British makers set to stem Euro flood
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Market conditions will hit importers by CM reporter
BRITISH truck makers are all set to stem the flood of Continental heavy vehicles now swamping the UK market. This is one of the conclusions of a report published this week in the Economist Intelligence Unit's Motor Business Quarterly. For the first time in years, says the report, manufacturers have trucks to spare: sure confirmation that the market is declining. Another conclusion which will be good news fOr operators is the categorical statement that there is no viable transport alternative to road for the movement of freight.
Looking at the heavy goods market, that is 28 tons groS's and over, the report predicts a bright future for the industry, despite the present sales decline. The independent British truck makers with new vehicles and larger plants are now in "their best ever shape" to fight the importers.
The report strikes another blow for the cause of higher gross vehicle weights; until these are achieved it is unlikely that British operators will "enjoy the reduced operating costs and better productivity experienced by their European competitors". It is already clear, says the report, that British operators may not play a dominant role in shifting Europe's freight because they will find it increasingly difficult to compete until they are allowed to carry heavier loads.
The report looks at the total commercial vehicle production by UK makers in 1974 and compares it with the previous year. These figures show a 17.7 per cent fall in output by British Leyland's Truck and Bus division at a time when there was no shortage of demand. During the same period Bedford lifted production by 8.3 per cent while Chrysler output fell by 4.6 per cent.
Percentage changes in production among the UK manufacturers were: British Leyland (all divisions) -11; Ford -6.1; Bedford +8.3; Chrysler -4.6; ERF +15; Seddon Atkinson +13.8; Bristol +18.2; and others 4. Overall, production fell by 3.7 per cent. Looking ahead, the report forecasts how the total market will change.
It concludes that the new vehicles produced by ERF, Foden and Seddon will "improve the prospect" of these makers both towards retaining present customers and to attracting operators currently using imported vehicles.
The heavy truck market is predicted to become even more competitive with the availability of maximum weight trucks from Ford and Bedford. Reasons for British operators purchasing foreign vehicles will be sharply reduced during 1975 with British manufacturers "for the first time" offering both availability and highly competitive vehicles.
On British Leyland the report says the group has a good future offering both quality and mass produced heavy trucks, but it points out that only the Marathon is really new.
Imported vehicle manufacturers face the worst prospect in 1975 according to the report. With the massive increase in competition from British manufacturers, the lower volume imported trucks — Saviem, Magirus and Fiat — "may well not succeed". The leading foreign suppliers, Volvo and Seania, are forecast to lose sales faster than competitive British makers while the medium size importers, DAF, Mercedes and MAN, will have increasing difficulties with low volumes of trucks for fairly wide distributor networks.
In its concluding prophecy the EIU report says that State-owned companies, such as National Freight Corporation, will come under increasing pressure to justify buying imported heavy vehicle: when similar British truck: are available.
Copies of the Eli. Quarterly, which als( contains other reports, an obtainable from the Unit a Spencer House, 27 S James's Place, Londot SW1A INT, price £20.