Denver-based bus manufacturer Neoplan USA told Massachusetts transit officials that it may cease production before the end of 2005, according to a Massachusetts Bay Transportation Authority document.
Neither Neoplan chief executive John Russell nor Jim LaRue, vice president for production, returned calls on Friday.
Neoplan was supposed to deliver 45 emission-control diesel buses by this month and the remaining 40 vehicles by May 2006, according to a status report posted on the authority’s website.
“Neoplan USA has informed the MBTA that due to severe financial difficulties, the company would very likely to be unable to meet its contractual commitments to the authority and that it was considering ceasing production before the end of 2005,” according to the report, dated Nov. 1.
The report goes on to say that the authority and Neoplan have concluded the company will not be able to manufacture and deliver any more than the 18 buses that have already been delivered.
The authority could not be reached for comment on Friday.
The Denver metro region’s Regional Transportation District has bought Neoplan buses in the past but presently has no orders with the company, said RTD spokesman Scott Reed.
RTD is withholding $250,000 from the company to assure it follows through on extended warranties on some buses, a standard contracting procedure,Reed said.
Neoplan negotiated an internal restructuring with the company’s six lenders in 2003. The bus manufacturer slashed debt by $39.4 million.
Last year, the company cut 100 jobs. At the time, CEO Russell said the move was meant to assure that the company stayed competitive.
The company is a leading maker of heavy-duty buses used by public transit systems.
Staff writer Tom McGhee can be reached at 303-820-1671 or tmcghee@denverpost.com.
