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New standards as profits climb
Page 26
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Scania is set to rationalise its engine range as results for 2004 show
that profits climbed. Alan Bunting and Dominic Perry report.
SCANIA IS RATIONALISING its engine range by dropping the 10.64-litre DC11. The 11.7-litre capacity of its longer stroke, but otherwise near identical, DC12 will become standard for all the company's six-cylinder diesels.
Jonas flofstedt, head of engine development, says electronic controls and other refinements allow the 12-litre engine to be downrated to the outputs now offered by the 11-litre with few fuel efficiency or performance penalties, with a weight of only about 30kg.
However, in the longer term, at Euro-5, the swept volumes on Scania's five,six and eight-cylinder diesels will be increased with larger bores and longer strokes as part of a wider package of innovations. This will also include the move to common-rail using the XPI technology developed in collaboration with Cummins.
Also at Euro-5 Holset variablegeometry turbochargers (VGTs ) will be fitted to non-turbocompound engines, enabling Scania to meet the emissions legislation using EGR in preference to SCR technology.
These will create the 'artificial' downstream back pressure needed to recirculate exhaust gases back into the (turbo compressor energised) inlet manifold, without using either a reed-valve or a venturi device — the two alternatives adopted by other manufacturers applying EGR.
The Holset "moving sidewall" VGTs being specified by Scania have previously been used in Europe by Iveco on its 8,10 and 13litre Cursor engines.
• Scania's 2004 results show profits climbing by 12%, despite a 7% drop in sales in the UK.
Although the UK remains the Swedish truck giant's second most important market, sales here slid to 5,863 units (17 % of the market). But this is still some way ahead of other European countries with France taking 3,650 units and Germany 3,455.
In total Scania sold 30,006 trucks into Western Europe (13% of the market over 16 tonnes). Overall the group made SEK58.5bn (£4.4bn) in 2004,up on SEK52.2bn (£3.9bn) the previous year.
The fall in the UK is being blamed on availability problems associated with the introduction of the new R Series truck and its stablemates the P and T Series. Scania's UK MD Dan Hoij remains upbeat. "The transition to the new P and R Series has gone extremely smoothly and has paved the way to future successes for Scania in the UK."
The majority of Scania's UK sales were tractor units, but Scania heads the four-axle rigid market with a 29.4% market share.
Globally. Scania improved on its 2003 results in terms of sales and revenue; they rose 12 and 13% respectively. It sold 50,563 trucks last year and revenue from truck safes amounted to SEK33.4bn (£2.5bn).
Western Europe remained its most important market, taking 60% of total production. This was followed by America (7,604 units); Asia (5,464 units);CentrallEastern Europe (5,172 units); and other markets (1,911 units).
Scania's president and CEO Leif Ostling, concludes: "Scania had a successful year in 2004 and strengthened the company as a supplier of heavy vehicles and services. During 2004, demand for heavy trucks continued to rise throughout Western Europe.
"Good economic development in Europe is important since the need for transport services is directly linked to GDP growth." •