SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Scania achieves record profit despite interest-rate pressured customers

Scania achieves its best operating result ever for a single quarter, but at the same time, one can see how customers on the European market are waiting to replace their truck fleets. Many are choosing to wait because they expect interest rates to fall, says Scania's CEO and President Christian Levin.

» Updated: 26 July 2024, 14:05

» Published: 26 July 2024

Scania achieves record profit despite interest-rate pressured customers
Photo: Foto: Claudio Bresciani/TT

Scania achieves its best operating result to date for a single quarter, but at the same time, customers on the European market are waiting to replace their truck fleets.

Many are choosing to wait because they expect interest rates to fall, says Scania's CEO and President Christian Levin.

At the same time, Scania's CEO acknowledges that it will be a good deal for the company's service business when customers continue to drive their old trucks a little longer.

The truck manufacturer, based in Södertälje, reports a record-high adjusted operating result of 8 billion kronor for the second quarter of 2024. This can be compared to 7 billion kronor for the same period in 2023.

Deliveries increased by 8 percent to 25,802 vehicles, but at the same time, new vehicle orders fell by 3 percent to 19,234 vehicles.

Waiting for interest rate cuts

The truck fleet in Europe is very old, and old vehicles emit more, consume more fuel, and cost more to repair. So, we're hoping for some quick interest rate cuts in Europe so that the investment appetite returns among customers, says Christian Levin.

The development in Latin America is still strong, so much so that Scania has unloaded some of its production in Brazil by manufacturing more trucks in Södertälje, which are then shipped across the Atlantic.

At the same time, a major investment is underway in China, where Scania is building up a completely new industrial system, with the first trucks expected to roll out at the end of 2025. This is partly to increase capacity and partly to take a larger share of the Chinese market and technological development.

Green transition lagging behind

Again, Levin flags that Scania is lagging behind in the green transition and appeals to European policymakers to facilitate the sector's ability to meet the 2030 climate targets.

We're building our own charging network together with Volvo and Mercedes, and we see other actors doing the same, but it's going too slowly. European governments have a responsibility to facilitate permit processes and subsidize the expansion, he says, and continues:

But absolutely most important is that electricity must cost less.

Scania's CEO says the company is sticking to its goal of having half of all Scania trucks be electric by 2030.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

Unstable US stock market ends on a plus
1 MIN READ

Unstable US stock market ends on a plus

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic