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Scania's CEO at the Brussels Show: Customer profitability improves with tailormade trucks

"The switchover to the 4-series has now been completed throughout our European production system. This means that we enter 1997 with a truck range which can be tailored to suit the individual customer's demands for uniquely specified trucks. The sheer variety of the product range is amply demonstrated by the wide range of vehicles on exhibit at today's press day here at the Brussels Show," says Scania's President and CEO, Leif Östling.

With the new, complete series of trucks on offer, Scania has significantly improved its ability to meet each customer's need for individually tailored truck specifications. The 4-series is now available in no less than 360 factory-supplied variants.

"The transport industry is having to live with severely crimped profit margins. As a manufacturer, Scania can contribute to increased profitability by supplying trucks which are optimally specified to suit the customer's operations," explains Leif Östling.

Through considerable component standardisation and tough control over the number of components used in each vehicle, the new truck series is composed of far fewer than 20,000 parts. And with Scania's modular system, the range of versions available is virtually limitless.

"Never before in our more than 100-year history has Scania been better equipped to meet customer requirements than we are today," says Leif Östling.

Expansion on vital markets

In 1996, Scania continued to increase its market shares in Western Europe. Registration statistics show that in the first eleven months, Scania increased from 14.5 to 15.5 per cent in Europe. Figures for the full year will be published in conjunction with the year-end accounts on 18 February.

"Our market share is growing in the largest market block - Great Britain, Germany and France - which together account for about 60 per cent of all heavy trucks registered in Europe," reveals Urban Erdtman, Senior Vice President and head of Scania's European sales.

On these key markets, the first eleven months showed a 2 per cent reduction in total registrations compared with the previous year, while Scania increased its figures by just over 4 per cent. Scania secured almost 12 per cent of the total market within this block.

The ambition is to take additional market shares.

Urban Erdtman continues: "In Germany and France, we are concentrating our efforts on consolidating our position through investments in and reorganisation of the dealership network."

The statistics for all 12 months of 1996 show that Scania increased its market share on the vital British market from 16.6 to 18.6 per cent. During the same period, Scania's market share in Sweden rose to 48.3 per cent (from 43.6 per cent in 1995), and further successes were also noted on other important markets such as the Netherlands and Belgium.

"If Scania was in as good a position in all segments as it is in the long-haul segment, our European market share would increase by a couple of percentage points. There is considerable potential here with the completion of the 4-series range, and we fully intend to squeeze the maximum benefit from it," concludes Urban Erdtman.

Scania has just over 17 per cent of the Western European long-haul segment, that is to say trucks for long-distance goods transport by motorway and highway. In the distribution and, in particular, the construction sector, Scania has a smaller market share.

In Western Europe, where the total market over the past two years amounted to about 170,000 trucks per year, long-haul trucks (all makes) have accounted for approximately 60 per cent of all sales, distribution trucks 25 per cent and construction trucks 15 per cent.

For further information, please contact Hans Rubenstein, head of Public Relations, tel. +46-8-553 81258 or +46-70-556 07 97.