Scania annual report 2002

Scania-owned sales and service network
The sales of service-related products accounts for an
increasingly large share of Scania’s sales. It also helps
to make the company’s operations less dependent on
the cyclical upturns and downturns of truck sales.
Scania continued to strengthen and expand its own
sales and service network in Europe. In the EU, ‘block
exemptions’ for the motor vehicle sector were revised.
These changes, which went into force in October
2002, did not affect Scania during the year. In the long
term, the reform may lead to some restructuring of the
distribution network and to increased competition in
the service market, but primarily in the car industry.
In Newcastle, Great Britain, traditional double-deckers are facing competition from articulated Scania buses,
run by the bus company Go North East.
Trucks in central and eastern Europe
In central and eastern Europe, local manufacturers are
being squeezed by imported new and used trucks
from western Europe. Scania has a sizeable portion
of this market.
As a result, the utilisation level of service workshops,
especially in Russia but also in the rest of eastern
Europe, increased sharply. Scania continued to
invest in expanding its service network in the region
and is continuing that work during 2003. Among
others, a service workshop opened in Chabarovsk,
eastern Siberia, on the border with China.
In Russia, Scania’s specially adapted truck concept
made its breakthrough during 2002 and now accounts
for about one fourth of new truck sales. This truck,
which is tailored especially for the Russian market,
was named Truck of the Year in the imported heavy
truck category.
Both in Russia and in the Baltic countries,
Scania should reach the same strong position as
in Scandinavia.
In central Europe, demand rose considerably in
most markets during 2002.
Buses in Europe
The total market for heavy buses in Europe declined
during 2002. The downturn was especially noticeable
in large markets like France, Germany and Italy. In
spite of this, Scania’s bus sales developed favourably
in several important markets. Order bookings increased
during the year, especially in the fourth
quarter.
Spain, which is traditionally a significant market,
was Scania’s second largest bus market in 2002
regarding registrations. In the shrinking Italian market,
Scania remained successful, especially due to a strong
range of city buses. Scania increased its sales and
strengthened its market share substantially.
In Great Britain, a broader product range and a
more intensive focus on the city bus segment yielded
positive results. Order bookings more than tripled in
a weakly expanding total market. During the year,
Scania made a number of breakthroughs with new
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