Motor Coach Industries International announced the signing of a Letter of Intent with Daimler AG to acquire the Setra business in the U.S. and Canada and establish a strategic partnership with Daimler. The negotiations were scheduled to be finalized at the end of May, but no additional details were available at press time.

Daimler also announced that it will exit the transit bus business and wind down Orion transit bus production after fulfillment of current orders. Over the next 12 months, the operating facility in Mississauga, Ontario, will be closed and the facility in Oriskany, N.Y., will continue operations related to parts and field service only. All Setra motorcoaches will continue to be produced in Neu-Ulm, Germany. Daimler anticipates that operations related to Mercedes-Benz Sprinter in Greensboro, N.C., will be transferred to another Daimler facility.

For more information, visit www.mcicoach.com. LD06/12