Scania annual report 2003

EUROPE
Strong sales in several markets
During 2003, the demand for heavy
trucks in western Europe was
unchanged but maintained a higher
level than during earlier economic
slumps.
Trucks in western Europe
Western Europe accounts for nearly 70
percent of Scania’s sales. Here vehicle
standards are very strict and the most
highly specified vehicles are sold. The
transport industry and distribution systems
are advanced, making reliability and maintenance
key competitive factors and increasing
the potential for sales of servicerelated
products.
Registrations in western Europe
amounted to 213,000 heavy trucks, compared
to 212,000 during 2002. Scania’s
share of the western European market was
14.0 (13.5) percent.
In Great Britain, more heavy trucks
were sold than in any previous year. A total
of 34,303 new trucks were registered,
which was 10 percent higher than in 2002.
Several major orders from large transport
companies helped Scania boost its market
share, with continued profitability. For
example, Scania sold 300 tractor units to
the British convenience goods chain Safeway
Stores plc. Scania is the price leader
in Great Britain. Due to the weakening of
the pound, Scania implemented price hikes
that slowed order bookings late in the year.
The German heavy truck market rose during
2003, even though economic growth
was negative. Many transport companies
needed to update their fleets, while many
used German trucks were exported to
eastern Europe. The depressed German
economy and uncertainty concerning
German highway tolls created uncertainty
among hauliers. Tough competition among
truck manufacturers, mainly domestic
ones, intensified.
In Spain, the heavy truck market ended
up at an all-time high, 26,757 units,
and exceeded 25,000 heavy trucks for the
fourth consecutive year. Behind these figures
is the strong Spanish economy and
Spanish transport companies that have
become increasingly competitive internationally.
Scania’s registrations increased by
9 percent during the year.
In the Netherlands, Scania signed
agreements to deliver 533 four-axle allwheel-drive
trucks to the Dutch armed
forces. It is the largest-ever heavy truck
order from the Dutch armed forces. The
vehicles will be assembled at Scania’s production
unit in Zwolle in the Netherlands
and will be delivered during 2004 and
2005.
Full-coverage service network
Sales of service-related products remained
good during 2003. In earlier years, acquisitions
of sales and service facilities affected
the growth rate. Today Scania, under
its own auspices, has a service network
that provides full coverage in western
Europe. Future growth in service operations
will mainly depend on the population
of vehicles and their degree of utilisation.
24-hour Scania Assistance
All roadside assistance operations in
Europe are now staffed exclusively by
Scania employees. The 13 assistance
centres each serve their region. Employees
speak all the languages needed to
connect Europe’s drivers with one of
Scania’s more than 1,000 service workshops.
Round the clock, every day of the
year, Scania’s customers are the push
of a button away from help in their own
language, wherever in Europe they may
be located.
Trucks in central and eastern Europe
Central and eastern Europe witnessed positive
economic growth in 2003. Scania’s
truck order bookings in the region were at
a high level. The enlargement of the European
Union, as well as the transfer of
manufacturing operations to the region
from elsewhere, will probably contribute
to continued economic growth and thus
investments in infrastructure. The need for
new heavy trucks is also increasing as
western European logistics concepts are
taking hold in central and eastern Europe.
Transport companies in central European
countries provide international
haulage services to a higher degree than
their counterparts in the EU. In countries
like the Czech Republic, Slovakia, Slovenia
and Bulgaria, more than half of cargo
deliveries are to or from other countries.
One clear trend in recent years is the
sale of used heavy vehicles from western
Europe to central and eastern Europe. An
estimated 50,000 used heavy trucks and
20,000 new ones were sold to central and
eastern Europe during 2003. In Russia,
five to seven used trucks are sold for every
new truck. At the same time, the market
for new heavy trucks is growing. Scania is
thus investing extensively in its service
network in these countries.
The increased flow of used vehicles
from traditional markets in western Europe
to new markets in eastern Europe signifies
that Europe is becoming an increasingly
integrated market.
Scania strengthened its position in
Russia as the leader in the imported truck
segment, and volumes continue to climb.
During the year, Scania expanded into the
market east of the Urals, among other
things by delivering 100 all-wheel-drive
trucks to the Siberian oil company
Surgutneftegaz.
ANNUAL REPORT 2003 36