Scania CEO sees European truck market down 10pct this year image

Leif Ostling, the actual Scania CEO who will leave the position to join the board of Volkswagen Ag said he expects the European truck market to fell 1o percent this year, mostly because the actual crisis situation in the area, Reuters reports.

Last month, the European Manufacturer’s Association said the truck segment varied in April 2012, as Italy (-44.4%), Spain (-13.9%) and France (-5.8%) performed less well than last year, while the German market remained stable and the British expanded (+17.2%).

Ostling predicted in April that the market would shrink to between 200,000 and 220,000 units this year as the euro zone crisis dampened demand in the highly cyclical heavy-duty truck business.

The announcement comes after the Swedish heavy-truck maker Scania appointed Martin Lundstedt as new president and chief executive officer to replace Leif Oestling on September 1.

On the same time, Volvo AB’s construction-equipment unit, the world’s third-largest maker of wheel loaders and excavators, sees no recovery in sight in southern Europe, chief Patrick Olney said.

“I don’t see any signs” of improvement in the construction markets in Spain, Portugal, Italy or Greece, Olney said in a phone interview yesterday. “The market collapsed in 2009 and has not shown any recovery since then.”

Volvo Construction Equipment’s business in those countries dropped more than 80 percent in the financial crisis that began in 2008, he said from the unit’s Brussels headquarters.