R/€ = 15.16
R/$ = 13.35
Au 1156.06 $/oz
Pt 981.00 $/oz
Jul 27, 2005
Volvo, Mack team up for SA marketBack
© 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 News
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...