Reflections on 2017 from DAF and Scania08 December 2017

Robin Easton

The senior management of UK truck brands DAF and Scania have reflected on 2017 sales and the truck market at end-of-the year press events in early December.

DAF UK managing director Robin Easton estimated that the UK truck market in 2017 would total 44,000 units greater than six tonnes capacity, about the same size as 2016, and an increase on DAF’s estimate of the market a year ago.

It estimates that it has 30% of the market above 6t capacity, making it the market leader, for the 23rd consecutive year. In this period, DAF’s order breakdown was 70% rigids, 30% tractors. Of its orders, 70% were greater than 16-tonne capacity, and 30% 6-16 tonne.

He said that current factors affecting truck demand were Brexit, clean air zones and electric vehicles. As for prospects for 2018, current economic indicators are “confusing.” On one hand, the UK’s economic growth, estimated to be 1.5% by the end of the year, is “reasonable”, there is record employment, and the [IHS Markit/CIPS UK Manufacturing] Purchasing Manufacturers Index was healthy at 54-56. On the other hand, confidence is falling; new car sales have been falling for the past eight months; the OECD has reduced its forecast for UK GDP growth; the UK now has the slowest growth of the G7. He forecast 41,000 vehicles to be sold in 2018 (greater than six tonnes capacity).

Scania sales director Andrew Jamieson estimated the 2017 market for slightly larger trucks, 17-tonne capacity and above, would be about 35,750 units. He said that in 2017, it took 3,100 orders for next generation trucks. And the engine manufacturer was “struggling to meet” demand for its new V8 engine.

Coincidentally, both DAF and Scania are rebuilding their Midlands-based headquarters: DAF’s new HQ and training centre is being built in Haddenham, Buckinghamshire, a short distance from its current facility in Thame, while Scania is renovating its existing Milton Keynes site with a new three-story HQ building and a facility building.

Author
Will Dalrymple

Related Companies
DAF Trucks Ltd
Scania (Great Britain) Ltd

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