M - B: steady growth • Mercedes-Benz (UK) aims to sell 15,000
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trucks and vans in Britain in 1987 — a rise of more than 5% on last year — but the relative weakness of sterling against the deutschmark means that the company will have to raise its commercial vehicle prices again before the end of the year.
Managing director Hans Tauscher says that MercedesBenz will continue with its policy of gradual, rather than spectacular, growth in the UK commercial vehicle market which since 1974 has seen M-B(UK) rise to its current third place in the market above 3.5 tonnes.
While Tauscher does not expect any major changes to Mercedes' current market share before the end of 1987, he says: "We will be doing 14% without any great struggle," and believes that the company could increase its overall share above 3.5 tonnes to 15% in 1988.
Strong growth Mercedes is currently enjoying strong growth in the heavy rigid and artic sector above 29tonnes GVW, with its 1635 and 1644 Powerliner range proving "particularly acceptable to operators" according to Tauscher, who claims that MB(UK) could increase its share of the artic market to well over 12% during next year.
Strong demand for T2 vans and chassis cabs from PSV operators for mini-bus operations is also boosting the corn pany's sales between 3.5 and 6.5 tonnes GVW.
Fluctuating currency rates between the UK and Germany continue to affect the company's pricing levels. Since the beginning of the year the strong level of the deutsclunark has forced M-B(UK) to raise its prices by an average of 3.6%. Tauscher says that "during the course of the year, we will have to make another price adjustment", but he maintains that "it is not a factor which will impede our competitiveness".
Although M-B(UK) has been able to absorb some of the losses caused by the poor sterling/deutschmark rates, Tauscher says that the company will not try and buffer its dealers with unrealistic financial support: "It has never been our policy to announce high prices and then give extra high discounts to dealers."
Tauscher predicts that the recent growth in the CV market will continue well into 1988: "Demand levels have surprised us somewhat. We have got a lead time of four to five months (on vehicle orders) which we cannot suddently adjust to the increase in demand."
Problems of chassis availability have affected some M-B dealers: "We're not happy with it, but we cannot reduce it very much," says Tauscher.
To help reduce unnecessary delays in order completion, however, the company is now using its computer links with Germany to allow operators to change the specification of their truck order within one month of the vehicle going down the Daimler-Benz assembly line.