Summary
- Winnipeg is facing challenges in its role in the potential bankruptcy of New Flyer, North America’s biggest bus manufacturer
- New Flyer’s focus on hydrogen fuel cell buses is causing them to lose market share to competitors with battery-electric buses
- The seduction of higher revenues for hydrogen buses, partially funded by the government, is leading New Flyer astray
- New Flyer’s monopoly on hydrogen bus manufacturing in Canada is allowing them to jack up prices
- Winnipeg’s close relationship with New Flyer is contributing to their failure, and a change in strategy is needed to focus on battery-electric buses.
Article
CleanTechnica reports on the recent struggles faced by Winnipeg-based bus manufacturer, New Flyer, which is facing potential bankruptcy due to its strategic decision to focus on hydrogen fuel cell buses over battery-electric buses. The company has been lured by the higher revenues and government subsidies associated with hydrogen buses, but this move has resulted in New Flyer losing market share and falling behind competitors who are focusing on battery-electric options, which are cheaper and more reliable. Despite being the only hydrogen bus manufacturer in Canada, New Flyer’s decision to prioritize hydrogen buses is proving to be a costly mistake.
The situation is further complicated by New Flyer’s involvement in the Canadian Urban Transit Research and Innovation Consortium (CUTRIC), which has created conflicts of interest and led to flawed studies favoring hydrogen buses. Transit agencies, influenced by CUTRIC’s biased recommendations and financial incentives, are being led towards purchasing more expensive hydrogen buses instead of the more cost-effective battery-electric alternatives. This has raised concerns about the effectiveness of government funds allocated for transit decarbonization and the overall impact on reducing emissions.
In an effort to address the issues facing New Flyer and the Canadian transit industry, suggestions are made for transit agencies to collaborate and push for a shift towards battery-electric buses. By working together to prioritize more sustainable and cost-effective solutions, transit agencies can avoid falling into the trap of investing in dead-end technologies like hydrogen fuel cells. Additionally, the need for increased competition in the battery-electric bus market is highlighted, with the possibility of inviting other manufacturers like BYD or Yutong to set up factories in Canada to provide more options for transit agencies.
The article emphasizes the importance of making strategic decisions to accelerate the decarbonization of transit systems in Canada and ensure the long-term success of the industry. By avoiding the pitfalls of investing in expensive and unreliable technologies like hydrogen fuel cells, transit agencies can improve service quality, reduce costs, and achieve meaningful emissions reductions. The author, who has expertise in transportation decarbonization and has advised global firms on sustainability strategies, stresses the significance of steering the Canadian transit industry towards more sustainable and efficient practices to avoid wasting resources and risking the future of companies like New Flyer.
The potential consequences of continuing down the path of investing in hydrogen buses, the risks of conflicts of interest within organizations like CUTRIC, and the implications for New Flyer’s future are all highlighted as key concerns that need to be addressed. The article serves as a wake-up call for transit agencies, government officials, and stakeholders to reconsider their priorities and focus on solutions that will lead to a successful transition to cleaner and more efficient transportation systems. Ultimately, the goal is to avoid the pitfalls of relying on outdated technologies and instead embrace sustainable solutions that will benefit both the environment and the transit industry as a whole.
Read the full article here
