'98 Year in Review: Europe

The DaimlerChrysler merger created the first global manufacturer of a full range of passenger and commercial vehicles, and shook the automotive industry, which had resisted consolidation (5-11, p. 6).

Although seen primarily as a car deal, the merger gave added financial, managerial and engineering muscle to the world’s largest truck builder: the $25.5 billion Daimler-Benz commercial vehicle division, which was absorbed into the new company. The truck division, which includes the Mercedes Benz, Freightliner and Sterling truck brands, sold more than 480,000 vehicles weighing 3.5 tons or greater, including more than 135,000 Class 8 models.

“There is a consolidation going on in the automotive industry, there is no doubt about that, and we plan to take part in that structural change,” Volvo Truck Corp. spokesman Stefan Lorentzson said.

A week after the merger announcement, Daimler-Benz said it was talking with Nissan Motor to buy its stake in Nissan Diesel, the fourth largest truck manufacturer in Japan (5-18, p. 1). Those negotiations were continuing, said Eckhardt Zanger of DaimlerChrysler.

Throughout the year there were rumors of similar talks under way between several automotive manufacturers. Many of the rumors involved Germany’s Volkswagen AG, which has publicly vowed it will enter the heavy-truck market either through an acquisition or on its own.

In July, Volkswagen was said to be in talks with Volvo (7-6, p. 49). The German automaker was later rumored to be talking with Sweden’s Class 8 specialist, Scania, and Germany’s MAN. At the very end of the year, Ford Motor Co. was said to be talking with Volvo, a rumor denied by both companies.

Paccar announced intentions to expand its U.S. truck range by importing a medium-duty distribution truck being jointly developed by its European subsidiary, DAF Trucks, and Renault Vehicules Industriels of France (3-9, p. 37).

In Europe’s logistics industry, the year was marked by several major acquisitions and strategic alliances.

The most active player was the German post office, Deutsche Post, which is slated for privatization next year (12-21, p. 3). In early December, the post office launched a $1.1 billion bid for Danzas. It was the biggest in a string of equity investment during the year, which include a 25% stake in DHL, a 50% stake in British express company Securicor Omega Distribution (11-16, p. 14) and the acquisition of the French express distribution company Dubois.

For the full story, see the Jan. 11 print edition of Transport Topics. Subscribe today.