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1981 will be the yea!

11th June 1987, Page 90
11th June 1987
Page 90
Page 91
Page 90, 11th June 1987 — 1981 will be the yea!
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of Iveco Ford profits

• With booming sales and a 225 million cash injection from its shareholders to reinstate equity levels hit by the costs of setting up the joint company, Iveco Ford Truck expects to finish 1987 in profit — and in the number one position in the 3.5-tonne GVW and above truck sector. While the company's results during its first six months in business have been described as "better than the projections which were established at the time the company was set up in July 1986". Iveco Ford confirms that up to the end of December last year it lost some £22.9 million, but adds that the loss "is not considered to be representative of expected on-going performance".

During its first six months the company faced a number of one-off costs, including some £3 million paid in compensation to erstwhile Ford and Iveco dealers whose franchises were terminated early.

It also had to write off capital expenditure at the Langley B truck plant which led to the replacement of the Ford axles built there for the Cargo range with Rockwell axles.

Ford of Britain also retained Cargo stocks at dealerships on 1 July last year, so these sales were not credited to Iveco Ford, so its turnover in the second six months to the end of December 1986 came from less than 40% of the Ford trucks sold in that period.

In the most recent statement from its board of directors, however, IFT says that "with the attributing of total sales revenue to the company as a result of the successful finished vehicle inventory build-up during 1986, it is anticipated that the 1987 financial statement will show significantly better results than the 1986 report of the company step-up activity."

IFTs sales have been rising steadily. The company finished first in the above 3.5 tonne GVW truck and artic sector last year with a share of over 19% — and during the first quarter of this year it retained pole position with a 23.33% stake helped by record Cargo sales, including an order for 210 Cargos from the Post Office.

During April the newlyformed Leyland Daf finished fractionally ahead — but Iveco Ford's director of commercial operations, Alan Fox, says that Iveco Ford "intends to be market leader by the end of the year. . . there may be little ups and downs, but we shall finish on top."

Production levels at the Langley plant, which builds the Cargo range, have already been increased, and the company is poised to launch a number of new models, including a revised 7-5-tonne Cargo with disc brakes and Rockwell axles in the 9-15 tonne sector.

Fox reports that the rationalised CV dealer network is now virtually complete. The newest member of the team is former Bedford truck dealer SMT of Glasgow.

Tags

Organisations: Post Office
People: Alan Fox
Locations: Glasgow

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