SANTA FE, N.M., – GreenPower Motor Company Inc. (“GreenPower”) and the New Mexico Economic Development Department have announced the launching of the New Mexico All-Electric, Purpose-Built, Zero-Emission School Bus Pilot Project at two Las Vegas public schools and a Santa Fe charter school.

GreenPower (NASDAQ: GP) (TSXV: GPV), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space, and school bus sector, today announced the launch of the New Mexico All-Electric, Purpose-Built, Zero-Emission School Bus Pilot Project with deployments of the Type A Nano BEAST at the Las Vegas City Schools and West Las Vegas Schools and the Type A Nano BEAST Access at the Monte del Sol Charter School in Santa Fe.

“GreenPower is pleased to begin this two-year pilot project with the State of New Mexico with three Nano BEASTs in schools that are excited to evaluate all-electric transportation options for school kids,” said Brendan Riley, president of GreenPower. “By focusing the first year of the project on the Type A Nano BEAST, the state and school districts will have a unique opportunity to see how the all-electric vehicle performs in differing conditions with different sets of charging infrastructure.”

GreenPower entered into an MOU with the State of New Mexico to assess the viability and reliability of fast charging in various environments and circumstances. The school districts’ participation in the pilot is voluntary, and the state has agreed to support the program with $5 million in capital outlay appropriation to purchase the vehicles and cover the cost of the pilot project.

The 2-year pilot program supports New Mexico’s dedication to the Energy Transition Act, designed to transition the state toward the goal of 100% zero-carbon electricity supply by 2045, while also providing support for affected communities and ensuring cost protections for residents.

According to the MOU, after two successful pilot phases, EDD will support an additional $15 million for more school buses. The state also pledges to work with GreenPower to expand the all-electric, zero-emission commercial fleet at the Department of Transportation and the General Services Department.

The two-year pilot project will deploy three GreenPower Type A all-electric, purpose-built, zero-emission school buses in the first school year (2025-26), and two GreenPower Type D all-electric, purpose-built, zero-emission BEAST school buses and one Mega BEAST school bus in the second school year (2026-27). The school buses will rotate around the state for five pilot rounds each school year, with each round lasting six weeks. GreenPower will install charging systems through its Pilot Project partnership with Highland Electric Fleets, provide training for drivers, mechanics, and the community’s first responders, and track telematics through a partnership with Geotab. GreenPower will provide a detailed report to the state at the end of each school year.

“Among some of the data that will be collected is range, charging infrastructure needs, handling and maneuverability, operating and maintenance savings, student and parent acceptance, and more,” said GreenPower CEO Fraser Atkinson. “The data will help with the idea of change as schools look to create a new beginning of a clean, healthy school day.”

“As we transition towards a more flexible, diversified, and environmentally sustainable economy, we are dedicated to achieving carbon-free power,” stated Rob Black, cabinet secretary of EDD. “This is also an opportunity to introduce young students to alternative energy sources. The steps we take today will not only promote a greener future but also inspire a new generation of environmental stewards.”

“Las Vegas City Schools is proud to be one of three New Mexico schools participating in this first round of the GreenPower pilot project, and we look forward to seeing how an all-electric school bus can benefit our school system and students,” said Melissa Sandoval, Superintendent at Las Vegas City Schools.

“We have been looking at grant opportunities to begin migrating from diesel to all-electric school buses for the past couple of years,” said Christopher Gutierrez, superintendent at West Las Vegas Schools. “Participating in this pilot project will allow us to determine the best ways to integrate zero-emission buses into our fleet.”

“Our charter school is always searching for new, innovative ways to serve our students and communities,” said Dr. Zoe Nelson, head learner for Monte del Sol Charter School. “We are honored to have been chosen to participate in the state’s all-electric school bus pilot program. Our school believes in safe, sustainable, and sensible alternatives, and I cannot wait to see the multitude of benefits this investment will yield for the deserving children of the Land of Enchantment.”

About the Nano BEAST
The Nano BEAST has a standard 118 kWh battery pack and a range of up to 140 miles. Configured for up to 24 passengers, it features a seamlessly integrated aluminum body made from extruded aluminum manufactured by Constellium. The Nano BEAST is built on the EV Star Cab & Chassis which is the same platform as the EV Star Passenger Van that passed the FTA Altoona Bus Testing program with one of the highest scores ever achieved. The dual port charging is standard, with Level 2 rates up to 19.2 kW and DC Fast Charging rates up to 60 kW. Nano BEAST Access has seating for up to 20 ambulatory passengers and up to 3+ Q’STRAINT wheelchair securements, complemented with a BraunAbility rear curbside lift.

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. GreenPower was founded in Vancouver, Canada, with primary operational facilities in southern California. Listed on the Toronto exchange since November 2015, GreenPower completed its U.S. IPO and NASDAQ listing in August 2020. For further information, go to www.greenpowermotor.com.

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Mexico is weighing a steep new tariff that could reshape its car market for years to come, proposing a 50 percent duty on vehicles imported from nations without free trade agreements. Importantly, that list includes China, meaning the move could weigh heavily on fast-growing player BYD and even affect Tesla at a time when electric car sales in Mexico are beginning to gain momentum.

Read: Mexico Has Had Enough With Chinese Car Imports

The tariff proposal, made public last week, wouldn’t stop at EVs. It would also hit combustion-powered cars from countries with no trade deals, a group that includes South Korea and China, both global automotive heavyweights, as well as India, Indonesia, and Russia, which play a smaller or more regionally focused role in the industry. Interestingly, American brands would be spared.

Automakers on Edge

Analysts suggest the new levy could put the brakes on BYD’s rapid rise in Mexico. Eugenio Grandio, president of the Electric Mobility Association in the country, put it plainly: “It’s definitely a game-changer. Fifty percent is a very aggressive number.”

Reuters reports that the tariff plan still requires approval from Mexico’s Congress before it can be enacted. General Motors, Ford, and Stellantis would sidestep the new duties thanks to their production plants in Mexico, which let them bring in a share of vehicles without tariffs. On the other hand, while BYD and Tesla have both discussed adding factories to their Mexican portfolios, so far those projects have failed to progress.

Tesla Has Solutions

Tesla’s pipeline to Mexico has so far depended entirely on its Shanghai facility, which has produced every Model 3 and Model Y sold there since mid-2023, Salvador Rosas of the Tesla Owners Club in Mexico, told Reuters. Still, analysts suggest the company has a buffer, with local stockpiles that could give it room to shift supply from other plants, including those in the United States.

BYD’s Mexican Plans Shunted

Back in 2023, BYD said it would build a new car factory in Mexico. However, these plans were ditched earlier this year after pressure from Mexican authorities who were worried approving such a plant could be detrimental to trade relations with the United States and would potentially upset President Donald Trump.

Despite the setback, BYD has enjoyed a meteoric rise in Mexico in recent years. Last year, it sold approximately 40,000 vehicles in the country, accounting for nearly half of all EV and plug-in hybrid sales nationwide. That momentum has continued into this year, with sales on track to double once again.

Volkswagen has been busy showing off shiny new EVs like the upcoming ID. Cross in concept form and confirming an all-electric Polo, but behind the scenes the story isn’t quite so polished. VW will reportedly delay the launch of at least two upcoming models, citing production snags, softening demand, and mounting cost pressures.

First Victims: ID. Roc and ID. Golf

The first model expected to be hit by the delay is believed to be the ID. Roc. Although VW hasn’t officially confirmed it yet, the SUV is set to debut as the first vehicle on the new SSP platform and was originally due in fall 2029. Unnamed inside sources told Germany’s Handelsblatt that its launch has slipped to summer 2030. The ID. Golf is also reportedly being pushed back to around 2030, despite earlier plans for a release later this decade.

Read: Next VW Golf EV Will Ride On Rivian’s Electric Architecture

Money, or a lack thereof, is thought to be one of the major reasons behind the schedule change. VW is currently preparing an important roundtable meeting of its Supervisory Board to determine the capacity utilization of all of its global factories and to financially plan for the next five years. The company cut costs by €15 billion ($17.5 billion) last year and is planning even more cuts this year.

According to Handelsblatt, VW is eager to pour billions into new platforms and plant retooling, but it needs to tread carefully with the funds available. One plan had been to move production of the combustion-powered Golf from Wolfsburg, Germany, to a facility in Mexico by 2027, clearing space for SSP-based EVs like the ID. Roc. That shift, however, may also face delays.

Overinvested In EV Dreams

As a result, Wolfsburg may not see EV production until 2028 at the earliest. Similarly, Volkswagen could push back plans to shift ID.3 and Cupra Born production from Zwickau to Wolfsburg, originally targeted for 2027.

According to a company insider, electric car sales haven’t been as strong as VW had hoped. “While unit sales are increasing, our original investments were geared toward significantly higher volumes. We are completely overinvested,” the insider told the German publication.

Electric school bus manufacturer GreenPower Motor Company signed a multimillion-dollar contract with New Mexico for a pilot program at the same time it is facing obstacles with a similar West Virginia project and perilous corporate finances.

The company announced Aug. 4 that the $5 million-plus New Mexico contract resulted from an award made by the state under a request for proposals published in May for participation in a two-year, all-electric school bus pilot project. GreenPower stated the project would deploy three Type A Nano BEAST school buses during the 2025-2026 school year, and three Type D BEAST and Mega BEAST school buses in the coming months.

Those vehicles, the first three scheduled for deployment the week of Sept. 15, are expected to “rotate around the state in five pilot rounds each school year with each round lasting six weeks.” The company, which is partnering with Highland Electric Fleets to install and implement the necessary charging infrastructure, will also provide training for the school bus drivers, mechanics and the community’s first responders to “help ensure a seamless testing period.”

GreenPower President Brendan Riley said via a press release that the New Mexico project is “leveraging the successful pilot that GreenPower conducted in West Virginia but also has a concentration on evaluating charging options and infrastructure.”

At the same time, GreenPower has faced several headwinds this year in West Virginia with a similar contract that also began with a pilot. The electric school bus manufacturer took ownership of its South Charleston plant in August 2022 and eight months later entered into an agreement with the state to sell $15 million worth of BEAST and Nano BEAST models. The state also agreed to pay GreenPower a $3 million deposit.

Separately, GreenPower and the state signed an agreement for an additional $18.6 million in ESBs awarded by the EPA Clean School Bus Program in 2024 to seven county school districts.

But West Virginia Metro News reported last month GreenPower had only delivered about a dozen of the promised 41 ESBs as of this past spring.

The state claims breach of contract. GreenPower CEO Fraser Atkinson said the reality is far more nuanced. During a phone call Thursday, Atkinson told School Transportation News several factors have hindered the company’s ability to deliver the ESBs.

“We have either delivered or we had vehicles ready to go, to be delivered to every single one of those counties,” he said.

Among the issues, Atkinson added, some school districts have not signed required documents with the EPA and GreenPower’s West Virginia dealer, Matheny, to accept the ESBs. In at least one other case, Atkinson said a county did not have available the older diesel school bus EPA required to be scrapped, so the new ESB couldn’t be delivered.

“Even if the dealer came forward and said, well, don’t worry about this other part, let’s just deliver the vehicle, you still have to worry about it,” he added. “We [would not be] compliant with the program.”

He also noted some counties still don’t have electric infrastructure installed. While GreenPower could still deliver those school buses, Atkinson noted that ESBs can’t sit in a parking lot for months on end without being operated like internal combustion vehicles can.
“There’s a much higher level of ongoing maintenance that you need to have on these vehicles if you’re not using them almost every day,” he added.

A West Virginia official contacted by STN declined comment because the issue is ongoing, and a request for comment from Gov. Patrick Morrisey’s office had not been answered at this report.

Hiccoughs With State Inspections and Maintenance

Meanwhile, Atkinson said some counties are having success with GreenPower. But not all say they are. Tony Harris, transportation director for the Monongalia County Schools serving the Morgantown and surrounding area, said the state’s second-largest district received a GreenPower Beast and a Nano Beast, which met his expectations at first.

However, he added, “We have been working with the West Virginia Department of Education, Department of Transportation and GreenPower in regard to a few issues where the buses do not meet the state specifications for a school bus.”

Harris clarified that the unmet state specifications center on failed state inspections for items such as the parking brake release, the color of loading light switches, non-working window defroster fans, and controls for exterior mirrors not working.

Atkinson said GreenPower has worked closely with the state on specifications but commented that not all state inspectors may have the same perspective on what constitutes an out-of-service item, especially as this could be their first experience with an electric school bus.

Still, he noted that any issues keeping school buses sidelined are “a concern.”

“Is there an educational process? I think you’re absolutely right. In hindsight, if all the parties had been in the same room 2 1/2 three years ago and worked through [the issues] …,” he said. “But the flip side is, until you’re actually in the field looking at these things in real time, you probably couldn’t have guessed what all the different issues or potential considerations that needed to be discussed are at the outset. It is a bit of trial and error.”

Harris also expressed disappointment about school bus-related services, which is “an area that has not come close to meeting expectations set for all vendors.”

“We have not been able to obtain stock inventory to have on-hand when something breaks on one of the buses,” he continued. “We have requested training several times for our mechanics on how to service the buses for our preventative maintenance schedules. The mechanics have received some training when representatives have been onsite to address issues when they have been onsite, but no formal training has been provided.”

He said training has so far consisted of what to do in the case of a battery issue or fire.

“A lot of the preventive maintenance items are typical in all school buses, but there are some unique things when it comes to EV school buses,” he said. “Also, we have no access to software or manuals to diagnose problems when they arise. We have requested these products at different times. We have these products for other bus types.”

Atkinson commented that GreenPower is very concerned about any high-voltage work necessary on its school buses.

“Our approach is, until they’re up to speed with the basics, we like to or prefer to take responsibility for anything that could be related to the high-voltage battery system,” adding dealer Matheny has limited experience working with GreenPower’s technology.

Harris said that the district has had to adjust its operations “considerably” after the delivery of the buses.

“We have two of the Nano BEAST buses in our fleet that have run no more than a month on routes since we took delivery of them. These buses have less than 3,000 miles on each of them,” he said, adding the school buses serve special needs and McKinney-Vento student populations. “We have four of the BEAST buses in our fleet, and one has been off the road since June due to defects found during an annual state inspection of the bus. The other three BEAST buses have been taken off the road [last] week due to issues that do not allow us to continue to use them at this time. By taking these buses off the road, it has impacted our bus routes due to the capacity of the buses and not having the same size buses in our spare bus fleet. The one BEAST bus has just over 4,000 miles on it, and this is because it was part of the state pilot program. The other three have less than 3,000 miles on them.”

Meanwhile, John Droppelman, director of support services with the Mineral County Schools, said in an email, “We have not received our two GreenPower buses. We have not received any information from GreenPower in quite some time. I do not expect to ever receive the promised buses. Information about the production and distribution of the GreenPower buses is scarce.”

Atkinson commented, “It’s the early days and there are things that have to get sorted out.” But he continued that, across the electric school bus market, he sees some school districts that have yet to buy-in to electrification, which complicates matters.

“If you have a good partner, they’ll work with you, and they’ll get the vehicles to a place where they’re just not encountering many issues or problems,” he said.

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At the same time, GreenPower has been unable to fully staff its South Charleston manufacturing facility. The agreement with West Virginia listed the goal of 900 jobs filled by the end of last year.

“We don’t get paid a cent until a bus is delivered,” Atkinson told STN.

In turn, he added, the company cannot promise its plant workers the necessary weekly hours.

The West Virginia MetroNews Network reported May 26 that confirmed more than a dozen employees had been notified by email three days earlier that they had been laid off. The company did not confirm the exact number of employees who had been laid off, but the network quoted GreenPower’s Riley saying, “The imposition of new tariffs has significantly increased our operational costs and disrupted our ability to build and deliver buses in a timely manner.”

He added that restructuring and other cost-cutting measures were not sufficient to prevent the layoffs.

MetroNews reported last month that GreenPower indicated it employed fewer than 100 workers even before the spring layoffs.

Resulting Financial Uncertainty

Amid all of this, BDO Canada LLP released its independent audit of GreenPower as of March 31, which stated that “the company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern.”

A statement by GreenPower issued in July of its financial status at the time noted that revenues for the fiscal year that ended March 31 fell 49.5 percent from the previous year — down from $39,271,839 to $19,847,279 — and experienced a total comprehensive loss of $18,511,895.

GreenPower contends that tariffs are “causing much harm to the entire school bus manufacturing sector. This business instability and the significantly increased costs impacts all school bus manufacturers whether they are producing electric, diesel, propane, or gas school buses. The implications are staggering. If a school bus manufacturer were able to pass these costs on to a school district, it would amount to a tax on the government as the cost would be paid by either local, state or federal government funding.

“But a school bus original equipment manufacturer (OEM) cannot pass on the increased cost since there are state contracts in place for the purchase of school buses,” the company continued. “The new tariffs leave no pathway for a school bus OEM to build vehicles in the U.S., and it completely halts GreenPower’s efforts to on-shore and friend-shore the supply chain, especially non-Chinese battery cells and components.”

An interim Q1 2026 earnings statement released Aug. 15 for the period ending June 30 showed gross revenue fell by 48 percent from the same period last year to $1.549 million, with gross profit at $361,682 after deducting the cost of sales, which actually represents a 63 percent increase from June 2025.

But the statement notes Greenpower anticipates it will not be in compliance with the minimum debt service coverage ratio at the end of the current fiscal year because it has not generated positive EBITDA in the previous four quarters. The outstanding balance on the term loan facility was $3.59 million as of June 30.

The interim statement echoed the warning of the auditor this spring.

“The company’s ability to achieve its business objectives is subject to material uncertainty, which casts substantial doubt upon the company’s ability to continue as a going concern,” it says.

Ryan Gray contributed to this report.

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SANTA FE, N.M., – GreenPower Motor Company Inc. (Nasdaq: GP) (TSXV: GPV) (“GreenPower”), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced it has signed a contract with the state of New Mexico to implement an all-electric school bus pilot project. The contract is the result of an award made by the state under an RFP published in May.

The two-year pilot project will deploy three GreenPower Type A all-electric, purpose-built, zero-emission Nano BEAST Access school buses in the first school year (2025-26), and three GreenPower Type D all-electric, purpose-built, zero-emission BEAST and Mega BEAST school buses in the second school year (2026-27). The shool buses will rotate around the state in five pilot rounds each school year with each round lasting six weeks. GreenPower will install charging systems, provide training for the drivers, mechanics and the community’s first responder and help ensure a seamless testing period.

The contract between GreenPower and the state of New Mexico provides more than $5 million for the purchase of vehicles, cost of charging infrastructure and overall management of the pilot. GreenPower will support the implementation of the project from a location to be established in New Mexico. Based on voluntary requests to participate, school districts are currently being selected by the state to participate in the pilot. The manufacturing of the three Nano BEAST Access school buses is substantially complete and they will be ready for deployment for Round 1 the week of September 15.

“The New Mexico pilot project provides an opportunity to expand the reach of GreenPower’s zero-emission school bus product and gives parents, kids and school districts in the state the opportunity to evaluate the transition to all-electric, purpose-built school buses,” said GreenPower President Brendan Riley. “The project is leveraging the successful pilot that GreenPower conducted in West Virginia, but also has a concentration on evaluating charging options and infrastructure.”

The pilot will include both Level 3 DC fast chargers and Level 2 slow chargers for the Nano BEAST Access school buses, and will evaluate Level 3 DC fast charging in the second year with the BEAST school buses. A part of the second year will be a vehicle-to-grid (V2G) evaluation using the GreenPower Mega BEAST. The Mega BEAST is a 40-foot Type D all-electric, purpose-built, zero-emission school bus that delivers a class-leading range of up to 300 miles on a single charge because of its massive 387 kWh battery pack. The range of the Mega BEAST is greater than any electric school bus in it’s class. It has more uphill climbing power and the most compelling and cost effective V2G capability for a more stable electric grid and community sustainability in areas where it is deployed.

“We are particularly interested in evaluating charging as a part of the pilot project,” said Mark Roper, Director of the Economic Development Division within the New Mexico Economic Development Department. “Range, charging rates and grid resiliency are critical components of switching to all-electric, zero-emission vehicles.”

GreenPower is partnering with Highland Electric Fleets to install and implement the charging infrastructure necessary for the pilot. In a letter to the state, Highland’s Chief Commercial Officer Brian Buccella shared the company’s commitment to supporting GreenPower in assessing charging infrastructure and creating a reliable EV pilot project in New Mexico. “Our experience delivering and operating electric school buses at scale positions us well to assist in the successful execution of this pilot program. This initiative presents an opportunity to reduce transportation-related emissions in New Mexico communities, protect student health and modernize school transportation,” Buccella said.

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. GreenPower was founded in Vancouver, Canada with primary operational facilities in southern California. Listed on the Toronto exchange since November 2015, GreenPower completed its U.S. IPO and NASDAQ listing in August 2020. For further information go to www.greenpowermotor.com

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