DaimlerBuses Posted April 25, 2012 Share #1 Posted April 25, 2012 Daimler Buses Reconfigures Operations in North America - Strategic partnership planned with Motor Coach Industries (MCI) to strengthen Setra's coach business in North America - Daimler would receive a minority stake in MCI - Production of Orion transit buses to wind down after fulfillment of current orders - Daimler to stand behind all current customer commitments and warranties STUTTGART, Germany, April 25, 2012 /CNW/ - As part of its 'GLOBE 2013' initiative, Daimler Buses is moving to secure sustainable competitiveness through worldwide advances in growth and efficiency. As a result of these efforts, the company is reconfiguring its bus business in North America (U.S. and Canada). (Logo: http://photos.prnews...0409/NYW017LOGO ) Strategic Partnership planned with MCI to strengthen Setra's coach business in North America Daimler Buses today announced the signing of a Letter of Intent with Motor Coach Industries International Inc. ("MCI") to establish a strategic partnership to combine MCI's product, service and sales network with Setra's North American coach distribution rights and network. The companies have agreed upon the material terms and conditions of the transaction and are working to finalize definitive agreements, which they expect to enter into and consummate not later than May 31, 2012. Upon consummation of the transaction, Daimler Buses would receive a minority ownership stake in MCI, and MCI would become the exclusive North American distributor of the Setra S407 and S417 German-manufactured premium motor coaches. "The Setra motorcoach represents the highest standards of comfort, performance, customization and quality in a number of key regions worldwide," said Hartmut Schick, Head of Daimler Buses. "We're excited at the prospect of this partnership with MCI, which is a leading manufacturer of coaches in North America with top-flight distribution and service networks in the U.S. and Canada. Under a Setra-MCI partnership, customers will continue to enjoy the same state-of-art technology, quality German engineering, and best total cost of ownership in the market. A strategic relationship with MCI will carry forward Setra's proud tradition in North America, and also take it to the next level -- through increased local presence and enhanced customer services for Setra." Rick Heller, MCI CEO, said, "The proposed transaction would allow MCI to expand its luxury motor coach offerings in the North America marketplace, while establishing a strategic partnership with one of the world's leading manufacturers of buses and motor coaches. If consummated, we would intend to fully leverage the capabilities of MCI's marketing and distribution networks on behalf of the world-renowned Setra brand. The expected partnership would also allow MCI access to Daimler's world-class Setra engineering and manufacturing capabilities. In addition to our planned consolidation of operations to realize efficiencies and other benefits, the strategic intent of the proposed transaction is to maintain the integrity of the MCI and Setra brands, parts and services." Under the proposed agreement, through a transition period of several months following the execution of definitive agreements and the closing of the transaction, MCI would evaluate operations related to Setra in North America, and, where appropriate, integrate such operations with existing MCI facilities which will permit MCI and Daimler Buses to realize significant operating synergies. This planned partnership will allow Daimler Buses to better serve its customers through a broader service network, while strengthening Setra's presence in North America. All Setra motor coaches are German-engineered products produced in Neu-Ulm, Germany. This fact remains unchanged. Daimler anticipates that operations related to Mercedes-Benz Sprinter in Greensboro, NC will be transferred to another Daimler facility. Wind down of Orion transit bus production after fulfillment of current orders Expectations for the transit bus business, which suffers from low public sector investments by municipal government agencies, are low and likely to remain depressed over the next several years. As a consequence, Daimler has decided to exit the transit bus business in North America and to wind down production of Orion buses in the U.S. and Canada. Starting today, Orion plans to take no additional new orders. Following the fulfillment of current production commitments over the next twelve months, the operating facility in Mississauga, Ontario will be closed, and the facility in Oriskany, New York will continue operations related to parts and field service only. In addition, Daimler expects to continue a retrofit program for current customers at the Oriskany facility. Daimler clearly stands behind all current customer commitments and warranties, and will therefore continue to support all Orion customers' warranty and service agreements through its extensive network of parts and field service representatives in the United States and Canada. "Daimler Buses considered all possible options for reconfiguring our transit bus operations in North America, but at the end of the day, Orion is facing a situation where the cost position is not competitive, the local market is in a continued slump, and growth opportunities are not available from selling the product overseas," said Schick. "Discontinuing production of Orion buses was a very difficult decision for us to make, but to secure our leadership position we must always strive to invest resources efficiently in support of our global strategy for growth. As part of our lasting commitment to all existing Orion customers, we will make sure a robust parts and service infrastructure continues to provide a high level of service and support." Daimler intends to provide a separation benefit to all eligible employees affected by the reconfiguration of its Setra and Orion bus and coach businesses in North America, including to those separating employees for whom such benefits are not otherwise required by law. 'Globe 2013': A worldwide initiative for growth and efficiency Daimler Buses last month announced GLOBE 2013, an initiative for Global Bus Excellence that aims to shape the future of mobility, while securing sustainable competitiveness through worldwide advances in growth and efficiency. In 2011, Daimler Buses sold 39,740 buses and coaches worldwide. Whereas the bus business was booming in some parts of the world, particularly in Latin America, the industry in Western Europe remained in a slump because of the financial and debt crisis. Market demand was similarly negative in North America, which, like its Western European counterparts, suffered from public sector budget constraints and therefore from substantially fewer calls for bids. Further information from Daimler is available at: www.media.daimler.com and www.daimler.com. Link to comment Share on other sites More sharing options...
The Real Posted April 25, 2012 Share #2 Posted April 25, 2012 Read: http://ttmg.org/blog/2012/04/daimler-buses-reconfigures-operations-in-north-america/#more-1111 Link to comment Share on other sites More sharing options...
Threxx Posted April 25, 2012 Share #3 Posted April 25, 2012 Nooo! Orion... Link to comment Share on other sites More sharing options...
Lothian Posted April 25, 2012 Share #4 Posted April 25, 2012 It's a shocker. Obviously the huge 40-footer Orion order that the MTA had planned (?) for the end of the year will never happen now. Link to comment Share on other sites More sharing options...
gtNovaBusRTS9369 Posted April 25, 2012 Share #5 Posted April 25, 2012 I'm nothing but spechless as sh*t! Note: Elaborate more of my bit later. Link to comment Share on other sites More sharing options...
Princelex Posted April 25, 2012 Share #6 Posted April 25, 2012 WHAT???!!! I'm speechless right now. Is this a joke or something? Wow...just wow. Link to comment Share on other sites More sharing options...
r40s 4501 Posted April 25, 2012 Share #7 Posted April 25, 2012 why Link to comment Share on other sites More sharing options...
The Real Posted April 25, 2012 Share #8 Posted April 25, 2012 Read the article link in the top post. It'll explain why... Link to comment Share on other sites More sharing options...
Princelex Posted April 25, 2012 Share #9 Posted April 25, 2012 Well is it safe to say that Orion is now out of the running where the BT&E progam is concerned? Link to comment Share on other sites More sharing options...
Ty24 Posted April 25, 2012 Share #10 Posted April 25, 2012 Wowwww Link to comment Share on other sites More sharing options...
The Real Posted April 25, 2012 Share #11 Posted April 25, 2012 Well is it safe to say that Orion is now out of the running where the BT&E progam is concerned? That is correct! Link to comment Share on other sites More sharing options...
Eric B Posted April 25, 2012 Share #12 Posted April 25, 2012 I wonder if this means MCI or Setra will replace the company. (I've really lost track of who MCI is connectd to. I remember them merging with Dina for awhile, and then didn't they even have something to do with Prevost for a time?) Link to comment Share on other sites More sharing options...
Princelex Posted April 25, 2012 Share #13 Posted April 25, 2012 That is correct! My God! I'm in shock. Also, what about the CNG order? Is that still gonna happen since that is a pending order? Link to comment Share on other sites More sharing options...
RailBus63 Posted April 25, 2012 Share #14 Posted April 25, 2012 I'm not shocked, just surprised that it was Orion that decided to fold up shop. Transit buses are commodities right now - everybody has a hybrid option, everyone has a BRT package, etc. - and there is just way too much bus-building capacity in the North American market right now. Nobody is making much money building transit buses right now, and Daimler is probably correct that it isn't going to turn around soon. I also wonder if the recent hybrid recalls and the WMATA Orion VI issue didn't push matters to a head. Today's buses are hugely complex and dependent on a multitude of suppliers, but it's the manufacturer who's on the hook to fix anything that goes wrong on their dime and chase others for reimbursement later. I'm sure Orion has spent quite a bit on their various retrofit issues for MTA, TTC and others. Link to comment Share on other sites More sharing options...
theaveragejoe Posted April 25, 2012 Share #15 Posted April 25, 2012 Daimler Buses Reconfigures Operations in North America - Strategic partnership planned with Motor Coach Industries (MCI) to strengthen Setra's coach business in North America - Daimler would receive a minority stake in MCI - Production of Orion transit buses to wind down after fulfillment of current orders - Daimler to stand behind all current customer commitments and warranties STUTTGART, Germany, April 25, 2012 /PRNewswire/ -- As part of its 'GLOBE 2013' initiative, Daimler Buses is moving to secure sustainable competitiveness through worldwide advances in growth and efficiency. As a result of these efforts, the company is reconfiguring its bus business in North America(U.S. and Canada). Strategic Partnership planned with MCI to strengthen Setra's coach business in North America Daimler Buses today announced the signing of a Letter of Intent with Motor Coach Industries International Inc. ("MCI") to establish a strategic partnership to combine MCI's product, service and sales network with Setra's North American coach distribution rights and network. The companies have agreed upon the material terms and conditions of the transaction and are working to finalize definitive agreements, which they expect to enter into and consummate not later than May 31, 2012. Upon consummation of the transaction, Daimler Buses would receive a minority ownership stake in MCI, and MCI would become the exclusive North American distributor of the Setra S407 and S417 German-manufactured premium motor coaches. "The Setra motorcoach represents the highest standards of comfort, performance, customization and quality in a number of key regions worldwide," said Hartmut Schick, Head of Daimler Buses. "We're excited at the prospect of this partnership with MCI, which is a leading manufacturer of coaches in North America with top-flight distribution and service networks in the U.S. and Canada. Under a Setra-MCI partnership, customers will continue to enjoy the same state-of-art technology, quality German engineering, and best total cost of ownership in the market. A strategic relationship with MCI will carry forward Setra's proud tradition in North America, and also take it to the next level -- through increased local presence and enhanced customer services for Setra." Rick Heller, MCI CEO, said, "The proposed transaction would allow MCI to expand its luxury motor coach offerings in the North America marketplace, while establishing a strategic partnership with one of the world's leading manufacturers of buses and motor coaches. If consummated, we would intend to fully leverage the capabilities of MCI's marketing and distribution networks on behalf of the world-renowned Setra brand. The expected partnership would also allow MCI access to Daimler's world-class Setra engineering and manufacturing capabilities. In addition to our planned consolidation of operations to realize efficiencies and other benefits, the strategic intent of the proposed transaction is to maintain the integrity of the MCI and Setra brands, parts and services." Under the proposed agreement, through a transition period of several months following the execution of definitive agreements and the closing of the transaction, MCI would evaluate operations related to Setra in North America, and, where appropriate, integrate such operations with existing MCI facilities which will permit MCI and Daimler Buses to realize significant operating synergies. This planned partnership will allow Daimler Buses to better serve its customers through a broader service network, while strengthening Setra's presence in North America. All Setra motor coaches are German-engineered products produced in Neu-Ulm, Germany. This fact remains unchanged. Daimler anticipates that operations related to Mercedes-Benz Sprinter in Greensboro, NC will be transferred to another Daimler facility. Wind down of Orion transit bus production after fulfillment of current orders Expectations for the transit bus business, which suffers from low public sector investments by municipal government agencies, are low and likely to remain depressed over the next several years. As a consequence, Daimler has decided to exit the transit bus business in North America and to wind down production of Orion buses in the U.S. and Canada. Starting today, Orion plans to take no additional new orders. Following the fulfillment of current production commitments over the next twelve months, the operating facility in Mississauga, Ontario will be closed, and the facility in Oriskany, New York will continue operations related to parts and field service only. In addition, Daimler expects to continue a retrofit program for current customers at the Oriskanyfacility. Daimler clearly stands behind all current customer commitments and warranties, and will therefore continue to support all Orion customers' warranty and service agreements through its extensive network of parts and field service representatives in the United States and Canada. "Daimler Buses considered all possible options for reconfiguring our transit bus operations in North America, but at the end of the day, Orion is facing a situation where the cost position is not competitive, the local market is in a continued slump, and growth opportunities are not available from selling the product overseas," said Schick. "Discontinuing production of Orion buses was a very difficult decision for us to make, but to secure our leadership position we must always strive to invest resources efficiently in support of our global strategy for growth. As part of our lasting commitment to all existing Orion customers, we will make sure a robust parts and service infrastructure continues to provide a high level of service and support." Daimler intends to provide a separation benefit to all eligible employees affected by the reconfiguration of its Setra and Orion bus and coach businesses in North America, including to those separating employees for whom such benefits are not otherwise required by law. 'Globe 2013': A worldwide initiative for growth and efficiency Daimler Buses last month announced GLOBE 2013, an initiative for Global Bus Excellence that aims to shape the future of mobility, while securing sustainable competitiveness through worldwide advances in growth and efficiency. In 2011, Daimler Buses sold 39,740 buses and coaches worldwide. Whereas the bus business was booming in some parts of the world, particularly in Latin America, the industry inWestern Europe remained in a slump because of the financial and debt crisis. Market demand was similarly negative in North America, which, like its Western European counterparts, suffered from public sector budget constraints and therefore from substantially fewer calls for bids. Link to comment Share on other sites More sharing options...
Orion VII 4 Life Posted April 25, 2012 Share #16 Posted April 25, 2012 Well, this is just depressing. Link to comment Share on other sites More sharing options...
Orion VII 4 Life Posted April 25, 2012 Share #17 Posted April 25, 2012 Depressing is all I can say. But, with most TAs going with cheaper (crappy) bus builders like NABI, they weren't getting that much business I guess. was one of their only steady customers. Guess I'm rooting for New Flyer for now on. I just hope that cheap NABI / Gillig / Designline crap doesn't make it to the anytime soon. The good thing is BAE Hybridrive (one of my favorite parts of the Orion hybrid) will still be made now that it's an option with NFI. Link to comment Share on other sites More sharing options...
Cait Sith Posted April 25, 2012 Share #18 Posted April 25, 2012 Depressing is all I can say. But, with most TAs going with cheaper (crappy) bus builders like NABI, they weren't getting that much business I guess. was one of their only steady customers. Guess I'm rooting for New Flyer for now on. I just hope that cheap NABI / Gillig / Designline crap doesn't make it to the anytime soon. The good thing is BAE Hybridrive (one of my favorite parts of the Orion hybrid) will still be made now that it's an option with NFI. Just because some of the NABIs in NJ have issues doesn't mean that NABI as a whole is crappy...I've been on a bunch of solid and good NABIs outside of the Tri-State Area....you need to get off that gripe and do some research. As for that Designline gripe, you still fail to realize that it was the TURBINES that messed up those buses, NOT the bus as a whole. That bus was built as solid like an LFS, the turbine technology in them buses were not ready for NYC. I don't know if you've ever been on them, but from the viewpoint that I'm seeing, it seems like you never have.... As far as the general discussion is concerned, I'm not sure of what to think about this. Seems like New Flyer & Nova will be the top heads in N.A, but I see Nova having a better run than New Flyer (i.e Them winning the SEPTA contract). Looks like it will be rather interesting in the coming years.... Link to comment Share on other sites More sharing options...
SoSpectacular Posted April 25, 2012 Share #19 Posted April 25, 2012 Holy crap. That's a shame... Link to comment Share on other sites More sharing options...
Orion VII 4 Life Posted April 25, 2012 Share #20 Posted April 25, 2012 Just because some of the NABIs in NJ have issues doesn't mean that NABI as a whole is crappy...I've been on a bunch of solid and good NABIs outside of the Tri-State Area....you need to get off that gripe and do some research. As for that Designline gripe, you still fail to realize that it was the TURBINES that messed up those buses, NOT the bus as a whole. That bus was built as solid like an LFS, the turbine technology in them buses were not ready for NYC. I don't know if you've ever been on them, but from the viewpoint that I'm seeing, it seems like you never have.... You're entitled to your opinion just as much as I am. I don't like NABI and those other companies not only because of their faults, but because I simply don't like their buses. I have my opinion on them, and so do you. I don't see you complaining to anyone who doesn't like Orions... Link to comment Share on other sites More sharing options...
User Posted April 25, 2012 Share #21 Posted April 25, 2012 Orion was and always will be, my favorite bus manufacture. I always liked the design, sound, and success of Orion's buses. Thank you Orion for everything. Link to comment Share on other sites More sharing options...
NewFlyer 230 Posted April 25, 2012 Share #22 Posted April 25, 2012 Does that mean 570-643 are now going to new flyer since Orion is closing. Link to comment Share on other sites More sharing options...
NewFlyer 230 Posted April 25, 2012 Share #23 Posted April 25, 2012 I guess New Flyer Wins the bus test program, and I guess the MTA and Nice Bus now have to get New Flyers. It'll be cool to see an LFS CNG. New Flyer for Life Link to comment Share on other sites More sharing options...
Grand Concourse Posted April 25, 2012 Share #24 Posted April 25, 2012 I will say this: I'm glad the MTA and NF buried their feud some years back (was it over the Artics? I don't remember), otherwise there would be mainly Nova and an unknown (or maybe NABI). Link to comment Share on other sites More sharing options...
The Real Posted April 25, 2012 Share #25 Posted April 25, 2012 Does that mean 570-643 are now going to new flyer since Orion is closing. No, Orion will honor all orders currently on the books and THEN will close its doors. So we will get our 74 Orion 07.501 CNGs, HOWEVER, if I was in charge of bus acceptance, I'd go over these buses with a super fine tooth comb. We're all human here and the personnel at Orion may be feeling a certain kind of way and quality control could possibly tank. So I'm a little leary of the buses coming out of Orion from now until the end. Link to comment Share on other sites More sharing options...
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