JANUARY | 2015
CH BUS SALES solidifies TEMSA in North America
BUSRIDE | JANUARY.2015
TABLE OF CONTENTS 4 CH Bus Sales solidifies TEMSA in North America
Over the last three years, CH Bus Sales has successfully introduced three TEMSA models in North America
Meet the CH Bus Sales executive team The principles speak to BUSRide on the first three years forming the company, bringing of three coach models to market and establishing aftermarket support
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CH BUS SALES solidifies TEMSA in North America
The TEMSA TS 45.
CH Bus Sales, Inc., Faribault, MN, serves as the distributor of TEMSA motorcoaches in the United States and Canada. TEMSA Global, a fully owned subsidiary of the Sabancı Group, headquartered in Adana, Turkey, manufactures and distributes coaches in their domestic Turkish market as well as International markets. CH Bus Sales and TEMSA Global signed their exclusive distributor agreement in February 2010. CH Bus Sales reorganized in September of 2011 with new ownership and management. Over the last three years, CH Bus Sales led by a handpicked team of motorcoach industry veterans has successively introduced three TEMSA models and launched its sales and aftermarket service networks. In May 2014, CH Bus Sales and TEMSA Global extended their exclusive distributor agreement. Collectively, the executive team shares more than 30 years of experience importing and distributing new motorcoaches: > Mike Haggerty, Chairman > Bob Foley, President and CEO > Duane Geiger, Executive Vice President of Sales and Service > Tim Vaught, Vice President of Sales, Service, and Product Development > Tony Mongiovi, Vice President of Sales, Service – Northeast > Tim Guldin, Vice President of Sales, Service - Southeast 4
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he two companies introduced the 35-foot TEMSA TS 35 to the North American coach market in 2011 and the 30-foot TS 30 in 2012 — the only mid-size integral monocoque designed coaches currently available in the U.S. market. With many operators finding their charter and tour groups getting smaller, CH Bus Sales and TEMSA Global are filling a significant niche with the TEMSA midsize coaches. Rather than send out groups in half-filled coaches, their purchase of TS 30 and TS 35 coaches are more economically appealing to offer smaller groups the same amenities and stable ride as a full-size coach. In 2014, CH Bus Sales and TEMSA expanded the product line with the introduction of the full-size, 45-foot TS 45 to provide the complete range in one brand of mid- to full-size coaches. The TEMSA family of coaches The mid-size TS 30 and TS 35 coaches offer the same amenities and comfortable drive as a full-size coach, seated at 34 passengers and 40 passengers respectively, with a restroom. These coaches are unlike most midsize cutaway models on the market. For smaller tour and charter groups, these coaches are perfect for over-the-road trips. They offer customers comfortable and spacious interior and optional amenities that include 110V outlets, USB plugins, and REI monitors for DVDs and/or Satellite TV. busride.com
TEMSA factory production in Turkey
TEMSA coach attributes: Manufactured with top European quality, TEMSA coaches are fully stainless steel of an integral design that deliver a durable and stable ride. TEMSA coaches come exclusively equipped with the Cummins – Allison drivetrain: • TS 35: Cummins ISL 8.9 345 HP EPA 2013 / Allison B500 Transmission • TS 30: Cummins ISB 6.7 250 HP EPA 2013 / Allison B300 Transmission • TS 45: Cummins ISX 12 425 HP EPA 2013 / Allison Gen 5 B500 Transmission The full-size TS 45 coach, a 56-passenger coach with restroom, includes top safety features that come standard: • Electronic Stability Control (ESC) • Roll Stability Control (RSC) • Lane departure warning system • Tire pressure monitoring system • Engine fire suppression system • Engine door open warning • Rear parking system • Brake pad wear monitoring system. The window glass on the TS 45 is another key safety feature, designed and constructed to keep passengers inside the coach during an accident or rollover. The windows consist of a tempered inner part and semi tempered-laminated outer part held together by a vinyl interlayer. The benefit of this type of glass is how it holds together when shattered to provide minimal injury by keeping passengers inside the vehicle. Three-point seat belts on the driver and all passenger seats are standard on all TEMSA coaches to ensure safety. The driver-friendly cockpit area features ergonomically-designed seating to ensure comfort and safety for the driver. Wheelchair lift options are available for all three coach sizes. CH Bus Sales aftermarket service and sales support CH Bus Sales service centers are located throughout the United States to support the TEMSA product by providing 24/7 after-sales service and TEMSA warranty support, as well as mobile service technicians: • Orlando, FL, opened in 2012 for port pickup, customer deliveries, dealer option installation, parts warehouse, warranty assistance and service work. • Las Vegas, NV, opened in 2011 for customer deliveries and parts warehouse. • Faribault, MN, is CH Bus Sales headquarters and administrative offices.
• Dallas-Fort Worth, TX, CH Bus Sales’ most recent sales and service center, opened in 2014 while continuing with the expansion plan for other regions of the country. Next to open is a facility in the Northeast in 2015 to provide stronger presence for the TEMSA brand in New York and New Jersey. CH Bus Sales also works with a number of authorized services centers to extend its after-sales support network nationwide. The company is looking to expand the number of field technicians that offer customer assistance with service bulletins, service work and specialized mechanical training. Marvin Borntrager, director of Parts, Technical, and Warranty has been with the company from the beginning and has done a great job in the aftermarket service support, according to Bob Foley, president and CEO. TEMSA driver training videos CH Bus Sales has created driver orientation videos to bring every driver that gets behind the wheel of a TEMSA coach up to speed on the equipment and its capabilities. These videos give a detailed run-through of the interior driver’s dashboard and full exterior compartments: • CH Bus Sales YouTube Channel • TEMSA TS 35 Driver Orientation Video • TEMSA TS 30 Driver Orientation Video • TEMSA TS 45 Driver Orientation Video – Coming Soon
The TS 45’s windows consist of a tempered inner part and semi temperedlaminated outer part held together by a vinyl interlayer.
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BUSRIDE | JANUARY.2015
Meet the CH Bus Sales executive team
Robert F. Foley, CH Bus Sales president and CEO
The CH Bus Sales executive team recently spoke to BUSRide [excerpts from the BUSRide interview, November 2014, CH Bus Sales: Three years later] on forming and reorganizing the company and bringing three coach models to market, as well as establishing vital aftermarket support. President and CEO Bob Foley; Executive Vice President, Sales and Service, Duane Geiger; and Vice President, Sales, Service and Product Development, Tim Vaught discussed the company’s progress, its products and continuing partnership with TEMSA Global. It is now 2015. Do you feel you have reached a plateau where you can catch a breath? Bob Foley: Three years ago, this is where we hoped we would be. We have 500 TEMSA coaches in the market, and we’re planning to open our third sales and service center this year. We have also extended our partnership with TEMSA Global, but we can’t exactly take a breather. There is a lot of work ahead. What excited you in the formation of CH Bus Sales?
Tim Vaught, CH Bus Sales vice president, Sales, Service and Product Development
Foley: Each of us had worked together at some point in our careers. The group had expertise in the different areas that are needed for motorcoach distribution. We are a small organization with some crossover in our roles. Some of us wear more than one cap, but we never have to worry about someone not understanding their responsibilities, and that was a big help in getting the group off to a good start. Tim Vaught: For me, it was the opportunity to work with this management group. Even though we had worked together for many years, this is our own project. It was exciting for me to get in on the ground floor of what looked like a very exciting company. Duane Geiger: We believed each one of us could do the job, and we have since surrounded ourselves with smart and professional people. We communicate well and we service our customers. We all understand what we need to do to be successful in this industry. What is the state of CH Bus Sales at this point? Geiger: In 2012, our first calendar year, we sold 100 new coaches. We sold 150 in 2013 and this year we will reach 200. These are not huge numbers but they are good numbers for a new high-quality coach in new markets. These numbers reflect our earlier introduction of two TEMSA models, the TS 35 followed by the TS 30, and the TS 45 this year.
Duane Geiger, CH Bus Sales executive vice president, Sales and Service
Foley: While we are proud of our progress, I have never found a situation where operators come looking for us. We will always go out and meet our prospective customers. Many may know of us, but several still do not know who we are. We have several demos in the field that we take from one operator to the next and continue to knock on doors. Trace a few keystones that helped CH Bus Sales gain a foothold. Geiger: We are fortunate to have TEMSA Global as our partner in Turkey. The company is an excellent manufacturer, which helped us greatly in introducing the 35-foot TS 35 and gain credibility. This busride.com | BUSRIDE
The luxurious TS 30 interior.
alone stands out with me, as our customers are seasoned bus companies throughout the country and theyâ€™re used to buying coaches. They are coming to respect the TEMSA brand. Foley: The biggest step, of course, was to put together our original team to build a consistent structure for receiving and delivering TEMSA coaches. Today we are up to 45 employees in our offices, service centers and in the field. Vaught: Much of that has to do with the systematic approach we have established not only to sales, but also to aftermarket service and warranty. Marv Borntrager joined our team early, to manage parts/ after sales service (warranty & technical) and has done a great job. We have streamlined all the processes from delivery to the service centers. Our consistent, repetitive delivery process is an immense help in quality control. Foley: We are fortunate to have found our location in Orlando, FL, so quickly. It is so conducive to what we wanted to accomplish with a consistent receiving and delivery process. We turn our PDIs and dealer-option installs quickly and the same way every time. This helps immensely in quality control for coaches going to market. What is the excitement in working with TEMSA Global? Foley: It has been exciting to work with TEMSA to create what we see as a unique niche in the industry. I truly believe leading off with the 35-foot TS 35 was the right approach for TEMSA because it was the only full-monocoque 35-foot bus in the North American market. It has certainly worked to our advantage in getting operators to know TEMSA and our new company. 8
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Vaught: After reviewing the product, I could see the heart that TEMSA Global had for the North American market, and they were more than willing to work with us to make the necessary improvements to the coach to best suit American operators. What are some changes you initiated to Americanize the TS 35? Vaught: We used high quality products that are long lasting, implemented subtle cosmetic changes such as redesigning the step well and entry, and reorganized the dashboard area. Our list of minor changes added up to a big difference. How significant was it to lead with the TS 35 instead of a more conventional full-size coach? Foley: This approach has allowed CH Bus Sales and TEMSA to gain a foothold in North America without the traditional 45-foot manufacturer competition. If we would have lead with a 45-foot model, folks might have been a little reluctant because of their brand preferences at that point. North American coach owners have struggled to find a shorter vehicle that would hold up. Introducing the TS 35 and following with the 30-foot TS 30 has allowed us time and space to work with operators and have them realize TEMSA builds a high quality product. Geiger: When we went out to meet operators in 2011, charter folks told us their tour groups were smaller than they once were and we got the feeling many operators were perhaps filling some but not all of their buses on every charter. It wasnâ€™t much more than our educated guess that they were ready for a solidly built full-fledged 35-foot motorcoach.
Geiger: We talk to operators about utilization. If they can fill their 45-foot coaches, then that’s the way to go. However, with group sizes getting smaller for a variety of reasons, for charters of less than 40 passengers, it is nice to offer an alternative to a half filled vehicle. What has the response been to the 30-foot TS 30? Foley: The TS 30 gives an operator even more versatility in booking smaller charters and longer school travel. However, we have had to convince many in the industry on the merit of this coach. One has to understand the quality, longevity and that this coach is more versatile, in order to justify the price over a cutaway. Was there always a plan to introduce the TS 45? Foley: The TEMSA factory was more than willing to work with us to eventually develop a 45-foot coach. At first I didn’t think we really needed the 45-foot coach, but customers were soon requesting the fullsize coach because of their success with the TS 35. We delved into it two years ago and are having success. What does it mean to be able to offer three TEMSA models in different lengths? Foley: Our family of three models is a distinguishing factor that separates CH Bus Sales. Other OEMs may promote other models and styles, but not as closely related as the three TEMSA coaches we offer. As a company, we need more than one model to build a sufficient volume of sales, and our family of TEMSAs gives us more to offer our customers. What is the state of CH Bus Sales aftermarket service at this point?
TEMSA displays at BusCon.
Vaught: The shorter TEMSA coaches are in no way a downgrade, but rather the perfect solution for a smaller charter group. Geiger: Most of the operators we talk to are getting 90 to 95 percent of the revenue they charge for their full-size coaches; and in some cases, the cost to operate the smaller coach is 50-percent less. We also have talked to some operators who have actually quit counting passengers. It didn’t matter if there were 30 or 55 riding their 45-foot coaches. With their TS 30s and TS 35s, they have started counting passengers again and measuring utilization. Foley: We have heard many times how spread out a tour group of 25 or 35 passengers becomes on a 45-foot coach, which is not the quaint atmosphere they enjoy. If you put a group of this size on a smaller coach of the same quality, it is a better experience. How is CH Bus Sales faring specifically in the midsize bus market? Foley: For the TS 30, the cutaway bus market is our competition. When companies are working with groups of 25 and 30 passengers for shuttles, schools and colleges, the cutaways work well in certain applications. For the groups that expect a little better ride more akin to a coach with more comfort and luggage underneath, though, that’s where the TS 30 is a perfect fit.
Foley: We are right on track, growing one step at a time. We most recently opened our sales and service center in Fort Worth, TX, and have an expansion plan for other regions of the country. We will be opening in the Northeast in 2015, which will give us stronger presence in New York and New Jersey. We are also putting more mobile service technicians in place. Can CH Bus Sales share any secret to its early success? Geiger: We are not ordering as many coaches as we could, simply because we are not necessarily trying to sell as many buses as we can. One of our policies is to sell only as many coaches as we can service correctly and efficiently. Foley: Putting too many out there too fast and not being able to service them is worse than not selling enough. CH Bus Sales is happy with the success it has had over these last three years in the industry. Looking ahead, the company is focused on providing a top quality product at an affordable price. CH Bus Sales is also working to improve and expand their after-sales support for their customers around the U.S. market. With the full range of coach models under one brand name, the company can offer any operator a coach to meet the needs of their fleet. Contact Information: Website: www.chbussales.com Email: firstname.lastname@example.org Phone: CH Bus Sales- MN: 507-331-7911 CH Bus Sales-NV: 702-247-4493 CH Bus Sales-FL: 407-271-8935 CH Bus Sales-TX: 817-484-0072
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