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LEYLAND: LIFE AFTER DAF?

4th February 1993
Page 3
Page 3, 4th February 1993 — LEYLAND: LIFE AFTER DAF?
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Which of the following most accurately describes the problem?

Unfortunately, when any major truck manufacturer is in financial difficulties there's always far more heat than light when it comes to getting the real story. At the first whiff of trouble the pundits are only too pleased to write someone off. It's inconceivable that Daf, or Leyland Daf, will be allowed to go under. But the people who supply the cash to keep the company going, not least in the UK, are driving a painfully hard bargain.

There have been plenty of threats of major redundancies and restructuring within Leyland Daf. But would it make the company any more competitive in Britain? Major bloodletting could leave the UK arm crippled just when the market is about to pick up. Thinner doesn't guarantee fitter.

Assuming it does survive, cutting Leyland Daf to the bone could well jeopardise the one chance of getting Daf back on an even keel. The UK market has long been the key to the profitability of European truck makers. Last year Leyland Daf took a leading 25% share of the UK truck market over 3.5 tonnes while its van division took second place up to 3.5 tonnes with more than 15%. Although the vans are overdue for replacement, the Leyland Daf truck range is comprehensive, technically proven, popular and backed by a well-respected dealer network.


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