New Vehicle Manufacturers Coming to Market?

By Ryan Gray

Despite the ailing economy, there’s chatter around the industry that new school bus manufacturers could be eyeing entry into the market, especially after GM filed for Chapter 11 on Monday.

The industry has already seen the Type A market grow this year, but on the large school bus side, there’s been chatter of late that a market that has shrunk in recent years to three major manufacturers could have a couple of more players.

Sources indicate that there’s something to rumors about at least one new large bus line if not two. There’s been talk about design sketches circulating, albeit it discreetly. Well not too discreetly if we know about it. Of course it’s all “unconfirmed.” But I can tell you that the interested parties have global reach, which these days really doesn’t tell you much. But they remain intriguing “rumors” with the potential to change the face of school transportation, if only by proving there is additional outside interest in investing in an industry hit hard by shrinking state and local budgets.

Competition is a good thing, as a new manufacturer or two could further drive innovation (more alt fuels, anyone?) while lowering purchase prices in a time when commodity prices ride the yo-yo and fuel is quickly approaching $3 per gallon (again). Then, there is the fact that Ford has announced it is foregoing diesel for gasoline, while GM is remaining entrenched with diesel. And the business of Monday with GM's bankruptcy.

Stay tuned as it could prove to be an interesting summer.