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Scania President and CEO Leif Östling: Deregulation is creating new market conditions in Europe

"Deregulation in Europe, combined with outsourcing on the part of transport operators, is creating a new market for services which will be significantly bigger than our traditional truck market and is worth an estimated SEK350 billion. Scania is aiming to capture as large a share of this market as possible."

This statement was made by Leif Östling, President and CEO of Scania, at the Salomon Smith Barney Global Automotive Conference in New York on 11 February.

"The higher level of competition generated by deregulation of the European transport industry is changing the structure of our own industry. Growing numbers of haulage firms are merging to form bigger international groupings. These companies are concentrating more and more on logistical approaches and are outsourcing their vehicle fleets to an increasing extent. This process of change is successively creating new customer demands and Scania is now pushing hard to become the leading supplier of these services."

Scania is ideally placed to become the long-term partner which its customers are seeking. In addition to a top-class product, we offer customers various transport packages through the Vehicle Management concept. This now includes a series of different truck-related services, such as maintenance, financing and administration," said Leif Östling.

"Demands for availability, service level and expertise will become increasingly important elements in enabling us to become the customer's long-term partner," he continued.

"We have launched the Vehicle Management concept successfully in Britain, where Scania is now the market leader and has doubled its market share to about 20% since the beginning of the 90s," concluded Leif Östling.

For further information, please contact Thomas Skoglund, Information Manager, tel. +46-8-553 812 58, mobile +46-70-556 07 97.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 22,200 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 1996, turnover totalled SEK 33,700 million and profits after depreciation SEK 2,700 million. Scania products are marketed in about 100 countries worldwide and approximately 95% of total production is sold outside Sweden.