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Scania boss discusses disruption, growth in Melbourne

Global Scania boss Henrik Henriksson said the company’s strategic decision to run parallel programs between its global operations and launching the New Truck Generation in Brazil to limit investments put a strain on its supply chain.

Speaking to media in Melbourne during a whirlwind visit to Australia, the Scania Global CEO and Director said the effects of stop work action at one of its key suppliers were still being felt.

The disruption to V8 engine production in June last year left nearly 2000 trucks on backlog.

“We’re still suffering from that but we’re coming up in the second and third quarters to normal production levels,” he said.

“For a market like Australia where a big part of our sales is V8 of course it was felt down here as well.”

Despite having not released its 2018 financial results, Scania was continuing to grow its global operations and profitability according to Henriksson.

“All in all and considering the challenges that we had Scania is still performing at a very good level,” he said.

“When it comes to our Australian operation, when discussing it with the customers on both the trucks and the bus side, we had some challenges last year when it comes to supply through disturbances and the changeover that we had,” said Heriksson.

“We also see now with the product range and the services that we have, we have all the fundamentals together now we’re a competently capable organisation locally. We have everything that is needed to move our ambitions up for marketshare and our long-term relationship with our customers.”

Recent truck sales reported by the Truck Industry Council confirmed Scania units increased by 101 per cent year-to-date reflecting the full book or orders the company acknowledged it had in December.

Henriksson said Scania was continuing to invest in Australia ahead of plans the company had for growing its service network to accommodate the higher ratio of vehicles on the road.

“Our expectations in Australia continue to be raised. We have all the fundamentals in place now. When it comes to the Australia we need to develop our product range to suit this very demanding market,” he said.

“We have the pieces in place. It’s just a matter of making sure they fit together and we tailor it through the customer’s needs.”

(Image: Mikael Jansson Scania Australia Managing Director and Henrik Henriksson Scania Global CEO and Director).

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