Spanish coachbuilder Irizar meeting its U.S. sales goals

By Debbie Curtis

ORMAIZTEGI, Spain – Spanish bus and motorcoach manufacturer Irizar, which is wrapping up its second year in the U.S. market, continues to meet its sales goals.

The company, which is headquartered in Ormaiztegi, is well-known brand throughout Europe and sells buses in 90 countries.

But its motorcoaches were largely unknown to American operators when it entered the market in 2016, so the company expected it to be a challenge when it set a goal of capturing 10 percent of the premium coach market in five years.

So far that goal remains on track.

“It is only our second year in the U.S. market,” said Axier Etxezarreta, director of Irizar USA. “In our first year, our goal was 25 units, which we met. In our second year, we wanted to sell 40 to 45 units and we met our goals.

“Our business plan has us selling 100 units by our fifth year,” Etxezarreta said.

Irizar, which has production plants in Spain, Morocco, Brazil, Mexico and South Africa and employs 2,800 people, has built a U.S. infrastructure and is slowly growing a customer base for the two versions of its 45-foot i6 motorcoach, the only model it has introduced in America so far.

The i6 coaches for the U.S. market are manufactured near the San Sebastián Mountains in Spain.

“Our exclusive distributor is INA Bus Sales in Las Vegas, and our customer base is growing in California, Nevada, Texas, Georgia and Florida,” Etxezarreta said.

“Irizar manufacturers high-quality products, and we are very, very close to our customers. We are quite proud of our after-sales service. It is one of our strong points. We take Irizar’s core values of safety, comfort, long-term durability, after-sales service and low cost of ownership very seriously.”

When it entered the U.S. market, Irizar selected Mike Haggerty, chairman and majority shareholder of CH Bus Sales, to get INA up and running. CH Bus sells Turkish-built Temsa motorcoaches, so Haggerty has experience with introducing foreign-made coaches to the U.S.

“He has proven that he has the ability to strategically guide a new product into the bus market,” Etxezarreta said. “There was a lot of skepticism about hiring the owner of a separate brand, but we are very focused here at INA about articulating our value and demonstrating our product’s luxury and low cost of ownership.”

Chad Dixon, CEO of INA Bus Sales, agreed that this is an exciting time to enter the U.S. market.

“We’re two years in, with one unit, the i6, and that bus has been very well received,” Dixon said. “The i6 is a 45-foot-long bus with a lot of value, and we encourage potential buyers to talk with owners who have already purchased one.”

Irizar buses have a striking exterior profile that embodies the European elegance that has made Irizar an icon throughout the industry. When Irizar decided to compete on the global stage and bring its product to the United States, there was a lot of work to do to redesign the bus to meet U.S. Department of Transportation, Federal Motor Carrier Safety Administration and Environmental Protection Agency standards.

“The i6 coach was designed specifically for the American market,” Dixon said. “There were many changes from the manufacturing standpoint, such as having the bus meet EPA requirements. Also, the width was changed from the 98 inches for European markets to 102 inches wide.

“Irizar has been building coaches since 1889, so with that experience, the company brings a lot of depth and history to the process.”

He said most operators prefer the Cummins engine and Allison transmission combination for 45-foot buses. Irizar’s buses have an integral monocoque design in stainless steel, so the entire frame is built to support the power plant and axles.

“This isn’t a 45-foot bus that is simply a body put down on a chassis, with two halves developed by different companies with competing bottom lines,” Dixon said. “The monocoque design means a more comfortable ride than buses that simply are built by putting a body on a chassis. At Irizar, there is one mission, one product. It’s a singular organization.”

Another core value is the after-sale support.

“We have service technicians available 24/7,” Etxezarreta said. “Here at Irizar, we realize that our customer needs buses on the road, and needs his profit margin. If we have a customer who has a problem that isn’t near a service center, we won’t hesitate to put our technician on a plane and fly him there.”

Plans for 2018 include expanding the sales force into the Northeast region of the country. Dixon said.

“There are approximately 2,000 motorcoaches purchased each year, with a lifespan of 20 years,” he said.

“It’s a long process to reach our sales goal of capturing 10 percent to 15 percent of the market, but with around 80 percent of the operators in the United States having a fleet of one to 20 coaches, we have a lot of opportunity to be successful.”

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