Volánbusz joins BKV in terminating Ikarus Egyedi contract
State-owned long-distance bus operator Volánbusz said Wednesday it has decided to withdraw from a contract with troubled bus producer Ikarus Egyedi for the purchase of 180 articulated buses after the latter failed to deliver the buses even 90 days after the April 11 delivery deadline.
Referring to Ikarus Egyediʼs failure to observe the contractʼs stipulations, Volánbusz said it has informed the supplier of its decision and is seeking compensation.
The move comes after Budapest public transport company BKV Zrt. also announced on Wednesday its withdrawal from a contract with Ikarus Egyedi for the purchase of 30 Modulo buses after only ten buses were delivered by the April 11 deadline.
BKV recalled in a statement that in January 2017 Ikarus Egyedi had signed a contract with Volánbusz for the delivery of 180 Modulo M168d articulated buses. In December, Volánbusz, BKV and Ikarus Egyedi signed a contract for the transfer of 30 vehicles to BKV.
Referring to Ikarus Egyediʼs failure to observe the contractʼs stipulations, BKV said it is likewise seeking damages and is reviewing its other contracts related to Ikarus Egyedi.
Ikarus Egyedi filed for bankruptcy protection on Monday, asking the government to declare it a strategically important company and to participate in the restructuring. On Tuesday, the Ministry for Innovation and Technology met Ikarus Egyediʼs request.
The ministry noted that the government sees the development of domestic bus production as of major national economic interest. It stressed, however, that this policy is based on the activities of market players and not state-owned actors.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Hungary, UAE Sign Defense Industry Agreement
Hungary Launches HUF 15 bln Tourism Sector Support Program
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
