W. Germany optimistic
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AFTER a 5.6 per cent fall in production last year, West Germany's bus and lorry makers expect a slight improvement in 1983, encouraged by a one per cent increase in new registrations in February.
Magirus Deutz, which sold its bus plant in Mainz and lost more than £25 million last year, is also more optimistic. Chairman Bernd Kosearten said that losses will be lower this year and he forecasts the lveco subsidiary company will be back in the black in 1984.
The industry has been hit because it was unable to compensate for a weak home market by boosting exports. In particular, the Arab oil-producing countries, a good market for heavy vehicles in the construction industry, ordered fewer.
There was a 17.3 per cent fall in bus production and only 18,476 lorries in the 10tonne 16tonne class were manufactured compared to 24,813 in 1981. But there was increased demand for vehicles in the 6tonne-10tonne range with more than 42,000 leaving the factories compared to 39,620 in the previous year.
On the inland market new registrations were only 123,549 — the lowest for seven years. A major factor was the recession in the construction industry which ordered only 7,0 0 0 vehicles compared to 16,000 in a good year.
This particularly hit Magirus Deutz which sells about two thirds of its production to building firms.