New truck costs £200m
Page 7
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THE COST of bringing a new truck range on to the market is now in the region of £150m to £200m according to Karrier marketing director Nick Buckley.
Speaking on the economies of scale necessary to support vertical integration, Mr Buckley said that 40,000 units for any one component was a minimum figure.
He suggested that building a new factory for such a truck range would cost in the region of £125m to £150m.
Commenting on the prospects for a "world truck" at an Institute of Purchasing and Supply conference on the subject (see p15), Mr Buckley said that he was sure that Mercedes-Benz, lveco and Renault Vehicules lndustriels — "One, two and three in Europe" — will continue to produce their own engines.
He suggested that cabs and engines were inherent to the identity and image of the truck builder and that these represented areas where manufacturers will resist the change away from vertical integration.
Mr Buckley commented that the cab for the G260 — originally from the Club of Four of which Saviem was a member — had caused marque identity problems for RVI because of its similarity to the Volvo F7.
He suggested that the presence of a parc of Renault trucks — "our strongest advertising medium" — is thus diminished by a confusion of identity.