Bustech placed into Voluntary Administration

[nathandavid88]

News has come out from Adelaide that Bustech has placed themselves into voluntary administration.

Over there, Bustech was party to an $11.75 million SA state government contract announced in January, in which it would supply vehicle bodies, with Scania to build the chassis. The deal was between the State Government and Scania, with Bustech being subcontracted by Scania. As a result, it sounds like Scania is left holding the bag if Bustech fails. I note that the QLD Government's Rail Replacement Bus deal was also with Scania & Bustech - I wonder if it was structured in a similar way, which could leave Scania holding the bag here as well.

Adelaide bus manufacturer hits roadblock
A northern suburbs firm contracted to deliver new school buses for the state government has gone into voluntary administration.

Isabella Kelly
Aug 14, 2024, updated Aug 14, 2024

Edinburgh-based BusTech SA, together with its Queensland counterpart, appointed a voluntary administrator on August 12.

BusTech SA was party to an $11.75 million state government contract announced in January, in which it would supply vehicle bodies, with Scania to build the chassis.

Transport Minister Tom Koutsantonis said he was concerned about BusTech's situation.

"I'm very concerned about some of their interstate liabilities that they have, that they'll have to honour," he said on FIVEaa this morning.

Koutsantonis said the government's contract was with Scania, which then subcontracted to BusTech after the government required a local manufacturer.

*snip*

"However, the responsibility for meeting contractual obligations with the state government ultimately rests with Scania. The state government has provided what assistance we can to BusTech within existing contractual mechanisms for an extended period of time."

Full article: https://www.indaily.com.au/news/2024/08/14/adelaide-bus-manufacturer-hits-roadblock

[SurfRail]

They made a series of poor business decisions in recent years, and were subject to some other unfortunate circumstances (eg their electric bus offering drew on a partnership with Proterra from the USA, which itself went under).

They may be able to trade their way out of it, or some venture capital mob might swoop in and buy the business.

If not - while I have great nostalgia for their products (having grown up and lived most of my life on the Gold Coast), and while they are much more passenger friendly in some respects than other vehicles, somebody else will fill the gaps.