A Monthly Update of Global Trucking News

Compiled Exclusively for FleetWatch by Frank Beeton of Econometrix (Pty Ltd.

This month's WorldWatch column by Frank Beeton focuses on news from Volkswagen which, given the local interest being shown in VW's plans for the trucking market, we feel pertinent enough to combine with the recent local launch of the Volksbus. This company is on the move, internationally and locally.

It certainly doesn't look like a slouch to us. The highly successful VW Titan is to be replaced in Brazil by the Constellation, a new truck range from VW which, we are led to believe, will also be exported to the Middle East and Africa.

The first information has appeared regarding the new range of heavy trucks, named Constellation, from Volkswagen Caminhoes e Onibus of Brazil. Reports translating the original Portuguese launch announcement have indicated that this family of vehicles will be exported to the Middle East and Africa, in addition to replacing the highly successful Titan range in the domestic Brazilian market.

Initial Middle East shipments will be in Completely Built Up format but assembly of SKD packs is planned to commence in the Abu Dhabi plant of the Mubadala Development Company during 2006. At the end of that year, manufacture will also reportedly commence in South Africa, "for the Southern Hemisphere" but also, presumably, in right-hand-steer configuration.

Volkswagen of South Africa has already announced its intention to become a player in the local truck market and at the end of September launched its initial Brazilian-sourced three-model "Volksbus" passenger-carrying line-up. Clearly, the new Constellation range will play an important role in the local effort although the initial product range, as announced in Brazil, only covers power ratings up to 225 kW and this will surely need to be extended for the power-hungry South African market.

In the past, the Brazilian VW operation has used engines from MWM and Cummins in its medium and heavy commercial products but a recent local announcement states that power units from International Truck and Engine Corporation will also be used in the range to be marketed in South Africa.
 

The new Constellation product differs from its predecessors most visibly in respect of the all new cab design that was developed in a co-operative project between Volkswagen Brazil and its German parent. The earlier Titan range was fitted with a low-profile cab which shared an obvious family resemblance with the last generation of rear-engined Kombi minibuses and vans. The distinctive new forward control design appears high and squarish, in the modern idiom, and the range now includes, for the first time, a sleeper option. The cab design is claimed to offer 1,95 metres of interior standing space, plus a 2-metre bunk length.

Volkswagen has been reported as having a serious ambition to become a global player in the truck market. Using a Brazilian base as a springboard for such an objective is certainly a unique approach. Questions have been raised over VW's continuing substantial shareholding in Scania and many would argue that this relationship could be a powerful facilitator in achieving these ambitions. However, no sign of Scania involvement in VW's latest truck initiative has been forthcoming up to now.

Clearly, Volkswagen has the resources to fulfill its ambition but the major challenge will be to avoid the long - and expensive - learning curve which has beset almost every other major vehicle manufacturer which has set out to become a credible player at the heavy end of the market.

As mentioned in the accompanying article, Volkswagen of SA recently launched its three-model 'Volksbus' passenger line-up in South Africa. The launch was a grand affair with nimble dancers and Brazilian faire adding an international flavour to the proceedings.
 

Commitment from the leaders was clearly visible at the Volksbus launch. From left: Local MD of Volkswagen of SA, Andreas Tostmann; Dr Bernd Wiedemann, CEO of Volkswagen Commercial Vehicles in Germany; and Antonio Roberto Cortes, executive vice president and CEO Truck & Bus of Volkswagen do Brasil Ltda. Interesting triangle - South Africa, Germany and Brazil.

While FleetWatch does not cover the bus market, we were there to see another piece of the jig-saw puzzle being slotted into place leading to the compilation of the eventual full picture which will see VW competing right up into the heavy segment of the local market. The launch of the Volksbus range is VW's first real step into the bigger vehicle segments - and there is more to come. 

BRAND PRETORIUS, CEO of McCarthy, is oblivious to the Brazillian revellers sneaking up on him. Wouldn’t you also be if you were watching those dancers do their thing on stage?

The fact that the company has serious intentions for this market was given added credence via the presence at the bus launch of three of the big chiefs of the organisation's world-wide operations whose leadership will influence future outcomes. (See accompanying photograph).

"Congratulations on your buses but when are we going to see the trucks," is what FleetWatch asked of them. Almost in unison, the reply came: "Next year. For sure you will see them here next year." Watch this space. Next year is not far off from here.

THE VW Volksbus ... a real step into the bigger vehicle segements