Manufacturing Futures

Darwen and Optare to merge?

Would the operating industry best be served by a further restructuring in the bus-manufacturing sector? That is a difficult question to answer but, with rumours abounding of the imminent take-over by Tanfield’s Darwen Group of or merger with Optare this may be a question both the larger groups and smaller operators need to answer.

Let’s face it, we need a strong bus manufacturing industry. It’s only now that the consolidations and closures over the last thirty years are behind us. Strong, because it needs to meet the challenges set it by operators and government. Like lighter buses with more composite material; manufacturing capacity for a renewal programme to re-equip fleets ahead of DDA access requirements; and the development of emerging post-hybrid technologies. And not least, strong enough to thwart what many see as forthcoming competition from the emerging world markets of eastern Europe, China and India.

But we also need competition in the manufacturing market place. Any Darwen/Optare restructuring will potentially remove competing products. Or would it? Darwen’s 10.7-12.2m Esteem and Optare’s 10.5-12.6m Tempo are competitors, though one is an integral. Darwen is known to be considering integrals of its own.

The remainder of the product range is remarkably unique. Darwen’s more limited range excludes mini- and midi-bus competitors to Optare’s Alero, Solo and Versa; and in spite of consideration by Optare in the light of London’s calling for hybrid double decks, none has yet to merge from Optare—yet Darwen already has one, the Olympus (plus the Kinetic, in conjunction with MAN).

Darwen is small and Optare smallish when compared to Wrightbus and British manufacturing giant Alexander Dennis. In order to ensure continued research, development and investment, the industry may yet be best served by a Darwen/Optare merger; even if this foils the development by Darwen of future minis. The danger is that the supplier base becomes even more dangerously low. And for smaller operators, the jury’s still out on the closer working relationship announced last month between manufacturer Optare and wholesaler Mistral, in terms of price competition.