Burgess comments on recent CDC withdrawal of Custom Coaches offer

By: Chris Smith


In an exclusive interview with ABC Mark Burgess, CEO Custom Coaches, commented on the recent withdrawal of ComfortDelgro Cabcharge in

In an exclusive interview with ABC Mark Burgess, CEO Custom Coaches, commented on the recent withdrawal of ComfortDelgro Cabcharge in the purchase of Custom Coaches.

"I can advise that after this announcement CDC confirmed their confidence in Custom Coaches by placing a significant number of new bus orders with us and commented that they intend to continue to support local suppliers while they focus on their core operations," he says.

"Custom Coaches will likewise focus on its core activity - manufacturing Australia's buses, and will deliver well over 400 buses already ordered by Australian operators for 2009."

According to the Cabcharge Chairman’s Report CDC has been carefully analysing its position regarding entry into the bus building business in Australia.

The report states shareholders have resolved that, given the current world economic situation, "we should not proceed with this business in Australia".

"Although we believe Custom Coaches is a very successful and well run operation we will not be proceeding with that acquisition nor the construction of the new bus building plant at Rutherford.
"CDC will continue to acquire buses to meet its requirements from the two major manufacturers in Australia – Volgren and Custom Coaches.

"In both the Taxi and Bus operations there are opportunities for acquisitions to support additional revenue growth," it states.

"In the current environment we will be particularly cautious in ensuring any such acquisitions meet our investment criteria in relation to shareholder return," it states.

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