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- VOLVO
Page 94
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Better value for money will be crucial
A MAN who measures his words carefully is S. A. Olsen, managing director of Volvo Trucks (GB) Ltd. He views the future with caution but predicts prosperity for the survivors.
Many forecasters predict that the economy will see an up-turn in the second half of 1981. The 12 months that elapse between now and then will prove a difficult time for the transport industry. So difficult, in fact, that many of the companies which do not have the benefit of long establishment or which have not generated sufficient financial resources during the good years, will struggle for survival.
This applies equally to those who provide transport services and to the manufacturers.
On the other hand, it will force the industry to restructure which in itself will mean new business opportunities for the remaining industries for the remaining industries and provide them with a better base for the future.
From the cv and bus manufacturers' point of view, I can
foresee a need for the manufac turers to become more involvec in the market environment. I car see that the UK market will de. mand more involvement fronr the manufacturers in terms coproduct development and pro. duction in this country, thus creating a more internationally structured British motor industry.
-This, on the other hand, will squeeze some suppliers out ol the market. The financial justification for keeping a marketinc organisation will not be there. This will affect the British as well as the overseas based manufacturers.
Nevertheless, when the worst of the recession is over, the lessons learnt by the survivors will fortify them for some time to come.
One lesson I feel many people will learn as a result of their ex periences in the next 12 months, is to look for better value for money.
I can see further increases in
fuel costs, higher direct and indi.rect labour costs and higher demands on reliability and safety, so I feel that what Volvo defines as better total economy will
mean much more to many people and will influence their final choice of vehicle.
In 12 months' time, those companies still left will have deeper roots and will be able to supply the operator with more efficient and reliable transport services.
But I can also foresee that the very nature of the people whose lifeblood is transport — the owner-driver — will be back in contention because of the freedom and excitement of his own small business supplying the market with competitive, flexible and efficient services.