felt that by the year 2030 that the electrification of the bus industry would be the highest level of adoption in North America put it in context their prediction in 2030 is that for new sales that year they were predicting 84% of them would be new electric buses, electric powered buses and as a comparison they were predicting that the automotive industry would still be less than 30% so lot of discussion in the media and other forms of communications out there where people talk a lot about the various automotive manufacturers that are moving towards electrification and the presumption that we'll be moving very quickly to electrification within the automotive industry but it's interesting to see a company like Bloomberg that does very detailed research to make that prediction.
Now from that prediction is that if you take where we are right now which is if -- in any sort of drive or curve is very much towards zero in terms of the electrification of the heavy duty buses in the United States, in Canada is that if you say okay where is it going to cross the line and that prediction has the number of new electric buses equating to the number of all other types of boxes some around 2025, 2026. Furthermore if you look at around 60,000 new heavy duty buses being sold in North America every year and that would be school buses, transit buses, over the road motor coaches, is double-deckers and everything else if the number today is 60,000 is that Bloomberg prediction looking at the curve has us at 10,000 electric buses per year between 2021, 2022 and that’s not that far away and I know the discussion I've had with a few people on this report is that for many of the organizations that are now starting to get engaged or looking electrification they realize that there's this significant uptake or uptick that's going to occur and they're looking at moving you know moving forward with their plans as far as either testing or implementing electrification strategy within their property sooner than later.
Thank you, Fraser.
There is no other question?
Yes that’s right. There are no further questions currently available. So I will pass it over to you and Brendan for closing remarks.
Well given that we're coming up to the hour my quick comment is that we're very excited at Greenpower in terms of you know all the hard work that the team has done to bring our company to where we are, has positioned us in a number of different areas either with products that truly don't have any competition to where to other sectors where we have a great product to compete with just a handful of other competitors. So very excited about the next year to 18 months for our company and we appreciate all the support that we've received from shareholders, customers and our employees.
This is Brendan. I'd like to thank you again for being investors in Greenpower and putting your faith and trust in us as shepherds of your very hard earned money. We are doing our very best. We'll continue to do our very best and make sure you're rewarded for your faith. Thank you again.
Thank you both and thank you everyone for attending this call. A transcript of the call will be available on our website later. Thank you everyone.