SS: What structural changes do you foresee within the industry over the coming years?

 
H-CH: I foresee further consolidation, but not to the extent we’ve seen in the past as I believe there is generally a limit as to how large any transport business can become. The larger you are, the more standardised you have to be. And the more sensitive to declines in transport volumes too. For example, if you have 100 trucks and ten percent have no work, that represents ten trucks. But for a company with 10,000 vehicles, that would mean 1,000.
While you may be able to handle ten idle trucks, managing 1,000 would be an entirely different proposition. In order to keep utilisation high, they may well find themselves forced into taking low-margin business. The danger is that the law of diminishing returns then sets in. Moreover, at the
other end of the scale, I am confident there will always be niches for flexible and ad hoc service-providers as transport buyers demand a mix between standardisation and flexibility.

SS: How do you envisage the role of Scania and its network will change over, say, the next five years?


H-CH: Our move towards becoming the sole supplier of all transport-related services will continue as we further develop our total transport solutions concept based on our dialogue with our customer base. This will drive the agenda forward. I see our network as a reflection of how our customers develop and operate. If there is a shift in transport flows and patterns, we must move too. We must also watch how the
road network develops. It’s a moving target and we have to be in the places where our customers need us.

SS: The environment is a key talking point today. What role can Scania play in helping create sustainable transport solutions?

H-CH: Scania has a long history of working to improve the environmental performance of its products and the recent introduction of our new EGR engine platform, which achieves Euro 5 without any form of aftertreatment, is the latest manifestation of the clean-burn philosophy which underpins our thinking. We also focus heavily on how our vehicles are produced and the recyclability of materials used in their manufacture. Our workshops take great care to ensure they perform highly in terms of the environment. Our policy is always to adopt the highest standards set by legislation in all countries and then supervise and regularly audit their implementation.
Alternative fuels are also at the forefront today and here Scania once again has a long history. The first ethanol-powered heavy buses – of which Scania is the only producer worldwide – are now beginning to appear in Britain’s city centres. We also now have an ethanol engine for trucks for customers in the municipal market. Scania vehicles can also be operated on other sustainable fuels, such as the EN14214-standard FAME (fatty acid methyl ester) fuels now entering the market derived from products such as oilseed rape, soya or even old cooking oil.

SS: If you could send a single message to Government to assist the industry, what would you say?

 
H-CH: The industry has to have some space in which to operate. There are so many legislative changes over so many fields which affect and add to the general burden of running a transport business that I see this as a real issue today. My view is that the Government should assist the industry more rather than just limiting it with rules. One way in which the Government could help right now would be through the introduction of greater incentives to encourage operators to equip with Euro 5 vehicles. That would certainly be a step in the right direction environmentally speaking.

SS: Finally, how do you relax on your day off?

H-CH: You know, when I was younger I was much better at relaxing. But the older you get and the more time you spend within an organisation, the more you become absorbed in your work. Eventually, I would say it even becomes part of your personality! However, I make sure I take some time out as well. Away from the office I’m a keen golfer and am very interested in music and sport. To me, getting the balance right, although quite a challenge, is naturally important – so I always try to do my very best to be a good family man.

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