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Author Topic: Whats Happening Over At Motor Coach Industries ?  (Read 3702 times)
shodogg
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« on: September 29, 2008, 09:25:46 PM »

Ok now, I know MCI has quality products on the market, so somebody –anybody- please inform me as to what went wrong (aside from the recent
“credit crunch”) over at Schaumburg, IL?
 Huh
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HighTechRedneck
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« Reply #1 on: September 29, 2008, 10:03:04 PM »

In my opinion, probably all or some of the following:

  • Skyrocketing cost of metals
  • Rising cost of other materials
  • Decreased sales due to decline of the major intercity buslines
  • Losing market share to competitors
  • Decreased sales due to carriers cutting new equipment purchases to offset high fuel cost
  • Possibly increased liability insurance costs

And of course, the number one reason for their demise:

Busted Knuckle switching over to Setra's.   Grin
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Busted Knuckle
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« Reply #2 on: September 29, 2008, 11:39:52 PM »

In my opinion, probably all or some of the following:

  • Skyrocketing cost of metals
  • Rising cost of other materials
  • Decreased sales due to decline of the major intercity buslines
  • Losing market share to competitors
  • Decreased sales due to carriers cutting new equipment purchases to offset high fuel cost
  • Possibly increased liability insurance costs

And of course, the number one reason for their demise:

Busted Knuckle switching over to Setra's.
   Grin

OK go ahead and blame it on me!

Even mom & dad got a laff out of it!

But now if you want to know the truth. And it don't really matter, cause I'm gonna tell it anyway!

First bus we bought was a SETRA! Then we slipped up and left the gate open and these dang MCI's keep popping up! Grin  BK  Grin
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Busted Knuckle aka Bryce Gaston
KY Lakeside Travel's Busted Knuckle Garage
Huntingdon, TN 12 minutes N of I-40 @ exit 108
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Grin Keep SMILING it makes people wonder what yer up to! Grin (at least thats what momma always told me! Grin)
NCbob
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« Reply #3 on: September 30, 2008, 09:39:59 AM »

Bryce, you really know how to endear yourself to your friends who own and drive MCI's don't you? Cheesy
If the only folks who show up at your place are in GM's and Eagle's you shouldn't wonder why!

NCbob
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bubbaqgal
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« Reply #4 on: September 30, 2008, 10:10:41 AM »

Bryce, it's the trail that the Setra leaves behind it and the MCI's just sniff it and follow it home thinking it means free oil and fuel.  Stop feedin' em and they might leave.
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compedgemarine
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« Reply #5 on: September 30, 2008, 10:18:09 AM »

I am inclinded to agree with HTR. for those not in the manufacturing business it is staggering how much some materials have gone up in the last year or two. stainless has almost trippled, fiberglass and related materials have more than doubled, copper wire has more than doubled, etc, etc. Most companies have been absorbing these increases due to signed orders, attempts to keep sales or whatever. There comes a time when it all catches up. with the decline in sales most companies can no longer absorb the costs and no new sales are coming in in a volume to cover the debt load. When we come out the other side of all this I think you can expect to see costs of new coaches, cars, boats, etc to be higher and the manufacturer will probably still not be making the margins like before.
steve
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makemineatwostroke
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« Reply #6 on: September 30, 2008, 10:37:41 AM »

MCI will exit from this a stronger Co according to the reports it is a 5 mo deal.Prevost is having their share of problems also all the people I talk with at Prevost are worried about 2010 when the 60s DD is no longer available to them and Setra enters the high end coach market with the D13 Volvo they know it's going to a problem keep a eye and see what happen there.You  may not remember but the Coach Converter posted that this was going to happen to MCI 2 month before it did
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HighTechRedneck
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« Reply #7 on: September 30, 2008, 10:58:40 AM »

On the issue of competitive forces impacting MCI:

Quote from: http://www.ttmg.org/main.html
Greyhound Orders 140 Additional Prevost Motorcoaches

Greyhound has ordered 140 X3-45 motorcoaches from Prevost. The new vehicles, which are to be used on various intercity lines, will be delivered from February to July of 2009. The order follows Greyhound's first transaction with Prevost in spring of 2008. At that time, Greyhound ordered 33 X3-45 vehicles for its newly launched BoltBus operation, providing service between New York and Boston, Philadelphia, and Washington, DC, and another 17 X3-45s for its line-haul fleet. Announcement of the substantial transaction with North America's largest provider of intercity bus transportation was greeted with delight at Quebec-based Prevost. Gaetan Bolduc, President and CEO for Prevost said, "I am delighted to see that Greyhound has decided to join the long list of repeat Prevost customers. High level of customer satisfaction drives everything we do and this order reflects our efforts to make Greyhound a satisfied Prevost customer. We are pleased that Greyhound has come to trust both our product and our customer service, and we look forward to continuing to develop solutions that support the needs of the company. " David Leach, President and Chief Executive Officer of Greyhound Lines, Inc., said that the choice of Prevost vehicles ties directly into Greyhound's mission to offer "A new and improved image of safe, reliable and enjoyable travel to nearly 25 million passengers each year," adding that "Prevost and the X3-45 are a company and a vehicle that we can count on to help us achieve that goal."
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makemineatwostroke
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« Reply #8 on: September 30, 2008, 11:25:32 AM »

Hightech, that is a lower end coach than you see on the road Prevost has set the Volvo truck dealer up to maintain those buses they are trying to sell Phoenix some now this is what you get with foreign owned Co of Greyhound no loyalty what so ever plus they had strong ties with English co that was part owner of Prevost.I looked at those this past summer at the Prevost rally at the factory I would not wait for one to come off line for a conversion    have a great day
« Last Edit: September 30, 2008, 11:28:38 AM by makemineatwostroke » Logged
Songman
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« Reply #9 on: September 30, 2008, 11:25:55 AM »

Maybe the owners of Motor Coach Industries are just "full of crap"... haha... Sorry, I'm just kidding. Just had to do it one time though. I love MCIs and hope they can pull out of this well.
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shodogg
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« Reply #10 on: September 30, 2008, 12:10:40 PM »

I pray and hope that you are right makemineatwostroke because I’ll hate to see MCI to have gone the “Eagle way” over poor management foresight. Moreover, this dose reeks of disloyalty; meaning MCI has carried Greyhound through the thick and thin of times (great financing leases, extending the classic MC9 jig…). No offense to our Prevost and Eagle clubs, but for the most part MCI is an American icon in its own right even more so than Eagle MFG –or not?
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Busted Knuckle
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« Reply #11 on: September 30, 2008, 01:56:03 PM »

Bryce, you really know how to endear yourself to your friends who own and drive MCI's don't you? Cheesy
If the only folks who show up at your place are in GM's and Eagle's you shouldn't wonder why!

NCbob

Bob I'm not referring to the ones that the visitors drive up in! But rather the ones that end up with our company lettering on them! LOL!

Grin  BK  Grin

But it was a comforting thing to hear mom say last night while I was showing her what I was going to do with the lettering on the latest MCI in the stable! "We really need to get more SETRA's don't we !?!"
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Busted Knuckle aka Bryce Gaston
KY Lakeside Travel's Busted Knuckle Garage
Huntingdon, TN 12 minutes N of I-40 @ exit 108
www.kylakesidetravel.net

Grin Keep SMILING it makes people wonder what yer up to! Grin (at least thats what momma always told me! Grin)
luvrbus
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« Reply #12 on: September 30, 2008, 02:07:11 PM »

I read some where that was a deal between Peter Pan and Greyhound the East coast run with the Prvee's and Peter Pan was the owners of the buses not Greyhound with a special spec bus and 0% financing for 5 years from Volvo that would be a hard deal to pass up
good luck
« Last Edit: September 30, 2008, 02:22:10 PM by luvrbus » Logged
HighTechRedneck
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« Reply #13 on: September 30, 2008, 04:30:56 PM »

Hightech, that is a lower end coach than you see on the road Prevost has set the Volvo truck dealer up to maintain those buses they are trying to sell Phoenix some now this is what you get with foreign owned Co of Greyhound no loyalty what so ever plus they had strong ties with English co that was part owner of Prevost.I looked at those this past summer at the Prevost rally at the factory I would not wait for one to come off line for a conversion    have a great day

I have no idea about the quality of it.  I would say that despite the technology bells and whistles, most vehicles made today aren't built with as much "quality" as years gone by.  Most of us on this forum are using buses built 20 to 50 years ago and have from 1 to 4 million miles on them.  I may be wrong, but I have doubts that most of the ones being built now will endure that long.

But regardless of quality, the order went to Prevost, not MCI, which was the point I was making.  According to the article I quoted, this was the second order, the first one being earlier this year.  This supports the point that part of MCI's demise was their losing ground to competitors.
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Sammy
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« Reply #14 on: September 30, 2008, 04:56:07 PM »

What model is the "lower end" Prevost coach?
I only see the new X-45 and the H models available.
Here's some info on the X model:
http://www.prevostparts.com/cgi-bin/pages.cgi?page=x345
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makemineatwostroke
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« Reply #15 on: September 30, 2008, 05:09:24 PM »

Hightech; the point I was try to make was all of these manufactures are in trouble and Prevost is about giving the buses away to get them out of their stock the RV market is down the tour operators are not buying and you and I both know that can happen for just a short time till it bites you. MCI survived the 80's and 90's when they lost the NJ contract to Eagle and they will weather this one also and come back strong, heck I don't own a MCI and here I am pulling for MCI.Volvo doesn't need Prevost and I wonder how long it will go on losing money before Volvo sell its    Have a great evening
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makemineatwostroke
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« Reply #16 on: September 30, 2008, 05:25:22 PM »

Sammy; when we were at the factory looking at the buses Greyhound was ordering X3-45 they were cutting corners every where they could like using the D13 Volvo engine and the ZF transmission even the glass was thinner we were told.To say the least I wasn't impressed with the Greyhound unit at all to me it was like looking at the G model MCI Greyhound helped with the design of by cutting corner it's to bad that manufacturing frims have to do things in order to sell and keep up with cheap made in China junk and can you picture having your bus worked on by a average truck mechanic Prevost is a great bus but I wonder about this deal but time will tell   have a great evening
« Last Edit: September 30, 2008, 05:27:24 PM by makemineatwostroke » Logged
Sammy
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« Reply #17 on: September 30, 2008, 06:27:41 PM »

Makemine, thanks for the info.
I agree with you, tougher for companies to compete and make a profit today.
Have a nice evening too. Cool
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coachconverter
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« Reply #18 on: September 30, 2008, 07:24:07 PM »

The only reason I had some insight to this was that an insurance adjuster told me that no one was buying rebuildable buses because MCI was running out of body panels, that the larger operators had some inside information that they should stock up on parts.  I presume they're expecting a lull in inventory while money is under scrutiny.
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shodogg
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« Reply #19 on: October 02, 2008, 08:48:45 AM »

Quick question; doesn't Ford Motor company own Volvo outright?
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makemineatwostroke
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« Reply #20 on: October 02, 2008, 08:58:44 AM »

No Ford owns the automobile division(and it is for sale) nothing to to do with trucks,buses and heavy equipment but they do own a large part of ZF that Volvo uses   have a great day
« Last Edit: October 02, 2008, 09:01:15 AM by makemineatwostroke » Logged
Dallas
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« Reply #21 on: October 02, 2008, 09:52:05 AM »

Quote
but for the most part MCI is an American icon in its own right even more so than Eagle MFG

Ummm,

I hate to disabuse you.. but..
MCI is a Canadian company.

Have a nice day.

Dallas

I pray and hope that you are right makemineatwostroke because I’ll hate to see MCI to have gone the “Eagle way” over poor management foresight. Moreover, this dose reeks of disloyalty; meaning MCI has carried Greyhound through the thick and thin of times (great financing leases, extending the classic MC9 jig…). No offense to our Prevost and Eagle clubs, but for the most part MCI is an American icon in its own right even more so than Eagle MFG –or not?
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shodogg
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« Reply #22 on: October 02, 2008, 10:05:18 AM »

correct me all the way through here. Are saying MCI originated in Canada, Or that's just where they are for now?  Maybe I was confusing the  N. Dakota assembly plant as the MCI HQ. I always thought MCI originated in the U.SA. then opened up satellite branches in Canada.
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HighTechRedneck
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« Reply #23 on: October 02, 2008, 10:12:44 AM »

http://en.wikipedia.org/wiki/MCI_Bus
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shodogg
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« Reply #24 on: October 02, 2008, 10:27:48 AM »

Ok now I remember discovering that before. Fore some odd reason, I always felt that MCI was “All American” even after the facts.
But what the hell, growing up in New Haven, CT I always considered Canada way more American than –say Alaska or Hawaii .

Thanks yet for the jolt.
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shodogg
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« Reply #25 on: October 04, 2008, 04:43:41 PM »

Was just mad aware that Greyhounds parent company, Laidlaw, is being sold to the worlds largest school bus company, First Group of Scotland. So maybe this explains Greyhounds betrayal tendencies as of late. What do fellows think?
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« Reply #26 on: October 04, 2008, 06:01:05 PM »

These things have gotten so Byzantine that it is almost impossible for us to keep track of the intrigues, maneuvers, alliances, and secrets.  I would hope that MCI survives because I have one and like the idea of the manufacturer still being there, but with the basics of our economy in some sort of unpredictable transition, it is difficult to say what will survive with any resemblance to what we know.  Is there really such thing as an American vehicle anymore?  Maybe in name, but not if you look at the parts.  I just was looking at a website for modular homes built out of shipping containers.  One of the things they say is that there are so many more containers coming into the US than leaving that they are cheaply available to do whatever you want.  They do not find it cost effective to ship them back empty if they can sell them here.
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makemineatwostroke
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« Reply #27 on: October 04, 2008, 07:08:53 PM »

Nothing to worry about MCI this happens when a Wall Street investment company owns a manufacturing co.Our great government will bail it out of this mess notice they didn't file in Canada but everything JLL Partners owns is having problems expect some drug outfit they own.This is a prime example of a company going south to Mexico and try and build a quality product they tried that with the G4500 MCI ( G is for Greyhound) doesn't happen but don't feel sorry for them no telling how much of the 700 billion that we (tax payers) furnshied they will get.Just think guys we my all be stock holders in MCI and don't even know it.     have a great evening
« Last Edit: October 04, 2008, 07:23:31 PM by makemineatwostroke » Logged
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