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An occas!onal series on faces in the news
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THERE were signs this week of the long awaited recovery in the British truck market.
But at the same time this welcome news for home manufacturers broke it was also announced that commercial vehicle imports are on the increase.
What are the reasons behind this growth and how does at least one importer see things developing in the future?
CM put these questions to David Mansell, managing director of DAF Trucks (GB) Ltd.
DAF's have been growing quietly in the British market for the past three and a half years.
During that time the UK offshoot of the Dutch parent plant has put down some strong roots. Things haven't always been easy but now business is blooming.
Work put in cultivating the British market is bearing fruit and now DAF is bringing in a new variety — the FT 2300 DHU tractive unit — to tempt operators.
The figures speak for themselves. According to David Mansell, the company last year took 4.6 per cent of the 28 ton plus tractive unit market and 2.9 of the total market above 14.5 tons.
This year the company is well on target for its projected market share of 6.5 per cent (28 ton plus) and 3.5 per cent (14.5 ton plus).
In unit terms that means selling 1,000 trucks by the end of the year, something the company is confident of doing.
"You have to remember that this has been achieved from scratch," said Mr Mansell. "That really is quite an increase in penetration, especially when you consider that last year was a disaster for most other manufacturers."
In the next two or three years DAF expects to be selling around about 1,500 units in the UK, which would put it on the same sort of level as ERF at the moment. Already DAF is running only slightly behind Foden in this year's sales stakes.
DAF's new truck, which will be available early next year, has been introduced into the range to take on the Cummins engined ERFs and Seddon Atkinsons. "But more and more we believe that as the market changes we will have to look to the other importers for our main competition", said Mr Mansell.
"The basic reason for our growth, other importers, success and any future inroads we might make is that Continental vehicles are providing the operators with what they want.
"Let's be fair. There are lots of good trucks on the market, many of them British. What matters increasingly is the cost of operation."
Mr Mansell believes the importers have a more positive approach to after sales service while providing vehicles which are reliable and comfortable.
"Slowly, people are becoming more sophisticated. Operators are realising that purchase price is not the most important thing. They need vehicles which will operate within certain cost margins. If they can keep those costs down then any extra money they may spend initially is quickly recouped." Quite simply Mr Mansell thinks that the importers are doing a better job of this than the home manufacturers.
DAF has been looking at the market for the past four years and for its purposes has split it up into three areas: the light end (28-32 tons), the middle range (34-36 tons) and the top end (38 tons plus).
"Four years ago the middle range accounted for only 1-2 per cent of the market. Now it is up to 20 per cent." said Mr Mansell. This was the main reason for the introduction of the 2300.
"This growth has been at the expense of the lighter trucks. Operators are looking towards the day when weight limits are increased and so are moving up market."
Even when weight limits are increased, Mr Mansell thinks that hauliers will plump for the 36 ton vehicle. "Economically the 36 tonner is the winner. With a 38 tonner you lose a ton of your extra payload because you probably need an extra axle."
In its first year DAF expects the 2300 to sell about 150-200 units. But eventually it sees the new model taking some 25 per cent of its tractor business.
And let us make one thing quite clear. These vehicles will be in service on British roads, not trucking out to the Continent.
"We had our early success with hauliers on overseas runs but now the home market is dominant."
With 13 models, all of which have a large amount of parts interchangeability, DAF believes that it is well set up to meet the future.
Mr Mansell expects the company to take a bigger share of what sales there are — but he doesn't see any big increases in the market.
"Next year will be tough again and any mini-boom there is we expect to taper off in 1978. It could even be that when the weights increase the total market will be reduced.
"Certainly at the bottom end of the weigh range there will be fewer sales."
Mr Mansell went on and said that the market (14.5 tons up) is hovering at the 25,000 a year mark. He believes that it could move up to 30,000 at the most.
"If we can get five to six per cent of that then we will be happy. We are a medium sized firm and that is the way we want to stay."