How Bus Transit Can Help the Auto Industry

busmap.pngA map of the companies involved in the supply chain for U.S. transit buses. (Image: EDF)

When Vice President Joe Biden visited
Minnesota’s New Flyer bus company to tout the economic stimulus law’s
$8.4 billion investment in transit, hopes were high for a boom in
cleaner-burning vehicle production — which made for some bad press when the nationwide transit funding crunch forced New Flyer to lay off 13 percent of its workers.

But
the recession hasn’t dampened the economic potential of hybrid bus
production, as the Environmental Defense Fund (EDF) laid out today in a
new report [PDF]
on the industry. In fact, EDF found, transit bus companies share enough
skills and regional foothold with the auto industry — the map of bus
makers pictured above could be mistaken for a map of automakers — to
pave the way for fuel-efficiency advances that would ultimately benefit
all vehicles.

After noting that 32 percent of American transit buses do not rely on gas or diesel to run, today’s report continues:

The
bus industry serves as an important entry point for advanced vehicle
technologies, especially in new vehicles that require refueling
infrastructure and other major changes. For instance, since transit
agencies have a well-defined base of centrally managed fleets, they are
ideal for testing and proving plug-in hybrid and all-electric buses —
thus leading the way for the passenger car industry.

While U.S. bus companies are well-positioned proving grounds for
cleaner-burning vehicles, their export potential remains low, according
to the EDF report. That’s largely because the largest market for
transit buses is China, where demand is expected to grow by 12 percent
annually over the next decade — double the projected growth rate in
North America — and where production standards are markedly lower.

"Emerging
countries’ lower technology levels and standards appear to prevent them
from competing in industrial country bus markets, while industrial
countries’ higher production costs and standards appear to prevent them
from competing in emerging country markets," EDF concluded.

Even so, there is a limited opening for bus supply companies to prosper on a global level. About 12,000 of Indianapolis-based Allison Transmission’s 14,000 sales have come in China, and Firestone, which produces bus suspensions, has operations in China and India.

Yet
it’s the domestic employment and growth potential of bus makers that is
the ultimate subject of EDF’s report, which notes that such potential
"is heavily dependent on the availability of public funding for bus
transit." And at a time when labor unions are pushing the job-creating power
of federal funding for operating costs, EDF’s findings represent the
other side of the coin — the role transit money plays in sustaining
manufacturing jobs many miles away from the cities where local networks
operate.

  • Jen Petersen

    Well! the federal government can play a heavy hand in creating urban demand for buses by ceasing to subsidize auto infrastructure…and instead rolling our tax dollars into clean buses and trains that serve more purposes than our fabricated ‘need’ for solo transport vehicles in cities. They ought to conscript Ford and GM into this reclamation, too, since they’re directly responsible for the messes created by cars in and around our cities!

  • Wad

    Jen Petersen wrote:

    They ought to conscript Ford and GM into this reclamation, too, since they’re directly responsible for the messes created by cars in and around our cities!

    Ford has a heavy-motor truck and bus line by its ownership stake in Volvo, but those buses are not available in the American market.

    GM used to produce its own line of buses until divesting its bus unit in the mid-1980s. It exited a low-profit enterprise that built a quality product to focus on the more lucrative manufacturing of cars of middling quality.

    The U.S. ceded the bus manufacturing industry to the Canadians and the Europeans. The European company that has captured much of the U.S. market is a Hungarian firm named … North American Bus Industries. (Metro almost exclusively buys NABIs).

    We don’t really need a domestic bus industry, and our contribution is Buy America policy that creates jobs but at an unreasonable cost.

  • Wad:

    Ford doesn’t own Volvo AB. Ford owns the right to use the Volvo name to market passenger car. The heavy truck and bus company known as Volvo has nothing to do with Ford. In fact, Volvo actually owns the remnants of GM’s heavy duty trucks and bus business in North America. Volvo has extensive sales in the US via its MACK, Volvo, Nissan UD and White brands of trucks.

    http://en.wikipedia.org/wiki/Volvo_Trucks

    As far as the bus industry in the US is concerned, it is simply a reflection of our national priority. We don’t have any domestically owned bus company anymore precisely because public transportation is an afterthought and the center of innovation moved to Europe in the 1980s and 1990s. Now they have took over our bus market and we are better off for it. European bus and coach companies (which all the remaining US-based bus companies including NewFlyer) invented and perfected things like articulated and low floor buses, CNG propulsion, and all manner of electronic driving aids and safety features. We now benefit from having these things here. But keep in mind that the European lead is only in coach construction. Americans still play a leading role in hybridization and transmission technology. Although GM no longer make buses themselves, they are still the leading supplier of diesel and diesel hybrid drivetrains for buses in the US. And Allison Transmission is still the best provider of bus transmission in the world.

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