1981–90: Financial Decline As the 1970s turned into the 1980s, a critical factor affecting school bus manufacturing was declining student populations; the baby boomer generation that had attended schools for the past 25 years were now on the verge of all completing their secondary education. Overcapacity and lowered demand in the bus manufacturing industry was coupled with the unstable economy of the time. The company unsuccessfully attempted to diversify into the small transit bus market. In 1981, Carpenter made its first move in expanding beyond its Mitchell, Indiana home. After securing over $1 million in loans, the company opened a machine shop in North Vernon, Indiana. In addition, in moving into the mass-transit market, Carpenter introduced the CBW range. A rear-engine mass-transit bus designed in 30 and 35-feet lengths, large orders for the CBW were received from the Southern California Rapid Transit District (Los Angeles), the Chicago Transit Authority and New Orleans RTA. In 1983, the forward-control version of the Corsair was replaced by a far more modern Cavalier. Based on an International Harvester chassis, the Cavalier improved driver usability and ergonomics over its predecessor. As it was sold in limited numbers, the rear-engine Corsair remained in production. In 1984, the Carpenter conventional (now called the Classic) received its most extensive updates in nearly 20 years. After fewer than 150 buses were sold, sales of the CBW mass-transit line were discontinued in that year. In 1985, the company opened a chassis-manufacturing plant in Seymour, Indiana, although the plant would close within a year. In an expansion of the model line, Carpenter became one of the last major manufacturers (alongside Ward/AmTran) to introduce a school bus based on a cutaway van as it introduced the Clipper in 1985. The Clipper was a dual rear-wheel design sold primarily on a Chevrolet/GMC chassis. In 1988, due to escalating costs, the North Vernon machine shop was closed down. In 1989, the Cavalier was replaced by the Counselor, as the International Harvester chassis was replaced by a GMC chassis. For the last time, the rear-engine Corsair was produced. In December 1989, with nearly $14 million in unpaid debt, Carpenter Body Works was forced to declare Chapter 11 bankruptcy. In 1990, Indianapolis-based businessman Dr. Beurt SerVaas formed a holding company (CBW, Inc) to acquire Carpenter Body Works. Although the company board (consisting primarily of the Foddrill family and supporters) were in favor of the acquisition, the