So here’s a little bit of intriguing industry news: Joseph Smith, the former Senior Vice President of Buses with Transit, has been named interim CEO of the DesignLine company. Smith stepped down from his MTA post in late 2010 and had been consulting with Cyan Partners, the arranger of DesignLine’s recent debt and equity capital raises. Now, he’ll have the opportunity to right the DesignLine ship on an interim basis.
To me, this is an intriguing bit because of DesignLine’s tortured history with its delivery of buses and its lack of recent success. DesignLine ran a 2007 pilot in New York City, and although customers gave high marks to the vehicles, Transit eventually determined that the vehicles were not robust enough for New York City. At around the same time, the city of Baltimore issued a similar announcement concerning DesignLine buses, and many in the transit production industry questioned the long-term viability of the company.
So now Smith will take the reins. He served as the head of MTA Bus, the president of MTA Long Island Bus and most recently as the SVP with Transit overseeing buses. He was well-respected at the MTA and can take his insider perspective to a company that needs the help. A shift like Smith’s from buyer to vendor is not a rare one within the transit industry. It’s a tight-knit community that often can’t shake its “inside baseball” reputation. We’ll see now what future awaits these DesignLine buses.
6 comments
My initial perception of buyer to vendor relationship is a positive one, although I think I would have a problem with it if it were the other way around.
Pretty much how the system works in the U.S. Work for the government then go work for a private company in the same industry and use your connections to lobby for contracts. I love the concept of what DesignLine had when they tested those buses, but it just didn’t work. Let’s hope any future DesignLing MTA deals involve thorough testing.
It merits scrutiny, but I don’t see anything hugely wrong with this. It’s beneficial to just about everyone to produce better buses more in line with the MTA’s needs, and having someone with intimate knowledge* of the MTA seems fair here. What would be troubling would be the opposite, where a financial stakeholder in DesignLine gets to make decisions in the MTA that favor DesignLine.
* It really shouldn’t be “inside knowledge,” since the MTA is a public agency and in theory should have open books.
Smith is a very decent guy. Immediately responded to all my emails while at the MTA and did so honestly. I wish him luck in his new position.
I met Joseph a few years ago at a TSTC event in New Rochelle. At first I didn’t know who he was, but we were at the same table & struck up a conversation on transit issues. I must say he really knows his stuff & I wish him the best of luck at Design Line.
I worked with Joe for years , he is a smart and he knows rgw business , I wished him luck in his new endeavor , however it turns out I wish him well .