VivoPower Shares Rise 10% After Manufacturing Deal With Toyota
June 23 2021 - 10:47AM
Dow Jones News
By Chris Wack
VivoPower International Plc shares were up 10% to $8 after the
company said it entered into an exclusive manufacturing
collaboration with Toyota.
The company said Toyota Australia intends to integrate
VivoPower's conversion kits to electrify its iconic Land Cruiser
vehicles during the build process, turning chassis originally
destined to be diesels into emission-friendly electric vehicles
with VivoPower batteries and electric motors.
In an update note issued after the news broke, international
equity research house Edison declared the five-year exclusive deal
"a major milestone" and "a strong endorsement," supporting revenue
and dialing down risk as VivoPower prepares to hyperscale.
"It is a real step change for VivoPower to move from re-kitting
existing vehicles to being an integrated part of the manufacturing
process," said Edison lead analyst David Larkham.
The deal follows two years of collaboration and field trials in
the harsh environment of the Australian mining sector. While the
letter of intent isn't the final contract, it is binding and the
end agreement is expected to lock out VivoPower competitors from
working with Toyota Australia to electrify Land Cruisers.
Toyota sells about 400,000 Land Cruisers a year worldwide, with
more than 25,000 sold in Australia in 2020 and more than 10 million
in total sales since its launch in 1951.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
June 23, 2021 10:37 ET (14:37 GMT)
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