Scania President and CEO on the 2020 year-end report
“The year 2020 was dominated by the pandemic and we fought hard to support our customers with services and parts to ensure that they could keep their businesses going,” Henrik Henriksson, President and CEO said in a recent press statement.
Summary of the full year 2020
- Net sales decreased by 18 percent to SEK 125,125 m. (152,419)
- Operating income decreased by 49 percent to SEK 8,887 m. (17,488)
- Cash flow amounted to SEK 9,180 m. (10,994) in Vehicles and Services
- In the fourth quarter, net sales decreased by 6 percent to SEK 36,282 m. (38,604) and operating income increased by 1 percent to SEK 3,638 m. (3,599)
“The year 2020 was dominated by the pandemic and we fought hard to support our customers with services and parts to ensure that they could keep their businesses going. Naturally, our priority was also to manage the operational and financial impacts on our own business as we faced fluctuations in demand and disruptions in the supply chain as a result of COVID-19. We quickly managed to hit the brakes on costs and preserve cash as the pandemic started to impact order intake and delivery capacity. The pandemic also accelerated the need for structural cost reductions in view of Scania’s long-term ambitions. To be able to continue making large-scale investments in new technologies that support the transformation to sustainable transport, painful but necessary decisions had to be taken, resulting in the closure of production facilities and staff reductions.
Towards the second half of 2020, demand for trucks started to rebound strongly, while it remained weak for buses and coaches. In the fourth quarter of 2020, vehicle deliveries were almost back to the previous year’s level. Cash flow in Vehicles and Services was strong thanks to Scania’s demand-driven output principle in production and efficient inventory management. Our structural cost transformation efforts continued in the fourth quarter. In Financial Services, customers’ need of rescheduling their payments of financial contracts returned to more normal levels in the second half of 2020 and by the fourth quarter, the vast majority of our customers had returned to their previous payment plans.
Data gathered from connected Scania vehicles show that there is continued good transport activity, particularly in the long haulage, distribution and construction segments but also for city buses. This confirms the investment need, which is also reflected in our order books. Order intake for trucks increased by 55 percent in the fourth quarter compared to the year-earlier period. After a tough start of last year we are now in a position of strength with a good cost structure ready to leverage the rising demand. However, the situation in the supply chain is strained in many areas, which is causing production disruptions and increased costs. The ongoing COVID-19 pandemic also adds uncertainty.
Throughout this turbulent year, we remained focused on our commitment to decarbonise our product portfolio. Scania’s ability to deliver in the present moment, while at the same time developing tomorrow’s fossil-free transport system was put to the test during 2020. In September, we launched our first fully electric truck range, which will play a key role in reaching Scania’s science based climate targets. We have also committed to bringing our customers at least one new electric product application in the bus and truck segment every year. By 2025, Scania expects that electrified vehicles will account for around 10 percent of its total vehicle sales volume in Europe and by 2030 that figure is expected to be 50 percent.”
Yuchengco Group’s House of Investments breaks ground for Geely Manila
Yuchengco Group of Companies’ (YGC) House of Investments, Sojitz G Auto Philippines’ (SGAP) shareholder and now a dealer partner, broke ground for the construction of Geely Manila.
During the groundbreaking ceremony, House of Investments President & CEO Lorenzo Tan expressed YGC’s commitment with its partnership with Geely as it eyes to finish the new Geely dealership in Manila by April 2021, “This event holds significance as it will be our first dealership undertaking despite the ongoing Covid pandemic.”
“Today, almost 3 decades after we have refocused and strengthened our car business. We are adding to our portfolio by building a very modern Geely dealership to service more Filipino customers,” Tan added.
Also present in the event were SGAP President & CEO Mikihisa Takayama and SGAP Executive Vice President Yosuke Nishi.
“Consistent with our goal to expand SGAP’s dealer network and to reach more Geely customers nationwide, SGAP will continue to work hard for our customers. Our partnership with House of Investments is a significant step in realizing it despite the pandemic restrictions. The rise of Geely Manila is definitely something to look forward to,” Takayama said.
GAC Motor international conference “Together, Go Better” done online
GUANGZHOU, China, Feb. 24, 2021 /PRNewswire/ — On 28th January, GAC MOTOR held a grand 2021 International Distributor Conference. United by the conference’s theme of “Together, Go Better”, distributors from 26 countries gathered “in the clouds”, traversing differences of time and location, to have lively interaction with GAC MOTOR online.
With the strong support of global partners in 2020, GAC MOTOR managed to overcome a worldwide pandemic and economic recessions. The company managed to post year-on-year growth in exports of 18%, placing it as one of the top three fastest-growing automobile-exporter in China.
To affirm and recognize outstanding performances by distributors, GAC MOTOR presented Al Jomaih Automotive Company the Outstanding Distributor Diamond Award. In 2020, the productive partnership of Al Jomaih and GAC MOTOR saw amazing results in the Saudi Arabian market.
During the conference, GAC MOTOR announced its plans for 2021 regarding all-round growth to empower the sales activity and ensure faster growth as GAC MOTOR partners with distributors worldwide.
In terms of product strategy, GAC MOTOR plans to introduce four fuel models and two new energy models globally. These will be an addition to models that are customized to regional preferences.
GAC MOTOR will also be exploring new channels such as commercial cars, branded second-hand cars, and mobile travel options.
The Chairman of GAC MOTOR, Mr. Yu Jun, pointed out that GAC MOTOR would forge ahead on all fronts to improve its position in the industry. GAC MOTOR will be built up and positioned as “the premium medium-high-end brand from China with international acclaim”.
The general manager of GAC MOTOR, Mr. Zeng He Bin presented, “GAC MOTOR will continue to focus on brand building with a market-oriented approach through our core brand values.”
GAC MOTOR also held regional conferences with their respective distributors to formulate detailed business policies and market strategies for each market. Likewise, the Russia region distributor conference is held online on February 25th.
2021 GAC MOTOR International Distributor Conference has showcased GAC MOTOR’s ambitions and energy, rousing the confidence of all distributors and partners. Going forward, GAC MOTOR will focus on strategic markets and car models, delivering its brand values, and enhancing its brand reputation. As a result, consumers will enjoy products of higher quality, a state-of-the-art experience, and a more satisfying automotive lifestyle.
W Express Corporation which was formerly known as DHL Philippines, sees growth in the logistics industry as more and more companies rely on their indispensable business solution. From the initial two units of the Dongfeng Captain E delivered last October 2020, W Express saw the value for money, ease of maintenance, and reliability of these light duty trucks. These were the important factors considered by W Express in their fleet expansion thus the repeat purchase of these tool of trade.