R/€ = 13.09
R/$ = 11.59
Au 1281.14 $/oz
Pt 1259.50 $/oz
Jul 27, 2005
Volvo, Mack team up for SA marketBack
Construction|DURBAN|Africa|DaimlerChrysler|Environment|Mack SA|Mack Trucks|Mack Trucks Australia|Mack US|Volvo SA|Volvo South Africa|Africa|Australia|Botswana|South Africa|Equipment|Products|Truck Manufacturer|Danny Abiri|Frank Meehan|Operations
© Reuse this Swedish-based Volvo is considering assembling Mack trucks at its new assembly plant in Durban, which is set to open in October, the truck and equipment firm said yesterday.
Volvo, the world's second-largest truck manufacturer, after DaimlerChrysler, announced earlier this year that it was to close its assembly hub in Botswana, which has assembled knocked-down units for the African market since 2000.
US-based Mack was acquired in 2001 by Volvo, which has since tried to find ways to capitalise on the synergies between the two brands, as well as with its 100%-owned Renault Trucks business.
Volvo South Africa MD Danny Abiri said that, after it was announced in September last year that Volvo would represent Mack in South Africa, the two companies have been examining the best way to proceed in the highly-competitive local market.
The model which will be used to synergise the two brands has been derived from operations and structure in Australia, which has a similar market environment and where Mack and Volvo have integrated successfully, Mack US senior vice-President and international-operations head Frank Meehan said.
He said that Mack saw a 34% overall growth in sales during 2004, and that the company expects the North American industry to grow by a further 15% - 20% this year.
Mack senior vice-president for Australia Gary Bone said that Mack Trucks Australia (MTS), which manufactures all right-hand drive vehicles for the company, had identified South Africa as a key market, particularly because of similarities between the industries and requirements in the two countries.
The Mack brand of trucks has been in and out of the South African market for some twenty years, and Abiri said that the first order of business will be to restore the trust that may have been lost by the company's inconsistent presence in the local market.
The company will also look at renewing and shifting its distribution network, he said.
On the question of whether it is wise to launch a new brand into an already competitive domestic market, Meehan said that he was confident that the Mack products would be successful in niche markets, particularly for South Africa's booming construction industry and for customers who were not looking for European-style trucks.
The Mack SA order book is apparently already looking significantly better, particularly in light of last year's six-truck sales-volume.
Abiri said that Volvo SA has two dedicated salespeople for Mack Trucks, but will continue to train its employees to identify and exploit the synergies between the two brands.
He said that he does not expect to encounter significant conflicts of interest, as the two brands target different markets.
Edited by: Liezel Hill© Reuse this Comment Guidelines (150 word limit)
Other Automotive Industry News
Swedish vehicle manufacturer Volvo Car Group’s new XC90 sports utility vehicle (SUV) will offer an unrivalled combination of power and efficiency with a dual engine, when the CX90 is revealed later this year.
Updated 5 hours ago Dual-listed oil and gas company SacOil has completed Phase 1 of the field development operations at the Lagia oilfield in Sinai, Egypt. The South African-based independent company, through its subsidiary Mena International Petroleum Company, also completed hydraulic...
Updated 5 hours ago The City of Johannesburg, whose environmental policy innovations include an integrated waste management plan that covers all relevant environmental legislation, has been named the country’s most environment-friendly metropolitan municipality in the Department of...
Updated 5 hours ago The South African Renewable Energy Council (Sarec) has welcomed the conclusions of the Council of Scientific and Industrial Research’s (CSIR’s) ‘Financial benefits of renewables in South Africa in 2014’ report, published on January 21. “The results of this study...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...