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What it says

5th February 2004
Page 66
Page 66, 5th February 2004 — What it says
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Which of the following most accurately describes the problem?

Within the comprehensive "overview" sections on each of the 12 lop players in the marketplace The World's Truck Manufactwersauthor Jonathan Storey makes the following comments: DalmleiChrysler "There seems little industrial or logical reason in keeping the car and truck businesses in the same portfolio there are few synergies and at least three reasons for spinning off the CV unit..."

Hine: "It faces much the same degree of competitive pressure that has forced numerous other truck makers to merge or pool resources... It may find it needs to deepen one of its recently formed alliances to compete effectively in the global industry." Isuzu: "The effects of these [recent key] measures, coupled with improving demand in Isuzu's key markets, are already starting to be seen in the company's results."

Wm: 'The current troubles in Fiat Auto are distracting attention from the fact that lveco is performing relatively well in the current industry downturn and its product renewal programme means its growth prospects for the next few years are good."

MAN: "Like the other medium-sized truck producers MAN has been the subject of much speculation over the past few years as to whether it will need to form an alliance or make a major acquisition in order to remain competitive..."

Mitsubishi Fuso: "MFTB's future lies in developing its ties with DaimlerChrysler and securing the scale economy benefits offered by the alliance through the sharing of components, development costs and distribution networks."

Navistar "The inevitable comparisons with Paccar, which has remained profitable during the current downturn, leave Navistar still looking the weaker and less reliable player... it still needs to do more to reduce its exposure to the North American market."

Nissan Diesel: "The recent bail-out and joint venture with Nissan should ensure its survival for the foreseeable future. ...its best chance for long-term survival still lies in an alliance with, or takeover by, another truck maker." Paccar "Daf has gone from strength to strength... Paccar has come through the [US] downturn in remarkably healthy form. It is in a good position to consider acquisition targets or otherwise fund expansion. Its biggest problem is finding targets or projects that do not dilute its strong earnings „ ." Renault Vehicles industriels: [Volvo's decision in April 2000 to acquire 100% of RVI] "continues to look like an excellent move for Renault and Volvo. Volvo Global Trucks has become the second largest heavy truck producer in the world and the largest in Europe."

Scania: "Considering its record as one of the world's most consistently profitable truck makers, with a solid record of outperforming its rivals, it has had a surprisingly volatile time over the past few years with regard to its ownership structure."

Volvo: "Volvo's operations have nearly always underperformed [compared with] those of its compatriot Scania... Its highest priority should be the integration of the Renault, Mack and Volvo operations to extract the potential scale economies which inspired the merger."

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