Following the declaration of insolvency of Belgian bus manufacturer Van Hool on Monday, the company’s future has been clarified with the acceptance of a joint bid from Dutch competitor VDL and German trailer manufacturer Schmitz Cargobull.
Considered as favorites, VDL and Schmitz Cargobull’s bid was chosen over a counter-bid from Flemish entrepreneur Guido Dumarey and ABC Companies, Van Hoolās US dealer. The accepted bid will result in only 650 to 950 of the 2,500 employees being able to keep their jobs. Schmitz Cargobull is interested in Van Hoolās Belgian-based trailer division, while VDL is focused on the coach business.
Van Hool’s management had already favored a shift toward coaches over the loss-making city bus business. Competition and price pressure, particularly from buses built in Macedonia, made the city bus segment challenging. Additionally, delays in focusing on electrification, initially favoring hydrogen over batteries, resulted in higher battery costs due to late framework agreements.
The trustees chose VDL and Schmitz Cargobull’s bid to ensure a faster restart, fearing that delays with other buyers would lead to loss of customers and employees. Reopening the tendering process was deemed too risky, as it could lead to a six-week delay, halting production and distribution and negatively impacting employment.
Specialized employees are crucial for Van Hoolās unique products like tankers and double-decker buses. The trustees were concerned that leaving these employees in uncertainty would lead them to seek other jobs. However, Schmitz Cargobull plans to continue production in Lier and even build a new production site there, while VDL also intends to maintain employment in Lier.
