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JULY - SEPTEMBER 2006 |  
TRUCK MAKERS TAKING OVER

It is not only the big motor companies that are looking for alliances and mergers, but also some of the specialist truck makers, too.

The latest development has seen Volkswagen buy a 15,1 per cent stake in MAN, curtailing its attempted takeover of Swedish competitor Scania. VW said the share purchase was an attempt to help Scania and MAN realise synergy potential and save money through sharing components and service networks. The MAN holding was valued at R15,5-billion, and VW already owns 18,7 per cent of Scania.

VWAG also has a standalone truck manufacturing operation in Brazil, which will supply Volkswagen SA with the arsenal to tackle its upcoming challenge in the heavy truck and bus markets.

VWSA has announced that wholly black-owned company Mzanzi Truck and Bus will assemble the company's range of buses and heavy trucks. Assembly has already kicked off at a plant built alongside VWSA's passenger car assembly plant in Uitenhage.

Mzanzi, headed by VWSA's former logistics manager, won the contract ahead of East London-based Ikhwezi Trucktech, the empowerment company to which DaimlerChrysler SA outsourced its CKD commercial vehicle production in 2002.

Meanwhile Toyota-owned Hino Motor also has a tie-up with Scania, marketing its trucks in Japan and sharing some engines with the Swedish truck maker. MAN, the third biggest truck manufacturer in Europe has recently formed a technological alliance with Navistar International in the US.

Volvo Trucks, Europe's second biggest truck manufacturer behind Mercedes-Benz, has recently spent R4,3-billion to raise its stake in Nissan Diesel. It forms part of a planned drive into Asian markets, with Volvo hoping to eventually own a 46,5 per cent stake in Nissan Diesel. Volvo is now also rumoured to be considering acquisitions in Japan, China and Russia in a bid to reach its growth target.

Back home, another new local truck assembly operation is the Super Group's production of about 45 Powerstar trucks a month from the former Deutz diesel engine plant in Pietermaritzburg. The units are based on a previous Mercedes-Benz model range sourced from Mongolia. About 100 people are employed at the Pietermarizburg facility.

 

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