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  1. #1
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    Default Spartan Announces Road Rescue to Close if buyer not found

    Spartan Motors today announced that Road Rescue it's ambulance builder in SC will close it's doors by the end of 2010. Effecting about 150 employees. If a buyer is not found.
    Last edited by Trucknews; 06-24-2010 at 04:02 PM.
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  2. #2
    Forum Member islandfire03's Avatar
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    no loss not having TOAD rescue on the market.

  3. #3
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    I supose that Spartan prices may increase some now.

  4. #4
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    I heard Crimson was on the chopping block as well. Seems like Spartan is bleeding badly right now.

  5. #5
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    I'm sure Spartan will do better as soon as they start selling the LED headlights.

  6. #6
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    What if corporate "ROSY" makes a play for all of Spartan. Their own chassis' + Crimson.....just sayin......



    and if they could put LED headlights in everything, I mean imagine the possibilities.

  7. #7
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    Smile Possible

    What a combination - big corporate mismanagement + no QC program. What would they call it Crimbauer or Rosefire

  8. #8
    Forum Member FIREMECH1's Avatar
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    I'm not a big fan of anyone that throws blood in the water, as bait. Throw me the whole cow, as it were.....


    Spartan Motors Announces Business Realignment: Exiting Road Rescue Ambulance Operation, Reducing Operating Costs
    CHARLOTTE, Mich., June 22, 2010 /PRNewswire via COMTEX/ --Spartan Motors, Inc. (Nasdaq: SPAR) today announced its intent to exit its Road Rescue ambulance operation as part of the Company's continuing review of all aspects of its business. The exit will allow Spartan to focus its resources on the highest growth and profit opportunities. The exit from the underperforming Road Rescue operation is expected to be completed by the end of 2010. In addition, Spartan announced a number of actions designed to reduce expenses and better align its cost structure with current levels and mix of demand.
    The exit from Spartan's Road Rescue ambulance operation in Marion, South Carolina is part of a long-term strategic review initiated at the beginning of the year of all parts of the Company's business. These actions are designed to focus Spartan's resources on those operations with the greatest potential for sustainable growth and profitability. Spartan expects to complete the exit by the end of the year following the fulfillment of existing customer orders. The Company is in discussions with potential purchasers to facilitate a sale of the operations or facilities as part of the exit plan. Road Rescue generated approximately $20 million in revenues in 2009 and it employs 132 full-time associates.
    "We are strategically focused on providing compelling products that generate sustainable growth and profitable market share, highlighted by good momentum at Spartan Chassis and Crimson Fire, as well as our recently announced new commercial van product at Utilimaster and our collaborative efforts with Isuzu," said John Sztykiel, President and CEO of Spartan Motors. "Over the last 12 months, Spartan has evolved, as has the Emergency Response market, and the Road Rescue operation is not large enough to justify the resource commitment when we have greater potential elsewhere. Road Rescue partnered with another ambulance company, where there is additional scale and product breadth, would be a real asset."
    Spartan also announced a number of actions to realign its cost structure. These included a temporary reduction in Board of Directors' retainer fees, salary reductions for members of the executive leadership team and other senior leaders, some select workforce reductions, and other actions as part of its continuing efforts to reduce fixed costs to better match its current level of business.
    "Although these decisions are never easy, as they impact the lives of our associates and the communities we serve, we believe these actions will result in improved effectiveness in our operations. It also allows us to better focus our efforts in Spartan's five core markets - emergency response, outdoor recreation/RV, defense, delivery and service, and specialty - while maximizing demand for Spartan chassis, aftermarket parts and assemblies and the Isuzu strategic alliance. We have tremendous strategic opportunity, and it is imperative we reduce our operational cost base to improve our position going forward."
    With the realignment actions and exit from Road Rescue, Spartan expects to incur pre-tax one-time charges of approximately $6 - $7 million, the majority of which will be recognized in the Company's second and third quarter results. Management expects these actions to reduce the Company's permanent cost structure by $5 - $6 million on an annualized pre-tax basis.
    Joe Nowicki, Chief Financial Officer, added: "The actions we announced today represent our continuing efforts to right-size our operations based on the current business environment. Our exit from Road Rescue is a result of our ongoing evaluation of all areas of Spartan's business and is an important next step in executing on our previously announced strategic financial plan. It will allow us to concentrate our resources and product development in our highest growth, most profitable opportunities, and we believe it was necessary to ensure our long-term success."

    FM1

    PS: Thanks Tom
    I'm the one Fire and Rescue calls, when they need to be Rescued.

    Quote Originally Posted by EastKyFF
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  9. #9
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    Here's some more cow. The update to the story

    Spartan Motors Inc. (SPAR) said it will shed its undersized and underperforming ambulance operation as it unveiled a separate series of cost cuts, including unspecified layoffs.

    Later Tuesday, Chief Financial Officer Joe Nowicki said the layoffs--at three facilities in South Carolina, South Dakota and the company headquarters in Michigan--were a "slight reduction" and didn't constitute a material change.

    The company had said in a statement it planned "select work-force reductions" as well as reductions in retainers for its board of directors and salaries for senior leaders.

    Spartan, which makes chassis--or internal frameworks--for automobiles, will exit its Road Rescue ambulance operation so it can focus on projects with higher growth and profit prospects. It is in talks with potential buyers for the ambulance business regarding both the entire operation and just facilities.

    Nowicki said later that Spartan has received more inquiries about the operations being sold since the company announced its plans.

    "The Road Rescue operation is not large enough to justify the resource commitment when we have greater potential elsewhere," Chief Executive John Sztykiel said. "Road Rescue partnered with another ambulance company, where there is additional scale and product breadth, would be a real asset."

    The exit is slated for completion by year's end, after the unit fulfills current customer orders. At that time, if Spartan hasn't achieved a sale, it will close Road Rescue, Nowicki said. He added the company has several programs in place for the unit's 132 full-time employees if that's the case, including severance and looking to place them in other spots in the company. Road Rescue had revenue of $20 million last year.

    The restructuring moves will result in a $6 million to $7 million charge, mostly in the second and third quarters, and they should reduce annual pretax costs by $5 million to $6 million.

    Spartan shares were flat after hours at $4.69. The stock has dropped by half in the last year.
    Trucknews/evehiclenews.com

  10. #10
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    I was told from a friend who spoke to the Spartan CEO that the divestiture of Road Rescue was done to allow increased investment into Crimson so they can accelerate Crimson's growth plans. For those that don't follow Spartan Stock Crimson has been profitable for a while now.
    cp

  11. #11
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    Profitable? barely, read the earnings reports and analysts info. any profit was very small, reflective of the industry in general.

  12. #12
    Forum Member Rescue101's Avatar
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    Quote Originally Posted by ffp20 View Post
    Profitable? barely, read the earnings reports and analysts info. any profit was very small, reflective of the industry in general.
    If you are AT ALL profitable in todays unstable markets,I'd say you were doing OK. We're down close to 40% compared to two years ago. Thanks Obama! T.C.

  13. #13
    Forum Member CaptOldTimer's Avatar
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    Ask Seagrave about profits!!!

    They are barely holding their own! No bids for the DCFD, should tell you something.
    Stay Safe and Well Out There....

    Always remembering 9-11-2001 and 343+ Brothers

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