Bustech and Precision Buses formalise national joint venture

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Media Release

Australian bus manufacturers Bustech and Precision Buses have formalised their alliance with a national joint venture focusing on both capacity increase and technical collaboration, combining capabilities to address opportunities emerging from market driven changes to driveline technology.

The organisations first formed their alliance in late 2015 to bring to market Australia’s first designed, engineered and manufactured electric bus along with the first low-carbon Euro 6 Integrated Bus Architecture, the XDI.

Initially focused on the South Australian market, the alliance has since matured into a focus on national volume with the combined production capacity of Bustech’s Burleigh Heads facility in Queensland and Precision Buses’ Edinburgh Parks facility in South Australia in excess of 300 buses.

Luke Gray, Director of Bustech, said the formalisation of the joint venture was an obvious next step.

“We have been working with Precision Buses for over three years now and the relationship has gone from strength to strength. The closer we worked together the more we started to appreciate how formally bringing the two companies together would make perfect sense. The sharing of engineering know how has been there from day one but we wanted to take that to the next level.”

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“The additional capacity that Precision Buses has in Adelaide will allow the combined group to benefit from the capacity restraints in the market and we will be pushing this message very strongly over the coming months.”

Christian Reynolds, Managing Director of Precision Buses, said he is looking forward to closer collaboration with the Bustech management team.

“Combining the two teams from an engineering and technology perspective provides great opportunities at a pivotal time for the Australian bus industry. We have constructed a product road map which sees our collective capability focus on both Client and Passenger expectations and how public mobility will transform over the coming years. We understand how market adoption can increase very quickly and this relationship allows us to build an operational capability to address these needs as the market demands are addressed and fulfilled. When you add to that the desire for governments to increase falling patronage through technology enhancements and connectivity, the timing of this joint venture could not be any better.

This is a great example of what can be achieved when innovative companies work together, and the result will be the creation of value far in excess of what could have created working independently.”

Bustech currently delivers buses into Queensland, Victoria, New South Wales, Tasmania and the ACT. Precision Buses is working with Scania to deliver buses into South Australia.

The joint venture has tendered for the bus supply contracts in South Australia and Canberra which are anticipated for announcement in the next quarter.

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