Leyland Daf gears up for European growth
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• Prospects for the newly merged Leyland Daf are looking bright this week, despite reports to the contrary in the national press, with plans to increase truck production by more than 9.5% at Leyland this year, and a new report by DRI Europe which suggests that the company could increase its market share in Europe.
Dafs deputy chairman Cor Baan says production of Roadrunner trucks at Leyland will rise from about 10,500 vehicles to 11,500 this year to meet greater than expected demand for the vehicle in Europe.
No figures are yet available for sales of the Roadrunner in Europe, but Leyland Dots corporate spokesman Martin Hayes says: "Sales have been better than expected and we are certainly encouraged, but it is very early days yet."
It is possible that an increase in Roadrunner production could also meet demand for the truck in the US market since Leyland Daf is known to be continuing discussions with Paccar about the American company's plans to sell Roadrunner through its dealer network. DRI Europe's Trucks Forecast report suggested that Leyland Dal's share of the European heavy truck market could grow from 10.5% last year to 11-7% in 1991, in a market which is itself likely to grow by 10-3% over the same period.
Leyland Daf faces a number of difficult decisions, says DRI, not least of which is the rationalisation of its product range and of its UK dealer network, which is likely to result in a short term fall in UK market share. These factors aside, however, increased sales of Leylandproduced vehicles in Europe and the expectation of an improving market for trucks in Europe will help the new company.
DRI expects Leyland Daf to make a profit this year, as predicted by Daf chairman Aart van der Padt and suggests that the wiping out of Leyland's Large accumulated debts and the rationalisation of its truck manufacturing could pay dividends.
With a rationalised truck range, Leyland Daf could take 24% of the heavy truck market in 1991, says DRI, compared with 18% for Iveco Ford and 10% for Renault, which is expected to gain from the fact that it builds many of its trucks at Dunstable.