Spartan Motors Inc. announced today (Oct. 4) it will liquidate its struggling school bus business in order to concentrate on its core RV, fire truck and specialty vehicle chassis businesses, the company announced.
Spartan will take a $5 million after-tax charge against its third quarter earnings to account for closing its Carpenter school bus operation in Richmond, Ind. The company also will take a $2.1 million write-down to reflect excess school bus chassis inventory.
Additionally, Spartan has laid-off 20% of its salaried workforce, which will save more than $2 million in 2001, said John Sztykiel, president and COO.
“We are refining our focus toward operations that are proven winners: our core chassis business, which is perennially profitable even in a challenging market as the RV business is today,” said George Sztykiel, chairman and CEO.
Spartan’s RV and emergency vehicle chassis businesses “are on track for a 50% increase in their profits in 2000,” George Sztykiel added.