Traton [VW] Reports Growth Across Brands and Regions

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David Cullen, Heavy Duty Trucking (HDT)  /  October 25, 2018

Traton AG, formerly known as Volkswagen Truck & Bus, reported on October 18 that at the close of the third quarter, the global OEM “remains on a growth path.” Specifically, the wholly owned subsidiary of Germany’s Volkswagen AG said it recorded “a significant increase in deliveries of commercial vehicles in the first three quarters of 2018.”

Between January and September, Traton delivered some 15% more vehicles than in the same period a year ago. This amounted to 166,330 vehicles bearing the brands of MAN Truck & Bus, Scania, and Volkswagen Caminhões e Ônibus.

“Our entire team did a good job in the first nine months," said Andreas Renschler, CEO of Traton AG and member of the Board of Management of Volkswagen AG. “However, the very strong sales performance of the first half of the year tapered off slightly in the third quarter.”

The number of vehicles delivered from MAN Truck & Bus rose by 15% to 72,040. Scania’s deliveries of trucks and buses climbed to 68,640 vehicles, or around 7% more than in the previous year. And driven by the economic upswing in Brazil, demand for Volkswagen Caminhões e Ônibus vehicles soared by some 43% to 27,360 units. In total, Traton delivered 145,070 trucks (+12%) and 16,390 buses (+22%).

Traton credited “persistently positive economic performance in the most important markets around the world” with driving a tailwind for the business in the first nine months of this year.

With a market share of some 31% in the first nine months of 2018, Traton said it remains the leader in the truck market of the EU28+2 region (EU, Norway, Switzerland). In South America, the Traton brands boosted their deliveries by some 40%, “compared with the very poor prior-year period.” T

The OEM added that it “remains the clear market leader in the Brazilian truck market, accounting for around 40%.” The number of vehicles delivered in Russia jumped by some 17%, to 8,000 units. In Africa, the number of deliveries was stable at the previous year’s level But in the Middle East, deliveries were down by around 10% and in the Asia/Pacific region, they dropped by around 6% year over year, “driven by factors such as weaker demand in China.”

Traton noted that it has expanded its presence in Asia by entering into partnerships. An agreement was made with Sinotruk for the establishment of a joint venture to develop a heavy MAN truck for the Chinese market. And in a deal with Japan’s Hino Motors, the two OEMs will cooperate in the fields of procurement and e-mobility.

The OEM also is partnering with U.S. software firm Solera on fleet management, driver services and digital sales solutions. “Digital services are among the growth drivers of the future,” said Renschler. “We are already in a strong position in the digital environment and will follow this path consistently – using our own resources as well with as our partners.”

In addition, Traton remains engaged with Navistar in the "wide-ranging strategic alliance" the U.S.-based OEM forged in 2016 with Volkswagen Truck & Bus.

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