Ikarus since 1991
The political changes in Eastern Europe meant the end for Ikarus'
priviliged position, as its main clients did not have the cash to buy
new buses.
Production collapsed from over 17,000 a year to a virtual standstill.
In 1991 the company was partly privatized, but the Hungarian state kept
most shares. Apparently a Russian "maffia" firm bought some 20%. It was
also split up into two different companies; Ikarus Vehicle Construction
Ltd for the construction of city buses, and EAG for the production of
coaches and midibuses. Various efforts to revive the company were not
very successful, but finally a well-known Hungarian businessman took
over control in exchange for shares. The state assumed the (huge) debts
and the Russian shares were bought back. The new management succeeded
in gaining consumer confidence again and sales increased. Ikarus
Vehicle Construction was reorganized in various divisions and the bus
production was separated. In 1998 it was sold to IRISBUS, the company
created by Renault and IVECO. It was renamed Ikarusbus and continues as
a separate entity. Both Ikarusbus and EAG buses are sold as Ikarus. The
Ikarusbus models are numbered in the 400 and C-series, the EAG models
are now named in the E-series.
Already in 1990, the main bus factory, where 200- and 400-series
buses were built, started producing a redesigned 200-series coach, the
ALFA series.
Limited numbers of the 256.74 and 256.99 were built in 1990-1992,
followed by a small number of 253, most of which were exported to
Kuwait. The standard 200-series bus received a facelift, including a
new front end, by the mid 1990's. This modernized 200-series is called
the C-series (for Classic). Models so far are the C60 2-door city bus,
the C63 3-door city bus, the C80 articulated bus and the C56 coach in a
number of sub-variants.
Several companies started modernizing Ikarus 200 series buses in the
1990's, either for export or for the owners of the vehicles. In former
Eastern
Germany, Manika has modernized a few dozen, among others with new
doors. In Hungary, Kravtez in Gyõr has modernized buses for export to
Russia and the Ukraine for a long time. Also, the former Volan (the
Hungarian national bus company) Rákos workshop is modernizing buses and
renaming them Union. Several, with a new front end, were recently
exported to Nigeria.
Ikarus in the US
An interesting, and complicated, part of the Ikarus history is its entry into the US.
Ikarus did the same as Neoplan and MAN and looked for a US partner
for final assembly and "americanization" of their standard 280
articulated bus.
The US version became the 286. An agreement was signed with Crown Coach
in 1978, who built 246 buses as Crown-Ikarus for various US cities from
1980-1984. After the end of Crown marketing, the same model was
assembled in Canada by Orion and sold as the Orion III, but only in
Canada and only to Ottawa and Toronto, from 1985-1989. A total of 257
were produced. In 1986 Ikarus presented a completely new model, the
416, based on the new Ikarus 400-series but redesigned for the US
market. A deal was made with Union City Body Company (step van
producer) in Union City, Indiana, for marketing and assembly of the
buses. Bus shells were still produced in Hungary. Ikarus USA was
created as a subsidiary company of Union City for sales and marketing.
The buses were sold as Ikarus USA from 1989-1992. By that time, Ikarus
in Hungary, and as a result the US operations, were in financial
problems. As mentioned before, Ikarus had its production seen falling
from over 17,000 in its best years to a few thousand units at best, in
just a few years time, because of the political changes in Eastern
Europe. Union City Body Company went bankrupt and Ikarus in Hungary was
desperately trying to survive.
This would have been the end of the Ikarus bus in the US if a
Hungarian immigrant to the US, Mr. Peter Róna, had not created the
First Hungary
Fund. Mr. Róna saw opportunities in Hungary for technology intensive
investments, building on the high quality but relativily cheap labor
force of the country. Seeing an opportunity to continue the sale of
Ikarus buses in the US, he bought Union City Body Company at a
liquidation sale for 1.3 million US$. He negotiated with Ikarus in
Hungary the transfer of one of Ikarus' bus factories in Budapest in
exchange for which Ikarus would obtain a 25% stake in North American
Bus Industries, NABI, a joint venture in which the First Hungary Fund
would own the other 75% of the shares. Ikarus accepted and NABI was
created in 1993. Until 1997 the two previous Ikarus standard 416 and
articulated 436 models were sold as American Ikarus.
Early in 1997 the FHF bought out the 25 per cent stake of Ikarus.
The company was then transformed from a limited liability to a joint
stock
company and is now traded at the Budapest Stock Exchange. The name of
the buses was changed to NABI. NABI rt in Hungary is the parent
company, with the engineering departments and the bus shell
construction. Bus shells are transported by train and ship to the US
where they are finished by subsidiary company NABI Ltd, now in
Allentown, Alabama. While NABI still is a Hungarian company, it no
longer has ties with Ikarus. In 2000 NABI bought Optare from the UK,
which so far exists as a separate entity. However, in addition to
introducing the Optare low floor bus in the US, NABI is now also
starting up production for the Hungarian, market, directly competing
with Ikarus
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