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Watching the market barometer
Page 95
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'FR IVES, managing director, )AF Trucks (GB) Ltd was more :onfident about DAF's future han of the UK as a whole.
For some months now, indeed 'or almost a year, the UK cv inJustry has been in deep recession — a recession mainly due to :he overall downturn in Arorldwide trade which directly affects the British transport industry.
This situation has not come about overnight, nor has it taken DAF Trucks by surprise, though some manufacturers would have us believe otherwise. By keeping closely in touch with our industry and with the operators of our vehicles we have been able to forecast accurately the drop in demand generally and to prepare ourselves for it.
But we are not only experiencing a drop in the demand for cv, we are seeing a shift in emphasis in product demand and it is partially this situation which has led to the introduction of what is almost a complete new range over the past two years.
Beginning with the overall rationalisation of our rigid range with significant changes in specification to meet market requirements right through to the recent launch of our Second Generation F2800-Series we believe that we now have the right products to offer the market at the right price.
This year has been tough so far. We certainly didn't expect it to be anything like as good as 1979, but after the first quarter it really has been much worse than was expected.
The steel strike lasting from January 2 to April 1 initially obscured the true demand for new vehicles. After an indication in April, it really was not until the June registrations became available that the extent of the fall in demand was confirmed.
From DAF Trucks' point of view-the picture has not been as gloomy as for the industry overall and we will remain strong in the year ahead. The period 1980/81 will demand a greater level of product quality from the industry and the phrase
'back-up' must take on a whole new meaning.
We are fully aware that we have introduced a new vehicle at a time when the world transport industry is in recession. Raving said that, we do strongly believe that now is the time for us to offer operators this vehicle as a realistic price.
It is easy to forget that if a recession is seriously affecting the world's major industries then by far the worst hit sector is road haulage and, to a slightly lesser extent, own-account fleets. Operators now demand, and will continue to demand, a premium product with optimum after-sales support combining to produce minimum cost of operation.
It will continue to be vitally important for manufacturers to keep a very close eye on the requirements of the industry and to illustrate an ability to react to a rapidly changing market environment. Indeed, it has been precisely this quality which has led to the introduction of our Servicecover package which is operator support taking on a whole new meaning. New ideas coupled to the support schemes already in operation have produced an operator back-up system which we believe is second to none.
In entering the 1980s DAF is aware of the difficulties which lie ahead but believes that it is in the hands of our compatriots and ourselves to ensure that the ride is made as smooth as possible.
So much for what has happened. What does the rest of the year have in store for us? I only wish I had a five-ton crystal ball! The best description I have recently heard of the UK economy is that it is in "free fall". We certainly have not seen the worst yet and really all I can do is take some comfort from the strength of our product and the developments we have in the pipeline.