Scania annual report 2004

Growing with
sustained profitability
If Scania continues to grow at the same pace as it has to date, in the next decade we will
reach sales of 100,000 vehicles per year and be involved in the service and maintenance
of 800,000 vehicles in operation around the world.
Concentration on heavy transport
vehicles
Scania’s operations focus on heavy transport
vehicles, the segment where the
demands – along with the margins and
profitability – are the highest. A customer
pays more for a highly specified vehicle
than for a standard product. Vehicles in
the heavy segment are also driven long
distances and have a high degree of
utilisation, which provides substantial
service business.
Modular product system
With Scania’s modular product system,
the customer can specify the vehicle he or
she wants. The more closely vehicles and
services can be adapted to a transport
task, the better the customer’s operating
economy will be.
The modular system is important to
Scania’s development, production and
product quality. It also simplifies parts
management, contributes to a higher
degree of service and makes it easier to
train service technicians.
The modular system provides a carefully
balanced number of main components
with great flexibility. This allows
considerably longer production runs than
is possible in a conventional product
system.
Integrated business – vehicles,
services and financing
Scania offers its customers combinations
of vehicles, services and financing that
contribute to their business operations.
Scania’s customers often use their vehicles
round-the-clock and require rapid
access to maintenance and repairs at all
hours of the day from our service organisation.
Customer financing is another important
element of Scania’s complete product
range.
Focus on growth markets
Scania has a presence in markets with
potential for profitable growth. Scania’s
main markets – Europe, South America
and Asia – have good potential for longterm
growth. An increasingly borderless
Europe, with growing economies and an
enlarged EU, offers major opportunities.
In South America, there is an increasing
demand for vehicles and service as
an ever larger share of both goods and
passenger traffic utilises heavy vehicles.
Asia is a long-term growth market. The
infrastructure is improving and logistics
systems are developing.
Vision
Scania’s vision is to be the leading
company in its industry by creating
lasting value for its customers,
employees, shareholders and other
stakeholders.
Mission statement
Scania’s mission is to supply its
customers with high-quality heavy
vehicles and services related to the
transport of goods and passengers
by road. By focusing on customer
needs, high-quality products and
services, as well as respect for the
individual, Scania shall create
value-added for the customer and
grow with sustained profitability.
Scania’s operations specialise
in developing and manufacturing
vehicles, which shall lead the market
in terms of performance and life
cycle cost, as well as quality and
environmental characteristics.
Scania’s sales and service
organisation shall supply customers
with vehicles and services that
provide maximum operating time at
minimum cost over the service life
of their vehicles, while preserving
environmental characteristics.
GOALS AND STRATEGIES • SCANIA ANNUAL REPORT 2004 12