Volkswagen Group - Annual Report 2011

New generation of engines wins acclaim for its lower emissions

For 100 years, innovation and customer focus have been the hallmarks of the bus business of Swedish commercial vehicles manufacturer Scania. In fiscal year 2011, the brand presented the new Euro 6 generation of truck engines, which boast significantly lower emissions.

BUSINESS DEVELOPMENT

The time-honored Swedish brand Scania started producing buses in 1911. To this day, its emphasis has been on innovation and customer focus. In 2011, Scania presented an innovation in the field of truck engines: the new Euro 6 engines feature a combination of technical solutions to cut emissions with the same fuel efficiency as the previous generation of engines.

Scania bus

The Scania brand delivered 80,108 vehicles to customers worldwide in the reporting period (+25.7%). Demand was significantly higher than in the previous year, particularly in Western Europe (+32.4%) and the Asia-Pacific region (+21.7%). At 7,988, the number of buses delivered was 16.2% higher year-on-year.

The Scania brand produced 84,057 vehicles in the reporting period, 24.2% more than in the previous year. This includes the number of buses produced, which increased by 30.0% to 8,708. At the end of fiscal year 2011, the Scania brand responded to a decline in demand in Europe by cutting production by 15%.

Scania has plans for investments in the Argentinian plant in the province of Tucuman that will enable it to manufacture gearboxes there in future and increase local production by up to 50%.

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SCANIA BRAND
	2011	2010	%
Deliveries	80,108	63,712	+25.7
Vehicle sales	80,108	63,712	+25.7
Production	84,057	67,663	+24.2
Sales revenue (€ million)	10,064	8,462	+18.9
Operating profit	1,372	1,342	+2.3
as % of sales revenue	13.6	15.9

80,108

UNITS DELIVERED TO CUSTOMERS IN 2011

SALES REVENUE AND EARNINGS

Demand in the markets for heavy trucks and buses in 2011 surpassed the prior-year figures, although it was subject to significant timing and regional volatility. The Scania brand benefited more than average from this development, increasing its sales revenue by 18.9% year-on-year to €10.1 billion. Operating profit increased by €31 million to €1,372 million. Positive volume effects were offset in part by exchange rate pressures and the country mix, as well as by increased costs. The operating return on sales decreased from 15.9% in 2010 to 13.6% in the reporting period.

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