What is up with PSIX?

PSIX up 14%!! Any news that I Missed?

Bottom line, this may prove to be a significant revenue enhancing offering for PSIX: A propane engine with Diesel-like performance with higher torque at lower engine speeds. Wonder how many school districts would be interested in a more powerful engine that is quieter, cooler, and with less vibration. Less engine revving will increase durability and require less maintenance.

IC Bus Adds Purpose-Built School Bus Offering

8:00 AM ET 9/2/14 | PR Newswire
IC Bus, LLC today announced it will offer its IC Bus™ CE Series school bus powered by the Power Solutions International (PSI) 8.8-liter LP propane engine for the 2015 school year. Purpose-built for the school bus industry, the CE Series with PSI propane engine is designed to provide diesel-like performance with higher torque at lower engine speeds. It reduces engine wear oil usage and maintenance while increasing durability and efficiency

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“Our customers asked for a better propane fuel choice for the market and we answered,” said John McKinney, president, IC Bus. “Our IC Bus CE Series with PSI’s 8.8-liter LP engine will be the first school bus specifically engineered to run on propane without sacrificing power, performance or durability.”

The PSI 8.8-liter engine is engineered to deliver the highest torque at the lowest speed. With a rating of 565 lb-ft at 1500 rpm, the high torque-low speed design greatly benefits stop-and-start applications to allow immediate acceleration after stops and greater hill climbing capability. This not only improves startability and gradability, but also eliminates excessive noise, heat and vibration associated with constant engine revving. Minimal revving reduces engine wear, oil usage and maintenance, while increasing durability and efficiency.

“Until now, the propane vehicle market had been supported by underpowered engines that are required to run at high-speeds to get the required power,” said Gary Winemaster, chairman and chief executive officer, PSI. “The PSI 8.8-liter engine is an economic, low-speed solution that boasts diesel-like performance, high durability, reduced noise and overall wear with all the benefits of alternative fuels.”

The CE Series school bus powered by propane also integrates the Allison 2500 transmission with FuelSense(R) to maximize fuel economy.

IC Bus will manufacture CE Series school buses with propane out of its school bus assembly plant in Tulsa, Okla. Deliveries will begin in summer 2015 and buses will go into service for the start of the 2015/2016 school year. The CE Series will also be on display at this year’s National Association for Pupil Transportation (NAPT) Annual Summit in Kansas City, Mo., November 8 -11.

IC Bus has earned its reputation for uptime through the strength of its dealer network, along with its parts distribution, after-sales and training support services. In addition to its 290 IC Bus service and support locations, the company’s school buses are also supported by more than 750 International truck locations.

About Power Solutions InternationalPower Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial and on-road markets. The company’s unique in-house design, prototyping, engineering and testing capabilities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel and gasoline.

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Thanks for that Jim. I tried in vain to find anything to explain the move today. Glad you found it.

It is hard to believe that this could move the stock so much. I do not think that school busses are a big market.

Interesting that when I checked investor relations PSIX did not have this press release up. I would have expected both companies to announce.