The recent financial crisis strengthened Scania, according to Leif Östling. “We achieved very high efficiency when we increased the production rate,” he says.

For Scania, 2010 was a year of recovery. Earnings and cash flow were the best ever in the company’s history. Leif Östling, President and CEO, says that Scania has emerged stronger from the financial crisis and that long-term economic trends favour the company. 

How would you summarise 2010?
“Both transport flows and transport prices increased last year in Europe. The demand for our products and services rebounded, especially in northern Europe. It is also heartening that we succeeded in meeting continued rapid growth in Brazil and captured market share there. This was made possible thanks to the flexibility of our global product range and production system. We are more efficient than before the crisis. This is in part because we preserved and strengthened our core competency during the downturn.”

Are occasional crises needed to make companies as efficient as possible?
“In any case they have quite a lot of positive effects. Management was forced to prioritise. We carried out an extensive review in the organisation, which has made Scania better. You only need to look at how our earnings and cash flow have grown to realise that. We are also gradually carrying out a generation change in our management, and experience from a crisis is always important to carry with us into the future. Good organisations often emerge stronger from crises.”

How do you foresee developments in Scania’s markets during 2011? Many observers are warning of new financial trouble spots in Europe.
“We should remember that only a small part of Europe has financial problems. Places with a strong manufacturing sector such as northern Italy, Germany and the Netherlands are in a good starting position and have also benefited from the weakened euro. The Nordic countries enjoy stable economies as well. What I am more worried about is how the financial imbalances in the United States will affect the world economy and the dollar. In my opinion, compared to the US, the financial problems of Europe are considerably smaller.”

What is your view of the biggest market, Brazil?
“Brazil was one important reason why Scania was profitable even in a year like 2009. Brazil has enormous agricultural and mineral resources as well as incredibly low production costs. This has enabled it to benefit greatly from Asia’s economic progress and increased demand for these products. Meanwhile middle class consumption is growing rapidly, also increasing the need for transport services. We have a positive long-term view of Brazil, but making short-term forecasts is more difficult since, among other things, they depend on what is happening in China and the rest of Asia.”

“The big challenge in the future will be continued reduction of carbon dioxide emissions. This goes hand in hand with what all customers want − to decrease fuel consumption.”

And what is Scania’s position early in 2011?
“Scania is very well equipped to face 2011. We have a strong product portfolio, including the new R-series and a new V8 truck range. We also enjoy very high efficiency, now that we have increased the production rate. Overall, this means that we have maintained short delivery times to customers − around six to eight weeks for a chassis, thanks to a more efficient order delivery process. Meanwhile we have been working in recent years to translate the principles from the Scania Production System (SPS) to the sales and service network by means of the Scania Retail System (SRS), in order to improve efficiency and business volume in the service network. I expect this to have a significant impact within a few years.”

What is the role of the new Euro 6 emission standards that take effect on 31 December 2013?
“Since our V8 launch we already have the technologies required for Euro 6, so Scania has a competitive position. It is important to remember that Euro 6 is about reducing particulate and nitrogen oxide emissions. The big challenge in the future will be reducing carbon-dioxide emissions. This goes hand in hand with what all customers want − to decrease fuel consumption. Here we are working with everything from alternative fuels and hybrids to aerodynamics and driver training. And the computerised Scania Driver Support system makes it possible to reduce fuel consumption by 10–12 percent. That is equivalent to many years of engine development work. For a typical long-haul truck, it adds up 6,000 litres less fuel consumption per year.” 

So if you look at Scania’s markets in the long term, what factors point towards continued growth?
“There is a strong connection between GDP and transport demand. Given continued global economic growth, transport services will expand, too. We will also benefit from increased trade, a greater need for energy efficiency and the effect increasing urbanisation will have on city transport systems. In addition, there will be demand for more service and support for drivers − areas in which Scania is highly advanced.”  

The recent financial crisis strengthened Scania, according to Leif Östling. “We achieved very high efficiency when we increased the production rate,” he says.

“The big challenge in the future will be continued reduction of carbon dioxide emissions. This goes hand in hand with what all customers want − to decrease fuel consumption.”

View all Scania Value – shareholder magazines here

Scott Jackson servicing engines for auxiliary power on yacht in Miami, USA.

Scania develops, manufactures and delivers engines to industrial OEMs over the whole world, e.g. for dumpers, material handling and other heavy applications. A substantial part of this equipment operates in North America.

Scania’s strategy is to continually develop and extend its global service network to support operators of equipment powered by Scania. Uptime is crucial for these customers’ business, as well as for their customers, and they can always depend on Scania for support.

Miami based fishing charter boat "Limited Edition" repowered with two Scania 16-litre marine engines.

During 2010, Scania USA Inc. has achieved the biggest-ever increase in the number of service points and today more than 120 new industrial engine service points have signed up. The locations of the service points have been chosen to provide the best possible geographical coverage.

Lars Eklund, Global Service Director, Scania Engines.

“We have been working hard and are now ready to provide world-class support in North America,” says Lars Eklund, Global Service Director, Scania Engines.

The Scania R 730 V8 as a scale 1:50 model truck.

The Scania Selection Models catalogue contains 62 different models. Collectors’ items are available in 1:50 and 1:87 scales (the products total 39 and 13, respectively) whereas the remaining models in scales 1:24, 1:25 and 1:16 may serve as toys for children over three years old.

The smallest models are made either from plastic or metal, whereas all the 1:50 models are metal. The larger models are detailed plastic vehicles.

The latest Scania R 730 V8 and Scania Touring additions are available as high-quality 1:50 models. These miniatures are full of amazing details, such as the Scania Touring coach’s functional doors, luggage compartments and engine covers.

The Scania Touring coach as a detailed 1:50 scale model with the luggage compartment cover open.

The largest 1:16 models, measuring 54–87 centimetres, were designed by German toy manufacturer Bruder using technical drawings for the original vehicles. Scania’s cooperation ensures that the models are as close to the originals as possible in appearance and quality.

The Scania Selection Models are available at your nearest Scania centre as well as in the Scania Webshop.

Link to the catalogue.

Wesam Patros, Parts Manager at Scania’s site in Erbil, Iraq

Ten years ago, he left Iraq to build a new future in Sweden. Recently he returned to Iraq as Parts Manager at Scania’s site in Erbil. Meet Wesam Patros.

 

At 11 years old, Wesam Patros was taught the watchmaking profession by his father. He remembers the techniques to this day, and he would still rather repair precision mechanical equipment himself than have someone else do it. Later, he followed in his father’s steps and studied to be an auto mechanic.

When he was 24 years old, Patros left his family in Erbil in northern Iraq to start a new life outside the country. He ended up with relatives in Södertälje, Sweden, and completed the basic Swedish language course for immigrants. He began a more advanced course, but he soon quit.

“I started working part-time at McDonald’s in Nacka, a suburb to Stockholm,” Patros recalls. “That was a much better way to learn Swedish.”

Patros converted his Iraqi driver’s license to a Swedish one soon afterward and changed jobs to drive for a bakery in Stockholm. His former boss at McDonald’s offered him a job as manager at McDonald’s in Södertälje, but Patros wouldn’t be distracted from his goal: he wanted to work for Scania.

On June 26th, 2007 he achieved it. Patros started at the engine assembly line in Södertälje where he assembled five-cylinder D9 engines and learned their construction – invaluable experience for his future, it turns out.

Patros filed an application for the position of Parts Manager at Scania’s Erbil location on January 29th, 2010. A few months later, the job was his. By then he had turned down an offer as Quality Manager at Scania’s Iskanderiyah site near Baghdad.

“I have my family in Erbil, and I wanted to reunite with them,” he says.

Not surprisingly his family is very happy that Patros is finally coming back. They are building a house for him and the family he has formed during his years in Sweden.

“My wife is from Iraq, and she came to Sweden two years ago. Since then we’ve had a son. They’ll stay in Sweden until the house is finished.”

To prepare for the challenges of his new position, Patros attended a tailor-made, two-week training session at Scania-Bilar Region Stockholm’s parts warehouse in Hovsjö in Södertälje.

Patros education as an auto mechanic, combined with his experience from the engine assembly line, makes him a perfect fit for the job in Erbil. But he returns with mixed emotions.

“It’s a new situation and role for me, and I feel a bit anxious. I will also miss friends and relatives in Sweden,” Patros says.

But his contacts with Sweden will continue. Patros will attend training sessions in Södertälje, and his colleagues have assured him that he can call whenever he needs any support.

Name: Wesam Patros
Age: 34
Family: Wife and a son
Interests: Malawi cichlids and photography
Languages: Swedish, English, Chaldean Neo-Aramaic, Arabic and Kurdish

Scania has now developed the installation of the new 13-litre Euro 5 EGR engines in the P-series. Torque outputs of up to 2100 Nm are available without any restrictions, providing exceptional driveability for this class.

The Scania P-series offers one of the broadest cab ranges in the market. The range includes short cabs, day cabs and sleeper cabs, as well as low-entry and crew cabs.

These cabs can be combined with innumerable chassis options and wheel configurations, including four frame strengths and four chassis heights. Examples of P 360 and P 400 applications:

• 6100 kg fuel tractor
• Light 8 cu m 8×4 mixer turns the scales at 13400 kg
• 8×4 tipper with 20-tonne payload
• 2.7 m high car transporter
• Fast and compact emergency vehicle

More technical data, weights and dimensions can be found below. The comparisons start with a typical basic specification and go through examples of options that operators may consider in search of a vehicle optimised for their application.

For more information and photos:

• Go to http://www.scania.com/media/P2009/ for the media site.
• Photos can be found in our Scania P-series set on Flickr.
• Technical data and comparison in full version

Contact: Per-Erik Nordström, Product Affairs, tel. +46 8 55385577,
email per-erik.nordstrom@scania.com.