Daimler Buses reconfigures North American operations

Daimler Buses, Stuttgart, Germany, is reconfiguring its bus business in the U.S. and Canada. The company has signed a letter of intent with Motor Coach Industries Intl. Inc. to establish a strategic partnership to combine MCI's product, service, and sales network with Setra's North American coach distribution rights and network. 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 motor coaches.

Daimler anticipates that operations related to Mercedes-Benz Sprinter in Greensboro, N.C., will be transferred to another Daimler facility.

In addition, Daimler has decided to exit the transit bus business in North America and wind down production of Orion buses in the U.S. and Canada. Orion is taking no additional new orders; following the fulfillment of current commitments, the operating facility in Mississauga, Ont., will be closed. The facility in Oriskany, N.Y., will continue operations related to parts, field service, and retrofitting.