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TIME OF CHANGE
'DR the chassis manufacturers this is IC season of selectively presenting atisties to project themselves in the st light. At the moment there are very 'w that don't have figures they would after keep in the shadows. Nineteen-eighty-five could go down ; the year when the first real moves we made for a reduction in the umber of truck makers. But it could Iso mark the beginning of a new era in nernational joint ventures between the iajor producers. Certainly, there has een plenty of talking about moves of is kind — and full take-overs. lveco hatted seriously to Ford, and General 4otors figures prominently in a number I ventures.
Enasa finished constructing the cab lam in Madrid where it is to build the Dal-Pegaso cab, but this did not Tevent the state-owned group liscussing its future with General &tors.
GM made it clear that it is prepared to alk to anybody to ensure its fUture in he European heavy truck business. AAN proved a reluctant bride when ;M went awooing in Munich. This was .1most certainly because the German oinpany had become far stronger inancially than it was two or three years Igo. In November (after the August innouncement that GM's advances had veil repulsed) the company revealed .hat it had returned to profitability. Niter substantial losses in 1983 and 1984, he company ended the year to June 30 ast with profits of DM,407.5 million Ii113 million). This was made up of a DM32.3 million (.9 million) operating 3rofit and DM375 million (j104 E'rom selling its 50 per cent of MTU.
There are other plans afoot at MAN. In September it was announced that a new company based in Munich is to be formed between MAN's major shareholder, the Gutehnfihungshutte (GHH) Group and MAN itself. This represents a merging of the two companies interests.
After the MAN rebuff, GM looked elsewhere and, keeping any detail with Enasa on ice, focused its attention on Leyland. What the outcome of this will ac is anybody's guess. Sonic senior people at Leyland are known to look with favour on a get-together, but Bedford's record in the medium and heavy truck market in recent years does not make that company the most attractive of bedfellows. It is a question of whether GM's corporate muscle would be sufficient to make a combined organisation efficient enough to cope with die very formidable competition of Daimley-Benz, Iveco and the two Swedish manufacturers.
GM has made it clear — by three new product launches in 1985 in the van sector — that it is concentrating initially on strengthening the lighter end of this product range. It has kept very quiet about its plans, if any, to replace its ageing medium and heavy-vehicle designs, which could suggest that it is looking to buy its way back into this sector rather than go to the enormous expense of replacement models of its own.
The reasons for Bedford going down the light van road were explained in some detail by J. 1'. Battenberg, Bedford's chief executive and general manager, at the November launch of the Suzuki-based microvan range.
Since the sale trough in 1982, he said, the van market in Europe had shown strong signs of revival. It had moved into the recovery lane and the outlook was one of sustained growth. Further, the van market had the advantage of an in-built fast rate of sales response, unlike the specialist truck market where longterm capital investment factors tend to dominate purchasing decisions.
Thinking at Ford is obviously on similar lines. Much hinges for that company on the launch of the Transit replacement which is imminent.
The trend of manuficturers selling others' designs and products as their own is accelerating. Bedford's assembly and badging of what are basically Suzuki designs form a main, but by no means isolated, example. Two interesting deals of this kind have just been struck in the United States where Nissan Diesel Motor of Japan and International Harvester have reached agreement for Nissan to supply medium weights of 7 tonnes and 8 tonnes payload to IH for sale in the USA as IH units.
Nissan plans to ship from this year 3,000 vehicles annually to IH through a new subsidiary, Nissan Diesel America of Irving. Texas.
More recently, Paccar of Bellevue. Washington, has signed an agreement with VW do Brasil of Sao Paolo to sell VW-made 11-tonne and 13-tonne GVW trucks in the US. They will he sold as Peterbilts and Kenworths — both Paccar marques. This is due to start at the end of 1986.
Fiat, with its Ducato van range, is probably the most successful manufacturer to syndicate its products to date. This vehicle sells under five different names, the others being Alfa Romeo, Peugeot, Citroen and Talbot. Other companies, notably Freight Rover, are looking for partners to implement a similar formula.
Manufacturers' product and marketing strategy is becoming ever more critical for the dealers. The price war is such that dealers are making generally no more than an average of two per cent (at best) on sales: heavy discounting seems to have' conic to stay. They are left to make up their money on parrs sales and service labour costs.
Other companies with a strong base elsewhere, are diversifying into or adding to their vehicle involvement. Unigaw is a case in point. The group has a traditional base in dairy products, but has established automotive engineering and transport interests in Wincanton and Giltspur. Recently, however, Unigate's activities have taken on a totally new dimension with the acquisition of Arlington Motor Holdings.
Radical change has already happened in the vehicle components field where the erosion of the British manufacturing industry has resulted in troubled times for suppliers. Whether this was the reason for the TI Group moving out of its transport interests is not known, but last month's sale of its smaller companies to Sealed Power Corporation of Michigan represented the completion of the disposal of its transport interests. The hulk of them were sold the month before to FKI Electrics, the package consisting of four companies within the TI Group — TI Crypton, making engine tuning equipment; T1 Bradbury, making lifts and ramps; TI Transervice; and T1 Transport Equipment.
The FK1 Group appears to be up-andcoming. In this new form it will have a turnover of around i:40 million. the T1 companies representing a turnover of C.17 million. FM is understood to have paid 3.05 million cash for the T1 companies and to have paid off overdrafts of 0.71 million. FKI's chairman Tony Garland says his company's object is to get the companies into better shape.
by George Malcolm