South Shore Center while testing with
AC Transit, September 1976 Under the ownership of
Rohr Industries since 1970, while their very popular Flxible New Look was still in production, Rohr began development of what would become the
Grumman 870 Advanced Design Bus. The Grumman 870 bus was one of two advanced-design buses (the other being the
Rapid Transit Series (RTS II) developed by rival
General Motors and later taken by
MTS). Both models were compromises by the
Urban Mass Transit Administration (UMTA), which sought to develop a
"Transbus" design that would be "attractive, roomy, comfortable", and easier for elderly and disabled customers to board, accepting these two models as compromises. At the time, the federal government would subsidize the purchase of only the 870 or the RTS II. In 1978, Rohr sold Flxible to
Grumman for
US$55 million, with the sale including the sale of two prototypes of what would become the 870. In spite of the fact that the second prototype failed testing as the result of a cracked "A" frame, and with an endurance test not yet performed, Grumman decided that the 870 was ready for production, and discontinued the
Flxible New Look almost as soon as the purchase closed (more in "Litigation resulting" below). The first 870 rolled off the assembly line in spring 1978. Eventually, Grumman was forced to sell the line to General Automotive Corporation in 1983 for $41 million, a 25-percent loss after developing what by this time had become known as the "Flxible Metro", which addressed all of the shortcomings of the Model 870 in 1982. Under the ownership of General Automotive, the Flxible nameplate was restored to the buses. was one of the last agencies operating Flxible Metro buses past 2010. Production continued until late 1995, when financial problems prompted the company to suspend production and lay off most of its workforce at the Delaware, Ohio, factory. The layoffs were initially planned to be temporary, but ultimately became permanent, The last Flxible Metros delivered were ones delivered in November 1995 to
Monterey-Salinas Transit (
Monterey, California), and the
Baltimore Metropolitan Transit Authority (
Baltimore, Maryland). However, neither of these orders included the Metro with the highest serial number (106591), which had been delivered the previous month to Columbus, Ohio. ==Litigation resulting==