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Tough times predicted

11th January 1990
Page 29
Page 29, 11th January 1990 — Tough times predicted
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Which of the following most accurately describes the problem?

• Bus manufacturers are tightening their belts in readiness for a tough year ahead: "Overall, it will be a very tough year in the bus market in all international markets," says Scania's Dermot Bambridge. "I expect PSV sales to be considerably lower."

VL Bus does not expect to equal its sales for 1989 — its best-ever year, when the company passed its 1988 quota of 500 coach chassis by August. "The minibus boom has levelled out," says VL's Ian Macquarrie.

Optare tells a similiar story; managing director Russell Richardson is "looking forward with some trepidation to a less buoyant market", but still reports "very good business".

"We've been seeing growth overall at the expense of others in the marketplace and had a very good 1989 with the Delta coming on stream," he says. "We have a great strength in our wide product range and we've guessed the market right." Optare has "one or two things up its sleeve" for this year, says Richardson.

However, some manufacturers predict an upturn in the market at the end of the year. Scania plans to increase its European production capacity by 50% over three years, mainly for trucks, but with some spin-off for bus production. Renault had a disappointing year in 1989, with the 50 Series and the PR100 Citybus both performing below expectations, but feels a drop in interest rates predicted for the early summer will bring in extra orders.

In the longer term Renault has high hopes of a shift towards public transport as part of an integrated transport system, in London at least.

Daf is to make the chassis for a revamped version of the Metrobus at its Eindhoven plant. The new chassis features an improved specification with a Daf engine. The bodies are being built by Optare at Leeds.