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PROSPECTS FOR A BRIGHT
FUTURE
THE HEAVY DUTY SECTOR of the truck market is well positioned for growth in 2003, according to Ulf
Grevesmühl, managing director of Scania SA, the wholly-owned subsidiary of the Swedish truck, bus and marine engine manufacturer.
He says that, despite the economic woes of the last year, there is significant demand for the services provided by the transport operator, which will fuel the continued modernisation of their fleets.
"Although we may not reach the heady heights of the mid 1990s, there is every indication that the market will be buoyant next year and sales will continue to climb," he comments.
In view of this, Grevesmühl says Scania's focus in the coming year will be on strengthening its service and support infrastructures in southern Africa, with additional Scania-owned branches and third-party contracted workshops being planned to complement the already extensive Scania network.
"We are hoping to have our new Richards Bay branch operational ahead of schedule, before the end of 2002, and we have a second Gauteng branch and head office complex on the drawing board," he says.
Grevesmühl confirms that Scania is also investing heavily in its operations beyond South Africa's borders. "Two years ago, Scania SA assumed responsibility for the supply of trucks and buses to neighbouring countries as part of a strategy which positioned our local operation at the centre of a 'hub' that was designed to service Namibia, Botswana, Zimbabwe, Malawi, Zambia, the
southern region of the Democratic Republic Of Congo and Mocambique.
The motivation for Scania SA's expansion was the growing cross-border traffic being experienced throughout sub-Saharan Africa.
"Excessive variations in workshop standards in different countries were creating a situation in which our customers' transport operations could have been compromised," says
Grevesmühl.
"Today we are realising the benefits of this plan, aiming at the same service and support standards that are common in South Africa being available to these countries."
The result has been a significant increase in sales of trucks and buses, with
Scania SA reporting an upturn in export sales by over 300% this year.
"We have plans to further increase our export drive in the immediate future," reveals
Grevesmühl.
Scania is now seen as one of the leading players in the heavy duty market sector sub-Saharan Africa and it is entrenched among the top five major manufacturers in South Africa. The company is looking to consolidate its local market share of around 15% in the medium term.
Grevesmühl took over the reigns of Scania SA two years ago and was plunged into a market that was, according to him, experiencing financial difficulties with currency fluctuations being a key concern.
"However, we have a strong team at Scania and throughout this period we have shown steady growth in sales and market penetration," he says.
"We have had to be innovative and have launched a number of new models and pushed the technology boundaries forward with the introduction of our new generation 'turbo compound' engine."
Grevesmühl says the on-going need to address fuel efficiency has prompted Scania to break new ground in terms of engine design. "Fuel cost is a major concerns of the transport operator for whom fuel is, by far, the biggest operating expense.
"Transport operators - our customers - are keenly aware of the cost of operating trucks and buses over long periods. They recognise that 'total operating cost' is a key purchasing criterion - and not simply the 'showroom price' of the new vehicle. Fuel efficiency and round-trip performance are important factors in this equation," he concludes.
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