MCI To Stop Distributing Setra Buses

Posted on January 4, 2018
A Setra S417 motorcoach (LCT file photo)

A Setra S417 motorcoach (LCT file photo)

DES PLAINES, IL–- Motor Coach Industries (MCI) announced Jan. 4 that Daimler has terminated the distribution rights agreement for German built Setra motorcoaches in the U.S. and Canada starting June 29.
Under previous private equity ownership, MCI entered into the agreement as part of a transaction that resulted in Daimler owning 10% of MCI equity in 2012. When New Flyer Industries Inc., the owner of MCI, acquired 100% of MCI equity in December 2015, the distribution rights agreement (DRA) remained in place. The models covered by the agreement were the Setra S407 and S417 motorcoaches, introduced by Daimler in North America in 2003. Since 2012, MCI has sold only 282 new Setra coaches.

Daimler told MCI its decision was based on its belief that MCI’s own competing motorcoach models did not allow for sufficient attention to the Setra brand in Canada and the U.S. The decision comes as MCI is expanding its  motorcoach lineup and service network. Among recent moves, MCI has: Redesigned its best-selling J4500 model, recently introduced a new 35-foot coach, a fully accessible D45 CRT LE commuter coach, and announced plans to introduce a battery-electric motorcoach by 2020.
Sales of new Setra coaches will transfer to Daimler’s new North American distributor immediately, while parts sales, service, and warranty support for Setra coaches in service will remain with MCI and then transfer mid-2018. Under the terms of the DRA and as part of the transition, Daimler will re-purchase all new Setra coaches and service parts inventory on hand at MCI.

“We appreciated our relationship with Daimler, and will fully support the DRA transition for our mutual customers," said Patrick Scully, MCI executive vice president sales and marketing. "Most importantly, we will continue to focus on building our industry leading MCI coach brand, along with offering service and parts support for operators throughout North America.”
About NFI & MCI
NFI Group and its subsidiaries comprise the largest bus and motorcoach manufacturer and parts distributor in North America, with 32 fabrication, manufacturing, distribution, and service centers located across Canada and the United States and employing nearly 6,000 team members. NFI Group provides a comprehensive line up of buses and parts: New Flyer (heavy-duty transit buses), ARBOC (low-floor cutaway and medium-duty buses), MCI (motorcoaches), and NFI Parts (bus and coach parts, support, and service). NFI Group’s vehicles incorporate the widest range of drive systems available, ranging from clean diesel, natural gas, diesel-electric hybrid, trolley-electric, battery-electric, and fuel cell.

Motor Coach Industries is North America’s motorcoach leader, offering the J-Series, the industry’s best-selling intercity coach for 11 consecutive years, and the D-Series, the industry’s top-selling motorcoach line in North American history. MCI supports over 28,000 coaches in service.

Related article: REV Coach To Start Selling Setra Buses

Related Topics: bus manufacturers, buses, Daimler, MCI, motorcoaches, OEMs, Setra, vehicle parts, vehicle sales

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