EvoBus ends distribution agreement with Motor Coach Industries
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Hey there, time traveller!
This article was published 05/01/2018 (2948 days ago), so information in it may no longer be current.
The German manufacturer of Setra buses is ending its North American distribution agreement with Motor Coach Industries Inc. (MCI), a subsidiary of New Flyer Industries.
EvoBus GmBH, a subsidiary of Daimler AG, has terminated the distribution rights agreement for Setra motorcoaches in the United States and Canada effective at the end of June 2018.
The two companies entered into the agreement in 2012.
Since then MCI has sold only 282 new Setra coaches. (MCI was acquired by New Flyer in 2015 and the agreement with Daimler was grandfathered.)
Daimler told MCI its decision was based on its belief that MCI’s own competing motorcoach models did not allow for sufficient attention to the Setra brand in Canada and the US.
MCI is expanding its own motorcoach lineup, having recently redesigned its bestselling model, and has announced plans to introduce a battery-electric motorcoach by 2020.
Jonathan Lamers, an analyst with BMO Securities, said the move is likely to have only notional impact to New Flyer’s financial performance.
Lamers estimated that Setra accounted for about one per cent of New Flyer’s overall new vehicle deliveries and a significantly lower contribution of revenue and less than one per cent of earnings per share.