Jan 19, 2017 Warwick Robinson UDTrucks, HeavyDuty, Trucking
Gert Swanepoel started the press conference by introducing the full leadership team and also hinted at an exciting new product offering - but refused to be drawn on details, rather coyly answering that we should "watch this space".
"The Kenyan market is the next priority for 2017, as well as the greater South East African region, although it is undeniably difficult and somewhat unpredictable, it remains an enormously important market for UD", he continued.
Swanepoel reiterated the group level decision to push what they call "the brand focus" for the organization. This message has been in the market with respect to UD since the first quarter of 2016, but Swanepoel insists that 2017 is going to show this commitment to the brand, and what this direction means to customers in terms of the support coming from UD.
Martin Lundstedt, global CEO Volvo trucks visited SA recently specifically to see UD. This dedicated personal attention to the company clearly built confidence within the management and entire workforce within UD.
Rory's presentation looked at the global market and what UD refers to as SEA economic hubs. "South Africa sits ranked at 168th globally in terms of growth, and this year's projected 1.5% growth makes it an oddity in the region, with an unstable track record more than likely linked to political shenanigans".
"Considering the GDP, the figures for the truck market is not as dire as it could be - but the total market figure of 28144, is the worst for 5 years." He continued, explaining that domestic and export sales were down 11.3% and 1.9% respectively.
While not featuring at all in light duty, UD remained 2nd in the medium duty segment, just behind Hino, with Shultz still satisfied that the performance is good, especially considering the age cycle of the product. The brand is sitting at 5th position in the heavy duty segment and hopes are high that the "brand focus", so often bandied about in their latest communications, is going to support growth in this segment. Even with this positive sentiment his view is that it will be another tough year, where sales will have to "fight for every sale".
The persistent issue of downgrades and possible erosion of real buying power through inflationary pressure and possible tax changes, continues to put pressure on business confidence.
Getting the KB operation up and running in Kenya is directed towards catering to the huge growth the company sees in the country, along with opportunities in Uganda and Tanzania.
Shultz explained however that he found it encouraging after speaking to many customers that the feeling of paralysis that many have felt through the past year is subsiding, and that this strengthening of sentiment coincides with the reinvigoration of the UD brand.
"SA seems to have lost its position as a leading economy in the region and while we stagnate in this way, our regional neighbors are steaming ahead with infrastructure and urbanization projects that are fueling their economies," explained Shultz.
In his view, we as an industry and a country as a whole are not taking advantage of the opportunities around us, especially when compared with the role being played by China in Africa, and in comparison to countries such as Brazil's role in South America.
He sees a transformation of transport services, such as those of some European countries including Spain and Belarus, as an opportunity in creating cost effective and quality transport systems as the key to modern logistics. It will be left up to the private sector, but the political will has to exist, as well as a balance between regulation and cost - especially because of new levies and duties.
He believes everyone in the industry are positive contributors in qualitative and quantitative terms for an re-ignition of the regional drive. Shultz sees the 5 dimensions of this reigniting as the market structure, the operators, driver and vehicles plus external factors. Examples of these include the cost of transport and its cost impact on greater society. Environmental aspects additionally need to be considered as it becomes a responsibility for all players in the industry - and it presents opportunities for manufacturers who can provide an appropriate mix of these elements.
While the local culture of the brand and the 50 years of heritage fit in line with the new direction of autonomy for the UD brand within the Volvo group, both Shultz and Swanepoel view their dealer network and customer support as the true assets of their brand, and remain dedicated to delivering to both of them.
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