DES PLAINES, IL, Jan. 4, 2018 /CNW/ - (TSX: NFI) Motor Coach
Industries, Inc. ("MCI"), the U.S. subsidiary of New Flyer
Industries Inc. ("NFI Group"), the largest transit bus and motor
coach manufacturer and parts distributor in North America, announced today that EvoBus
GmBH ("Daimler") has terminated the distribution rights agreement
("DRA") for German built Setra motor coaches in the United States and Canada effective June
29, 2018.
Under previous private equity ownership, MCI entered into the
DRA as part of a transaction that resulted in Daimler owning 10% of
the equity of MCI in 2012. When New Flyer acquired 100% of the
equity of MCI in December 2015, the
DRA remained in place. The models covered by the agreement were the
Setra S 407 and S 417 motor coaches, introduced by Daimler in
North America in 2003. Since 2012,
MCI has sold only 282 new Setra coaches.
Daimler advised MCI their decision was based on its belief that
MCI's own competing motor coach models did not allow for sufficient
attention to the Setra brand in Canada and the US. The decision comes as MCI
is expanding its own motor coach lineup and service network. Among
recent moves, MCI has redesigned its best-selling J4500 model, has
recently introduced a new 35-foot coach, its fully accessible D45
CRT LE commuter coach, and has announced plans to introduce a
battery-electric motor coach by 2020.
Sales of new Setra coaches will transfer to Daimler's new North
American distributor immediately, while parts sales, service and
warranty support for Setra coaches in service will remain with MCI
and then transfer mid-2018. Under the terms of the DRA and as part
of the transition, Daimler will re-purchase all new Setra coaches
and service parts inventory on hand at MCI.
"We appreciated our relationship with Daimler, and will fully
support the DRA transition for our mutual customers. Most
importantly, we will continue to focus on building our industry
leading MCI coach brand, along with offering service and parts
support for operators throughout North
America," said Patrick
Scully, MCI Executive Vice President Sales and
Marketing.
About NFI Group
NFI Group and its subsidiaries comprise the largest bus and
motor coach manufacturer and parts distributor in North America, with 32 fabrication,
manufacturing, distribution, and service centers located across
Canada and the United States and employing nearly 6,000
team members.
NFI Group provides a comprehensive suite of mass transportation
solutions under several brands: New Flyer® (heavy-duty
transit buses), ARBOC® (low-floor cutaway and
medium-duty buses), MCI® (motor coaches), and NFI Parts™
(bus and coach parts, support, and service). NFI Group's vehicles
incorporate the widest range of drive systems available, ranging
from clean diesel, natural gas, diesel-electric hybrid,
trolley-electric, battery-electric and fuel cell.
- New Flyer is North America's
heavy-duty transit bus leader and offers the most advanced product
line under the Xcelsior® and Xcelsior CHARGE™ brands.
New Flyer actively supports over 44,000 heavy-duty transit buses
(New Flyer, NABI, and Orion) currently in service, of which 6,400
are powered by electric and battery propulsion.
- ARBOC is North America's
low-floor, body-on-chassis ("cutaway") bus leader serving transit,
paratransit, and shuttle applications. With more than 2,500 buses
in service, ARBOC leads the low-floor cutaway bus market providing
unsurpassed passenger accessibility and comfort over traditional
high-floor cutaway vehicles. ARBOC also offers a medium-duty bus
for transit and shuttle applications.
- Motor Coach Industries is North
America's motor coach leader, offering the J-Series, the
industry's best-selling intercity coach for 11 consecutive years,
and the D-Series, the industry's best-selling motor coach line in
North American history. MCI actively supports over 28,000 coaches
currently in service.
- NFI Parts is North America's
most comprehensive parts organization, providing replacement parts,
technical publications, training, service, and support for NFI
Group's bus and motor coach product lines.
Further information is available at www.newflyer.com,
www.arbocsv.com, and www.mcicoach.com. The common shares of NFI
Group are traded on the Toronto Stock Exchange under the symbol
NFI.
Forward-Looking Statements
This press release may contain forward-looking statements
relating to expected future events and financial and operating
results of NFI Group that involve risks and uncertainties. Although
the forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
investors cannot be assured that actual results will be consistent
with these forward-looking statements, and the differences may be
material. Actual results may differ materially from management
expectations as projected in such forward-looking statements for a
variety of reasons, including those risks and uncertainties
discussed in the materials filed with the Canadian securities
regulatory authorities and available on SEDAR at www.sedar.com. Due
to the potential impact of these factors, NFI Group disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless required by applicable law.
SOURCE New Flyer Industries Inc.