Stuck in traffic

26 Jul 2004 By Marianne Brun-Rovet

Although there are too many competitors fighting for a atill small market, no one will take the first step. MAN’s refusal to divest its trucks unit is just the latest example.

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Germany's MAN can go it alone in commercial vehicles and should resist attempts to spin off the division or break it up, Rudolf Rupprecht, its chief executive, told the Financial Times over the weekend.

The engineering conglomerate has resisted attempts by Heinrich Weiss, head of SMS engineering group, to buy its trucks division and sell it to Volkswagen. But Mr Rupprecht did not rule out a deal with another commercial vehicle manufacturer. A linkup between MAN and Scania, in which VW has a 19 per cent stake, has been suggested.

Other attempts to consolidate the European trucks industry have failed in recent years. European regulators blocked Volvo's attempts to merge with Scania, Sweden's other international truck maker. Volvo has since failed to sell its remaining stake in Scania.

Meanwhile, Volvo and Scania have reported improved secondquarter results this month, benefiting from a strong upturn in the global economy and rising sales in Europe.

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