Is the current world climate begining to take a toll on truck buying? Seems that Scania think so. This is what todays’s press release has to say;

Scania foresees a continued slowdown in demand in various markets and, starting in January, will lower the production rate at its units in Europe and Latin America. This adjustment will be handled within the terms of existing flexibility agreements at the company. Economic worries in Europe and the world have made customers more hesitant about investing in new products. In November 2011, Scania cut back its production rate by about 15 percent at the global level, but since then demand has deteriorated further.

“The slowdown in Europe and the Middle East has continued. Meanwhile we are also seeing a lower rate of order bookings from other markets.” says Martin Lundstedt, Executive Vice President in charge of Scania’s sales and marketing.

In Brazil there is uncertainty about the market trend during the first half of 2012 in light of the transition to new Euro 5 emission legislation and the trend of global demand for agricultural products and other commodities. At the global level, Scania will lower its production rate by about 15 percent starting in January. The adjustment of production levels will occur at Scania’s production units in Europe and Latin America and will be handled within the terms of the existing flexibility agreements between the company and the respective trade unions.

“This implies that we must gradually adjust staffing, which unfortunately means that we will be unable to renew the contracts of more than 1,000 fixed term temporary employees in our global production network,” says Anders Nielsen, Executive Vice President in charge of Scania’s production and logistics.

As a result of the production cutback that Scania carried out in November, the contracts of 900 of a total of 1,400 fixed term temporary employees at European production units were not renewed. The adjustment that has now been decided will mean that most of the remaining number of fixed term temporary employees in Europe will be affected, along with a majority of the fixed term temporary employees in Latin America.
For nearly two years, Scania has been working with short and stable delivery times, approximately 8 weeks in Europe, with the aim of getting the right signals to the production network as early as possible when changes occur in order bookings. This minimises inventory build-up.

Thanks to Wilson Pra for the photo from Brazil’s Fenatran Show.

Last weekend I put a post on HERE about Dutch company Freightline Europe’s unfortunate mishap in the snow. Just thought you might like to know that once it was upright again the damage didn’t look to bad! I reckon they could fix it or put a new cab on and a body and use it again. I guess it depends on what the insurers say and if the chassis has had a twist! The big Scania’s next move is unknown, but i’m sure if Freightline Europe do put it back on the road, we’ll soon find out. Thanks to Neil Jarrold of www.euro-wheels.com for the photo!

I often get these Scanis press releases and before now I have never been to sure if I can just copy and paste them on here or if I have to put them into own words?? So I have decided the first option is better for now until someone tells me other wise, why else would you send out press releases if you don’t want people to use them.

The facility, located at Scania’s research and development centre in Södertälje, will be able to simulate realistic environments ranging from dry Arctic cold to humid tropical heat as well as various wind conditions. Air temperatures can be varied from ­–35 to +50 degrees Celsius and relative humidity from 10 to 95 percent. In addition, the facility will be able to simulate wind speeds of as much as 100 kilometres per hour.

Wind tunnel simulation will make Scania’s development work more efficient and flexible while saving the transport, time and resources involved in testing trucks and buses in different climates.

The facility represents a further strengthening of Scania’s research and development department in Södertälje, which today employs 2,700 people. The facility will be completed in March 2013.