Daimler Buses becomes partner

SCHAUMBURG, Ill. - Motor Coach Industries Inc. has completed its acquisition of some of the operations of Setra in the U.S. and Canada, as well as Setras inventory of used coaches.

The deal took a month longer than expected, but Motor Coach Industries Inc. and Daimler Buses wrapped up the arrangement early this month that also establishes a "strategic partnership" between the two companies.

Through the acquisition, MCI obtains responsibility for the sales and service support of Setra S 417 and Setra S 407 coaches; the distribution of Setra and related Daimler bus parts; operation of the Setra service center in Winter Garden, Fla., near Orlando, and the pre-owned coach inventory.

Not being acquired are Setra service facilities in Riverside, Calif., Secaucus, N.J., and Greensboro, N.C. Their fate was not immediately announced.

Daimler has assumed a minority ownership position in MCI, "forming an engineering, technology and manufacturing alliance as part of the transaction," MCI said. Terms of the deal were not been disclosed.

"This transaction strengthens MCIs luxury motorcoach offerings in the North American marketplace with the Setra brand, while establishing a strategic partnership with the worlds leading manufacturer of motorcoaches," said Rick Heller, CEO of MCI.

"The strategic intent is to maintain the integrity of the MCI and Setra brands. This includes maintaining a separate new-coach sales effort. Much of the consolidation will occur in internal and support functions, and we will communicate these changes with our customers as quickly as possible," Heller added.

Joining MCI to continue selling Setras are representatives Darril King and Juan Lepe, along with Janet Cathey.

Additionally, Patrick Scully, chief commercial officer of Daimler Buses North America, also is moving to MCI. Scullys new job title and responsibilities were not disclosed.

"We expect the transition to take about 150 days to complete, with minimal disruptions to both MCIs and Setras customers," noted Sandra Morison, chief financial officer at MCI

"Our goal is to quickly integrate Setras support processes within MCIs current network."