TCI to administer U.S. Bus recalls

WARWICK, N.Y.- Transportation Collaborative Inc. (TCI), which manufactures Type A buses under the Trans Tech brand, will administer recalls on behalf of U.S. Bus in a settlement reached with the National Highway Traffic Safety Administration (NHTSA).

Last month, NHTSA reported that prior to ceasing operations in 2007, Type A school bus manufacturer U.S. Bus filed at least 15 reports with the agency indicating that vehicles it made failed to comply with federal motor vehicle safety standards or had safety defects.

NHTSA had tentatively concluded that TCI, which purchased certain assets of U.S. Bus, is the successor of the company and is therefore responsible for the obligations of the recalls. TCI said in a statement at the time that it strongly disagreed, but that it would work with NHTSA to resolve the issue.

In the latest developments on this issue, TCI said in a statement that it maintains its position that it is not a successor to U.S. Bus, but the company feels it is in the industry's best interest to administer the 15 recalls.

"Vehicle safety is paramount in our industry and TCI's primary focus is to produce quality Type A buses with the highest safety standards in the industry. In light of the public perception of TCI's association to U.S. Bus, TCI has commissioned an independent engineering firm to review and validate our manufacturing processes," the company said.

Under the terms of the settlement, NHTSA released TCI and all of its officers and employees - including its parent companies and subsidiaries - from liability for civil penalties in connection with violations of the vehicle safety act and NHTSA regulations.