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Record-breaking year for independent Scania

Scania increased its share of the heavy truck market by nearly 2 percentage points during 1995. Deliveries to eastern and central European markets doubled. The company introduced a new range of trucks during the autumn, laying the groundwork for a strong 1996.

In May last year (1995), Saab-Scania was dissolved. Scania became a wholly-owned subsidiary of Investor AB. This marked the beginning of an aggressive Scania corporate image programme, which continued throughout the year. Among other things, Scania adopted its own corporate symbol based on the old Griffin, which has been an emblem of the company for 104 years.

During the autumn, Scania introduced a new range of trucks – the 4-series. It was very well-received by the more than 600 Swedish and foreign journalists who travelled to Södertälje for the unveiling of the 4-series in October.

During the year, Scania also introduced new bus models, among them the Access-ultralow, a 12-metre long low-floor city bus for the British market. During 1995 Scania also unveiled a prototype of a finished city bus with an aluminium body and a low floor extending its full length. Developed after thorough market studies, it is part of a future bus range.

Among Scania’s sales successes were numerous large orders for both trucks and buses. Scania do Brasil received an order for 150 trucks from one of Brazil’s leading hauliers and an order for 155 city buses from one of the country’s largest urban transport companies. In Europe, Scania received orders of 150-200 trucks each from customers in Great Britain, the Netherlands and Germany.

Turning to European bus sales, Scania received orders for 100 city buses from British Bus and 48 finished buses from Swedish-based Swebus. It also landed the world’s largest order for ethanol-fuelled buses: 46 bodied city buses for the Stockholm transport authority. In the Far East, Scania received its largest single bus order to date in Taiwan: 50 chassis for the Formosa Fairway Corporation.

Scania achieved a major sales breakthrough in industrial and marine engines with an order for 100 harvesting machine engines for the Cuban sugar industry. Late in 1995, the Spanish army ordered 700 Scania replacement engines for its BMR-type armoured transport vehicles.

Continued expansion

Scania continued to expand its global sales organisation during 1995. This included establishing its own importing companies in South Africa, Chile, Hungary and Poland. The latter country became Scania’s largest single market in central and eastern Europe, with sales of about 400 trucks. Late in the year, Scania decided to become the first European truck manufacturer to start local assembly in Lahore, Pakistan. Operations in Pakistan are scheduled to begin in March 1996.

Last May, Scania placed a new cab factory in service in São Paulo, Brazil. The plant, which cost SEK 150 million, is the largest single investment in higher production capacity that Scania has ever made in Latin America. An assembly plant was also inaugurated in Mexico, where production is currently low due to the market situation and is mainly being exported to Chile.

Environmental improvements

To meet strict new environmental standards for inner city buses, Scania unveiled a hybrid bus known as the DAB-Silkeborg Midi City Bus. It can operate either as a purely battery-powered electric vehicle or can be connected to a generator that is driven by a combustion engine.

The re-designed production equipment that Scania introduced for its new truck series resulted in major environmental improvements. For example, the introduction of powder and water-borne paint and the “component painting” technique have reduced solvent emissions to 5 kg per manufactured chassis. It also results in better-quality paint finish.

Since October, Scania has been on the Internet. Its home page http://www.scania.se is a gateway to current facts about the company and its markets, products and executives, as well as Scania press releases and financial information.