Production
NABI's method of production, dating back to the Ikarus USA/American Ikarus period, is split between plants in Hungary and Anniston in what is an outgrowth of "Buy America" requirements, which mandate buses purchased with government money have at least 60% of the bus built in the US. The shells for the buses are built in Hungary and are then shipped to Anniston for the installation of all other components. This method has had its advantages in lower costs of labor in Hungary vs. the US and Canada, however at times it has had its disadvantages (as can be seen in the section on the Compobus). The advantages of lower costs of shell assembly have been the main reason NABI has maintained the practice even after the 416/436 began to fall from favor and the LFW series became NABI's main product. However, the cost advantage eroded, due to an unfavorable foreign exchange ratio between the Hungarian forint and the U.S. dollar. The problems, leading to the sale of the company's assets, are described in the 2005 Annual Report.
Read more about this topic: North American Bus Industries
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