News

Azure Formalizes StarTrans Bus Deal

August 20, 2006 by Jeff Shepard

Azure Dynamics Corp. announced that it has signed a definitive supply agreement for the production of hybrid shuttle buses with the US group StarTrans. The announcement follows the signing of a Memorandum of Understanding in July.

Under terms of the agreement, Azure will provide StarTrans with hybrid cab-chassis on which StarTrans will assemble their shuttle bus body at their manufacturing facilities in Goshen, Indiana. When fully assembled, the Azure/StarTrans hybrid electric shuttle bus will be compliant with the United States' Buy-America program and after successful testing, would be eligible for the Federal Transit Administration's funding for bus purchases.

"Our supply agreement with StarTrans represents a significant milestone for Azure Dynamics as we focus on increasing our penetration in the North American shuttle bus market," said Chief Executive Campbell Deacon. "More than 10,000 shuttle buses are sold each year in North America and with federal and state funded subsidization programs available in the US for shuttle bus operators that adopt environmentally cleaner hybrid solutions, this sector represents a compelling opportunity for both Azure and StarTrans."

Azure said its hybrid systems offer significant fuel and maintenance savings for shuttle bus operators, while its hybrid chassis also significantly reduce vehicular emissions. Azure and StarTrans plan to jointly market the hybrid shuttle bus via the StarTrans dealer and distributor network.