RTI raises the stakes Fht:onetCVT
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• Renault Truck Industries aims to boost its vehicle production rate by over 54%, to sell more than 6,000 trucks and artics by the end of 1987.
The Dunstable-based manufacturer will also finish the year with a trading profit according to director of commercial operations Bill Gilliham, although he warns that RTI will still suffer a small "bottom-line loss" in 1987 because of depreciation and costs outstanding for its purchase of Talbot assets — primarily the Dunstable site — back in 1985. After weathering earlier losses RTI is now trading in the black, and while it is not expected to finish this year in credit, Gilliham predicts that RTI will achieve "a bottom-line breakeven in 1988".
Speaking at the recent open day of newly-appointed RTI dealer USG of Portsmouth, Gilliham said that RTI "has the biggest order bank in my memory" and is looking to increase production rates to more than 30 units a day by the middle of next month, compared with 22 a day at the start of the year. The final figure could be even higher as wn plans to raise the rate again in November to 34.
Despite earlier fears of possible job cuts (CM 17 January) RTI has increased its production line staff by 60 and although the main truck assembly line is currently operating on a single shift, a number of small component and body panel lines are now double-shifted.
Gilliham has set a UK sales target of 6,000 vehicles for 1987, and is "totally confident that Rh 1 will be well up on a 9% share (above 3.5-tonnes) at the end of the year". The company finished last year with an 8.3% stake.
All RTI's models have shown "substantial increases", reports Gilliham, with sales of the shortly-to-be-revised '50' series increased by 36% (helped by the continuing effects of deregulation), while its G range sales are also up by 52%.
After the summer shutdown RTI will also introduce its French-built premium specification 7.5and 13-tonne Midliner models, and at the start of next year its G290 8x4 rigid range will be built at Dunstable — but RTI will not be switching production of its top-weight R series artics from France to Dunstable. While Gilliham expects to sell some 300 R models in 1987, he believes that there is insufficient volume to warrant such a move.
The company's 60-strong dealer network will also grow slightly by the end of the year. RTI is hoping to plug two gaps — one in Stoke-on-Trent, the other, ironically, in Dunstable.
Gilliham predicts that the overall CV market above 3.5 tonnes will increase by up to 5% in 1987, with further bouyancy in 1988.