Scania annual report 2002

Latin America
Deliveries of Scania trucks
in Latin America
Units
10,000
Uncertainty and weak economic growth again
characterised the Latin American markets
during 2002. In the long term, however, the
Latin American market will grow from its
current very low levels. Important to Scania’s
long-term profitable growth is that price levels
are reasonable. Scania will preserve the
leading position the company has enjoyed
in the region over the years.
8,000
6,000
4,000
2,000
0
93 94 95 96 97 98 99 00 01 02
Deliveries of Scania buses
in Latin America
Units
3,000
2,500
2,000
1,500
1,000
500
0
93 94 95 96 97 98 99 00 01 02
Political and economic uncertainty continued during
the year, especially in Argentina, Brazil, Venezuela and
Peru. Most currencies in the region weakened. The
slow recovery in the US economy also contributed to
a less favourable balance of trade, especially in Mexico
and Venezuela.
Scania undertook a number of measures in its
Latin American operations. The largest impact was
from streamlining, price hikes and increased deliveries
of components and whole vehicles to markets outside
Latin America.
Trucks in Latin America
Demand fell in practically all markets in Latin America
during 2002. Scania’s deliveries in the region shrank
by 41 percent to 3,633 trucks.
The decline in the Brazilian market was due to the
fact that Scania was the first truck manufacturer to
carry out a number of price increases in order to
restore profitability. Other manufacturers gradually
followed suit, and Scania’s market share rose during
the latter part of the year.
In Argentina, the total market for heavy trucks
declined by another 38 (60) percent from an already
low level and reached 813 (1,307) trucks. Scania’s
registrations fell to 48 (420) trucks, which was
equivalent to a market share of 5.9 (32.1) percent.
Buses in Latin America
Scania’s deliveries of buses in Latin America declined
by 40 percent to 958 vehicles, largely because Scania
implemented the same pricing policy as for trucks.
The main source of satisfaction was Mexico, where
Scania’s bus business has expanded very rapidly. It
has only been three years since Scania resumed bus
sales in the country. Mexico was Scania’s largest bus
market in the world during 2002 in terms of registrations.
Most of these buses were in the intercity segment,
where one out of every four buses sold was a
Scania.
In Brazil, where Scania mainly competes in the
long-distance segment for intercity buses, Scania’s
sales declined.
In Argentina, which was previously a major bus
market, the demand for buses was very weak during
the year. The buses delivered by Scania maintained an
international price level.
Industrial and marine engines in
Latin America
The need for generating sets fell sharply when the
energy crisis that dominated Brazil during some periods
of 2001 came to an end. During the year, Scania
delivered 530 (2,149) industrial and marine engines,
mainly in the contracting sector.
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