At its annual Capital Markets Day, Scania invited the business and trade press to its HQ in Sodertalje, just outside Stockholm, Sweden, to explain its short-term plans and vision for the future. This year, Scania CEO, Martin Lundstedt chose the occasion to make some big calls about potential future growth in truck production.
“Last year Scania delivered some 61,000 trucks. Our potential on a global basis in 2020 will amount to 120,000 trucks per year,” said Lundstedt. “Our service sales will also grow and our ambition is for service-related products to represent 25 to 30 per cent of our total sales.
“We have built a strong position in Europe for the coming years with our broad Euro 6 engine range as well as Scania Streamline and Ecolution by Scania, that is products and services that help lower fuel consumption for our customers and thereby reduce environmental impact. Meanwhile, the trend towards increasing demands for transport efficiency in emerging markets is favourable to us and we are now focusing on expanding our presence further in key segments.
“Over the past 20 years, we have developed new concepts in the service business, and today, we have a leading position. Now we will increase this volume while increasing our presence in new segments with a large service content. Our ambition is to increase the share of services from 20 to 25 per cent of Scania’s total revenue in recent years to 25 to 30 per cent over an economic cycle.”
Scania says it has begun boosting its technical capacity to 120,000 vehicles, representing a total investment of $272 million over a three year period. The company says it has also identified opportunities for cooperation with the Volkswagen Group. Scania, together with MAN, is examining areas such as axles, gearboxes, commodities and hybrid drive components.
A number of the feasibility studies have been completed within the group and Scania says they have shown interesting synergy opportunities for Scania and work continues with these opportunities. Exchange of knowledge and benchmarking are occurring between the Volkswagen Group and Scania in IT, production and logistics, including working methods and practices.
“At the 2014 Annual General Meeting, we will give a summary of the processes implemented at Scania, to safeguard the interests of Scania and all its shareholders in such cooperation projects,” said Lundstedt. “The focus will be on how transactions between Scania and related parties are monitored and documented in order to make them auditable.”