Mack gets back into the black • Mack Trucks, Renault's
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troubled US subsidiary will be back in profit by the middle of next year, says company chairman Elios Pascual.
Renault's slim profits are threatened by deepening recession across Europe, but the US market is enjoying modest growth in sales of medium and heavy trucks. Analysts expect 163,000 Class 8 (heavy tractive unit) sales this year-16.4% up on last year when Mack's share was 15,184— representing 10.8% of the market. However quality is still a problem. Although it has improved it "still ranks well below European standards and Mack will not match the rest of the group before 1995." says Pascual.
Since RVI took full control of the company in September 1990 the workforce has been cut from 7,500 to 5,500 and productivity has risen by almost 10% as the company fights to turn round a loss of $1 million a day. Total manufacturing output remains low at 74 a day (50% of capacity) but current orders will take this number to 90 a day by March.
Pascual has called on the new Clinton administration to refrain from giving short-term boosts to industry which might produce peaks and troughs in demand.