Automotive Business Review — February 2018

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SHAKEN AND STIRRED –


BUT SET TO SIZZLE


UD Trucks is certainly not alone with having had a rough 2016, but the


fact they’ve rebounded in 2017 in such style proves they’re made of a


mettle most magnifi cent. 2016 was an annus horribilis for UD Trucks –


and they’re in good company with many others who were left shaken and


stirred. How to get out of that conundrum?


W


ell, get out of it UD Trucks did, and in grand fashion too.
While no-one would have expected last year to be an
annus mirabilis, it certainly was better. At the annual press
conference last month, Gert Swanepoel, manager of UD
Trucks Southern Africa, said that although there was a lot of negativity
politically and economically in 2016, the team realised when the going gets
tough, the tough fl ex their muscles.
“It was a huge challenge to stand fi rm and fi ght back, but that’s exactly
what we did,” says Swanepoel. “We needed to fi x certain things and get our
satisfaction index with clients right. That was a priority last year, and doing
that has certainly paid dividends.”

While the truck market was generally depressed, the Extra Heavy Commercial
Vehicle sector recorded a modest year-on-year growth of 0.96% which saw a
year end sales fi gure of 11 967 units. Sales in the Heavy Commercial Vehicle
sector was down 4.76% to 5 290 units and a 6.37% decline in sales was
logged in the Medium Commercial Vehicle segment, recording sales of 7 785
units at the end of 2017. He says it was imperative to focus on brand, and
“to bring the brand back in 2017.”

“Market share is up and that proves what we’re doing is correct. Not to get
rattled was the big one to overcome, but keeping your eye on what was
needed to be corrected – and even to admit that there were things that
needed to be corrected – took guts and determination and we certainly
have that in abundance.
“Now there is a huge success story to tell, and our customer focus is the
key to that success. At the beginning of 2017 we were #7 in the customer
satisfaction stats. We ended last year in #3 position, which is testament to
our drive. Good product and parts supply that meets expectation are the
two boxes to tick, and the market has responded very positively.” He says
that growth for 2018 has been forecast at only 1.5%.

“We believe that we can do better. Our product line-up is truly fantastic and
fi nancially we are in really good shape. We are expecting sales in the export
countries to increase during 2018, forecasting growth across all segments
for a total sales estimate of some 990 units. Locally, we are predicting a
slight 1.5% growth in sales and a total truck market of an estimated 25 418
new units.”

UD Trucks has secured a new partner in Kenya to establish a CKD
(Completely Knocked Down) assembly facility, which includes the production
of UD Truck units.
During 2017, UD Trucks also invested in R30-million in the modernisation
of its Rosslyn assembly plant to mirror that of the company’s Ageo plant
in Japan.

Last year the company also trained 1 247 dealer and customer staff at its
Competence Development Centre in Rosslyn, including 92 diesel mechanic
apprentices – a much sought-after skill in the transport industry.

During 2017, UD Trucks gained traction with the launch of the new Croner
range, claiming the #2 position in the Heavy Commercial Vehicle segment.

UD TRUCKS
by Terry Owen

Gert
Swanepoel...
we are going
to try and
outgrow the
market

Rory
Schulz...
Instability,
downgrading
and a
recession
played havoc
with the
industry

Paul Uys...
Looking at
variants in
the model
product
line-up

Sanjay
Nepal ...
Soft focus in
Aftermarket
will focus on
adding value
to customer
business

Aubrey
Rambau ...
Magnificent
make-over of
Rosslyn plant
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