NFYEF - ADL unveils vision to sustain air quality improvements in UK towns and cities with 10000 clean buses

Canada NewsWire

LARBERT, Scotland, May 19, 2020

LARBERT, Scotland, May 19, 2020 /CNW/ - (TSX: NFI) Alexander Dennis Limited ("ADL"), a subsidiary of NFI Group Inc. ("NFI"), one of the world's largest independent global bus manufacturers, today announced a vision for the transformation of buses in the United Kingdom which could see at least 10,000 new low, ultra-low and zero emission buses in service within the next 4 years, the first of them hitting the road before the end of the year to maintain the benefits of lower pollution and better air quality towns and cities have experienced during the coronavirus lockdown.

• ADL proposes to maintain the benefits of lower pollution and better air quality when the UK's economy restarts
• At least 10,000 new, UK-built low, ultra low and zero emission buses could be in service within the next 4 years
• This deliverable proposal would have immediate benefits before the end of the year, cutting out emissions with electric operation on UK high streets, near schools and at hospitals
• These new clean buses could remove ageing diesel vehicles or boost capacity to enable social distancing
• ADL urges the UK Government and devolved administrations to speed up the transition to cleaner transport
• UK bus manufacturing keeps investment in the country and opens up exporting opportunities for Global Britain

The coronavirus lockdown has shown the liveability of towns and cities free from the chokehold of traffic congestion dominated by cars, as traffic volumes have diminished while people stayed at home to protect the NHS and save lives. With over 60% of UK road transport emissions in normal times caused by cars – compared with under 3% caused by buses – the result has been a stark improvement in air quality.

"There is strong public support for locking in these benefits through and beyond the post-coronavirus recovery to keep a healthier environment and continue the fight against climate change," says Colin Robertson, Chief Executive of Britain's largest bus builder, ADL.

"Along with active travel and other modes of public transport, buses are a crucial part of the solution. As a society, we need to act immediately and deliver benefits as quickly as possible to minimise the deterioration of air quality when the economy restarts."

At least 10,000 new UK-built low, ultra low and zero emission buses could be in service within the next four years. Combining different available technologies results in a highly deliverable proposal with immediate benefits.

Brand new low and ultra low emission buses could be ready before the end of the year to take older buses with ageing diesel engines off the streets or to offer additional capacity to facilitate social distancing. These ultra low emission buses could bring self-charged zero emission electric range capability – completely cutting out emissions on high streets, near schools or at hospitals – without losing time to infrastructure planning and installation.

Work could begin in parallel to plan and develop the infrastructure for zero emission buses, with battery electric buses available in volume supported by proven expertise in rolling out fleets. Hydrogen buses will play a role for routes requiring additional range and they will be ready when a fuelling infrastructure and a sustainable supply of green hydrogen have been put in place.

10,000 buses over four years would represent a return to the healthy levels of investment in a modern bus fleet which had been seen until the impact of previous governments' cuts were felt in the last years. UK bus manufacturers including ADL have the production capacity to meet this demand. Further investment to speed up the decarbonisation of transport could create additional highly skilled jobs in a world-class industry.

Colin Robertson says: "The UK Government's earlier £5bn pledge for buses and cycling recognises the need to invest in active and sustainable models of travel. This is now more imperative than ever as the economy emerges from the impact of coronavirus.

"We urge the UK Government and devolved administrations to speed up the transition to cleaner transport by accelerating the funding earmarked for zero emission buses and assuring health benefits from an immediate positive impact on air quality can be delivered by low and ultra low emission buses that could be in service before the end of this year."

Clean, spacious and well-equipped buses would also serve to reassure passengers of a safe journey – with social distancing as required – to places of work, high streets, shopping centres and leisure activities, helping the economic recovery of the nation.

As the UK's largest bus manufacturer, ADL is ready to rapidly deliver the required low, ultra low and zero emission buses. Employing 2,500 staff in the UK and supporting a further 12,500 jobs in the broader supply chain, ADL's UK production capacity of over 1,500 buses per year could be increased to provide the benefits of cleaner buses on a wide scale.

ADL offers the widest range of technology solutions on the market including low emission buses, ultra low emission electric range hybrids and zero emission battery as well as hydrogen fuel cell buses.

Colin Robertson explains: "We are supportive of all cutting edge clean bus technologies and recognise that one size does not fit all, which is why we have developed a choice of solutions which meet cities and operators' individual requirements and priorities – whether that is air quality targets, carbon reduction, interior layouts, acquisition costs, total cost of ownership, or a blend of all of these.

"We have invested tens of millions in innovation – our solutions are road-ready to be delivered at scale with the reassurance that they will perform as required."

Bus manufacturing represents more than 10% of the UK's motor industry employment total and bus manufacturers meet more than three quarters of domestic demand, keeping investment in the country. UK bus manufacturing is globally recognised for its innovation in low and zero emission bus technologies, energy-efficient design and passenger amenities. A healthy home market is crucial to a vibrant UK bus manufacturing industry as it enables it to export its world-class products and grasp significant opportunities for Global Britain.

"ADL has a proud history of working with the industry, not just for the industry but for the nation," says ADL Chief Executive Colin Robertson.

"We have shared these proposals with senior ministers in the UK and Scottish Governments to show how our industry can lead post-coronavirus economic recovery to deliver health benefits for the entire country. The realisation of our proposals can begin immediately, and they could be scaled up in size and ambition to match councils' and governments' decarbonisation targets. We are ready to deliver for the nation."

Notes to editors

• 10,000 new clean buses over 4 years would approach normal levels of investment. UK operators historically registered between 2,500 and 3,000 new buses per year, although in the last two years this fell to under 2,000 buses due to the impact of previous governments' cuts to support and socially necessary services.
• Over three quarters of UK demand for buses is met by domestic manufacturers, including ADL, keeping investment in the country.
• UK bus services require specific vehicle types such as double deckers which are uncommon in other countries and therefore not generally offered by international suppliers. A healthy and vibrant domestic bus manufacturing industry is crucial to prevent a dependence on unsuitable, imported products.
• The UK bus manufacturing industry has been at the forefront of bringing efficient and cost-effective low, ultra low and zero emission bus technologies to market, often ahead of their development and deployment in other countries.

About NFI

With 9,000 team members operating from more than 50 facilities across ten countries, NFI is a leading independent global bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer® (heavy-duty transit buses), Alexander Dennis Limited (single and double-deck buses), Plaxton (motor coaches), MCI® (motor coaches), ARBOC® (low-floor cutaway and medium-duty buses), and NFI Parts™. NFI buses and motor coaches incorporate the widest range of drive systems available including: clean diesel, natural gas, diesel-electric hybrid, and zero-emission electric (trolley, battery, and fuel cell). In total, NFI now supports over 105,000 buses and coaches currently in service around the world. NFI common shares are traded on the Toronto Stock Exchange under the symbol NFI. News and information are available at www.nfigroup.com, www.newflyer.com, www.mcicoach.com, www.arbocsv.com, www.alexander-dennis.com, and www.nfi.parts.

About Alexander Dennis

Alexander Dennis Limited ("ADL") is a global leader in the design and manufacture of double deck buses and is also the UK's largest bus and coach manufacturer. ADL offers single and double deck vehicles under the brands of Alexander Dennis and Plaxton, and has over 31,000 vehicles in service in the UK, Europe, Hong Kong, Singapore, New Zealand, Mexico, Canada and the United States. Further information is available at www.alexander-dennis.com.

Forward Looking Statement
Certain statements in this press release are "forward looking statements", which reflect the expectations of management regarding the Company's future growth, liquidity, results of operations, performance and business prospects and opportunities.  The words "believes", "anticipates", "plans", "expects", "intends", "projects", "forecasts", "estimates", "may", "will" and similar expressions are intended to identify forward looking statements. These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved.

Actual results may differ materially and adversely from management expectations as projected in such forward-looking statements for a variety of reasons, including, but not limited to, the magnitude and length of the global, national and regional economic and social disruption being caused as a result of the global COVID-19 pandemic; the impact of national, regional and local governmental laws, regulations and "shelter in place" or similar orders relating to the COVID-19 pandemic which materially adversely impact the Company's ability to continue operations; additional partial or complete closures of one, more or all of the Company's facilities and work locations (including to protect the health and safety of the Company's employees) or the extension of such closures as a result of the COVID-19 pandemic; continuing and worsening supply delays and shortages of parts and components and disruption to labour supply as a result of the COVID-19 pandemic; the COVID-19 pandemic will likely adversely affect operations of customers as a result of shutdowns and/or disruptions to their operations and the services provided to their customers and end users; the Company's ability to obtain access to additional capital if required; the Company's financial performance and condition, obligations, cash flow and liquidity and its ability to maintain compliance with the covenants under its credit facilities, which may also negatively impact the ability of the Company to fund dividends; and the other risks and uncertainties detailed in the disclosure documents filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. These above risks relating to the impact of the COVID-19 pandemic may materially adversely impact the Company's business, operating performance and financial condition, including as a result of reduction to the Company's cashflow, liquidity and its ability to maintain compliance with covenants under its credit facilities.  There can be no assurance that the Company will be able to maintain sufficient liquidity for an extended period, obtain future covenant relief under its credit facilities or access to additional capital or access to government financial support or as to when production operations will commence.

The Company cautions that due to the dynamic, fluid and highly unpredictable nature of the COVID-19 pandemic and its impact on global and local economies, businesses and individuals, it is impossible to predict the severity of the impact on the Company's business, operating performance and financial condition and any material adverse effects could very well be rapid, unexpected and may continue for an extended and unknown period of time.  The extent of such impact will depend on future developments, which are unpredictable, including new information which may emerge concerning the spread and severity of COVID-19 and actions taken by governments and health organizations around the world to address its impact, among others.

Due to the potential impact of these and other factors, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

SOURCE Alexander Dennis Limited

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