lveco chief slams Daimler/Mitsubishi deal
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• Daimler-Benz's decision to link with Mitsubishi in a new van partnership has been attacked by Giorgio Garuzzo, managing director of Iveco.
Speaking during a conference at the Frankfurt Motor Show, Garuzzo said the deal will allow Daimler to import Japanese components and technology, and add to competition. There is already over-capacity in Europe, he argued, and there are many potential partners in Europe which Daimler could have chosen — and several buyers if Daimler wanted to withdraw from the market.
Garuzzo also warned about discounting on new trucks: "Undisciplined use of discounts as a selling incentive could seriously damage the industry," he said, "because it diverts resources from research and investment and distracts sales forces from their professional task of solving customers' operating problems."
The formation of an integrated European transport market by 1992 will be very difficult to achieve, says Garuzzo. Harmonisation will benefit central European hauliers at the expense of those in outlying regions such as Scotland and the south of Italy. Garuzzo feels the answer is a truly integrated economy, with one European budget, one currency and a consistent European development plan.