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Truck imports' 'are a rip-off'

21st August 1997
Page 6
Page 6, 21st August 1997 — Truck imports' 'are a rip-off'
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Which of the following most accurately describes the problem?

by Rob Willock • Foreign truck manufacturers have been accused of ripping off UK hauliers by failing to pass on the savings created by the strong pound.

Commercial vehicles are currently up to 20% more expensive in the UK than on the Continent, despite sterling's strength, which should make imports cheaper. And British truck buyers are now looking at buying abroad.

One operator told Commercial Motor that he recently paid £59,000 for a new Scania R124 400 4x2, only to discover a friend in Holland had purchased the same model, with the same specification, for the equivalent of just L50,500.

"It's a rip-off," he says. "They're benefiting from the exchange rate and not passing the savings on. But you can bet that when the value of the pound drops back, they'll put the prices up."

The operator says he is buying another Scania for his fleet, but this time direct from Holland. "And it will be a right-hand drive model," he adds.

Tony Ballinger, director of retail relations at Scania GB, says that inter-compa. ny exchange rates are set with Scania in Sweden on an annual basis. "So the current strength of the pound has little immediate impact," he says. "Furthermore, a large proportion of Scania components are sourced from the UK, which means a high exchange rate works against Scania."

Robin Dickeson at Renault VI tells a similar story: "If we worked on day-to-day exchange rates, we would forever be printing new price guides. We work on exchange rates with a long-term fix, so we take the risk," he says.

Both manufacturers warn against shopping abroad because of specification problems.


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