NJ Transit advises MCI to temporarily suspend Commuter Coach order

Posted on July 12, 2016

Motor Coach Industries (MCI), a subsidiary of New Flyer Industries Inc., announced that MCI received notice from New Jersey Transit (NJT) that "requires an immediate and orderly shutdown of all ongoing work" under a contract to build commuter coaches.

MCI was awarded a contract by NJT in November 2015 with a firm order for three commuter coaches and options for an additional 1,219 over six years. After delivering three pilot coaches, which successfully passed the in-service testing and evaluation phase, MCI received a Notice to Proceed in May 2016 for the first year's production of 184 commuter coaches, of which 142 were to be delivered in calendar year 2016.

NJT advised MCI that the replenishment of the New Jersey Transportation Trust Fund Account (TTFA) has been delayed. Accordingly, Gov. Chris Christie issued Executive Order No. 210 declaring a State of Emergency and directing the Commissioner of the Department of Transportation and the Executive Director of the NJT to plan an immediate and orderly shutdown of all ongoing work that is funded by the TTFA. In accordance with the Shutdown Order issued by Dennis J. Martin , executive director of the NJT, all contract work financed by TTFA funds must begin an orderly shutdown.

"As of today, MCI has delivered five coaches to NJT with an additional 76 currently in various stages production or completed and in transit" said MCI’s President/CEO Paul Soubry. "We value MCI's long-term relationship with NJT and are working cooperatively and diligently to understand the impact of this funding disruption.”

Soubry further explained "MCI will shortly commence its annual three week summer shutdown and we will synchronize an orderly shutdown of NJT production to coincide with it and we hope this will provide sufficient time for the funding situation to be resolved."

The additional 61 commuter coaches to be delivered in 2016 that have not yet commenced production represent just below 2% of the total combined New Flyer and MCI annual bus manufacturing schedule for 2016. The company cannot predict at this time whether this issue will cause the company to adjust its annual production guidance.

View comments or post a comment on this story. (0 Comments)

More News

Alexander Dennis' Enviro500 concept bus on display in Singapore

The full low-floor, three-door, two-staircase double-deck bus is being shown at the LTA-UITP Singapore International Transport Congress and Exhibition in Suntec City.

ETA adds Intelligent Transit System to Grand Valley

The new ITS provides Grand Valley with ETA's real-time arrival predictions, fare collection system integration, automatic on-board announcements, and the tools to track and chart system improvements over time.

Proterra names Honeywell, Tesla vet to COO post

Josh Ensign’s track record includes leading global operations for 42 factories in 15 countries and managing the supporting supply chains. 

Nova announces 2 major orders for San Antonio VIA, Houston Metro

The buses will be manufactured in Plattsburgh, state of New York, and the delivery of the vehicles has already begun in Houston.

Driverless bus service in France sets world record

The two electric vehicles, fitted with high-tech equipment including laser sensors, stereo vision and GPS, can ferry around 15 passengers at a top speed of 12 mph.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close