Automotive Purchasing News Review 21 July 2014 - page 9

21 July 2014
automotive purchasing
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Bigbusiness in the frame
Jul 18, 2014
The findings of a new survey show how
big businesses in Britain have no plans to
increase contracting with SMEs.
A survey carried out recently by the IFF
Research agency on behalf of UK-based
Achilles Group, found just 12 percent of
companies says they plan to expand the
amount of small businesses they contract
with. Eighty percent will keep the numbers
the same, and 8 percent don't intend to
give them more contracts or did not know
what they would do. Meanwhile, 67 percent
of companies said they use small suppliers
regularly, but they tend to be awarded just
up to a quarter of all deals.
Financial stability
The poll of 146 procurement managers
at companies with more than 250
employees, also found 26 percent
of buyers were concerned about the
financial stability of SMEs. There were also
concerns about adherence to standards
and regulations, although benefits such
as flexibility, efficiency and being closer to
customer needs were cited as advantages
in contracting with small businesses.
Scania issues interimH1 report
Jul 18, 2014
Scania says its earnings for the first half of
2014 amounted to SEK 4,276mln. Higher
service volumes were offset by a weaker
market mix and negative currency rate
effects, while total order bookings for trucks
during the second quarter remained at a
high level, and net sales rose by 4 percent.
Commenting on the release, Scania’s
President and CEO Martin Lundstedt (pictured)
said: Total order bookings for trucks during
the second quarter were at a high level. Order
bookings in Europe improved compared to the
first quarter of 2014. A somewhat improved
economic situation and the replacement need
are supporting demand.
“Scania strengthened its position in the
European market with increased market share,
among other things through a leading Euro 6
range, which is confirmed by tests in the trade
press. Order bookings in Latin America were in
line with the previous quarters. In Asia, order
bookings improved sharply, related to the
Middle East. Demand in Russia was adversely
affected by the turbulence in the region.”
Buses and coaches
Commenting on his company’s bus and
coach business, Lundstedt explained how
“Scania received strategic orders for BRT-
systems in Africa and Latin America. In Engines,
order bookings rose, driven by Europe and
Asia. Scania has initiated collaboration on
engine deliveries to Atlas Copco.
“Scania is continuing its long-term efforts to
boost market share in Services and revenue
increasedby5percent during thefirst half of 2014.
Financial Services showed a strong performance
and customer payment capacity is good. During
the second quarter, Scania couldwelcome a clear
and long-term ownership structure as the offer
fromVolkswagen went through.”
Expanded production
Lundstedt concluded that “coperation
projects with MAN and Volkswagen can now
be intensified, which will provide support to
the growth scenario up to 2020. The level
of activity related to development projects
remains high and Scania is investing in
expanded production and service capacity.”
Daimler not raising stake
Jul 17, 2014
In a statement issued today (July 17),
Daimler has insisted that it does not plan
to increase its stake in Russian truckmaker
Kamaz, renouncing a long-considered deal
amid rising tension between Moscow and
the West over Ukraine.
The German luxury car brand controls
15 percent of Kamaz shares, including 11
percent it owns directly and 4 percent that
the European Bank for Reconstruction and
Development holds on its behalf. It has a
partnership agreement that would allow it to
increase its holding this year or next, but the
talks have dragged because of differences
over price.
Business daily Vedomosti reported that
a new shareholder agreement, expected
to be signed this year, did not reserve the
exclusive right for Daimler to negotiate
the purchase of an additional stake. The
paper also quoted an unnamed Daimler
representative as saying that, after
discussions about a possible stake increase
with its Russian partners, the German
carmaker had come to the conclusion that
its share was "optimal".
Continuing talks
"We have no plans to further increase our
stake," a Daimler spokesman is quoted as
telling Reuters, adding that the company is
continuing talks about "cooperation within
the Kamaz joint venture".
In addition to owning shares in Kamaz,
Daimler has a joint venture with the Russian
truckmaker that produces Mercedez-Benz
trucks in Russia. Daimler also supplies
engines and axles for the Russian company's
trucks and buses and the two have been in
talks about setting up local production of
these parts.
The news coincides with the imposition
of sanctions by the United States and the
European Union against Russian individuals
of Crimea and failure to curb violence
in Ukraine. Russian state conglomerate
Rostec is the biggest shareholder in Kamaz
with a 49.9 percent stake. A consortium of
investors, led by Ruben Vardanyan, owns
23.6 percent and had been in talks with
Daimler over the stake sale.
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