Scania AB

Scania Aktiebolag (publ)

Type	Publicly traded Aktiebolag
Industry	Automotive
Founded	Malmö, Sweden (1900 (1900))
Founder	Gustaf Erikson
Headquarters	Södertälje, Sweden
Number of locations	10
Area served	Worldwide
Key people	Martin Winterkorn (Chairman),[1] Martin Lundstedt (President and CEO), Jan Ytterberg (CFO)[2]
Products	Commercial vehicles, diesel engines
Services	Financial services
Revenue	SEK 94.880 billion (2014)[3]
Operating income	SEK 8.72 billion (2014)[4]
Profit	SEK 6.009 billion (2014)[4]
Total assets	SEK 133.037 billion (2014)[3]
Total equity	SEK 41.801 billion (2014)[3]
Number of employees	42,129 (2014)[4]
Parent	Volkswagen Group
Website	scania.com

Scania Aktiebolag (publ), commonly referred to as Scania AB or just Scania, is a major Swedish automotive industry manufacturer of commercial vehicles – specifically heavy trucks and buses. It also manufactures diesel engines for motive power of heavy vehicles, marine, and general industrial applications.

Founded in 1891 in Malmö, in the Swedish province of Skåne, the company's head office has been in Södertälje, in the province of Södermanland, since 1912.^[5] Today, Scania has production facilities in Sweden, France, Netherlands, Argentina, Brazil, Poland, and Russia.^[6] In addition, there are assembly plants in ten countries in Africa, Asia and Europe. Scania's sales and service organisation and finance companies are worldwide. In 2012, the company employed approximately 42,100 people around the world.^[6] Scania was listed on the NASDAQ OMX Stockholm stock exchange from 1996 to 2014.^[7][8]

Scania's logo shows a Griffin, from the coat of arms of the province of Scania (Swedish: Skåne).^[9]

History

Scania AB (Scania is Latin for the province of Skåne) came from a merger between the two companies; Vabis and Scania.

Vabis and Scania

Vabis (Vagnsfabriksaktiebolaget i Södertälje) was founded in 1891 as a subsidiary of Södertälje based steel company Surahammars Bruk, manufacturing railway carriages.^[10] In 1902, engineer Gustaf Erikson designed the company's first truck, powered by a petrol engine and two-speed gearbox. A year later, the first order was placed for a Vabis commercial vehicle.^[10] By 1907, the company had developed a 3-ton truck, however, though it won a Swedish Royal Automobile Club award in 1909, the new range was a financial disaster for the company, failing to attract more than a handful of orders.^[10]

Maskinfabriks-aktiebolaget Scania was founded in 1900 in Malmö in the south of Sweden, and was in the beginning a manufacturer of bicycles,^[10] but by 1903 the first cars left the factory. Two years later, Scania built their first truck.^[9]

Following the financial problems at Vabis, the companies merged in 1911,^[9] creating AB Scania-Vabis. Engine and car production was moved to Södertälje, and truck production took place in Malmö.^[10]

First World War and 1920s

For the next few years the company's profits stagnated, with around a third of their orders coming from abroad.^[10] The outbreak of the First World War, however, changed the company, with almost all output being diverted to the Swedish Army. By 1916, Scania-Vabis was making enough profit to invest in redeveloping both of their production facilities.^[10]

Following the war, in 1919, Scania decided to focus completely on building trucks, abandoning other outputs including cars and buses.^[10] However, they were hurt by the swamping of the market with decommissioned military vehicles from the war, and by 1921 the company was bankrupt.^[9]

After some economic difficulties in 1921, new capital came from Stockholms Enskilda Bank owned by the Wallenberg family, and Scania-Vabis became a solid and technically, high standing, company.

Denmark

Towards the end of 1913, the company established a subsidiary in Denmark. The following year the first Danish-built car, a four-seater Phaeton, was built at the company's Frederiksberg factory in Copenhagen. In 1914, the factory produced Denmark's first Scania-Vabis truck, and following this developed a V8 engine, one of the first in the world. In 1921, having sold around 175 trucks, and 75 cars, the Danish operation was closed down.^[9]

1930s and 1940s

During the Second World War Scania produced a variety of military vehicles for the Swedish Army, including Stridsvagn m/41 light tanks produced under license.^[9]

1950s and 1960s

During the 1950s, the company expanded its operations into new customer segments, becoming agents for the Willys Jeep and the Volkswagen Beetle, the latter being very profitable for Scania-Vabis. It also started to become a genuine competitor to Volvo with their new Regent truck which was introduced in 1954.^[11]

During this period, Scania-Vabis expanded its dealer network and country-wide specialist workshop facilities. By the end of the 1950s, their market-share in Sweden was between 40 to 50%, and was achieving 70% in the heaviest truck sector – helped by the entrepreneurial efforts of their dealers into the haulier market.^[11]

Probably their largest impact was in export markets. Before 1950, exports accounted for only 10 percent of production output, but a decade later, exports were now at 50% of output. Beers in the Netherlands became a very important partner. Beers became official importers for Scania-Vabis in the Netherlands, and established a dealer network, along with training programmes for both mechanics and drivers. Beers also offered free twice-yearly overhauls of their customers vehicles, and offered a mobile service throughout the Netherlands with their custom-equipped service trucks. Due to Beers concerted efforts, Scania-Vabis market share in the country remained at a consistent 20% throughout this period. Scania-Vabis were to adopt the business model of Beers in their own overseas sales operations.^[11]

The 1960s saw Scania-Vabis expanding its production operations into overseas locations. Until now, all Scania-Vabis production had been carried out solely at Södertälje, but the 1960s saw the need to expand production overseas. Brazil was becoming a notable market for heavy trucks, and was also dependent on inter-urban buses, with particular requirement for Brazil's mountainous roads which became nigh-on impassable at times.^[12] Scania-Vabis products had already been assembled in Brazil by a local company called Vemag, but Scania Vabis do Brasil, S.A. became an independent operation in July 1960.^[13] Scania-Vabis established its first production plant outside Södertälje, by building a new facility at São Bernardo do Campo in Brazil, which was completed in 1962, and this was to set the standard for Scania-Vabis international operations.^[12]

Closer to home, the recently formed European Economic Community (EEC) offered further opportunities. Based on their now strong presence in the Dutch markets, Scania-Vabis constructed a new plant in Zwolle, which was completed in 1964.^[12] This new Dutch facility provided Scania-Vabis with a stepping stone into the other five EEC countries, particularly the German and French markets.^[12]

In 1966, Scania-Vabis acquired ownership of a then valuable competitor – Be-Ge Karosserifabrik, who were based in Oskarshamn. Be-Ge had been making truck cabs since 1946, and had been supplying cabs not only to Scania-Vabis, but also to their Swedish competitors Volvo. It was normal practice for truck manufacturers to outsource production of cabs to independent bodybuilders, so their acquisition by Scania-Vabis seemed a good move.^[12] Be-Ge owner Bror Göthe Persson had also established an additional cab factory at Meppel.^[12]

Scania-Vabis continued their expansion of production facilities through acquisitions. In 1967, they acquired Katrineholm based coachwork company Svenska Karosseri Verkstäderna, and created a new subsidiary, Scania-Bussar. A year later, all bus production, along with R&D was moved to Katrineholm.^[12] Further production locations were added at Sibbhult and Falun, and Scania's employee numbers rose, particularly at Södertälje, which was to help double the town's population.^[12]

Saab-Scania AB (1969–1995)

In 1969, Scania-VABIS merged with Saab AB, and formed Saab-Scania AB. When Saab-Scania was split in 1995, the name of the truck and bus division changed simply to Scania AB. One year later, Scania AB was introduced on the stock exchange, which resulted in a minor change of name to Scania AB (publ).

Many examples of Scania, Vabis and Scania-Vabis commercial and military vehicles can be seen at the Marcus Wallenberg-hallen (the Scania Museum) in Södertälje.

Ownership

Aborted Volvo takeover

On 7 August 1999, Volvo announced it had agreed to acquire a majority share in Scania. Volvo was to buy the 49.3% stake in Scania that was owned by Investor AB, Scania's then main shareholder. The acquisition, for $7.5 billion (60.7 billion SEK), would have created the world's second-largest manufacturer of heavy trucks, behind DaimlerChrysler. The cash for the deal came from Volvo selling its car division to Ford Motor Company in January 1999, but the deal had yet to be approved by the European Union.^[14]

The deal eventually failed, after the European Union had disapproved of the affair, saying it would create a company with almost 100% market share^[15] in the Nordic markets.

Aborted MAN takeover

In September 2006, the German truckmaker MAN AG launched a €10.3bn hostile offer to acquire Scania AB. Scania's CEO Leif Östling was forced to apologise for comparing the bid of MAN to a "Blitzkrieg". MAN AG later dropped its hostile offer, but in January 2008, MAN increased their voting rights in Scania up to 17%.

Scania ownership today

The two major stockholders of Scania AB (publ) are:

• The German automotive company Volkswagen AG is Scania's biggest shareholder, with a 70.94% voting stake (equity) in Scania.^[16] It gained this by first buying Volvo's stake in 2000, after the latter's aborted takeover attempt, increasing it to 36.4% in the first quarter 2007,^[17] and then buying the remainder from Investor AB in March 2008.^[18] The deal was approved by regulatory bodies in July 2008.^[15] Scania then became the ninth marque in the Volkswagen Group.^[19]
• The German truck manufacturer MAN SE holds a 17.37% voting stake in Scania.^[16] Notably, Volkswagen AG^[15] also owns 75.03% of MAN.^[20]

Current shareholders

Scania AB (publ) has a total issue of 400 million 'A shares' and 400 million 'B shares', with a total capitalised value of SEK 72,880 million.^[16] In terms of voting rights, one 'A share' is eligible for one vote, whereas 10 'B shares' are required for one vote.^[21]

As of 29 January 2010, these shares, as published by Swedish Central Securities Depository and Clearing Organisation ("Euroclear"), are allocated to 119,973 owners, and the table below details the top ten shareholders.^[16]

Scania AB (publ) principal shareholders^[16]

shareholder name	A shares	B shares	% of capital	% of votes
Volkswagen Aktiengesellschaft *	306,232,239	59,037,822	45.66	70.94
MAN SE	73,047,179	33,718,857	13.35	17.37
Clearstream Banking	1,170,514	32,973,450	4.27	1.02
JP Morgan Chase Bank	461,584	36,220,219	4.59	0.93
Swedbank Robur Fonder	0	29,043,665	3.63	0.66
Skandia Liv	974,374	9,646,318	1.33	0.44
Alecta Pensionsförsäkring	0	19,085,000	2.39	0.33
AMF Försäkring och fonder	650,000	9,678,411	1.23	0.36
Handelsbanken fonder	0	7,202,362	0.90	0.16
The Government Pension Fund of Norway	0	6,937,665	0.87	0.16
largest 10 owners	382,535,890	243,021,708	78.19	92.46
Others	17,464,110	156,978,292	21.81	7.54
total ownership	400,000,000	400,000,000	100.00	100.00

* Further to the shares listed above, Volkswagen AG also holds shares in trust by a credit institution of Scania, which gives additional voting rights amounting to 0.87 percent and an equity interest of 3.63 percent attributable to Volkswagen AG, as disclosed in January 2009.

Products

Scania develops, manufactures and sells trucks with a gross vehicle weight of more than 16 tonnes (Class 8), intended for long-distance haulage, regional, and local distribution of goods, as well as construction haulage.

Scania's bus range is concentrated on bus chassis, intended for use in tourist coaches, as well as urban and intercity traffic.

Scania's industrial and marine engines are used in generator sets and in earthmoving and agricultural machinery, as well as on board ships and pleasure crafts.

Scania also designs and manufacture clothes especially designed for truckers under the label Scania Truck Gear.^[22]

Current

Trucks / Special vehicles

• P-series – typical applications are regional and local distribution, construction, and various specialised operations associated with locally based transportation and services. P-series trucks have the new P cabs, which are available in three variations: a single-berth sleeper, a spacious day cab and a short cab
• G-series – the G-series models offer an enlarged range of options for operators engaged in national long haul and virtually all types of construction applications. All models have a G cab, and each is available as a tractor or rigid. The G-series truck comes with five cab variants: three sleepers, a day cab and a short cab. There are different axle configurations, and in most cases a choice of chassis height and suspension
• R-series – the R-series model range debuted in 2004, and won the prestigious International Truck of the Year award in 2005 and again in 2010.^[23] The range offers various trucks optimised for long haulage. All models have a Scania R cab, and each vehicle is available as a tractor or rigid. There are different axle configurations and a choice of chassis height and suspension. The Scania R730 is the most powerful variant of the R-series. Its 16.4 Liter DC16 Turbo Diesel V8 engine produces 730 PS (540 kW; 720 hp) at 1,900 rpm and 3,500 N·m (2,600 lb·ft) of torque at 1,000–1,350 rpm.

The R series also came as a limited edition '+' the most common being the R420+ with 100 being sold across Europe. This came with a newer opti-cruise gearbox with a trial gear ratio. It also came with an added microwave from the dealer. It's believed the sales were mainly in Sweden, but as many as 10 per country elsewhere.

Buses

• F-series - front engine bus chassis with Euro III and Euro V compliant engines
• K-series - rear engine bus chassis (longitudinal mounted) with Euro III - Euro VI compliant engines
• N-series - rear engine bus chassis (transversal mounted) with Euro III - Euro VI compliant engines
• OmniLink (CK-series) - citybus using the K-series chassis
• OmniCity (CN-series) - citybus using the N-series chassis
• OmniExpress (LK-series) - intercity coach using the K-series chassis
• Citywide LE/Citywide LF - new citybus range superseded the OmniCity and OmniLink in left-hand-drive markets, using respectively the N-series and K-series chassis

Diesel engines

Scania's involvement with internal combustion engine production dates back to 1897, when engineer Gustav Erickson designed the engine for the company's first motor car. Over the subsequent years, Scania has grown to be one of the world's most experienced engine manufacturers, building engines not only for trucks and buses, but also for marine and general industrial applications, which are exported across the globe.^[24]

Historical

Buses

Trucks/Special Vehicles

Diesel engines

Production sites

The table below shows the locations of the current^[26] and former production facilities of Scania AB. As Scania is now majority owned by Volkswagen AG, making it part of Volkswagen Group, the table also includes Volkswagen Group references.^[27]

Notes: the second column of the table, the 'factory VIN ID code', is indicated in the 11th digit of the vehicles' 17 digit Vehicle Identification Number, and this factory code is only assigned to plants which produce actual vehicles. Component factories which do not produce complete vehicles do not have this factory ID code.

factory name	factory VIN ID code(s)	location (continent, country)	location (town/city, state/region)	current motor vehicle production	former motor vehicle production	automotive products & components	year opened	comments	factory coordinates
Angers [27][28]	9	Europe, France	Angers, Maine- et-Loire, Pays de la Loire	Scania truck assembly				Scania Production S.A.S. factory and assembly line, part of Scania AB	47°30′4″N 0°30′55″W / 47.50111°N 0.51528°W / 47.50111; -0.51528 (Scania Production S.A.S., Angers)
Lahti		Europe, Finland	Lahti, Päijänne Tavastia	Scania bus body assembly			2007 (2014)	SOE Busproduction Finland Oy, part of Scania AB (former Lahden Autokori Oy)	60°57′0″N 25°36′3″E / 60.95000°N 25.60083°E / 60.95000; 25.60083 (SOE Busproduction Finland Oy)
Luleå [27][29]		Europe, Sweden	Luleå Municipality, Norrbotten, Norrbotten County			Scania truck frame members, Rear axle housings		Ferruform AB factory, part of Scania AB	65°36′48″N 22°7′45″E / 65.61333°N 22.12917°E / 65.61333; 22.12917 (Ferruform AB, Luleå (part of Scania AB))
Meppel [27][30]		Europe, Netherlands	Meppel, Drenthe			Scania truck components and paint shop		Scania Production Meppel B.V. factory, part of Scania AB	52°41′25″N 6°10′24″E / 52.69028°N 6.17333°E / 52.69028; 6.17333 (Scania Production Meppel B.V., Meppel)
Oskarshamn [27][31]		Europe, Sweden	Oskarshamn Municipality, Kalmar County, Småland			Scania truck Cab production		Scania AB factory	57°15′24″N 16°25′42″E / 57.25667°N 16.42833°E / 57.25667; 16.42833 (Scania AB production plant, Oskarshamn)
São Bernardo do Campo	3	South America, Brazil	São Bernardo do Campo, Greater São Paulo, São Paulo state		Scania-Vabis trucks and buses		1959	Originally a Scania-Vabis truck plant. Now known as Anchieta,[27] oldest currently operating Volkswagen Group factory outside of Germany and part of Volkswagen do Brasil Indústria de Veículos Automotores Ltda.	23°44′07″S 46°32′48″W / 23.735217°S 46.54653°W / -23.735217; -46.54653 (formerly: Scania-Vabis São Bernardo do Campo, now: Volkswagen Anchieta)
São Paulo [27][32]		South America, Brazil	São Paulo, Greater São Paulo, São Paulo state	Scania trucks Scania bus chassis		Engines Axles		Scania Latin America Ltda., part of Scania AB	23°42′49″S 46°33′58″W / 23.71361°S 46.56611°W / -23.71361; -46.56611 (Scania Latin America Ltda., São Paulo)
Słupsk [27][33]		Europe, Poland	Słupsk, Pomeranian Voivodeship	Scania bus body assembly				Scania Production Slupsk S.A factory and assembly line, part of Scania AB	54°28′42″N 17°0′46″E / 54.47833°N 17.01278°E / 54.47833; 17.01278 (Scania Production Slupsk S.A)
Södertälje [27][34]	1 2	Europe, Sweden	Södertälje, Södertälje Municipality, Södermanland, Stockholm County	Scania trucks Scania bus chassis		Components, Engines	1891	Scania AB headquarters, R&D and main production plant	59°10′14″N 17°38′26″E / 59.17056°N 17.64056°E / 59.17056; 17.64056 (Scania AB Headquarters & production plant, Södertälje)
St Petersburg [27][35]		Europe, Russia	St Petersburg, Northwestern Federal District	Scania bus body assembly since 2010 Scania trucks				OOO Scania Peter factory and assembly line, part of Scania AB	59°53′24″N 30°20′24″E / 59.89000°N 30.34000°E / 59.89000; 30.34000 (Scania Peter, St Petersburg)
Tucumán [27][36]		South America, Argentina	San Miguel de Tucumán, Tucumán Province			Rear axle gears Gearboxes Differentials Drive shafts		Scania Argentina S.A. factory, part of Scania AB	26°52′47.5″S 65°7′38″W / 26.879861°S 65.12722°W / -26.879861; -65.12722 (Scania Argentina S.A., Tucamán)
Zwolle [27][37]	4 5	Europe, Netherlands	Zwolle, Overijssel	Scania truck assembly			1964[38]	Scania Nederland B.V. factory, part of Scania AB	52°30′46″N 6°3′48″E / 52.51278°N 6.06333°E / 52.51278; 6.06333 (Scania Nederland B.V., Zwolle)

See also

• Category:Scania AB
• Ainax - holding company created after an attempted acquisition of Scania by Volvo
• Marcus Wallenberg-hallen - Swedish vehicle museum, including Scania vehicles
• Scania Torped - concept car
• list of Volkswagen Group diesel engines - includes all current Scania engines

References

External links

Wikimedia Commons has media related to Scania AB.

• Official website
• Scania Group's photostream

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Coordinates: 59°10′14″N 17°38′26″E / 59.17056°N 17.64056°E / 59.17056; 17.64056