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Scania's President and CEO: Scania will grow with its new trucks

“Scania's position in the global market for heavy trucks has become stronger in recent years. Today we are one of the world's leading manufacturers. The new generation of Scania trucks will enable us to further improve our market share,” says Leif Östling, President and CEO of Scania.

“We estimate that annual sales of heavy trucks will increase by more than 100,000 vehicles in Scania's main markets. The new generation of trucks and rationalisation of our production system will increase our chances of further improving our market share.”

Mr. Östling emphasises that the large-scale investments of recent years to expand production capacity and streamline operations at Scania's production units in Europe and Latin America have been crucially important.

Well equipped for the future “Today we have the technical capacity to produce more than 50,000 vehicles an- nually. But Scania's manufacturing capacity is not static. We are well equipped to respond to higher demand during the coming years,” Leif Östling says.

Scania is focusing its attention on demand trends in Europe, Latin America and South East Asia. Efficiency improvements will cover a large proportion of the grow- ing need for haulage services in western Europe.

In central and eastern Europe, competition is heating up in the haulage market. Meanwhile environmental regulations are being tightened. Having been dominated for several years by used vehicles from western Europe, the market is now increas- ingly demanding new trucks. In Scania's judgement, the need for new heavy trucks in this part of Europe will be approximately 50,000 vehicles per year higher within a decade than today.

As the highway network in South East Asia expands, the need for heavy trucks will grow. Within ten years, Scania estimates that annual demand will be about 30,000 vehicles higher, or twice today's level.

“Turning to Latin America, Brazil has long been Scania's largest single market. In recent years, the total market for heavy trucks in Brazil has grown from 7,000 vehi- cles per annum to more than 20,000, and we anticipate that it will reach about 30,000 vehicles around the year 2000.

“Competition in all these markets will be very keen. But in my judgement, given our new generation of trucks and our efficient production system, Scania will emerge from the events now ahead of us in an increasingly strong position,” Mr. Östling concludes.