We need strong indigenous bus manufacturers and bodybuilders. A sector that offers quality and choice. One that meets our needs today and can innovate for tomorrow.
Yet, the sector has been shrinking in recent years, both through pre-deregulation structural changes and post-deregulation market fragmentation. Just recall some of the erstwhile builders who are no longer with us: Leyland, Bristol, Bedford, Ford, Northern Counties, ECW, Park Royal, Willowbrook, Duple… even East Lancs, which brings us to the point of today’s post.
Yesterday came the news that Ashok Leyland will almost triple its stake in Optare. This will give it control of the company. This was not altogether unexpected. It’s also subject to the agreement of Optare’s shareholders. In all honesty, they can’t refuse. If they do, in Optare’s words, “the company does not have, at this stage, alternative means with which to finance its on-going operations and thus will not be able to continue to trade”.
That’s quite a frightening prospect for existing (after-market), current (in-build) and prospective customers. And for the operating industry as a whole. Optare may be a (significant) minority builder but it has more manufacturing capacity now than it ever had in the past and it certainly has allusions (rather than delusions) of grandeur.
Optare’s history has been somewhat turbulent. Remember United Bus? North American Bus Industries? Jamesstan Investments? The reverse takeover by Darwen (formerly East Lancs)? And the Rapta and Solo+ debacles?
Some of its history is best left unsaid. On the positive side, Optare once formed close working relationships with operators (e.g. Wilts & Dorset) and still has the ability to do so (e.g. with Trent Barton over the new Tempo). What Optare really needs is some stability. We’ve been promised that at every significant regime change or restructure. This ltest via the huge Ashok Leyland brings very significant investment potential.
When referring to the NBfL, we felt that the Autocar vehicle testers where somewhat harsh when they felt that there was no design flair in bus manufacturing. There is and this has largely been the result of Optare. Take the Versa. It’s shown itself to be a well-respected bus that stands out from the crowd. The Solo may have its critics but, for those who operate it, Solo is a known product and one that doesn’t seem to age. Buy a new Solo today and you can line it up against an original 1998 model and passengers wouldn’t know the difference. That’s important if you agree that design is a major factor in tempting and retaining passengers. Tempo performs well, has manful acceleration and now seems to be getting the facelift it deserves.
Above all, we need choice in as vibrant a market as possible. Operators are still investing in spite of tough trading conditions and the uncertainty this brings—not to mention any uncertainties of yesterday’s Competition Commission report. Optare sales are marginally down this year, even though single deck buses in particular, especially from ADL and Volvo, have done well. Renewed interest via the Green Bus Fund might stimulate the market further, in 2012. Operators need to be in the mix to keep the bigger boys on its toes and to offer real alternatives to mainstream products. Long may it continue to do so.
Manchester photo: Omnibuses’ Northern Correspondent. With greener technology now firmly on the agenda, does Optare compare well to Wrightbus, ADL and Volvo?
Wednesday, 21 December 2011
Optare: Ever-changing
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12 comments:
Given its turbulent history it's really quite remarkable that Optare is still with us and without Solo coming along when it did, they probably wouldn't be.
That said, it operates in a very difficult market - asking cutomers to part with many millions, if not a couple of hundred thousand pounds for something (or several things) that ought to be able to give good reliable service for say 15 years. That's a big ask and the big operators don't often take that kind of risk with unproven products, so Optare has always had to cosy up to the smaller and medium-sized players with the inherent danger that those operators (e.g. Wilts & Dorset) then get taken-over and their buying policy changes.
The big fleets haven't taken to Optare's products, other than Solo, in any great numbers and even with the Solo it took Stagecoach until 2004 to buy in volume which, having done so, and replaced Mercs, it won't need to replace Solos now for quite some time. In fact, I understand that those put into Hastings a couple of years ago are having to be replaced by E200s due to capacity issues. E200s, note, not Versas.
So why does Optare struggle with the big boys? Are they seen as vulnerable and thus perhaps won't be there in five years? Is it price? Vehicle reliability? After-sales service? Capacity? Purely reputation? A mixture?
Not sure that I agree with Busing about the Versa. Optare has undoubtedly shown much flair and originality in its designs, starting with the original City Pacer back in the 80s. It has, in many ways, led the field in bus styling, but the Versa always looks rather uncomfortable to me.
Perhaps it's that rise in the roof line at the front together with the sharply tapered front, but my eye has never adapted to liking it, whereas most previous Optare designs I have thought excellent.
I was unsurprised by the further Ashok Leyland investment, as I'd been expecting it since the original investment was made. The Indian investment parallels what has happened elsewhere in industry as India, and also China, develop. It looks likely to go further in the future.
Events have now almost gone the full circle. Optare was born out the the ashes of British Leyland's Charles H Roe subsidiary, whilst Ashok was British Leyland's Indian associate (or was it even a fully owned subsidiary at one time?). Now they are back together and the boot is, perhaps, on the other foot.
I like the Solo, and the Versa, although it wasn't love at first site with the later. These, together with the Solo SR offer something visually different from the standard box-like E200. As stated in the article, smaller operators do take Optare products. I have seen negative comments about Optare reliability on this site before, so wondered how this (and price) compares with ADL? There are still many Mercedes Varios out there that will need replacing with low floor midibuses. My local independant - Faresaver of Chippenham is acquiring a mixture of Solos and Dart SLFs to replace it's fleet of Beavers. Western Greyhound has taken several Solos. The beauty of the Solo to me is the many body lengths and the availability of a slimline version, making a very versatile product.
On a separate note, I was amused at reading some of the comments on press articles about NB4L expressing pride that this bus was British built! The fact that most buses on our roads are British built (albeit some on foreign chassis) seems to have eluded the British public.
Pete (Wilts)
Question from the Continent : how do you pronounce Optare ? I've known the brand for years, but so far I have only encountered it in written form. Do you say "Optair" ? Or maybe "Optuh-ray", in a mock-spanish fashion ? At least, although my native language is French, I don't think it's pronounced "Optahrrr". Or is it ?
"Optair" - so it rhymes with "care"
@Anonymous 14:28 : thanks. It sounds like the most logical solution.
Optare have made some odd decisions though, such as giving up bodying other people's chassis, when they had a nice steady business producing open top Volvos for sightseeing, for example, and East Lancs bodied quite a few Scanias before the Olympus tilt test fiasco...
Solo, are nothing like the Cheap and cheerful Merc709D! Solos are also not great buses for passengers, many around my area call them a tin of sardines! and Stagecoach HAVE infact taken most of them off the local routes and also replaced them with E200...
A bus with a foreign chassis, such as the VDL Borismaster,Volvo Scania are surely British bodied only.
ADL chassised buses are fully British
A fiver says Optare are not building in the UK by the end of 2012......?
;-)
Anonymous at 2215 said
"ADL chassised buses are fully British".
Not entirely. Hybrid ones in particular use a drive system imported from the USA, while other component manufacturers e.g. Cummins and ZF are foreign-owned.
I didn't mean that Solos are the same as Varios, I meant that a lot of Varios will need replacing with a similar capacity low floor bus, and that the Solo meets that criteria. No doubt smaller operators will buy second hand. However maybe the Bluebird Orion Plus is a suitable alternative, though how the new price compares with a used solo I don't know.
www.bluebirdvehicles.com/documents/orionplusrev1.pdf
Pete (Wilts)
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