Master Plan
MUNICH/BERLIN/STOCKHOLM (Own report) - The ascent of the German MAN corporation, to become the largest European truck manufacturer, is encountering resistance. The management as well as the major shareholders of the Swedish producer of Scania utility vehicles reject the offer for a takeover by the Munich corporation. MAN would like to buy Scania for approximately 9.6 billion Euros. With this takeover, MAN is aiming not only at reinforcing its European position, but also at warding off international competitors. Newcomers from India and the People's Republic of China are contesting the German corporation's current markets. MAN's European-wide concentration of truck production is in the interest of the entire German logistics branch, which is largely controlling the continental road transport. In the case of MAN's expansion, the level of industrial standardization, being already felt, will be additionally expanded - along the lines of German directives. The Federal Ministry of Transport announced the adoption, by the end of 2007, of a "master plan for freight transport and logistics" to further strengthen the German position in the transport and logistics sector.
On Monday, September 18, the Scania management, the Swedish large shareholder, Investor AB, as well as Scania's largest shareholder, the German Volkswagens AG, officially declined MAN's offer for a takeover. According to the Munich corporation, that seeks to buy the Swedish company with longstanding tradition for approximately 9.6 billion Euro, MAN does not relinquish its intentions for Scania's takeover by the end of 2006. MAN has already obtained an agreement for the acquisition of a shares package with Renault, a smaller shareholder. In case of a successful takeover, MAN would become the largest truck producer in Europe - ahead of DaimlerChrysler and Renault/Volvo - with a market share of over 25 per cent. The corporation would become the third largest truck producer on the global scale. The moment is favorable for the takeover. With the exhaust regulation, Euro 5, taking effect in October 2009, numerous truck parks in Western Europe will be forced to modernize.
To Asia
The European utility vehicle industry's further concentration in German hands, as intended by MAN, is considered urgent, also because of the booming competition in India and the People's Republic of China. Indian and Chinese truck producers are no longer serving only their home markets, but are, in the meantime, expanding to Africa, the Middle East and recently to Eastern Europe. "We must go to Asia", one can hear at MAN in response.[1] The Munich corporation has difficulties enhancing its activities in India and China, in spite of having established an assembly plant together with a partner company in India. The merger into a common alliance with Scania's largest shareholder, Volkswagen (VW), is considered an option. VW maintains a truck production plant in Brazil. Its range of products is considered "suitable for borderline states such as China or India".[2]
Secret World Champion
Against the backdrop of rising global trade flows, the German dominance in European truck production is of particular importance. After the Scania takeover, not only more than 50 per cent of the resources for the European road transport will come from Germany, two of the world's largest logistics enterprises will also have their seat in Germany: the Deutsche Post, which has almost completed its transformation into a provider of comprehensive logistics services, and the Deutsche Bahn, which presently is still busy with extensive takeovers. According to experts, Germany is the " world's secret logistics champion".[3] With its approximately 2.5 million employees, the German logistics industry has a yearly turnover of approximately 170 billion Euros. Together with mechanical engeneering, it is the third-strongest sector in Germany - after the automobile industry and the health sector.
Corporate
To further strengthen the transport and logistics industry and to make it unattainable for foreign competitors, the German Ministry of Transport is presently working on a "master plan for freight transport and logistics". The set of regulations is being elaborated in close coordination with trade associations, enterprises as well as, trade unions, and should be finished, at the latest, by the end of 2007. The cooperation of interested parties at the state, private and trade union level in the elaboration of plans, corresponds to the German traditions of corporate economic practice, with which world market shares are conquered jointly.
Comprehensive Rationalization
Without the constant expansion of the EU, private-economic expansion and state regulation of the transport sector, would be far less profitable for Berlin. Last year, specialists explained that German logistics has crucial advantages because of their central geographic situation in the eastward extended EU.[4] With the help of the German government, these advantages are being brought to bear with political means. The new "master plan" extends far beyond road transport and contains concepts for air traffic and German harbors. According to this plan, Dubai airport could replace European sites (e.g. Frankfurt/Main) as a turnstile for trade between the USA and Asia.[5] These indications explain, why German prospective customers are early bidders in the international air freight business and can take over numerous foreign airports - as recently the airport of New Delhi [6] and the Bulgarian Black Sea airports Bourgas and Varna [7]. Through simultaneously increasing the concentration of European port logistics in German hands [8], Berlin can play a vanguard role in the comprehensive rationalization of international trade.
[1], [2] Größe ist ein entscheidender Faktor; Wirtschaftswoche 18.09.2006. See also Verdaulicher Brocken
[3] Deutsche Logistikbranche boomt; Handelsblatt 27.06.2006
[4] see also Der zukünftige Transportweltmeister
[5] Tiefensee erwartet Boom bei Logistik; Frankfurter Rundschau 22.07.2006
[6] see also Auswahl
[7] see also Zuschlag
[8] see also Beispiellos
