Some major changes were expected to be seen after the merger of VW- CV business and MAN and Scania; but it could not leave an impact as expected. MAN Scania and Volkswagen merger business review is our latest ACG Business Review analysis series.
Today we are analyzing five major parameters of this merger-
- Brand perception
- Product position
- Market share or sales
- Intercultural management
Due to the complexity of the Truck and Bus business it needs to continuously focus on its core. To compete with Daimler and Volvo, VW created this merger concept by putting together businesses of same nature to get better results. As a part of VW strategy, first Volkswagen Latin America became part of MAN SE business unit and then VW increased majority stake in Scania. MAN is mainly focusing to save some cost in purchasing and R&D. There should be some effective coordination between MAN and Scania in the area of Sales and product concept too. Parts and platform should be common for all three product base. VW, MAN and Scania should redefine their strategy map to get better results through this cooperation.
Volvo is reducing cost to increase its profit by putting multiple efforts in production and organization structure. Its production cost also needs to be managed effectively. Daimler is focusing on synergy among all brands to reduce cost. MAN, Scania and VW CV expected to reduce cost by merging of entities.
Scania has a strong hold in Tractor segment, MAN has a strong grip on Off road and On road applications and Volkswagen Commercial vehicles are proven products in LCV and Medium segment. MAN introduced heavy horse power products for the Latin American market to fill the gap.
Global Product Position:
Scania is highest profit maker in the group.
Scania delivered 38,391 units in first six month of the year 2014. It sales numbers are low but it is most profitable CV manufactures in the world.