- Everything is rolling as if it was on wheels – and in some markets the demand is so high that anything on wheels can be sold.
Mr Leif Östling, Scania’s CEO, made this statement at Scania’s capital market day in Södertälje on the 5 September. About a 100 financial analysts, investors, and journalists were given an update about Scania’s strong position and continued profitable growth.
A large part of the program dealt with the new Euro 5 engines, the expanded range of trucks with the G series, and Scania’s strategy for reducing the environmental impact from heavy vehicles.
 |  | | Hasse Johansson | Lars Stenqvist |
Mr Hasse Johansson, Director of Research and Development, was responsible for this part together with Mr Martin Lundstedt, Manager for Franchise and Factory Sales, and Mr Lars Stenqvist, Manager for Vehicle Definition and Product Quality.
Martin Lundstedt ascertained that the wider customer offer for both trucks and buses as well as for services, gives Scania an opportunity of strengthening positions in a number of markets.
| 
Martin Lundstedt |
- Our wider range satisfies a number of customer needs. The customers will have a wider selection to choose from and increased support, he said.
The new global platform for driver training is an example of how Scania is continuously developing the range of services towards higher customer value.
Skilful drivers cause less wear on the vehicle, they reduce fuel consumption, reduce the environmental impact, and improve road safety. The status of the truck-driving profession is raised, which is an important factor with regard to the recruitment problems in many countries.
Scania’s order input continues to be good during the third quarter. Deliveries for 2007 are estimated to increase by about 15 percent, to approx. 75,000 vehicles.
Scania has increased its forecast for the total European market, including Russia, from 385,000 to 400,000-420,000 heavy trucks at the beginning of the next decade. The background is the considerable increase in demand for transport as a result of the expanding EU and the very fast developments in Russia.
Leif Östling | Leif Östling pointed out Europe and Asia as the growth areas with a large potential. The transport routes in the west-east direction, from western Europe, via Russia, and towards India and China, are being built step by step.
|
Scania is equipping itself to handle growth in several ways. Investments are being made in the service network, primarily in central and eastern Europe, and in Russia.
The production capacity is being expanded and at the end of this year will be 84,000 vehicles, 90,000 in 2008, and 100,000 vehicles at the end of 2009. But the capacity is a moving target. New ways of producing more efficiently are being discovered all the time.
- We are working continuously to remove bottlenecks and increase capacity in different ways. There is much creativity and everybody in production is contributing towards achieving the higher volumes. We also have the best level of quality up to now, said Leif Östling.
In the long term, Scania can increase its capacity to more than 130,000 vehicles. An assembly plant is being established in Russia and can reach full production of 10,000 vehicles per shift and year around 2011-2012.
Chief Financial Officer Jan Ytterberg explained that productivity continues to develop positively. Every employee in production will manufacture about ten vehicles a year on average by the year 2010.
| 
Jan Ytterberg |
- And this is not the end of it. The work of improving productivity never ceases, Leif Östling added.
Jan Ytterberg repeated the positive outlook for 2007-2009. Scania’s earnings are estimated to increase by 10 percent per year and the operating margin will be between 12 and 15 percent. The return on capital employed will exceed 30 percent.
Text: Marcus Ollfors
Photographs: Stig Almqvist
|
|
|  | | Related Articles
Scania flyttar fram positionerna
- Allt rullar som på hjul – och efterfrågan på flera marknader är så hög att allt som rullar på hjul går att sälja.
Read more  
2007-09-05
Capital Markets Day
Scania’s Capital Markets Day on 5 September 2007, was held at Scania Headquarters in Södertälje, Sweden.
Read more |
|
