Scania To Be First Western Truck Sold In Japan

STOCKHOLM September 25, 2003; Dow Jones reported that Sweden's Scania AB said Thursday it is the first foreign heavy truck maker to receive Japanese type approval.

Scania's business partner Hino Ltd. will market Scania in competition with domestic as well as imported brands.

"Hino's introduction of a line of Scania trucks represents our firm entry into the Japanese market," comments Scania's President and CEO Leif Oestling.

Sales of Scania two-axle tractor units, which will be distributed and serviced by the Hino organisation, commence today and series deliveries in November.

"In the short term, we should be able to sell a hundred or more units annually," says Hino's President and CEO Tadaaki Jagawa.

At present, the Japanese market for tractor units in the segment in which Hino will offer its line of Scania trucks amounts to approximately 5,000 units annually and is dominated by domestic makes, with Hino accounting for 25%.

Together, western European truckmakers AB Volvo and DaimlerChrysler AG's Mercedes account for less than 10% of the market in this segment.

Hino will be marketing three basic Scania tractor models for a wide range of applications, from container traffic to general freight and from normal height vehicles to low volume-slung vehicles.

Type approval of the R124 4x2 model - a two-axle tractor with a 12-litre, 440- hp engine - means that the vehicle complies with the same legal requirements as domestic manufacturers and thereby competes on equal terms. No other imported makes comply with these regulations.

Scania and Japanese commercial vehicle manufacturer Hino entered a strategic co-operation agreement in March 2002, with the aim of establishing a long-term business alliance in order to increase the market potential for both companies. The launch of a tractor at the Tokyo Motor Show 2002 for the Japanese market represented the first step in this process. Since May 2003, Scania has supplied about 10 units to selected Japanese customers for evaluation and adaptation.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 28,200 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2002, turnover totalled SEK47 billion and the result after financial items was SEK3.7 billion. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden. Bus chassis production takes place in Sweden, Brazil and Mexico. Bodybuilding takes place in Sweden, Poland and Russia.