MOTORCOACH EXPO 2017 to Controversial Lease Rule WASHINGTON — Officials Ciation in Opposing the Rule
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October 1, 2016 UNITED MOTORCOACH ASSOCIATION FMCSA to consider changes MOTORCOACH EXPO 2017 to controversial lease rule WASHINGTON — Officials ciation in opposing the rule. of the United Motorcoach Associ- Those efforts led FMCSA ear- ation are cautiously optimistic that lier this year to extend the compli- federal regulators are considering ance date from Jan. 1, 2017, to Jan. making changes to the controver- 1, 2018, “to provide sufficient sial Lease and Interchange Rule is- time to address the issues raised by sued more than a year ago. the petitioners.” The rule was greeted with an Most recently, FMCSA an- onslaught of criticism by the in- nounced in the Federal Register dustry, and 37 petitions were filed that it is considering four changes asking the Federal Motor Carrier to the rule based on the petitions Safety Administration to reconsid- for reconsideration and that it er the rule. would hold a public meeting to UMA initiated the calls for re- discuss the proposed revisions consideration, and an influential with industry stakeholders. congressman joined with the asso- CONTINUED ON PAGE 17 c Speed limiters would affect Registration for UMA Motorcoach Expo 2017 in St. Louis is in full swing and exhibit spaces are filling fast. This issue of Bus & Motorcoach News includes a brochure insert with all the information you need to plan your Expo experience. Photo by Dan Donovan for the St. Louis Convention & Visitors Commission. coach operators differently WASHINGTON — A federal requirements. proposal to require speed-limiting “The purpose of this joint rule- Curbside carriers helping reshape devices on new buses probably making is to reduce the severity of will affect motorcoach operators crashes involving these heavy ve- East Coast line-service industry differently depending on where hicles and to reduce the number of they operate. resulting fatalities,” NHTSA and BOSTON — Curbside carri- Maria Wong of Lucky Star Bus at ties to the Asian bus community. The proposal by the National FMCSA said in the proposed ers, Asian-owned operators in par- the company’s newly completed “Despite resistance from lega- Highway Traffic Safety Adminis- rulemaking. ticular, have been scrutinized and 50,000-square-foot maintenance cy carriers and regulatory agencies, tration and the Federal Motor Car- They also said the requirement sometimes stigmatized as rogues complex in South Boston. their entrepreneurial spirit has rier Safety Administration, pub- would result in cost benefits of by the bus industry and regulatory While the agenda was fluid, a forced major changes in the line- lished last month in the Federal more than $1 billion annually. agencies. major goal was to convince the service segment of our industry,” But the curbside concept has curbsides to join with established he said. “They are clever enough to Register, would require speed lim- Motorcoach industry officials been successful and several East carriers by participating in indus- set their schedules and pickup loca- iters on all buses, trucks and multi- said the impact of the requirement Coast companies have made giant try trade groups such as the United tions for the convenience of cus- purpose passenger vehicles weigh- on passenger carriers would depend strides in changing both the per- Motorcoach Association. tomers rather than forcing passen- ing at least 26,000 pounds. on whether they operate in the ception and reality of their opera- Participating in the meeting gers to travel when and where it’s Maximum speeds could be set western or eastern United States. tions, as representatives of several were Joan Libby of Cavalier Coach handy for the bus company.” at 60, 65 or 68 mph — the exact On the East Coast, where traf- established Boston-area motor- Trailways, Tom McCaughey of At a time when the motor- speed has yet to be determined. fic is more congested, it is often coach companies recently learned. Flagship Trailways, David Wang of coach industry is shrinking, curb- The agencies will be accepting difficult for a bus to exceed 60 or In what might have been the first Eastern Travel Chinatown Bus, side carriers have helped keep one comments on the proposal through 65 mph. In the West, which is more gathering of its kind, owners and UMA vice president and COO Ken segment viable, LeBron added. Nov. 7 from the bus and trucking in- wide open and where speed limits management of the motorcoach Presley, and former UMA board “Their scheduled service offers dustries, highway safety advocates, can exceed 80 mph, motorcoach companies met recently with their chairman Godfrey LeBron. the same virtues as all motorcoach law enforcement officials and any drivers would be forced to stay counterparts from New England- “The success of the curbside transportation, such as reducing other interested parties. well below those limits. based curbside carriers for a first- concept has been a benefit to the traffic and saving fuel while cutting Manufactures would be given NHTSA said the proposal has hand look at their operations. motorcoach industry,” said LeBron, pollutants and carbon emissions. three years from publication of a been under consideration for The meeting was hosted by a compliance consultant with deep CONTINUED ON PAGE 8 c final rule to meet the proposed CONTINUED ON PAGE 14 c Go with an MCI Pre-Owned Pro View our pre-owned inventory online at PERMIT NO 1424 NO PERMIT mcicoach.com/preowned A New Flyer company PHOENIX AZ PHOENIX New Jersey Texas Illinois California Florida CANADA US POSTAGE PAID POSTAGE US Walter Sturdivant Randy Wilcox Brian Hill Bob Dethloff Marshall Deems Janet Cathey Guy Charron Guy Tessier PRESORT STD PRESORT Oct. 1 Oct. on or before deliver Please ostmaster: P (609) 876-3713 (609) 876-3711 (214) 725-0490 (847) 867-5191 (818) 519-7193 (678) 472-1743 (514) 240-8448 (204)771-8271 BMN Banner ad 090916.indd 1 9/8/16 1:17 PM ALL 35ft COACHES ARE NOT CREATED EQUAL VAN HOOL CX35 is so MUCH MORE V-Series Outlook with panoramic roof shown A STAPLE OF NORTH AMERICAN FLEETS FOR 15 YEARS, THE VAN HOOL C-MODEL CONSISTENTLY DELIVERS RELIABILITYAND VERSATILITY TO FLEETS WHILE PROVIDING THE LUXURY AND AMENITIES YOUR CUSTOMERS HAVE COME TO EXPECT. DISCOVER THIS SAME BIG COACH LUXURY ON A SMALLER SCALE IN THE VAN HOOL CX35. 877-427-7278 www. abc-companies.com Bus & Motorcoach News INDUSTRY NEWS October 1, 2016 3 Convicted operator Berg featured on ‘American Greed’ SEATTLE — Darren Berg, a at the time by The Seattle Times dering and bankruptcy fraud in the luxury bus company he found- dustry Achievement Award in former motorcoach industry star and the Puget Sound Business connection with his bilking of ed, MTR Western, and its sister 2007, and was elected to the board who is serving 18 years in prison Journal, the show lays out Berg’s hundreds of investors out of tens companies. of the American Bus Association. for defrauding hundreds of inves- history of financial scandal, dating of millions during his seven-year Prosecutors said Berg would Additionally, Berg funneled tors out of more than $100 million, back to college fraternity days at scam. pay MTR Western costs from the millions to himself to maintain an is now a TV star of sorts. the University of Oregon. He also is alleged to have tried Meridian investment accounts, extraordinarily lavish lifestyle that Berg’s sordid saga is the sub- Berg himself is not interviewed to conceal $400,000 during his then doctor the accounting entries included luxury yachts, private ject of a new segment on CNBC’s for the segment. He is incarcerated bankruptcy proceedings in an ef- to indicate the payments went to jets, expensive cars, multiple “American Greed,” which first at a low-security federal prison in fort to retain a portion of his ill- issuing mortgage loans. homes, and remodeling his $12 aired last month and can be found Lompoc, Calif., and won’t be re- gotten gains. Upwards of $45 million to $48 million waterfront Mercer Island in reruns on the cable business leased for at least a decade. Over the years, Berg told in- million of the $350 million inves- mansion into a showpiece. channel. But his boyish charm is on dis- vestors he was using their money tors gave Berg over the years was Prosecutors said Berg’s invest- The 20-minute segment, “Se- play in a video Meridian recorded to finance real estate develop- pumped into MTR Western, which ment funds operated fraudulently attle Roasted,” looks at Berg’s free- showing him making his pitch to ments and make loans. Instead, he between 2003 and 2009 grew from as early as 2002, its financial prob- spending lifestyle, his artful chica- potential investors in March 2009. misappropriated the money to four coaches to be the industry’s lems compounded by unauthor- nery with the Meridian Mortgage Grinning, he tells them grandiose- repay earlier investors — a Ponzi 12th largest operation with a fleet ized withdrawals to fund his lavish funds, and his obsession with ly, “I’m actually having fun in this scheme — while enriching of nearly 170 coaches. lifestyle and the tens of millions building a fleet of high-class tour economy. There’s nothing funner himself. Along the way Berg became sunk into creating MTR Western, a buses using tens of millions in than being right.” He also has been accused of the initial winner of the industry’s company that was sold in bank- misappropriated money. Berg pleaded guilty in August taking money meant for real estate Green Highway Award in 2008 ruptcy court and continues to oper- Drawing heavily on reporting 2011 to wire fraud, money laun- investments and diverting it into and the BusRide Motorcoach In- ate under new ownership.