As Scania marks 50 years in the UK, the firm says that the completion of the takeover by VW â€“ which also owns rival MAN â€“ will not impact its brand. .
At a press conference Claes Jacobsson, Scania (Great Britain) MD, and Scania President and CEO Martin Lundstedt, both said that it is business as usual.
Said Mr Jacobsson: â€œWhen we arrived in the UK in 1964 there were 25 manufacturers to fight and we had a market share of zero, and we were only selling engines.â€
Now it has an 8.3% annual market share (259 vehicles) of coach and bus, and 18.1% share (6,505 vehicles) in the truck market.
Mapping out Scania’s â€œscenarioâ€ in 2020, Mr Lundstedt says that global revenues will increase by 25-30%, thanks to growing demand from developing countries.
He adds that the takeover by VW, which started in 2008 when it took a majority shareholding and is currently being completed with Scania’s de-listing from the stock market, will not have an impact on its strategy.
He points to VW’s ownership of a number of car brands â€“ Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat and Å koda â€“ as evidence that Scania will remain intact, and that in the last year it has been â€œin its most expansionist phaseâ€ with massive R&D investment.
Mr Lunstedt admits that there will be cost savings, but says: â€œEconomies of scale is the most overrated phrase ever.â€ He estimates savings of around â‚¬850m over the next 10 years.
He says that component sharing with VW and MAN/Neoplan is the way forward, with gearboxes, hybrid technology, cab components and axles, on the list.
He adds that MAN and Scania’s city and intercity buses’ â€œvolumes are too small and need to be consolidated.â€ Neither of these ranges is sold in the UK.
He points out that Scania remains profitable, with a 10.7% margin in Q1, and SEK 2.3bn (200m) profit. â€œThe market is coming round after the recession; we don’t see any more shocks to come,â€ he added.
Picture shows:Claes Jacobsson (left) and Martin Lundstedt celebrating the UK landmark