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TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Wed Jul 31 17:17:51 2013

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Charlotte-based bus manufacturer DesignLine USA has closed down operations for 10 days and furloughed its workers for the duration, the company confirmed Wednesday.

The firm’s headquarters and factory are located off Westinghouse Boulevard, where about 250 employees produce the buses. The company has numerous contracts with cities and agencies around the country, including Charlotte Douglas International Airport.

DesignLine was also the employer of former Mayor Anthony Foxx, who resigned both positions when he was confirmed as U.S. Secretary of Transportation. Foxx had served as deputy general counsel, making about $88,000 per year.

Several employees told the Observer they were notified in a companywide meeting Tuesday afternoon.

DesignLine declined to comment on the reason for the furloughs. In recent years, the company has had several setbacks, including a lawsuit by the city of Baltimore alleging missed deadlines, a cancelled contract with the Antelope Valley Transit Authority in California, and a bus that caught on fire at the Charlotte airport.

http://www.charlotteobserver.com/2013/07/31/4203899/designline-pausing-operations.html#storylink=cpy




On Wednesday, the DesignLine Corporation released a statement that it was suspending its business operations for 10 days, beginning immediately.

The corporation said, "During this period, employees will be furloughed and the Company will work on a resolution that will enable it to resume operations shortly."

DesignLine Corporation was founded in 1985 and is based in Charlotte.

The company specializes in technologically-advanced transit and coach buses for public and private operators.

Channel 9 reached out to Secretary Anthony Foxx's office Wednesday since he used to work at the plant.

A spokeswoman said under an ethics agreement Foxx signed, he's not allowed to discuss anything connected to Charlotte or his past employers.

http://www.wsoctv.com/news/news/local/designline-corp-suspend-operations-10-days/nY87B/

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(280619)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Wed Jul 31 17:21:53 2013, in response to TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:17:51 2013.

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Local busmaker DesignLine Corp. — which has struggled with production delays and lawsuits since relocating its headquarters here from New Zealand in 2006 — halted work today.

The company says it’s temporary, according to this statement:

"DesignLine Corporation announced today that it is suspending its business operations for 10 days, beginning immediately. During this period, employees will be furloughed and the company will work on a resolution that will enable it to resume operations shortly."

DesignLine released the information through PR firm FaegreBD Consulting in Indianapolis. A representative said the company isn’t releasing additional information.

The company is best known as the former employer of Charlotte’s former Mayor Anthony Foxx, who is now the U.S. Secretary of Transportation. Charlotte Douglas International Airport also runs several of its hybrid electric buses as shuttle transportation to CLT parking lots. In 2011, one of those buses caught fire.

The busmaker had started off 2013 with good news: its compressed natural gas coach bus has passed all phases of the critical Altoona bus test. The Altoona Bus Research and Testing Center in Pennsylvania vets new-model vehicles for the Federal Transit Administration. Some transit agencies, including Charlotte’s, require the green light from Altoona before buying particular makes.

Charlotte Area Transit System has bought hybrids buses from Gillig in San Francisco instead of vehicles from the hometown producer because DesignLine was unable to pass muster on Altoona trials.

In recent years, DesignLine wrestled with a string of canceled contracts and vendor lawsuits in the United States. Its operations in New Zealand, where the company was founded in 1985, faltered after unsecured creditors petitioned a court to liquidate the company.

DesignLine replaced its CEO last year. Former New York City Metropolitan Transportation Authority executive Joseph Smith replaced Brad Glosson, who had led a group of investors in purchasing DesignLine and relocating its headquarters to Charlotte from New Zealand in 2006. But problems continue to plague DesignLine. As recently as last month, the busmaker made news when one of its buses “suffered an apparent brake malfunction and rolled down a steep hill,” according to ARLnow.com, an Arlington, Va., news site.

http://www.bizjournals.com/charlotte/blog/going_green/2013/07/charlotte-designline-suspends-work.html?page=all

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(280620)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Wed Jul 31 17:26:53 2013, in response to TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:17:51 2013.

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This company is a joke! I wont be shock if its belly-up by the end of the year.

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(280627)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by R62CNG on Wed Jul 31 18:45:52 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:26:53 2013.

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You know, I tend to agree with you for this one. These guys are going do the same road that Orion had went 2-3 years ago and Flexible almost 20 years ago. Perhaps these guys should return to NZ since their regulations are more sued down there.

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(280646)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by RailBus63 on Wed Jul 31 21:30:43 2013, in response to TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:17:51 2013.

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Can't imagine NJ Transit is going to have much patience with them.

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(280650)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by AMoreira81 on Wed Jul 31 21:57:22 2013, in response to TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:17:51 2013.

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Might that be wby the MTA didn't even consider their bid? They've had too much stop and go...while MCI and Prevost are more reliable vendors.

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(280673)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by RailBus63 on Thu Aug 1 09:16:30 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by AMoreira81 on Wed Jul 31 21:57:22 2013.

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Exactly. They probably reviewed the financials and saw red flags.

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(280903)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Flxible4life on Fri Aug 2 08:08:22 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by RailBus63 on Thu Aug 1 09:16:30 2013.

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Can't NJ Transit get out of this contract and go with MCI? Total failure on DesignLine and failure on NJ Transit's executives for not doing enough homework on this company. Forget about the lowest bid. Why go to a company that's not proven? MTA saw something in the company which triggers ????. I don't know if NJT had precise conversations with MTA about this manufacturer.

MCI and Prevost must be smiling, although we wish not to see workers not getting paid during those furlough days and layed off. A set back for NJ Transit indeed possibly.

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(280917)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by centour on Fri Aug 2 11:03:23 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Flxible4life on Fri Aug 2 08:08:22 2013.

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Not a surprise at all. Once NJ Transit awards a low bid contract to a
company like this, it is doomed. Flxible.Eagle,Neoplan and Millenium were finished once NJT insisted on their design changes.They can't seem to be able to keep up with production costs and engineering changes.

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(280918)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by RailBus63 on Fri Aug 2 12:47:59 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by centour on Fri Aug 2 11:03:23 2013.

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Not a surprise at all. Once NJ Transit awards a low bid contract to a
company like this, it is doomed.


Selling buses to NJT didn't seem to hurt MCI or Nova, and NABI is hanging in as well.

Also, Neoplan was hurt far more by getting in way over their head on the MBTA contract for exotic dual-modes, CNG artics and trolley buses. Neoplan sold plenty of those diesel artics like NJT's.

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(280921)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Fri Aug 2 13:34:45 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by RailBus63 on Fri Aug 2 12:47:59 2013.

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MCI did, Chapter 11 bankruptcy

Nova Bus, with the scandal of NJ Transit executive and it could have been awarded to Orion.

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(280922)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Fri Aug 2 13:35:52 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by centour on Fri Aug 2 11:03:23 2013.

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NJ Transit is a bad luck agency.

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(281058)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Sun Aug 4 01:05:46 2013, in response to TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Wed Jul 31 17:17:51 2013.

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This company is something... just a few weeks ago DesignLine is filling some positions at the factory to boost up their workforce and if they are hire recently... man, its back to square one.

https://www.facebook.com/pages/DesignLine-USA/373749849384113

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(281087)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by RailBus63 on Sun Aug 4 11:26:21 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by Gold_12th on Fri Aug 2 13:34:45 2013.

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MCI did, Chapter 11 bankruptcy

Nothing to do with NJ Transit, though. The bankruptcy was due to 1. a drop in private-operator sales when the economy tanked in 2008, and 2. currency conversion issues when the Canadian dollar appreciated relative to the U.S. dollar, causing MCI to lose over $30 million.


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(281088)

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Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers

Posted by Gold_12th on Sun Aug 4 11:37:02 2013, in response to Re: TROUBLE @ DesignLine, suspends operations for 10 days & furloughing workers, posted by RailBus63 on Sun Aug 4 11:26:21 2013.

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They were holding up the production.

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