BC Transit Files $5 Million Lawsuit Against Vicinity Motor Corporation

BC Transit has initiated legal action against the now-defunct Vicinity Motor Corporation, seeking $5 million in damages. The lawsuit, filed in the BC Supreme Court on December 23, 2025, claims that many of Vicinity’s buses have significant water leakage issues, resulting in extensive damage to 118 vehicles.

Vicinity Motor Corporation, which operated both in Aldergrove and in a larger facility in Washington State, produced conventional and electric buses along with electric trucks. BC Transit was one of Vicinity’s major clients, purchasing a total of 206 low-floor buses between 2013 and 2022.

The claim states that the contract between BC Transit and Vicinity mandated that all roof and body panel joints must be properly sealed to prevent water ingress. Furthermore, each completed bus was to undergo a rigorous water test simulating the severe rain conditions typical in Western British Columbia. This issue came to light in June 2022, when BC Transit identified water damage in one bus, which later extended to three more.

After contacting Vicinity in October 2022, both parties began an investigation. The lawsuit claims that the extent of the problem remained hidden due to the seasonal nature of water ingress during the winter months. By April 2024, inspections revealed that the significant scope of the damage was evident, with nearly half of the examined buses showing signs of extensive deterioration.

BC Transit alleges that Vicinity’s buses contained defective materials leading to saturated, rotten, or deteriorated plywood floors. The claim indicates that water was entering through improperly sealed body openings and windows, and that inadequate drainage contributed to the pooling of water within the buses. The transit authority had anticipated a lifespan of ten years for these vehicles, yet as of mid-2024, it was determined that 142 buses still had three to four years of expected operational life, while another 48 should have lasted an additional six to eight years.

The financial implications of these defects are significant. By August 2024, BC Transit had already repaired the floors of 16 Vicinity buses, with another 17 requiring immediate repairs. Additionally, 157 buses were identified for upgrades as part of a fleet campaign, which included resealing windows and enhancing drainage systems. Total projected repair costs exceed $3.4 million. BC Transit also claims that Vicinity’s failure to provide replacement parts adds another $1.8 million to the damages sought, raising the total to around $5.2 million.

BC Transit contends that Vicinity was aware or should have been aware of these defects, either failing to inform the transit agency or misrepresenting the quality of the buses. The contract stipulated a 10-year warranty on the bus frame and chassis, which BC Transit alleges Vicinity refused to honor, constituting a breach of contract.

As of now, Vicinity has not responded to the lawsuit. The company ceased operations in 2024 and entered receivership, subsequently filing for Chapter 15 bankruptcy in the United States, which addresses cross-border insolvency cases. According to a list of known creditors provided by the receiver, FTI Consulting, Vicinity owes $34.3 million to secured creditors and an additional $46 million to unsecured creditors.

In the past year, FTI Consulting has auctioned off most of Vicinity’s physical assets, including its remaining stock of partially assembled vehicles and property in Ferndale, Washington. The Aldergrove facility has also been closed. Attempts to reach BC Transit for further comments and representatives from the former Vicinity Motors have been made, but responses are pending as the situation develops.

This ongoing legal battle highlights serious concerns regarding product quality and accountability in the public transportation sector.