What's Behind Curtain #1?

[Just Plain Jeff]

If you don't like long posts, skip this one.

Since Prevost Car is owned by Volvo, thought it might be worthwhile to learn a bit about Volvo and their possible intentions with the company.

First, Volvo AB, a publicly traded company, is the world's largest industrial corporation. In the first 6 months of 2007, their sales were US$180.2 billion. Their interests are in heavy construction, marine, transportation and financial services.

Volvo sold its US auto division some years ago to Ford for a reported $32 billion. The company is the leading manufacturer of buses in virtually every country in the world, ex-U.S. They bought Prevost Car and indirectly Blue Bird some years ago. They got out of the Blue Bird deal in the nick of time.

Why own Prevost?

Rumor is that they bought the company to learn about the U.S. bus market. To a company the size of Volvo, Prevost Car is chump change. What Volvo believes in is what is termed, "patient capital." They are willing to make a long-term investment with tight financial objectives, but with strategic goals in mind. There is no doubt, when viewing their market penetration in over-the-road tractors, that Volvo fully intends to become a major player in the U.S. bus market at some point; it's a big market.

From a coach owner's point of view, what all of this means is that Prevost Car is but one tool in the larger Volvo box of toys as they assemble information gathered from the operations of the company.

On the near horizon, Prevost will be dumping the Detroit Diesel Series 60 engine in favor of the Volvo 12.7 liter engine in some months. Volvo had already bought the old Mack truck plant in Hagerstown, MD and is going to produce this engine there, due to emissions requirements that the Series 60 can't meet in a bus. Volvo has tested this engine in Sweden in stainless-framed buses with some success. There has not been any wide-scaled testing of the engine in the U.S. on the interstate system from what we can gather.

Service for the new engines will be at Volvo truck centers and apparently Freightliner dealers once the new buses are produced. This is a big change for Prevost, as since at least 1951, Detroit engines have powered Prevost buses.

The coach side of the business, we have to remember, is but one part of the overall marketplace for Prevost. Perhaps more important is the seated coach and entertainer coach business. These are different shells in different dimensions and configurations, suited for different operational capabilities.

What is germaine to POG interests is that the coaches which are currently out and ready for sale are known qualities and have known track records. For those who may be seeing themselves in a new coach somewhere into the future, many in-the-know are suggesting that it would be wise to go with a Series 60 coach and not be a pioneer with the new engines.

What and when Volvo's plans may be on a larger scale for the U.S. marketplace aren't printed in big type anywhere. But if they execute a plan similar to that of the over-the-road tractor business, on a scale comparable to what they have done in other countries, somewhere down the line, expect to see a lot of Volvo buses, in one form or another on our highways.

Minor footnote: In May, I saw a new GM transport bus outside of St. Augustine, FL. The driver was NOT forthcoming with details, saying, "We're just testing it."

Stay tuned.

[Orren Zook]

Has anyone seen one of these on the road yet? www.teschner-coach.com

[Ray Davis]

Link didn't work for me. Googling the namce Tescher Coach produced nothing of value.

Ray

[Orren Zook]

Link didn't work for me. Googling the namce Tescher Coach produced nothing of value.

Ray

Whoops, I left the 'n' out.... the link is working now.

[Ray Davis]

Wow, they spent some money on their website. I didn't see any prices anywhere, but definately interesting. I wonder what it costs to convert a coach in Germany, and then import into US? More than I make in a lifetime!

[Joe Cannarozzi]

For their sake I sure hope that the motors Volvo puts out of that old plant are better than the Mack motors that came out of it.

I would compare the Volvo truck line to Freightliner, and I will leave it at that.

I will be surprised, but delighted, if Volvo will be able to enhance Prevost based on current products of both. Put me down as skeptical.

[Just Plain Jeff]

I know a fella who is a diesel mechanic for a large trucking company. They have a number of Volvo trucks.

He claims that his worst days are when the Volvo's come in for service and they require electrical work. Apparently all the electrical wires are WHITE. The only thing that distinguishes one from another are very tiny silver codes on them.

When they have to work on them, they rip out all the wiring and replace with standard colored wiring.

Yafjorskabjornenenum.

[JIM CHALOUPKA]

If you don't like long posts, skip this one.

Since Prevost Car is owned by Volvo, thought it might be worthwhile to learn a bit about Volvo and their possible intentions with the company.

First, Volvo AB, a publicly traded company, is the world's largest industrial corporation. In the first 6 months of 2007, their sales were US$180.2 billion. Their interests are in heavy construction, marine, transportation and financial services.

Volvo sold its US auto division some years ago to Ford for a reported $32 billion. The company is the leading manufacturer of buses in virtually every country in the world, ex-U.S. They bought Prevost Car and indirectly Blue Bird some years ago. They got out of the Blue Bird deal in the nick of time.

Why own Prevost?

Rumor is that they bought the company to learn about the U.S. bus market. To a company the size of Volvo, Prevost Car is chump change. What Volvo believes in is what is termed, "patient capital." They are willing to make a long-term investment with tight financial objectives, but with strategic goals in mind. There is no doubt, when viewing their market penetration in over-the-road tractors, that Volvo fully intends to become a major player in the U.S. bus market at some point; it's a big market.

From a coach owner's point of view, what all of this means is that Prevost Car is but one tool in the larger Volvo box of toys as they assemble information gathered from the operations of the company.

On the near horizon, Prevost will be dumping the Detroit Diesel Series 60 engine in favor of the Volvo 12.7 liter engine in some months. Volvo had already bought the old Mack truck plant in Hagerstown, MD and is going to produce this engine there, due to emissions requirements that the Series 60 can't meet in a bus. Volvo has tested this engine in Sweden in stainless-framed buses with some success. There has not been any wide-scaled testing of the engine in the U.S. on the interstate system from what we can gather.

Service for the new engines will be at Volvo truck centers and apparently Freightliner dealers once the new buses are produced. This is a big change for Prevost, as since at least 1951, Detroit engines have powered Prevost buses.

The coach side of the business, we have to remember, is but one part of the overall marketplace for Prevost. Perhaps more important is the seated coach and entertainer coach business. These are different shells in different dimensions and configurations, suited for different operational capabilities.

What is germaine to POG interests is that the coaches which are currently out and ready for sale are known qualities and have known track records. For those who may be seeing themselves in a new coach somewhere into the future, many in-the-know are suggesting that it would be wise to go with a Series 60 coach and not be a pioneer with the new engines.

What and when Volvo's plans may be on a larger scale for the U.S. marketplace aren't printed in big type anywhere. But if they execute a plan similar to that of the over-the-road tractor business, on a scale comparable to what they have done in other countries, somewhere down the line, expect to see a lot of Volvo buses, in one form or another on our highways.

Minor footnote: In May, I saw a new GM transport bus outside of St. Augustine, FL. The driver was NOT forthcoming with details, saying, "We're just testing it."

Stay tuned.

There has been discussion that Volvo dumped Detroit Diesel for the Prevost line and there were some who questioned the reasoning behind that policy. Now according to the article (letter) found in the link from our own Prevost stuff, it seems the decision was from the other side. Daimler AG stated that it would discontinue to supply new power train to several segments including Prevost. It would appear that Volvo is fortunate to have the resources to supply its own power train.

http://www.prevost-stuff.com/prevost_detroitdiesel.htm

[garyde]

In speaking with a Detroit Rep at the FMCA, it was Mercedez decision to make Detroit engines just for their own Companies. I believe it also has to do with emmision standards after 2010.

[mikedee]

I have been in a Tescher coach last Sept at the Nascar Truck race. They gave me a golf cart ride and some free shrimp. I liked the inside, exterior was not at all my style, under bay's were good. I was given a sales tour but they would not give me a price, weird.