Economy, credit contribute to slide

Sales of new motorcoaches declined to their lowest level in four years during 2008, due largely to a dismal fourth quarter, a sharp plunge in purchases of conversion shells, and a slowdown in coach buying by many charter operators.

A total of 2,017 new over-the-road buses were sold in 2008, down from 2,173 in 2007, according to figures compiled by National Bus Trader magazine.

In 2006, 2,381 new coaches were sold; in 2005, new-coach sales totaled 2,058, and in 2004, only 1,668 new motorcoaches were delivered.

But, as National Bus Trader Editor Larry Plachno noted, in spite of the overall sales decline in 08, half of the new coach models matched or exceeded their 2007 sales.

Much of the full-year 08 sales drop occurred in the final three months of the year when deliveries plunged nearly 23 percent to 456 units. That compares to final-quarter 2007 sales of 591 new coaches.

The fourth quarter is traditionally the best quarter of the year for new coach sales, but last years final period was marked by very tight credit conditions and a rapidly sinking national economy.

The widely reported pullback in spending by wealthy individuals, whether for lavish homes, vacation retreats, boats or planes, plus the NASCAR slump and reduced touring by entertainment groups, hit the conversion shell market like a sledgehammer. Only 39 conversion shells were sold during the fourth quarter of last year, compared to 90 in the fourth quarter of 2007, or a near 57 percent slide.

The fourth-quarter drop in shell sales followed a 50 percent decline during last years third quarter when only 32 shells were delivered.

The percentage of imported coaches Van Hools and Setras sold in the fourth quarter of last year was essentially unchanged from the final quarter of 2007, but the overall number declined to 112 units from the 150 sold in the fourth quarter of 2007, Plachno reported.

"It is noteworthy that the Van Hool T2145, Prevost H3-45 and MCI E4500 models all matched or improved upon their 2007 fourth-quarter sales numbers in the fourth-quarter of 2008," said Plachno.

"This would suggest that business in the tour-and-upscale-charter market continued to be strong. Also showing an increase over the previous year were the MCI D4500 and D4505 models, typically representing public sector and traditional private-sector markets. There are also indications that the scheduled-service segment of the industry has been doing reasonably well, with Greyhound, megabus.com and other scheduled-service operators placing orders recently.

"Hence, we are left with the conclusion that the greatest part of the (fourth-quarter sales) decline seems to be centered around the low- and mid-range charter segment of the industry and conversion shells," Plachno added.

The best selling coach during the fourth quarter of last year was the MCI D4500, followed by the Prevost H3-45, Van Hool C2045, MCI J4500, MCI D4505, MCI E4500 and Van Hool TD925.

The MCI D4500 also was the best-selling coach during the third quarter of last year. Meanwhile, the J4500 slipped to No. 4 in the fourth quarter last year, with the H3-45 and C2045 each moving up a notch. The J4500 was the top seller for all of last year, however.

The appearance of the TD925 on the hit parade of top-selling coaches marked the first time a double-decker model had achieved such a distinction.

Other highlights of the 2008 new coach sales report:

The Temsa TS-35 was included in the National Bus Trader figures for the first time. The delivery of TS-35s to Cardinal Coaches of Middlebury, Ind., was included in the fourth-quarter numbers. The Temsa is manufactured in Turkey.

Sales of the Volvo 9700 model likely will be included in future reports. The 9700 is assembled in Mexico with a U.S.-made engine.

Sales of new coaches in Canada declined in the fourth quarter, sliding to 45 units, compared to 76 coaches in the fourth quarter of 2007.

Sixty-two of the coaches sold in the fourth quarter were delivered with ZF AS-tronic transmissions, or just under 14 percent of the total. Thats a decline from previous quarters.

Only 13 coaches sold during the quarter were 40-41 feet in length. The 45-footer still dominates with 96+ percent of the market.