European CV Manufacturers: Adopting ‘Euro 6' and turning to emerging markets

Market turmoil continues through first half of 2013

2013/10/04

Summary

欧州商用車の販売台数  2012 total sales volume for the four European commercial vehicle automakers, Volvo, Iveco, MAN, and Scania, decreased by 10.1% year-over-year to 575,000 units. The decline continued through the first half of 2013 and decreased by 3.8% y/y to 261,000 units. During the first half of 2013, only Scania grew its sales by 22.5% y/y to 43,000 units, while the rest of the companies all declined. 
 In Europe, a new gas emissions regulation, Euro 6, will become effective to both medium- and heavy-duty commercial vehicles from January 2014. The companies released models incorporating new technologies including   new natural gas powered engines. Meanwhile, in the emerging markets, the four companies are shifting toward enhancing production and sales networks. As the outlook of the rest of 2013, Volvo maintains its original forecast of the European truck market: 230,000 units.  MAN expects the European market  to continue the turmoil, while Brazil starts recovering. Scania expects to see an increase in demand at the latter half of 2013.

Related Reports:
Daimler AG targets 940,000 CV sales by 2015 (Mar. 2013)
North American commercial vehicle market trends (Jan. 2013)

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

Units 2008 2009 2010 2011 2012 YoY
2011-
2012
Jan.-Jun.
2012 2013 YoY
Volvo Sales volume Vehicles
(units)
261,088 137,538 190,218 251,177 234,695 (6.6%) 104,374 90,400 (13.4%)
Sales 1 million SEK 304,642 218,361 264,749 310,367 303,647 (2.2%) 160,746 131,100 (18.4%)
Operating Profit 15,851 (17,013) 18,000 26,899 17,622 (34.5%) 13,949 3,744 (73.2%)
Iveco Sales volume Vehicles
(units)
192,100 103,900 129,600 153,400 137,000 (10.7%) 62,766 61,401 (2.2%)
Sales 1 million Euro 10,894 7,183 8,307 9,562 8,924 (6.7%) 4,172 3,970 (4.8%)
Operating Profit 838 105 270 490 469 (4.3%) 189 (8) -
MAN Sales volume Vehicles
(units)
103,705 82,609 126,279 155,520 136,271 (12.4%) 68,383 65,550 (4.1%)
Sales 1 million Euro 10,610 7,807 10,586 12,563 11,692 (6.9%) 5,796 5,828 0.6%
Operating Profit 1,056 51 528 965 454 (53.0%) 213 142 (33.3%)
Scania Sales volume Vehicles
(units)
73,793 43,443 63,712 80,108 67,401 (15.9%) 35,395 43,351 22.5%
Sales 1 million SEK 88,977 62,074 78,168 87,686 79,603 (9.2%) 42,139 39,338 (6.6%)
Operating Profit 12,512 2,473 12,746 12,398 8,300 (33.1%) 4,257 3,971 (6.7%)
Total sales volume
of four companies
Vehicles
(units)
630,686 367,490 509,809 640,205 575,367 (10.1%) 270,918 260,702 (3.8%)
Source: Four companies' Annual Reports 2008-2012, Interim Reports 2013 Q2
Notes 1. Numbers in brackets "(  )" represent negative value.
2. SEK stands for Swedish Krona. The exchange rate is about 0.12 Euro/15 YEN per SEK

(Reference) Number of registered new medium/heavy-duty commercial vehicles in Europe

GVW Regions 2008 2009 2010 2011 2012 YoY
2011-
2012
Jan.-Jun.
2012 2013 YoY
Vehicles between 3.5t-16t 18 Western European countries 406,265 254,417 258,751 315,395 297,904 (5.9%) 135,701 118,317 (14.7%)
New EU members 64,406 23,303 31,907 44,456 42,302 (5.1%) 19,714 19,389 (1.7%)
Europe total 470,671 277,720 290,658 359,851 340,206 (5.8%) 155,415 137,706 (12.9%)
Vehicles greater than 16t 18 Western European countries 290,939 172,146 175,558 225,985 211,165 (7.0%) 99,573 87,023 (14.4%)
New EU members 47,116 14,967 23,143 37,078 35,440 (4.6%) 17,353 16,837 (3.1%)
Europe total 338,055 187,113 198,701 263,063 246,605 (6.7%) 116,926 103,860 (12.6%)
Total 18 Western European countries 697,204 426,563 434,309 541,380 509,069 (6.3%) 235,274 205,340 (14.6%)
New EU members 111,522 38,270 55,050 81,534 77,742 (4.9%) 37,067 36,226 (2.3%)
Europe total 808,726 464,833 489,359 622,914 586,811 (6.2%) 272,341 241,566 (12.7%)
Source:ACEA (Association des Constructeurs Europeens d'Automobiles g.i.e.)
Notes 1. Value for Jan.-Jun. 2012 & 2013 is preliminary value.
2. Eighteen Western European countries mean 15 original EU countries plus Norway, Switzerland and Iceland.
3. New EU member countries are Czech Republic, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Hungary, and Bulgaria.
4. Values for Jan.-Jun 2012 & 2013 do not include medium-sized/large buses. The number of registered medium-sized/large buses in Europe is 15,989 units for 2012 and 14,694 units for 2013
5. Numbers in brackets "(  )" represent negative value.


Volvo to increase profit and expand in new markets by 2015

 Volvo’s sales volume in 2012 decreased by 6.6% y/y to 235,000 units. The sales volume decreased by 11.2% y/y to 87,000 units for its major market, European market. The sales vlolume decreased by 18.5% y/y to 26,000 units for the South American market. The automaker analyzes these decreases were caused by sluggish sales of its group company Renault Truck in the South European market. Deteriorated economy in the South American market, especially Brazil, may also have affected. On the other hand, sales volume increased in the North American market by 8.8% y/y to 50,000 units from the replacement demand of trailer trucks in 2012. Its 2012 sales decreased by 2.2% y/y and the operating profit by 34.5% y/y to SEK 17.62 billion.

 The sales volume for the period of January to June 2013 decreased by 13.6% y/y to 94,000 units. The operating profit dropped greatly by 73.2% y/y to SEK 3.74 billion. Volvo is determined to improve its profitability between 2013 and 2015, by investing in development of new models. The company will explore new markets to attain its goal to achieve the leading profitability in the industry.

 

Volvo's sales volume by type and region

(units)
Europe North
America
South
America
Asia Others Total
Trucks 2011 95,113 42,613 29,274 56,165 15,226 238,391
2012 84,355 47,806 23,443 51,514 16,899 224,017
YoY (11.3%) 12.2% (19.9%) (8.3%) 11.0% (6.0%)
2012 1H 42,565 26,670 10,618 15,763 8,758 104,374
2013 1H 34,916 20,910 13,785 13,083 7,706 90,400
YoY (18.0%) (21.6%) 29.8% (17.0%) (12.0%) (13.4%)
Buses 2011 2,695 3,014 2620 3,417 1040 12,786
2012 2,491 1,826 2,560 2,945 856 10,678
YoY (7.6%) (39.4%) (2.3%) (13.8%) (17.7%) (16.5%)
2012 1H 1,296 941 1,176 805 464 4,682
2013 1H 1,022 661 1,113 751 328 3,875
YoY (21.1%) (29.8%) (5.4%) (6.7%) (29.3%) (17.2%)
Total 2011 97,808 45,627 31,894 59,582 16,266 251,177
2012 86,846 49,632 26,003 54,459 17,755 234,695
YoY (11.2%) 8.8% (18.5%) (8.6%) 9.2% (6.6%)
2012 1H 43,861 27,611 11,794 16,568 9,222 109,056
2013 1H 35,938 21,571 14,898 13,834 8,034 94,275
YoY (18.1%) (21.9%) 26.3% (16.5%) (12.9%) (13.6%)

Source:Volvo Group Annual Report 2012, Quarterly Report 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Volvo Group's business results

(1 million SEK)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Sales volume (units) 261,088 137,538 190,218 251,177 234,695 (6.6%) 104,374 90,400 (13.4%)
Net sales Trucks 203,642 138,940 167,305 198,920 192,283 (3.3%) 98,532 83,265 (15.5%)
Buses 17,350 18,465 20,516 21,823 20,295 (7.0%) 10,126 7,490 (26.0%)
Others 83,650 60,956 76,928 89,624 91,069 1.6% 52,088 40,345 (22.5%)
Total 304,642 218,361 264,749 310,367 303,647 (2.2%) 160,746 131,100 (18.4%)
Operating
income
(loss)
Trucks 12,167 (10,805) 10,112 18,227 10,216 (44.0%) 7,961 1,936 (75.7%)
Buses (76) (350) 780 1,114 51 (95.4%) 234 (77) -
Others 3,760 (5,858) 7,108 7,558 7,355 (2.7%) 5,754 1,885 (67.2%)
Total 15,851 (17,013) 18,000 26,899 17,622 (34.5%) 13,949 3,744 (73.2%)
Net income(loss) 10,016 (14,685) 11,212 18,115 11,258 (37.9%) 9,097 1,838 (79.8%)
R & D costs 14,348 13,193 12,970 13,276 14,794 11.4% 7,222 7,554 4.6%

Source: Volvo Group Annual Reports, Quarterly Report 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Volvo Group's sales by region

(1 million SEK)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Western Europe 124,261 84,452 87,241 97,925 88,325 (9.8%) 24,406 21,420 (12.2%)
Eastern Europe 28,212 9,632 12,570 20,298 20,751 2.2% 5,829 4,527 (22.3%)
Europe total 152,473 94,084 99,811 118,223 109,076 (7.7%) 30,235 25,947 (14.2%)
North America 47,746 37,291 45,409 58,253 68,297 17.2% 20,159 16,715 (17.1%)
South America 19,613 16,610 27,876 34,013 27,970 (17.8%) 6,644 7,762 16.8%
Asia 55,812 44,842 65,072 73,017 68,500 (6.2%) 17,874 14,733 (17.6%)
Other markets 20,192 15,660 19,207 20,083 22,188 10.5% 6,065 5,674 (6.4%)
Total 295,836 208,487 257,375 303,589 296,031 (2.5%) 80,977 70,830 (12.5%)

Source: Volvo Group Annual Reports, Quarterly Report 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Outlook on Volvo Group

Mid-term strategies
for truck business
In September 2012, Volvo announced its mid-term strategies for its truck business. The company aims to promote the following initiatives between 2013-2015:
*to increase total margin by three percentage points in every market; cut sales costs by 10%; reduce sales costs to 5% of the revenue.
*To increase its margins, Volvo will implemet layoffs, improve productivity and make SEK four billion cutbacks from its annual expenditure.
*To reduce R&D costs to SEK 11.5 billion and reduce IT related cost to 2% of the total expenditure by 2015.
*To respond to increased demands for commercial vehicles expected in the future, the company aims to increase its sales by 50% in Asia Pacific region and by 25% in Africa.
*It plans to introduce new heavy-duty truck models in emerging and growing markets including Asia, South America, and Africa
*It plans to produce vehicles at its group plants in India and Thailand and a plant of a Volvo-Dongfeng Motor joint venture in China.
Alliance Volvo and Dongfeng Motor Group make strategic alliance in commercial vehicle business In January 2013, the Volvo group and Dongfeng Motor Group Co., Ltd. (DFG) agreed to establish a strategic alliance regarding commercial vehicle business. A joint venture will be established with DFG owning 55% and Volvo 45% of the share. Their objectives are to develop the Dongfeng brand globally and to reduce costs by sharing the two companies’ platforms, procurement suppliers, supplying and sales networks. In this alliance, Volvo will strengthen sales in the Chinese and other Asian markets and DFG will explore new markets for commercial vehicles.
To terminate contract with Karsan Otomotiv to manufacture products under contract at the end of 2013 In August 2013, Renault Truck announced the termination of contract with Karsan Otomotiv for consigned production at the end of 2013. Production of new models from Renault Truck will be transferred to plants in France. Volvo expects to record a loss of SEK 95 million for 3Q 2013. However, according to the announcement made by Volvo, this move is expected to provide positive effect to the group in the medium term by improving production capacity at plants in France.
Compliance with Euro6 Renault Truck In June 2013, Renault Truck announced the renewal of its entire truck lineups to comply with the new emissions standard Euro 6. The new regulation will be put into effect from January 2014. The company's lineups were developed over a period of seven years with the investment of EUR 2 billion. Upon the development of these new products, new equipments, including large-size stamping machines at Lyon engine plant and a body production line at the Blainville-sur-Orne plant, were introduced.
Volvo In June 2013, Volvo Trucks introduced new trucks with engines complying with Euro 6. A total of four models ranging from a mid-size, 5-liter "D5" engine to a large-size, 13-liter "D13" engine will be introduced. A Euro 6 compliant, 16-liter D16 engine is scheduled to be released in spring 2014.
Three large-size engines, D11, D13, and D16 are equipped with an improved version of SCR unit and a urea injection system. These engines comply with Euro6 standard by combining EGR technology and a diesel particulate filter (DPF).
Organizing production UD Trucks to manufacture new trucks in Thailand On August 26, 2013, UD Trucks premiered the Quester, a new truck targeting emerging countries. The automaker has started receiving orders in Thailand, Indonesia, and the Philippines. It will start mass production at the Bangkok plant within 2013. Production will also begin in China and India from next year. In addition to Thailand, the trucks will be sold in Southeast Asia, Middle East, and Africa. A floor area of 20,000 square meters was added to the Thai plant by investing approximately THB 2 billion. It now has an annual production capacity of approximately 20,000 units. The engines will be imported from Japan, but the majority of components will be procured locally. The same model is planned to be manufactured in China for the Chinese and Indian markets.
Production of busses transferred from Europe to Polish plant  Volvo closed the Saffle plant in Sweden at the end of June 2013 to consolidate production to the Wroclaw plant in Poland. Consolidation of bus production will allow the company to cut costs and increase margins.
Volvo to begin production of truck cabs from 2014  In September 2013, Volvo announced that it will spend SEK 783 million to the Kaluga plant in Russia to start production of truck cabs for Volvo and Renault Truck from 2014. The plant will have an annual production volume of 15,000 cabs.

 

 



Iveco ends 1H 2013 in red

 Iveco’s  sales volume in 2012 decreased by 10.7% y/y to 137,000 units. The sales volume for January through June 2013  decreased by 2.2% y/y to 61,000 units. Its operating profit dropped to a EUR eight million loss, from EUR 189 million profit. The automaker attributes the decrease to its inability to compensate decreased demands in the European market with the increase in the Latin American market.

 

Iveco's sales volume by region

(1,000 units)
Europe Europe
Total
Other
Regions
Grand
Total
France Germany UK Italy Spain Others Western
Europe
Total
Eastern
Europe
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 66.8 8.1 74.9 29 103.9
2010 18.3 14.7 5.1 21.7 7.4 11.1 78.3 11.5 89.8 39.8 129.6
2011 21.6 16.8 8.3 22.1 7.1 12.1 88.0 14.4 102.4 51 153.4
2012 17.8 14.1 7.0 13.9 5.4 11.2 69.4 18.1 87.5 49.5 137.0

Source:Fiat Industrial Annual Report Annual Reports

 

Iveco Group's business results

(1 million Euro)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Consolidated Sales volume (Units) 192,100 103,900 129,600 153,400 137,000 (10.7%) 62,766 61,401 (2.2%)
Total sales volume of affiliated companies (Units) 81,200 95,300 129,100 133,000 131,800 (0.9%) - - -
Naveco's sales volume (units) 58,900 75,700 98,600 101,500 114,800 13.1% - - -
SAIC Iveco Hongyan's
sales volume (units)
22,300 19,600 30,500 31,500 17,000 (46.0%) - - -
Total sales volume (units) 273,300 199,200 258,700 286,400 268,800 (6.1%) - - -
Net revenues 10,894 7,183 8,307 9,562 8,924 (6.7%) 4,172 3,970 (4.8%)
Trading Profit/loss 838 105 270 490 469 (4.3%) 189 (8) -
Net profit 779 (90) 240 408 288 (29.4%) - - -
R & D costs 246 169 214 254 289 13.8% - - -
Number of employees 27,108 24,917 25,583 26,202 26,307 +105 - - -

Source: Fiat Industrial Annual Reports, Quarterly Report 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Goals and activities of Iveco

New models New Stralis In April 2013, Iveco announced the new Stralis Truck, powered by an engine with High-Efficiency SCR (HI -eSCR) technology, at 2013 Commercial Vehicle Show. This model complies with Euro6 by a combination of SCR and DPF technologies instead of EGR.
New brand  In May 2013, Iveco introduced the Iveco Bus, its new brand. It will replace the Iveco Irisbus brand. Furthermore, the automaker introduced its latest model, the Urbanway city bus. This bus will be the first Euro 6 compliant model under the Iveco Bus brand.
Collaboration with local companies Co-development of PLC and CNG vehicles with Russian company Gazprom In June 2013, Iveco announced the co-development of power line communication (PLC) and compressed natural gas (CNG) vehicles with a Russian company Gazprom in Russia. In addition to developing and testing CNG vehicles, the companies will collaborate to promote and increase CNG vehicles.
Release of joint model developed with Shanghai Automotive In April 2013, an Iveco-Shanghai Automotive Industry Corporation's (SAIC) joint venture, Saic-Iveco-Hongyan, showcased its model at the Auto Shanghai 2013. The displayed vehicles were the Naveco Power Daily 2013 built on a same platform as Iveco Daily and the Iveco 682 tractor.
Truck/bus assembly plant established In October 2012, Iveco entered into a joint agreement with a South African Larimar group. It announced that a joint venture will be established in Pretoria for manufacturing heavy-duty vehicles. Iveco will own 60% of the share. The company will start production of the Eurocargo series from the latter half of 2013. Light-, medium-, and heavy- duty trucks, and local busses are also scheduled to be assembled at the plant.

 

 



MAN's sales in Latin America increases, but European sales continue to decline

 MAN’s sales volume for 2012 was 136,000 units with a decrease of 12.4% y/y and its revenue decreased by 6.9% to EUR 11.69 billion. Its operation profit also decreased by 53% to EUR 450 million and the EBIT was EUR 310 million. The company speculates the decreases were caused by unfavorable performances in the European market and the decreased demands for vehicles due to the introduction of Euro 5 in Brazil.

 The sales volume for January through June 2013 decreased by 4.1% y/y to 66,000 units. Of the volume sold, MAN truck & Bus decreased its number by 11.5% to 35,000 units, but the number increased for MAN Latin America by 6.1% to 30,000 units. The company’s revenue increased by 0.6% y/y to UER 5.83 billion, but the operating profit decreased by 33.3% to EUR 140 million. EBIT also decreased by 42.4% to EUR 95 million. The company analyzes the decline in profit was induced by decreased sales volume from increased competitiveness and decreased vehicle volume, as well as strong Brazilian Real.

 MAN forecasts the European commercial vehicle market to continue declining in the latter half of 2013 and 2014 to be in the same magnitude. However, for the German market, they expect an increase in demand if there are government incentives for the replacement to Euro 6 vehicles.

 

MAN's commercial vehicles division's business results

(1 million Euro)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Sales Volume (units) 103,705 82,609 126,279 155,520 136,271 (12.4%) 68,383 65,550 (4.1%)
MAN Truck & Bus 103,705 46,767 60,649 83,418 79,966 (4.1%) 39,824 35,249 (11.5%)
MAN Latin America 35,842 65,630 72,102 56,305 (21.9%) 28,559 30,301 6.1%
Sales 10,610 7,807 10,586 12,563 11,692 (6.9%) 5,796 5,828 0.6%
MAN Truck & Bus - 6,395 7,446 8,984 8,822 (1.8%) 4,372 4,253 (2.7%)
MAN Latin America 1,412 3,140 3,579 2,870 (19.8%) 1,424 1,575 10.6%
Of which Germany 2,993 2,175 2,566 2,960 2,643 (10.7%) 1,337 1,292 (3.4%)
Of which countries
except Germany
7,617 5,632 8,020 9,603 9,049 (5.8%) 4,459 4,536 1.7%
Operating profit 1,056 51 528 965 454 (53.0%) 213 142 (33.3%)
MAN Truck & Bus 1,056 (91) 158 565 225 (60.2%) 83 35 (57.8%)
MAN Latin America 142 370 400 229 (42.8%) 130 107 (17.7%)
Return on sales (RoS) 10.0% 0.7% 5.0% 7.7% 3.9% (3.8%pts) 3.7% 2.4% (1.3%pts)
EBIT 1,062 (122) 429 977 310 (68.3%) 165 95 (42.4%)
Net profit 582 (170) 380 950 194 (79.6%) 122 65 (46.7%)
Employees 36,010 32,292 32,196 35,212 36,231 +1019 - 35,740 (491)
*compared with
end of 2012

Sources: MAN Group Annual Reports, Interim Report Q2 2013
Note: Numbers in brackets "(  )" represent negative value.

 

Activities of MAN

Plans for 2013 *MAN expects the group’s annual sales for 2013 to maintain last year’s level. However its operation profit will decline drastically.
*The European market will continue to suffer from the European debt crisis.
*The Brazilian market is gradually making recoveries.
Brazil: enhancement of production  In September 2013, MAN announced that it will spend BRL 11 million to its Resende plant in Brazil to add an assembly line for truck production. The plant now has two lines with the daily production volume increasing from eight units to 16 units.
Russia: Organizing sales network  In September 2013, MAN announced its plans to invest EUR 50 million to organize a sales network in Russia. Currently, there are 50,000 MAN commercial vehicles active in Russia. The manufacturer invested EUR 10 million to establish a sales location in St. Petersburg during the first half of 2013.
New Euro6 compliant trucks  In September 2012, MAN announced new Euro 6 compliant trucks: the MAN TGS and MAN TGX The trucks are equipped with a SCR system to comply with Euro 6 standard while maintaining fuel efficiency.

 

 



Scania increases sales volume for 1H 2013 but profit decreases

 Scania’s sales volume for 2012 decreased by 15.9% y/y to 67,000 units but its revenue decreased by 9.2% y/yto SEK 79.6 billion. Its operational profit also decreased by 33.1% to SEK 8.3 billion and the net profit decreased by 29.5% to SEK 6.64 billion. The company believes the declines were attributed to sluggish sales in the South European market and decreased sales volume affected by transition to Euro 5 standard in South America.

The sales volume for January through June 2013 increased dramatically by 22.5% y/y to 43,000 units. Despite the declined sales volume of 5,121 units in the Asian market which is a 15.3% drop from the previous year, sales volumes in the other markets increased: by 19.4% y/y to 19,000 units in Europe and  by 63.7% y/y to 13,000 units in the Latin American market. However, the revenue dropped by 6.6% to SEK 39.34 billion, operating profit by 6.7% to SEK 3.97 billion, and net profit by 14.7% to SEK 2.77 billion. Scania analyzes the strong Swedish krona and severe cost competition as the causes of these poor performances.

The company expects an increase of demand in Europe in 2013 3Q. To respond to the expected demands, the amount of production will be boosted, and will be increased further during the fourth quarter. The company also expects demands for Euro5 vehicles at the end of the year before the regulation switches to Euro 6. In addition, the company also expects demand to the new second-generation Euro 6 compliant engines, but due to the increase of the vehicle price, the details are not announced.

 

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

(units)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Europe - 20,778 25,075 33,359 29,032 (13.0%) 15,580 18,601 19.4%
Eurasia - 1,214 2,451 7,529 6,996 (7.1%) 3,875 3,991 3.0%
Latin America 12,784 10,987 20,160 20,904 18,129 (13.3%) 8,073 13,213 63.7%
Asia 8,442 6,719 12,299 14,550 9,393 (35.4%) 6,045 5,121 (15.3%)
Other markets 3,322 3,745 3,727 3,766 3,851 2.3% 1,822 2,425 33.1%
Total 73,793 43,443 63,712 80,108 67,401 (15.9%) 35,395 43,351 22.5%
Source: Scania Annual Reports, Interim Report Jan-Jun. 2013
Notes 1. "Europe" consists of 32 countries in Europe and "Eurasia" consists of Russia and CIS countries. "Other" mainly includes Africa and Oceania.
2. Numbers in brackets "(  )" represent negative value.

 

Scania's business results

(1 million SEK)
2008 2009 2010 2011 2012 YoY Jan.-Jun.
2012 2013 YoY
Sales 88,977 62,074 78,168 87,686 79,603 (9.2%) 42139 39338 (6.6%)
Operating Income 12,512 2,473 12,746 12,398 8,300 (33.1%) 4257 3971 (6.7%)
Operating margin(%) 14.1% 4.0% 16.3% 14.1% 10.4% (3.7%pts) 10.8% 9.4% (1.4%)
Net income 8,890 1,129 9,103 9,422 6,640 (29.5%) 3249 2771 (14.7%)
R & D costs 3,955 3,234 3,688 4,658 5,312 14.0% 2536 2462 (2.9%)
Number of employees 34,777 32,330 35,514 37,496 38,597 +1101 - 40116 +1519
*compared with
end of 2012
Source: Scania Annual Reports, Interim Report Jan-Jun. 2013
Notes 1. 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.
2. Numbers in brackets "(  )" represent negative value.

 

Activities of Scania

Goals for 2013 * To increase productivities from 3Q to save time until delivery. In 4Q, it will further shorten its delivery time.
* To enhance and expand service and sales networks in emerging markets
* SEK 1.5 billion is planned to be spent on it production facilities to increase the annual production capacity to 120,000 units. It will also double annual production volume to 120,000 trucks by 2012 (the volume was 61,000 trucks for 2012).
Collaborations with MAN  In September 2013, Scania announced that it would consider collaborating with MAN, a commercial vehicle department of the VW group. The two companies may cooperate in a variety of fields to gain synergistic effects for cost reduction through economies of scale for axles, transmissions, and hybrid drive components.
To make additional investment to Argentina plant  In June 2013, Scania announced an additional investment of USD 3 million for the Tucuman plant in Argentina. The investment will be used to increase production of transmission partsto meet increased demand in the region. The cumulative investment of USD 15 billion has been made on this plant.
To develop electric-powered vehicle with Siemens  In March 2013, Scania announced that it will jointly develop commercial vehicles equipped with an electric powertrain with Siemens. Scania will be responsible for the development of hybrid vehicle (HV) technology and Siemens will be responsible for technologies to supply and charge electricity. The companies aim to make Sweden the first country to provide EV trucks and construct commercial electricity supplying roads for commercial use. The companies are developing trucks with electricity supplied from power lines through a pantograph placed on the roof of the vehicle (conduction) or through contactless electricity supply through the road surface (induction) to run in EV mode. The trucks will have a hybrid powertrain capable of powering the vehicle with both electric motor and diesel engine.
Announcement of Euro6 compliant engine  In September 2012, Scania announced a line of engine models with a power of 250hp~480hp, compliant to Euro6 standard. Some engines are equipped with SCR only, while others are fitted with both EGR and SCR. A  natural gas powered engine was also announced.
India Begins sales of busses  In February 2013, Scania launched inter-city bus model, the Metrolink. The new bus will be launched in the Indian market at first, and then will be sold in markets around the world. The three Metrolink models will carry 45-53 passengers and powered with a 9-liter (310 hp) to 13-liter (410 hp) engine. Their length will measure between 12m to 14.5m. Models sold in India will be manufactured at the new Narasapura. Delivery of the products will begin from mid-2013.
Construction of new plant begins  In July 2012, Scania announced that it has started the construction of a new Narasapura plant in the suburb of Bangalore.  It will be the first production plant to be constructed in India and the operations are schedule to start in early-2013. Approximately INR 2.5 billion will be spent for the construction of the new plant. Chassis for trucks and busses will be assembled by complete knockdown (CKD) operation. From 2013, production of city busses and long distance busses including the Metrolink will begin as well. By 2017, the company plans to increase the annual production capacity to 2,000 units of heavy-duty trucks and 1,000 units of long-distance busses.
To expand delivery of engines to Doosan, a South Korean heavy industries company  Scania has supplied diesel engines for dump trucks and wheel loaders to a South Korean heavy industries conglomerate, Doosan since 2010. In April 2012, the company announced that it will start providing engines for other heavy-machineries from 2014. Doosan has been well received in the Chinese market and Scania will provide 20,000 units of engines.

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