Scania focuses on growth and flexibility

Scania has circled growth and flexibility as the key components it will continue to focus on according to Scania President and CEO, Martin Lundstedt.

“Demand for transport equipment is based on economic growth. The outlook in many of our markets is not particularly bright in the short term, but growth will return in the longer term. This is why we will continue to invest in increased production and service capacity, and we will also boost our research and development efforts,” he said in Sweden this week.

Scania’s scenario of a production capacity of 150,000 vehicles per year and a continued expansion of the service business is based on an economic recovery in Europe and continued growth in emerging markets such as China. Demand for efficient logistics is increasing in many sectors, driven among other things by a greater focus on reduced environmental impact.

“By increasing our understanding of logistics systems, regardless of whether it concerns a mine or a retail company, we can package products and services that lead to lower transport costs, i.e., have a positive effect on our customers’ bottom line. It is a matter of supporting the customer with knowledge about the transport task and being able to supply services during the entire life cycle of vehicles, enabling them to be utilised in an optimal manner for increased profitability and reduced environmental impact,” he said.

One example is the “Ecolution by Scania” concept now being introduced in European markets, which involves Scania setting targets for fuel consumption together with the transport company. Vehicles and services-related products are specified for the lowest possible fuel consumption, given the specific transport task. The service also includes driver training and follow-up. All parameters are followed up, allowing the customer to continually receive feedback to ensure more efficient driving. Whenever possible, alternative fuels are used to further reduce carbon dioxide emissions.

Transport companies’ demands for highly productive vehicles are also increasing outside Europe, and Scania sees great potential to strengthen its presence in a number of markets including Australia. More Scania vehicles on the roads in these markets will also mean increased sales of parts and other services.

Emerging market countries such as China are facing huge changes. According to a World Bank report, estimated logistics costs in China in 2010 amounted to almost 20 percent of the country’s GDP, compared to less than 10 percent in Europe.

Leave a Reply

  1. Australian Truck Radio Listen Live
Send this to a friend