Steyr: room for more?
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• Steyr-Daimler-Puch, the Austrian truck builder, is poised to become the 12th heavy goods vehicle manufacturer selling its wares in Britain. Speaking to Commercial Motor at the Geneva Motor Show, S-D-P chief executive Otto Voisard confirmed that, barring delays with type approval, Steyr will begin its assault on the British market "definitely in 1988". Steyr is planning to establish its operation by the last quarter of the year, and to launch a range of trucks at the Birmingham Show in October.
It aims to set up a network of 10 UK dealers, which should grow to about 20 within three years, by which time, says Voisard, Steyr should be selling up to 1,000 Austrian-built trucks in the UK every year.
Steyr has already chosen its UK models: spearheading the attack will be two, possibly three, middleweight trucks from Steyr's family of 9-16 tonne GVW two-axle rigids, launched in 1986.
In the Austrian vanguard, according to S-D-P's truck division managing director Ernst Pranckl, will be Steyr's 16518 and 16521 models, powered by the company's own six-cylinder W0612 engine: under Steyr's truck classification system the first two digits refer to gross weight and the last refer to horsepower.
The same engines will also be used in a 17-tonne chassis, says Pranckl, who views the 16/17 tonne sector as the most important part of Steyr's UK campaign.
Alongside these models, Steyr will sell two 12.7-tonne (nominally 13-tonne) grossweight trucks designated the 13S14 and 13518. Al] have the same Steyr-built day cab — which bears a marked similarity to Mercedes-Benz LN2 cab — along with a five-speed ZF synchromesh gearbox.
If sales of its middleweight vehicles go well, Steyr will also bring in a range of heavy trucks — mainly tractive units, says Pranckl.
Steyr tractors are currently sold on the Continent with SD-P straight-six and vee-eight turbocharged and chargecooled engines with power outputs from 232-284kW (310381hp).
The Austrian manufacturer intends to submit all righthand-drive models for EEC homologation, before applying for UK type approval.
While the prospect of winning sales in the prestigious UK tractive unit market must be mouth-watering, S-D-P will be concentrating on the distribution sector with its mid.clleweights: "We see a big chance in this sector," asserts Voisard, who believes that Steyr's Continental reputation for premium-specification vehicles with compact cabs and good fuel consumption will help it win converts among British operators.
Unknown quantity
Though an unknown quantity on this side of the Channel, Steyr's recently-launched middleweight range has helped the company increase its share of the Austrian distribution truck market from 17% to 40% over the past 18 months. Voisard is committed to taking on the British market with a strong product: "We should do it with a winner," he says.
There is still one obstacle to be surmounted before Steyr can actually start selling, as Voisard explains: "It's not decided whether we should set up a wholly-owned subsidiary, or have an importer." A decision on that will be made within the next two months.
Over the past few months a management team from Steyr has been meeting a number of prospective UK dealers, and RHD prototypes have also been built. "We've talked to many different dealers," declares Voisard, "Bedford, Ford, Leyland — also to dealers representing other manufacturers. We've been impressed by their calibre. . . that goes for both financial strength and manpower."
The idea of selling for Steyr must have appealed to some former Bedford truck dealers — but the planned reemergence of the marque, via AWD, may make the choice harder to make. Voisard says that the AWD factor "has not caused problems — but delays. We will not exclude Bedford dealers because they have a very good relationship with distribution companies — but they have to make up their mind".
Regardless of who actually decides to join the Austrian camp, Steyr says it is prepared to invest heavily in its dealer network. There are 60 S-D-P dealers on the Continent.
Potential asset
The more-than-passing resemblance to Mercedes' LN2 range could be a potential asset to Steyr, although Voisard is not out to bask in any reflected glory from the three-pointed star: "We're not going to play that violin," he insists.
However UK hauliers view its products, Steyr hopes that its British venture will help regain some of the business it lost following the collapse of its traditional Middle East and African markets. S-D-P is sorely in need of revenue to help reverse its current financial problems: in 1986 it lost a record £50 million on a turnover of 2630 million.
Until recently political pressures within Austria have prevented it from undertaking the kind of painful rationalisation and restructuring process that the rest of Europe's truck builders have already had to make. Free from many of these constraints, however, S-D-P has now cut its workforce by a third and is determined to reduce its overheads further.
To back up the restructuring process Steyr is investing heavily and plans either to produce less of its own components or, alternatively, to sell components to other manufacturers to bring down unit costs. It is now talking with Sandbach-based ERF about a joint venture on components.
Voisard is optimistic that the right moves are being made and that the British break-in will lead to greater sales, particularly in Belgium and the Netherlands.
While the profit forecast for 1987 is likely to be little changed from the previous year, he aims to steer S-D-P back into the black by 1991. El by Brian Weatherley