Abstract

The manufacture of buses in North America is a complex activity, by reason of the wide variety of bus types, each with different underlying manufacturers, channels and competitive considerations. As a result, most manufacturing plants, and in turn the industry players, have tended to specialize vertically in a few compatible product lines, as opposed to the entire gamut of passenger transport vehicles.

Buses have been one of the few shining lights in the automotive industry. As gas and diesel prices have increased over the last couple of years, people have started to view all forms of public transportation as a cost effective alternative to driving. Public transit buses have seen increased ridership and also cutting edge technology added to their product offerings, such as hybrid engines and other alternative fuel systems (CNG, LNG and others). Some of this technology is just being transferred to commercial buses, like cutaways and motor coaches, but has not been readily accepted as yet due to increased product costs.

However, consolidations are now quickly occurring due to the acquisition activity of private equity firms and large corporate groups like Thor, NABI and Gillig that have the ability to run varying product specializations under a holding company umbrella. There are numerous niche players that are successful and may be attractive to larger players.

Bus & coach types covered in this report are as follows:

One other noticeable trend is Asian, South American and European manufacturers seeking to enter select areas servicing niche vertical markets, such as a body-on-chassis motor coach. In general, there is an overall impression in the industry that North American buses are stodgy and dull compared to sleek and functional European designs. For example, these foreign manufacturers are taking a bus chassis from say Freightliner and placing their body design on top of it. The chassis can be easily repaired at any Freightliner repair shop, but the body would need to visit a dealer to be repaired. This combination enables these foreign manufacturers to enter the North American market at a lower price point than an integrally built motor coach. The unit may not carry as many people, but it performs the same function. This type of unit could cause problems for motor coach leader MCI.

These and other key factors impacting the industry are analyzed in this report, the only study of its kind that seeks to quantify and analyze the entire business of bus manufacturing in North America by each type of bus. The study goes beyond APTA or CTTA statistics to provide an independent appraisal generated from a wide-ranging investigation and analysis from the ground-up.