I’m concerned about the company’s prospects in the US. GW seems to be having a very hard time breaking into the market. For example, The Iowa contract was announced 2 years ago but transit systems in the state have instead opted for 30ft and 35ft buses from Gillig and Alexander Dennis instead.
Now, GW has had a contract cancelled in texas for non performance. It was for two buses but it is a very bad sign if they cannot even close on a small order like this, and yet still have aspirations of high growth in the US. Instead the 2 buses will be purchased from a competitor (ElDorado). I don’t think things are as rosy as Will Trainer and John Lagourgue want us to believe for the US Market.
Capital Area Transit System San Marcos, Texas, July 30, 2020 board meeting.
Item 10 (D) Update on Pre-Authorized Bus Procurements, Consideration/Action on cancellation of contract two (2) 30-ft buses from Alliance Bus Group aka Grande West for non-performance and to re-issue a contract to Creative Bus Sales for two (2) 32-ft EZ Rider buses
Update on Pre-authorized Bus Procurements, Consideration/Action upcoming Bus Procurements Mr. Marsh reported On July 30, 2019 we issued a purchase order to Alliance Bus Group for two (2) thirtyfoot buses for San Marcos in the amount of $777,838.86. Despite repeated inquiries we have been unable to secure a schedule for the buses to be built and the company appears to show signs of instability . He recommends that PO be canceled for non-performance so that we do not risk the use of the funds by the grant expiring prior to the receipt of the buses. He indicated that in n consultation with the City of San Marcos we will order similar units from the State of Georgia Mass Transit Buy board. After discussion, the following motion was made: To authorize staff to cancel Purchase Order 2019-019 to Alliance Bus Group for non-performance in delivery and production of two (2) thirty foot transit buses and to issue a subsequent purchase order for similar buses under the Georgia Mass Transit Buy board in substitution of the cancelled order.
http://www.ridecarts.com/images/uploads/board_meetings/July_30,_2020_Final_Agenda_Filed.pdf
http://www.ridecarts.com/images/uploads/board_meetings/July_30_2020_Board_Meeting_Minutes.pdf
While the US is a concern for sure, there are some recent orders in Canada. In Ontario Waterloo region has ordered 4 Vicinity bus and Simcoe County/Town of Midland 4 buses as well. There are some other tenders yet to be awarded. But most of the growth potential for GW is in the US so this type of thing is very disappointing.
