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September 25, 2009  |   Comments (0)   |   Post a comment

Is TCI responsible for U.S. Bus recalls?


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WASHINGTON, D.C. — Before U.S. Bus ceased operations in 2007, the Type A school bus manufacturer filed at least 15 reports with the National Highway Traffic Safety Administration (NHTSA) that vehicles it made failed to comply with federal motor vehicle safety standards or had safety defects, according to NHTSA.

Whether Transportation Collaborative Inc. (TCI), which purchased certain assets of U.S. Bus, is responsible for the former manufacturer’s recalls is now a subject of debate.

NHTSA has tentatively concluded that TCI is the successor of U.S. Bus and is therefore responsible for the obligations of the recalls.

However, TCI said in a statement that it strongly disagrees, but it will continue to work with NHTSA to resolve the issue.

TCI manufactures Type A buses under the Trans Tech brand. NHTSA said that TCI and U.S. Bus have continuity of ownership, management, personnel, assets and general business operations.

But TCI said that its “only tie to U.S. Bus is the limited purchase of assets.”

On Wednesday, NHTSA announced that it will hold a public meeting to determine “whether TCI reasonably met notification and remedy requirements for noncompliant and defective vehicles manufactured by U.S. Bus.” The proceeding may result in TCI being ordered to meet the obligations of the recalls, NHTSA said.

For more information on the meeting and the U.S. Bus recalls, click here.


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