CHARLOTTE, Mich., May 17 /PRNewswire/ — Two of the nation’s leading heavy-duty specialty vehicle manufacturers today announced a joint purchasing initiative aimed at increasing product quality, improving supplier relationships, and reducing overall costs.
Spartan Motors, Inc. (NASDAQ:SPAR)
, which makes custom chassis for the RV, fire truck and bus markets, and Federal Signal Corporation (NYSE:FSS)
, a diversified manufacturer of industrial products and specialized vehicles, said the alliance should help the two companies increase their overall competitiveness. The joint purchasing initiative will impact all cost lines at the two companies and is expected to benefit all subsidiaries.
“Spartan Motors and Federal Signal share a common vision that involves constantly looking for innovative ways to improve our competitiveness, while maintaining our focus as niche manufacturers,” said John Sztykiel, Spartan Motors president and chief operating officer. “This purchasing alliance gives us the opportunity to make marked improvements in our respective cost structures without sacrificing our independence. We are confident it will translate into added value for our individual customers and increased returns for our shareholders.”
Richard Gibb, Executive Vice President of Federal Signal Corporation, and President of the Fire Rescue Products Group, added: “Our expectation with this purchasing alliance is to generate Best Practice initiatives that can be applied primarily to our Vehicle Group, but we anticipate some benefit to other portions of our business. Component costs are a huge line item at both Federal Signal and Spartan Motors, and we intend to drive action and accountability from this joint task force to ensure we maximize our combined resources and meet the respective strategic goals of both companies.”
Federal Signal Corporation (http://www.federalsignal.com/) is a billion dollar global manufacturer of leading niche products in four operating groups: safety and signaling products, custom signage, consumable industrial tooling and emergency and environmental vehicles. Based in Oak Brook, Ill., Federal Signal’s shares are traded on the New York Stock Exchange under the symbol FSS.
Charlotte, Mich.-based Spartan Motors, Inc. (http://theshyftgroup.com/) is a $255 million manufacturer of diesel-powered, custom-built chassis for fire trucks, RVs, transit buses, school buses and specialty vehicles. Spartan manufactures emergency vehicles and has a stake in school bus manufacturer Carpenter Industries, Inc.
The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements by the securities laws. These statements involve a number of risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices, and actual results may differ materially.
Source: Spartan Motors, Inc.
Contact: John Gaedert of Spartan Motors, 517-543-6400; Jeff Lambert or
Brian Edwards of Lambert, Edwards & Associates, 616-233-0500, LamEdPR@aol.com;
or Sonya Gossett of Federal Signal, 352-861-3517