Volvo, Iveco, MAN, and Scania: sales up 39% in 2010 and 35% in 1st half 2011

Iveco and Scania develop engine that meets Euro VI, while Volvo launches heavy hybrid truck

2011/09/06

Summary

 In 2010, four commercial vehicle (CV) manufacturers in Europe, Volvo, Iveco, MAN, and Scania, increased their sales by about 39% from 2009, when their sales halved due to recession. In the January-June period of 2011, their sales continued to increase by about 35%. Volvo estimates that the scale of the 2011 heavy truck market will grow by 15-20% in Europe and will continue to be expanding in emerging markets such as Russia and Brazil. Concerning the 2011 revenues, Iveco forecasts a 13% increase and MAN 15-20%, while Scania estimates recovery to continue.

 In Europe, a new emission regulations, Euro VI, will come into force starting in January 2014 for all medium-/heavy commercial vehicles. As part of its measure against the new regulation, Iveco announced an engine that meets Euro VI with urea SCR technology, while Scania unveiled an engine with urea SCR and EGR. Volvo launched a truck that runs on methane gas and diesel fuel and a heavy hybrid truck.

 In increasingly important emerging markets, Volvo has won a contract for hybrid buses in Brazil while Iveco unveiled a new model in the medium segment in Brazil. MAN started production of trucks in Russia and will market a heavy truck in China under a new brand with Sinotruk.

 In the meantime, Scania will boost production capacity of its truck plant in Sweden by 20% to 120,000 a year in order to prepare for an increase in demand in the future.

Volvo/Iveco/MAN/Scania: Sales volume, sales, and operating profit

  2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Volvo Sales volume Vehicles 230,291 246,272 261,088 137,538 190,218 84,402 120,639
Sales 1 million
SEK
258,835 285,405 304,642 218,361 264,749 127,382 150,539
Operating profit 20,399 22,231 15,851 (17,013) 18,000 7,569 14,170
Iveco Sales volume Vehicles 181,500 211,700 192,100 103,900 129,600 61,237 74,960
Sales 1 million
Euro
9,136 11,196 10,894 7,183 8,307 3,791 4,558
Operating profit 546 813 838 105 270 53 206
MAN Sales volume Vehicles 87,160 100,609 103,705 82,609 126,279 57,474 75,676
Sales 1 million
Euro
8,685 10,410 10,610 7,807 10,586 4,820 6,078
Operating profit 670 1,010 1,056 51 528 180 475
Scania Sales volume Vehicles 65,281 75,878 73,793 43,443 63,712 28,321 40,300
Sales 1 million
SEK
70,738 84,486 88,977 62,074 78,168 37,105 43,665
Operating profit 8,753 12,164 12,512 2,473 12,746 5,632 6,652
Total sales volume of
four companies
Vehicles 564,232 634,459 630,686 367,490 509,809 231,434 311,575

Source: Four companies' Annual Report 2010, Interim Report Q2 2011
(Note) MAN is the CV division of the MAN Group. SEK stands for Swedish Krona. The exchange rate is about 0.11 Euro or 12 yen per 1 SEK as of late August 2011.

(Reference) Number of registered new medium/heavy duty CVs in Europe
(vehicles)
GVW Regions 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
3.5t<≦16t 18 Western European countries 404,615 406,216 255,691 259,388 32,779 37,790
New EU members 72,734 64,459 23,303 30,712 2,435 2,984
Europe total 477,349 470,675 278,994 290,100 35,214 40,774
16t< 18 Western European countries 289,599 291,012 172,432 176,335 71,289 104,330
New EU members 55,347 47,122 14,967 22,271 8,163 18,828
Europe total 344,946 338,134 187,399 198,606 79,452 123,158
Total 18 Western European countries 694,214 697,228 428,123 435,723 104,068 142,120
New EU members 128,081 111,581 38,270 52,983 10,598 21,812
Europe total 822,295 808,809 466,393 488,706 114,666 163,932
Source: ACEA (Association des Constructeurs Europeens d'Automobiles g.i.e.)
(Note) 1. Eighteen Western European countries mean 15 original EU countries plus Norway, Switzerland and Iceland.
2. New EU member countries are Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Hungary, and Bulgaria.
3. The data in January-June 2010/January-June 2011 do not include medium-sized/large buses. The number of registered medium-sized/large buses in Europe is 17,672 in January-June 2010 and 17,058 in January-June 2011.
4. The global production of heavy trucks and buses (according to the OICA statistics) is introduced at the end of the Report for the readers' reference.


Volvo: launches green vehicles including a methane-diesel truck and a heavy hybrid truck

 In 2010, Volvo increased sales by 38.3% from 2009 to 190,000 as the market in Europe was gradually recovering and the emerging markets including Brazil and India continued to be strong. Revenues grew by 21.2%. Operating profit/loss recovered from a 17 billion SEK loss in 2009 to an 18 billion SEK profit.

 In the January-June period of 2011, sales grew by 42.9% and operating profit increased to 14.2 billion SEK (Yet, it fell by 400 million SEK due to the Great East Japan Earthquake and by 3 billion SEK due to the exchange rate fluctuations).

 In March 2011, as green vehicles, Volvo launched a methane-diesel heavy truck. In addition, it started marketing heavy hybrid trucks under the Volvo and Renault brands.

 Japan-based UD Trucks launched the Condor, a medium truck that it has fully remodeled. The company independently developed a midsize engine to be used in the Condor, which the Volvo Group plans to use on its trucks.

Volvo's sales volume by brand and region

(vehicles)
  Europe North
America
South
America
Asia Others Total
Volvo Trucks 2009 19,749 8,028 10,349 5,573 3,712 47,411
2010 29,635 12,749 18,639 10,071 4,135 75,229
Renault Trucks 2009 29,396 458 574 1,794 5,263 37,485
2010 35,867 54 656 3,448 5,563 45,588
UD Trucks 2009 0 853 445 16,753 3,458 21,509
2010 0 1,010 300 23,908 4,130 29,348
Mack Truck 2009 0 8,235 1,219 505 1,142 11,101
2010 1 10,469 1,888 47 1,060 13,465
Truck Total 2009 49,145 17,574 12,587 34,800 13,575 127,681
2010 65,503 24,282 21,483 53,833 14,888 179,989
Volvo Buses 2009 3,164 1,539 690 3,839 625 9,857
2010 2,395 2,092 1,174 3,477 1,091 10,229
Total 2009 52,309 19,113 13,277 38,639 14,200 137,538
2010 67,898 26,374 22,657 57,310 15,979 190,218
Source: Volvo Group Annual Report 2010
(Note) 1. UD Trucks is the former Nissan Diesel, which was renamed in February 2010. It is a consolidated subsidiary of Volvo starting in the 2nd quarter of 2007.
2. The data of Truck Total of Asia include the sales of VE Commercial Vehicles, an Indian joint venture, of which results were consolidated from August 2008. The 2008, 2009, and 2010 sales were 2,744, 10,175, and 16,359, respectively.

 

Volvo Group's business results

(1 million SEK)
  2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Sales volume (vehicles) 230,291 246,272 261,088 137,538 190,218 84,402 120,639
Net sales Trucks
Buses
Others
171,265
17,271
70,299
187,892
16,608
80,905
203,642
17,350
83,650
138,940
18,465
60,956
167,305
20,516
76,928
78,077
10,320
38,985
95,682
10,452
44,405
Total 258,835 285,405 304,642 218,361 264,749 127,382 150,539
Operating income
(loss)
Trucks
Buses
Others
14,828
745
4,826
15,193
231
6,807
12,167
(76)
3,760
(10,805)
(350)
(5,858)
10,112
780
7,108
3,922
404
3,243
9,392
556
4,222
Total 20,399 22,231 15,851 (17,013) 18,000 7,569 14,170
Net income(loss) 16,318 15,028 10,016 (14,685) 11,212 4,946 9,422
R & D costs 8,354 11,059 14,348 13,193 12,970 6,205 6,679
Source: Volvo Group Annual Report 2010, Report on the second quarter 2011
(Note) 1. The CV Division of the Volvo Group consists of Volvo Trucks, Renault Trucks, Mack Trucks (US), UD Trucks (former Nissan Diesel, of which results were consolidated from the second quarter of 2007), VE Commercial Vehicles (a joint venture in India, of which results were consolidated from August 2008), and Volvo Buses. Mack specializes in heavy trucks of GVW 16 tons or greater; Volvo and UD Trucks primarily build heavy trucks; and Renault and VE Commercial Vehicles produce light trucks to heavy trucks.
2. The Volvo Group is comprised of Construction Equipment, Volvo Penta (marine engines), Volvo Aero (aircraft engines) and Financial Services in addition to the CV Division.

 

Volvo Group's sales by region

(1 million SEK)
  2005 2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Western Europe
Eastern Europe
106,479
11,401
114,689
16,042
124,239
27,116
124,261
28,212
84,452
9,632
87,241
12,570
42,557
5,489
49,859
9,495
Europe total 117,880 130,731 151,355 152,473 94,084 99,811 48,046 59,354
North America 67,233 73,433 49,435 47,746 37,291 45,409 21,585 26,572
South America 11,901 12,533 15,638 19,613 16,610 27,876 13,098 15,729
Asia 22,598 19,610 42,429 55,812 44,842 65,072 31,445 36,111
Other markets 11,579 12,713 17,938 20,192 15,660 19,207 9,002 9,476
Total 231,191 249,020 276,795 295,836 208,487 257,375 123,176 147,242

Source: Volvo Group Annual Report 2010, Report on the second quarter 2011
(Note) The data in 2005 show sales by region of the whole Volvo Group. The data after 2006 show sales by region of the Volvo Group's industrial operations except the Financial Division.

 

Volvo Group's green vehicles

Volvo FM
MethaneDiesel
 The Volvo FM MethaneDiesel was launched in March 2011. It is Europe's first (according to Volvo) long-distance heavy truck with a conventional diesel engine equipped with gas injectors, which runs on liquefied methane gas and diesel. This truck is powered up to 75 percent by methane gas. Either natural gas or bio gas is used for methane gas.
 Compared with conventional CNG trucks that only use compressed natural gas, the new truck boasts 30-40% higher energy efficiency and reduces fuel consumption by 25%. Biogas enables a new engine to cut emissions by up to 70 percent compared with a conventional diesel engine. Since the price of natural gas is lower than that of diesel fuel, the maintenance cost is also reduced. The truck can run only on diesel when the gas runs out.
 First, Volvo will launch the model in European countries such as the Netherlands, the UK, and Sweden, where the gas infrastructure is prepared, planning to sell 100 in 2011. The company will start marketing it in six to eight countries in Europe within two years, targeting to sell 400 a year. It will gradually introduce the model in the markets outside Europe.
Volvo FE Hybrid  Production of the Volvo FE Hybrid began in June 2011. The model uses a parallel hybrid system that combines a diesel-powered engine and an electric motor. It is a heavy truck with GVW of up to 26 tons and is a delivery/garbage truck in urban areas. The truck runs only on a motor up to 20km/h and can reduce fuel consumption and CO2 emissions by 15-20% compared to a diesel-powered model. In the case of a garbage truck, a 30% reduction is possible when a compactor is also electrified. The company will produce 100 by 2013, planning to market the model in 13 countries and regions in Europe.
Renault Premium
Distribution
Hybrys Tech
 The Renault Premium Distribution Hybrys Tech is launched in June 2011. It is Renault Trucks' first hybrid model. The model uses a parallel hybrid system that combines a diesel-powered engine and an electric motor. It is a truck with GVW of 19 tons and is designed for delivery in urban areas and surrounding areas. The model runs only on a motor up to 20km/h. It can reduce fuel consumption and CO2 emissions by up to 20% and also cut noise significantly.

Source: Volvo Press Release (Mar. 29 and 31, 2011), Renault Trucks Press Release (Jun. 14, 2011), Nikkan Jidosha Newspaper (Apr. 7, 2011)

 

Volvo: wins a contract to supply 60 hybrid buses in Brazil

 In June 2011, Volvo Buses won a contract to supply 60 of Volvo 7700 Hybrid buses from Curitiba City in the south of Brazil. This is the first time Volvo has won a contract for hybrid buses in South America. With this contract, Volvo will begin production of hybrid buses at the Curitiba plant, planning to deliver it starting in 2012. The company expects to win contracts from other cities in South America.
 Volvo 7700 Hybrid uses a parallel hybrid system that combines a diesel engine and an electric motor. This hybrid bus runs only on an electric motor up to 15-20km/h, thus eliminating emissions at bus stops and reducing noise. In the demonstration conducted in Curitiba City, the model is said to be able to reduce fuel consumption and emissions by up to 35%.

Source: Volvo Press Release (Jun. 16, 2011)
(Note) Volvo Buses sold several hundred buses from 2010 to June 2011. The company markets the product under Volvo brand in Europe, as Nova Bus in North America, and as Sunwin Bus in China.

UD Trucks: launches a fully-remodeled medium truck, Condor

 In July 2011, UD Trucks launched the Condor medium truck with payload of 4-6 ton-class, which it fully remodeled for the first time in 18 years. This model adopts a cab design that has a sense of unity with the Quon heavy truck series. The company independently developed and uses a midsize engine that Hino had so far supplied on an OEM basis. The engine adopts a newly developed common rail system that has enhanced a maximum fuel injection pressure to 2,000 bar in order to improve fuel efficiency. In addition, with urea SCR catalyst and PM reduction technology, the model meets Japan's 2010 emission regulations and achieves Japan's 2015 heavy vehicle fuel consumption standards.
 UD Trucks plans to use the midsize engine that it developed in trucks of the Volvo Group as part of Volvo's global strategy including emerging countries. The scale of the midsize engine market is smaller than that of the large and compact engine markets. Yet, by using the network of the Group, the company expects to supply the engine not only for commercial vehicles and for construction equipment and marine vessels. Production of the new midsize engine at Volvo's production facility in India has already been decided.

Source: UD Trucks Press Release (Jul. 11, 2011), Nikkei Sangyo Newspaper (Jul. 19, 2011)

 



Iveco: meets Euro VI emission standards that will come into effect in 2014 with urea SCR technology

 In January 2011, the Fiat Group, which held Iveco under its umbrella, split its business into two. The passenger car division is made into Fiat SpA while the non-passenger car division including Iveco and an industrial machinery manufacturer is made into Fiat Industrial SpA.

 In 2010, Iveco increased sales by 24.7% to 130,000. In the January-June period of 2011, its sales increased by 22.4% and operating profit jumped from 53 million Euros to 206 million Euros.

 Concerning the 2011 earnings forecast, in July, Fiat Industrial, which holds Iveco under its umbrella, expected that all divisions will continue to be steady in the future, estimating revenues would be 24 billion Euros (21.3 billion Euros in 2010) and operating profit would be 1.5 billion Euros (1.092 billion Euros in 2010).

 With the Euro VI emission standards that will come into force in 2014, Iveco does not use EGR and has developed an engine that meets Euro VI with urea SCR technology.

 In the emerging markets, Iveco's joint venture with SAIC (Shanghai Automotive Industry Corporation) started exporting heavy trucks to Vietnam which it produces in China. In addition, Iveco announced a new model, the Vertis, a medium truck that has been lacking in the lineup in Brazil.

Iveco's sales volume by region

(1,000 vehicles)
  France Germany UK Italy Spain Others Total of
Western
Europe
Eastern
Europe
Total of
Europe
Others Grand
total
2005 25.6 16.8 16.6 37.9 19.3 14.8 131.0 15.8 146.8 25.7 172.5
2006 25.9 20.3 15.0 36.0 20.6 17.3 135.1 19.7 154.8 26.7 181.5
2007 29.3 22.8 14.3 38.8 21.2 21.1 147.5 31.2 178.7 33.0 211.7
2008 27.6 19.6 13.8 31.3 13.3 19.6 125.2 29.5 154.7 37.4 192.1
2009 15.0 11.1 3.7 21.7 5.3 10.0 66.8 8.1 74.9 29.0 103.9
2010 18.3 14.7 5.1 21.7 7.4 11.1 78.3 11.5 89.8 39.8 129.6

Source: Fiat Annual Report 2010
(Note) Sales of its affiliated companies in China are not included.

 

Iveco Group's business results

(1 million Euro)
  2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Consolidated sales volume (vehicles) 181,500 211,700 192,100 103,900 129,600 61,237 74,960
Total sales volume of affiliated companies (vehicle) 25,200 83,300 81,200 95,300 129,100    
Naveco's sales volume (vehicle) 20,000 59,300 58,900 75,700 98,600    
SAIC Iveco Hongyan's sales volume (vehicle)   24,000 22,300 19,600 30,500    
Sales volume of other affiliated companies (vehicle) 5,200 0 0 0 0    
Total sales volume (vehicle) 206,700 295,000 273,300 199,200 258,700    
Net sales 9,136 11,196 10,894 7,183 8,307 3,791 4,558
Operating income 546 813 838 105 270 53 206
Net profit 565 803 779 (90) 240    
R & D costs 174 207 246 169 214    
Number of employees 24,533 26,461 27,108 24,917 25,583    
Source: Fiat Annual Report 2010, Quarterly Report Q2 2011, Fiat Press Release 2011.1.27, Fiat Industrial Press Release 2011.7.25
(Note) 1. The affiliate Naveco (Nanjing Iveco) is the fifty-fifty venture company between Iveco and Nanjing Automotive Corporation (SAIC Group's wholly-owned subsidiary). In 2010, Naveco sold 32,081 light vehicles and 66,566 medium vehicles (these medium vehicles were produced by Yuejin Motor, which was merged in February 2007).
2. The affiliate SAIC Iveco Hongyan is a heavy CV manufacturer established in 2007 by reorganizing Chongqing Hongyan Automotive under the umbrella of Chongqing Heavy Vehicle Group, in which Iveco (a 33.5% stake), SAIC Motor Corporation, and Chongqing Heavy Vehicle Group co-financed.
3. The data of other affiliated companies include the data of Otoyol in Turkey until 2006. Otoyol discontinued the business in 2006.

 

Iveco: develops an engine that meets Euro VI with urea SCR technology

 In May 2011, Iveco and FPT Industrial (Fiat Industrial's powertrain division) announced that, with urea SCR technology, they were ready to meet Euro VI emission standards that will come into effect in Europe in 2014. The company plans to use the urea SCR technology in new engines for heavy trucks and buses, the Cursor and the Tector. In order to minimize fuel consumption and price and maintenance costs of the system, EGR is not used.
 Iveco has an intellectual property right of this "SCR Only" technology, which precisely and accurately controls the addition method of AdBlue (Aqueous Urea Solution), which reduces NOx in the aftertreatment of emissions and the heat characteristic during the treating process. As a result, the purification rate of NOx has improved to 95% or more and to almost 100% depending on the conditions (Iveco says that the purification rate of competitors is 80-85%).
Source: Fiat Industrial Press Release (May 20, 2011)
(Note) 1. SCR stands for Selective Catalytic Reduction, and EGR means Exhaust Gas Recirculation. Scania and Daimler have already announced engines that meet Euro VI and that use EGR and SCR. Iveco is the first company that has developed an engine that meets Euro VI and that uses SCR only, without EGR.
2. Euro VI new emission standards for medium/heavy commercial vehicles will come into effect on new models in 2013 and on the entire models in 2014. Euro VI is stricter regulations than Euro V and requires to halve PM (Particulate Matter) (0.01g/kWh) and to reduce NOx by 80% (0.4g/kWh).

Iveco: exports a heavy truck that is produced by a joint venture in China with SAIC Motor Corporation to Vietnam

 In August 2010, SAIC Iveco Hongyan, which is jointly owned by Iveco (33.5%), SAIC Motor Corporation, etc., shipped the Genlyon heavy truck that is manufactured in China to Iveco's dealer in Vietnam for the first time. This is the first time SAIC Iveco Hongyan has exported the product overseas by using Iveco's global sales network, which is a move that is in line with Iveco's strategy.
 The products exported to Vietnam are 20 various models of the Genlyon including a tractor, a dump truck, and a concrete mixer. Engines used in these models are also made in China by Saic Fiat Powertrain Hongyan, which is a joint venture between Iveco and companies including SAIC Motor Corporation.

Source: Fiat Group Press Release (Aug. 30, 2010)

Iveco: launches Vertis, a new model in medium-sized segment, in Brazil

 In August 2010, Iveco announced the Vertis - a new model designed for South America in the medium-sized (9-13 ton) segment. This is a move to supplement Iveco's lineup in South America. With this move, Iveco supplies the product in the entire segment. The Vertis is developed based on the platform of a joint venture in China and comes with a low-fuel consumption/low-emission engine that is produced by Brazil-based Fiat Powertrain Technologies. The model meets Euro V emission standard. The local-content ratio of parts is 85%.

Source: Fiat Industrial Press Release (Oct. 22, 2010)

 



MAN: markets trucks under a new brand with Sinotruk in China and starts production of trucks in Russia in 2012

 MAN's commercial vehicles division consists of MAN Truck & Bus (the former MAN Nutzfahrzeuge) and MAN Latin America, which it acquired from VW in January 2009.

 MAN Truck & Bus's sales increased by 29.7% in 2010 due to the recovery of the market in Europe and by 60.1% in the January-June 2011. The company improved its operating profit to return to profitability in 2010, which further increased in the first half of 2011. MAN Latin America posted record sales in 2010 since the demand for commercial vehicles expanded due to the recovery of the economy in Brazil. Since the tax reduction for the purchase of trucks is extended in Brazil until the end of 2011, sales in the January-June period of 2011 grew by 18.5%.

 MAN's commercial vehicle division consisting of the two companies forecasts that the 2011 revenues will increase by 15-20% and the operating profit ratio will surpass 7.5%.

 In emerging markets, MAN will launch a new truck brand, SITRAK, jointly with China-based Sinotruk, starting to market heavy trucks in China in 2012. In addition, in Russia, the company will upgrade an existing plant in St. Petersburg in order to start production of trucks in 2012.

 In May 2011, VW acquired a 55.9% of the voting right of MAN and is said to be considering the consolidation with Scania (VW already has a 71.8% of the voting right of Scania).

MAN's commercial vehicles division's business results

(1 million Euro)
  2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Sales volume (vehicle) 87,160 100,609 103,705 82,609 126,279 57,474 75,676
MAN Truck & Bus
MAN Latin America
87,160
 
100,609
 
103,705
 
46,767
35,842
60,649
65,630
24,486
32,988
39,203
36,473
Sales 8,685 10,410 10,610 7,807 10,586 4,820 6,078
MAN Truck & Bus
MAN Latin America
8,685
 
10,410
 
10,610
 
6,395
1,412
7,446
3,140
3,288
1,532
4,262
1,816
from Germany
from outside Germany
2,290
5,087
3,470
6,940
2,993
7,617
2,175
5,632
2,566
8,020
1,252
3,568
1,519
4,559
Operating profit 670 1,010 1,056 51 528 180 475
MAN Truck & Bus
MAN Latin America
670
 
1,010
 
1,056
 
(91)
142
158
370
14
166
274
201
Operating profit ratio (%) 7.7 9.7 10.0 0.7 5.0 3.7 7.8
EBIT 698 1,039 1,062 (122) 429 132 425
Net profit 323 785 582 (170) 380 107 417
Number of Employees 36,052 36,591 36,010 32,292 32,196 33,020 36,691
Source: MAN SE Annual Report 2010, MAN SE Interim Financial Report H1 2011
(Note) 1. The MAN Group has operated under the new division structure since the beginning of 2010. The Group consists of two divisions of Commercial Vehicles and Power Engineering. The Commercial Vehicles is comprised of MAN Truck & Bus (former MAN Nutzfahrzeuge, which was renamed in January 2011) and MAN Latin America (former Volkswagen Caminhoes e Onibus), of which results were consolidated from April 2009. The Power Engineering division consists of MAN Diesel & Turbo and Renk, a transmission supplier.
2. MAN Truck & Bus produces trucks with GVW from 7.5 to 44 tons, special vehicles, long-distance/urban-area buses and platform for buses.
3. MAN Latin America is the largest manufacturer in the 5-ton or larger truck market in South America. It produces trucks with GVW from 5 to 57 tons and platform for long-distance/urban-area buses.
4. Net profit is MAN Truck & Bus's non-consolidated net profit until 2008. Starting in 2009, it is Earnings before tax of continuing operations of MAN's commercial vehicles division (Net profit of each division is not made public).

 

MAN: starts marketing a heavy truck under a new SITRAK brand with Sinotruk in China in 2012

 In July 2009, MAN formed an alliance with Hong Kong-based Sinotruk. In April 2011, the companies announced their new joint truck brand, SITRAK (Chinese name: Shandeka). Production of the SITRAK T7H heavy truck, the first model, will begin at the plant in Jinan City, Shandong Province, China in December 2011. The model will be released in China in the first half of 2012. The company plans to start exports to other countries in Asia, Middle East, Africa, and CIS region in the second half of 2012. The 2018 sales target is 200,000 (including 160,000 in China).

Source: MAN Press Release (Apr. 19, 2011)
(Note) In July 2009, MAN acquired a 25% share of Sinotruk (Hong Kong), which is under the umbrella of a major truck manufacturer in China - CNHTC (China National Heavy Truck Group, Shandong Province) - for 560 million Euros and concluded a contract for a long-term strategic alliance. So far, through licensing, MAN's technology for TGA series trucks, engines, chassis, axles, etc. has been transferred to Sinotruk.

MAN: starts production of trucks in St. Petersburg, Russia in 2012

 In April 2011, MAN signed a memorandum of understanding with St. Petersburg City on the production of trucks in the city. MAN will invest 25 million Euros in the plant building which MAN acquired in the city to upgrade it, thus producing trucks for Russia and CIS countries. The company will manufacture one fourth of trucks to be marketed in Russia locally as early as in 2012. In the medium run, it will have production capacity of 6,000 a year. MAN has so far sold 45,000 trucks/buses in Russia.

Source: MAN Press Release (Apr. 14, 2011)

MAN: invests 19 million Euros to upgrade a special plant for high-end buses under NEOPLAN brand

 MAN Truck & Bus will invest 19 million Euros during the three years to 2013 in expanding the Plauen plant in Germany and will introduce the latest equipment (announced in December 2010). The company plans to additionally construct an assembly plant designed ergonomically, a painting plant with less impact on the environment, and a customer center. It will produce a long-distance high-end bus under NEOPLAN brand at the upgraded plant.

Source: MAN Press Release (Dec. 16, 2010)

MAN: VW acquires a 55.9% voting right of MAN and VW considers consolidation of MAN and Scania

 In May 2011, VW raised its stake in MAN from 29.9% to 30.5% on a basis of voting right. Following Garman law (when a company acquires more than 30% of the voting rights, it is required to purchase shares through a takeover bid), VW proposed a takeover bid to acquire a 55.9% share of the voting rights (announced in July 2011). With this move, MAN goes under the umbrella of VW.
 VW is said to be considering the consolidation of Scania (VW has a 71.8% voting right) and MAN (which holds a 17.4% share of Scania), which are under its umbrella. VW estimates that as the two companies press ahead with cost reduction including joint purchasing of parts, a synergy effect of 200 million Euros a year will be generated. The two companies' combined share of the medium/heavy truck market in Europe will be 27% (the 2010 actual results), surpassing the top company, Daimler's 24%.

Source: MAN Press Release (Jul. 28, 2011), Scania Press Release (Nov. 15, 2010), Nikkei Sangyo Newspaper (May 16, 2011)

 



Scania: develops an engine that meets Euro VI new emission standards by utilizing EGR and SCR technology

 In 2010, Scania increased sales by 46.7% from 2009 to 64,000. Sales doubled in Central and South America and Asia while those in Europe, its major market, recovered only slowly. In 2010, sales outside Europe accounted for more than 50% for the first time. The company posted record operating profit due to increased sales and improved capacity utilization ratio.

 In the January-June 2011, sales grew by 42.3%. Revenues increased by 17.7%, but the exchange rate fluctuations negatively affected revenues by 7%. In 2011, the market continues to be on a recovery trend, but the influence of exchange rate fluctuations is expected to be larger.

 Scania has developed an engine that meets Euro VI emission standards that will come into effect in 2014 by combining various technologies that the company has developed so far in-house including EGR and SCR.

 In order to prepare for the increase in demand in the future, Scania will begin construction in the second half of 2011 in order to boost production capacity of its truck plant in Sweden from 100,000 to 200,000 a year.

Scania's sales volume of heavy duty trucks and buses by region

(vehicle)
  2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Europe
(former segmentation)
Western Europe 36,678 37,396 36,253 18,520      
Central and Eastern Europe 9,258 15,249 12,992 3,472      
Europe
(new segmentation)
Europe       20,778 25,075 11,009 17,301
Eurasia       1,214 2,451 736 3,279
Europe total 45,936 52,645 49,245 21,992 27,526 11,745 20,580
Latin America 9,636 12,134 12,784 10,987 20,160 9,422 9,977
Asia 6,425 7,556 8,442 6,719 12,299 5,510 7,882
Other markets 3,284 3,543 3,322 3,745 3,727 1644 1861
Total 65,281 75,878 73,793 43,443 63,712 28,321 40,300

Source: Scania Annual Report 2010, Interim Report Q2 2011
(Note) In 2010, Scania changed segmentation of regions in Europe (in 2009, the former and the new segmentation are shown). Until 2009, Russia and CIS countries are included in "Central/Eastern Europe." In 2010, "Europe" consists of 32 countries in Europe and "Eurasia" consists of Russia and CIS countries. "Other" mainly includes Africa and Oceania.

 

Scania's business results

(1 million SEK)
2006 2007 2008 2009 2010 Jan.-Jun.
2010
Jan.-Jun.
2011
Sales 70,738 84,486 88,977 62,074 78,168 37,105 43,665
Operating Income 8,753 12,164 12,512 2,473 12,746 5,632 6,652
Operating margin(%) 12.4% 14.4% 14.1% 4.0% 16.3% 15.2% 15.2%
Net income 5,939 8,554 8,890 1,129 9,103 3,796 4,947
R & D costs 2,842 3,214 3,955 3,234 3,688 1,691 2,205
Number of employees 32,820 35,096 34,777 32,330 35,514 33,459 36,941

Source: Scania Annual Report 2010, Interim Report Q2 2011
(Note) Scania is a manufacturer of heavy trucks of GVW 16 tons or greater, mostly customer-tailored commercial vehicles and motorcoaches, and also engines for industrial machinery/marine vessels. Its sales take place mostly in Europe, but it does not have sales in North America.

 

Scania: announces an engine that meets Euro VI

 In April 2011, Scania announced an engine that meets Euro VI emission standards that will come into effect in 2014. The company invested 10 billion SEK and spent five years developing the engine, which integrates the entire new technology that the company has so far developed in-house. The technologies employed include EGR, SCR, particle filter, variable nozzle turbo, and common-rail high-pressure fuel injection.
 The 13L, 440/480hp engine that Scania announced meets Euro VI while its fuel economy, operability, and response are the same level as those of Scania's engines that meet Euro V. The new engine can be used in Scania's G- and R-series trucks. It is assumed mainly to be used in long-distance transportation trucks, but can also be used in trucks of all purposes.

Source: Scania Press Release (Mar. 31 and Apr. 1, 2011)

Scania: expands plant in Sweden to boost production capacity from 100,000 to 120,000 a year

 In the second half of 2011, Scania will begin the construction in order to boost production capacity from the current 100,000 to 120,000 a year. The company will invest 1.5 billion SEK mainly in the expansion of its existing plant in Sweden during the next two to three years. Facilities to be invested in are production facilities for cabins, engines, transmissions, axles, etc. Scania targets to secure production capacity for 150,000 a year in the long run.

Source: Scania Interim Report Q2 2011

Scania: expands production capacity of buses at its plant in Poland

 Scania upgraded its Slupsk plant in Poland to resume production in September 2010. The modern and highly efficient new plant manufactures bodies of public bus - Scania OmniCity and OmniLink - and chassis of the OmniCity. The company has supplied buses that it produced to North Europe, Poland, the UK, France, and Italy, but will expand sales to other European countries including Germany in the future. It will also supply chassis to automotive body manufacturers in Europe, Africa, and Asia.

Source: Scania Press Release (Sep. 14, 2010)

Scania: dissolves its alliance with Hino

 In June 2011, Scania established a sales/service company in Japan. With this move, the company dissolves its business alliance with Hino. The companies had been mutually utilizing sales networks and exchanging technologies since 2002 and had achieved some results, but Hino's sales of large tractors supplied by Scania ended. In the future, Hino's medium trucks will be marketed through Scania's sales network in Korea and after-sales service in Japan will be continued .Scania considers promoting sales of heavy vehicles by its directly-managed dealers.

Source: Scania Press Release (Jun. 24, 2011) and Nikkan Kogyo Newspaper (Jul. 25, 2011)

(Reference) Global production of heavy trucks and buses (OICA statistics)

(vehicles)
Heavy Trucks Buses
2009 2010 2009 2010
Austria
Belgium
Finland
15,714
12,039
64
18,814
24,340
 
 
720
 
 
430
 
France
Germany
Italy
25,325
89,403
23,046
39,120
134,129
28,800
4,024
7,786
1,004
3,436
6,936
1,070
Netherlands
Portugal
Spain
24,490
2,079
25,707
44,764
4,320
36,891
1,641
84
552
1,317
70
254
Sweden
UK
17,859
9,003
30,000
10,116
9,839
1,470
10,000
1,508
15 original
EU members
242,650 366,944 27,036 25,011
Czech Rep.
Hungary
Poland
1,091
1,670
5,447
1,411
2,760
5,936
3,067
100
4,822
2,711
130
4,487
Romania 188 55 0  
New EU members 8,396 10,162 7,989 7,328
Serbia
CIS
Russia
285
51,260
40,326
 
76,763
60,071
100
13177
10,809
 
17076
13,283
Belarus
Ukraine
10,470
464
15,600
1,092
1,050
1,318
1050
2,743
Central-eastern
Europe
51,545 76,763 13,277 17,075
Turkey 8,246 23,851 8,555 7,926
Europe 310,837 477,720 56,857 57,341
Canada
Mexico
USA
11,321
59,135
132,283
5,624
90,582
145,946
 
 
21,966
 
 
19,451
NAFTA 202,739 242,152 21,966 19,451
Heavy Trucks Buses
2009 2010 2009 2010
Argentina
Brazil
Chile
12,891
123,633
3,250
18,585
191,646
4,700
1441
34,535
 
2329
45,869
 
Ecuador
Venezuela
8,448
15,558
 
9,803
 
197
 
0
S.America 163,780 224,734 36,173 48,198
Australia
China
India
3,929
1,704,407
154,878
4,052
2,259,161
277,014
 
129,210
42,002
 
161,603
54,609
Indonesia
Iran
55,766
29130
87,385
32929
2,328
2,729
3,650
2,759
Japan
Japan (Note 2)
371,686
156,476
520,672
250,220
8,783
 
10,274
 
Malaysia
Pakistan
Philippines
3,217
3,069
6,861
4,384
3,364
6,950
798
688
 
1,081
550
 
South Korea
Taiwan
Thailand
37,219
3,559
10,930
43,341
4,766
16,258
25,740

458
25,114

487
Vietnam 884 820    
Asia-Pacific
Asia-Pacific
(Note 3)
2,385,535
2,124,920
 
3,261,096
2,990,644
 
212,736
 
 
260,127
 
 
Egypt
South Africa
6,406
18,206
5,150
21,129
4,154
1559
3,960
1753
Africa 17,492 19,169 5,713 5,713
Total
Total (Note 3)
3,080,383
2,804,903
4,224,871
3,954,419
333,445
 
390,830
 
Source: OICA (International Organization of Motor Vehicle Manufacturers)
(Note) 1. The data included for each country in the chart are 5 to 6-ton or greater trucks except Japan. In each country's data, there are some overlapping data with other countries. The regional total shows the figures after these overlapping are removed.
2. As for Japan, the production of the 3-ton GVW or greater trucks is included in the OICA statistics.
The produced trucks over 6-ton GVW (according to the JAMA data) are shown in blue.
3. The figures in blue for the Asia-Pacific and Global totals are the totals when the Japanese truck production is considered as over 6-ton GVW trucks.
4. The production volume of Korea is in accordance with KAMA's OICA exchange files.

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