BC Transit is suing a defunct Aldergrove-based bus manufacturer for $5 million, claiming that many of its buses leaked, causing water damage to 118 of them.
Vicinity Motor Corporation assembled conventional and electric buses and electric trucks in Aldergrove and in a larger facility in Washington State.
One of the company’s largest clients was BC Transit, which provides public transit to all areas of the province outside of Metro Vancouver, including on Vancouver Island and the Fraser Valley.
Between 2013 and 2022, BC Transit bought 206 low-floor buses from Vicinity, according to the statement of claim the transit authority filed in BC Supreme Court in Vancouver on Dec. 23, 2025.
“The contract required, among other things, that all roof and body panel joints be joined and assembled to prevent any water leakage into the structure or interior of the bus and that a water test be applied to each completed bus simulating the extreme rain conditions in Western British Columbia and a daily bus wash cycle,” the claim says.
In June 2022, BC Transit found an issue with the floor of a single bus, then three more. In October of that year, they contacted Vicinity, and both the company and BC Transit conducted investigation.
“However, given the cyclical nature of water ingress during winter or wet months the scope and scale of the problem was masked for some time,” the claim said.
By April of 2024, 118 of Vicinity’s buses had been inspected “and the magnitude and scope” of the problem was apparent, BC Transit’s claim said.
The transit authority said that Vicinity buses were defective and had saturated, rotten, or deteriorated plywood floors.
Water was getting in through body openings, and window sealants had been poorly or inconsistently applied, the claim alleges.
Water was pooling due to a limited number of drainage points.
The buses were bought with the intention of running them for 10 years, and as of mid-2024, 142 of them still had three to four years of expected operating life, while another 48 should have lasted another six to eight years, the claim said.
By August of 2024, BC Transit had already repaired the floors of 16 Vicinity buses, 17 more needed repairs immediately, and 157 required upgrades as part of a “fleet campaign,” including resealing windows and exposed plywood near the rear door, and installing more drains.
Total repair and upgrade costs are expected to be more than $3.4 million. They also claim Vicinity has failed to supply replacement parts, costing another $1.8 million, for damages totalling $5.2 million.
BC Transit claims Vicinity knew or should have known about the defects, and either failed to inform the transit agency, or misrepresented the quality of the buses.
There was a 10-year warranty on the bus frame and chassis, and BC Transit alleges that Vicinity refused to abide by the warranty, a claimed breach of contract.
Vicinity has not filed a response to the lawsuit yet. None of the claims made by BC Transit have been proven in court.
Vicinity shut down in 2024 and was put into receivership. They have filed for Chapter 15 bankruptcy in the United States, which deals with cases of cross-border insolvency.
According to a June 2025 list of known creditors posted by the receiver, FTI Consulting, Vicinity owed $34.3 million to secured creditors – RBC and Export Development Canada – and another $46 million to unsecured creditors.
During the last year, FTI Consulting has put most of the physical assets of Vicinity – including its remaining stock of partly-assembled vehicles, and its property in Ferndale, Wash. – up for auction. Their Aldergrove facility was closed.
In a statement, BC Transit confirmed they have 190 Vicinity buses, which is about 18 per cent of their total fleet across the province.
“There is no impact to service at this time in any locations with Vicinity buses, and BC Transit will keep our customers informed should that change. BC Transit cannot provide any further comment as this matter is before the court,” the statement said.
The Langley Advance Times is attempting to contact a representative of the former Vicinity Motors.