Bob West

11/24/14

#047

By now everyone has heard the news from GM that MY2015 chassis will be on allocation and at a
percentage that is less than half of what upfitters received for MY2014.
For US chassis we have been advised that although we received the greatest percentage of
chassis amongst school bus manufacturers our allocation is less than half of what we had on order.
We had to have our confirmed orders, for our allocation through August of 2015, finalized by last
week and we endeavored to order what we believed would best suit everyone’s needs. Besides our
Model year quantity being reduced, no commitment has been made by GM as to when the
remaining orders will be built other than the reduced quantity will be spread out over the next 8
months.
We have pleaded our case with GM to no avail, with the only response being GM hopes to improve
the situation with MY2016 in September next year. The one compromise they are investigating is the
production of our school bus chassis to meet school start bus delivery.
Be assured we will continue to work with GM to increase our share, should their production situation
improve. Besides an increased demand for the Savana/ Express van and cutaway products the
demand for the new Colorado/Canyon pickup truck that has been integrated into the Wentzville plant
is the reason for the reduction in van/cutaway production. This reduction is not limited to school bus
manufacturers but everyone who orders these model products.
Although not the quantity we would like, we do have chassis available, and these will be assigned on
a first come basis, but chassis will only be placed on “hold” for a maximum of Three (3) days.
Confirming body orders not submitted in this time frame will have chassis returned for general
availability.
For Canadian chassis we have been advised that there will be allocation, but have not received
what that number will be. GM of Canada has indicated it may be 10 days before we know our
number. We have arranged a meeting in Oshawa with Canadian executives to plead our case for
limited reduction.
To overcome this shortage, discussion with Ford has shown they do have production capacity to
cover GM shortage and we have already secured a quantity with delivery in early 2015 – see
separate PAB.
PAB # 047

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As stated earlier this GM allocation is not limited to Thomas, and all school bus manufacturers are in
the same situation but believe we have reacted appropriately to keep an adequate chassis supply
available to meet your requirements.
We will keep you informed of changes as they happen.

PAB # 047

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