BVG (formerly Scania-Rus)

Concern Scania is a manufacturer of heavy trucks, city and tourist buses, as well as industrial and marine engines. In addition, the company offers and sells a range of products for maintenance, as well as offers financial services.

History and Performance Indicators

2022

Revenue drop by 5 times to 15.3 billion rubles

At the end of 2022, the former Russian daughter of the Swedish truck manufacturer Scania (formerly Scania-Rus LLC), sold to a local brand dealer and renamed BVG LLC, earned 15.3 billion rubles in revenue, which is almost 5 times less than a year earlier. The company's net profit decreased by 27.1%, to 3.3 billion rubles.

According to Interfax, citing BVG's financial statements, the company's total debt by the end of 2022 was reduced by 91.7% compared to the same period in 2021 - to 513.6 million rubles. In particular, short-term liabilities fell from 6.2 billion rubles to 512.1 million rubles; long-term - from 60.8 million rubles to 1.5 million rubles.

Net profit of the former subsidiary of Scania in Russia for the year decreased by 27%

The company's turnover from the sale of trucks fell from 61.7 to 9.9 billion rubles, spare parts - from 8.5 to 4 billion rubles. Revenue from contract services - from 2.2 billion rubles to 774 million rubles. The cost of sales fell in proportion to revenue - by 81.1%, to 12.3 billion rubles.

Since the end of 2022, 100% of Scania's representative office in Russia has been owned by Alfaskan LLC, co-owned by entrepreneur Radik Garifyanov (99%) and Alfa Group JSC (1%). As the press service of the Alfa group of companies told Interfax, the deal to acquire Scania's Russian assets was approved by Traton, Scania and parent Volkswagen AG, as well as Russian regulators. The Group obtained the rights to distribute and use the Scania trademark in Russia. After the transfer of assets, the subsidiary's legal entity, remaining an independent business unit, continues to function as an independent distributor and oversee the dealer network in the country, changing its name to BVG LLC.

The first priority for us is to provide the Scania dealer network with spare parts and fulfill warranty and other obligations to customers and employees. Maintaining the level of service and technical competencies that will ensure competent support of partners in the regions remain important tasks. The resumption of the supply of equipment to the Russian market will become possible as soon as the situation allows, - said the new general director of the company Alexander Tsypin.[1]

Transfer of Russian assets to local dealer

On December 14, 2022, Scania's Russian business was transferred to the ownership of a local dealer - Alfaskan LLC, co-owned by Alfa Group JSC (99%) and entrepreneur Radik Garifyanov (1%).

According to Interfax with reference to the Alfaskan website, the company has been operating since 2007 and, being the largest regional dealer of cargo and specialized equipment Scania, has dealerships in Izhevsk, Kazan, Naberezhnye Chelny, Perm, Ufa and Cheboksary.

Scania transferred Russian assets to a local dealer

Scania, as well as another truck manufacturer MAN, are part of the Traton group of the German automaker Volkswagen. In mid-September 2022, the Traton press service announced the final departure of the Scania and MAN brands from the Russian market. Then it was noted that MAN Truck & Bus SE and Scania AB, subsidiaries of Traton SE, transfer their trading companies in the Russian Federation to local trading partners. They were not named after them.

Traton said that the transfer of the business was supposed to take place in the first quarter of 2023, after approval was received for this.

According to preliminary estimates, due to the curtailment of the Russian business, Traton will incur an additional loss of up to 550 million euros, depending on the change in the exchange rate of the Russian ruble against the euro. Due to the direct impact of the conflict in Ukraine, additional costs of €113 million have already been incurred in the first half of 2022, the group said.

Scania also said in a separate statement that as of September 1, 2022, the company's net assets related to Russia were estimated at 11 billion Swedish crowns (€1 billion). In 2021, about 6% of Scania's global sales came from Russia.

Scania and MAN trucks were produced at the plant in St. Petersburg through the parity joint venture Scania and MAN "Truck Production Rus": the equipment located there belongs to Traton. In addition, companies have their own service centers in the Russian Federation.^[2]

Suspension of business in the Russian Federation against the background of Russia's special operation in Ukraine

On February 28, 2022, information appeared that against the background of Russia's special operation in Ukraine Swedish companies Volvo, Scania and Ericsson are suspending business in Russia.

2019: Insurance payment in the amount of 9.5 million rubles

On January 30, 2019, Soglasie IC announced that it had paid 9.5 million rubles to Scania-Rus for a 2017 Scania dump truck. The insured appealed to the branch of Soglasie IC in Ufa with a statement about the damage to the dump truck as a result of an accident.

The accident occurred in the Republic of Bashkortostan - the driver drove off the road, which is why the dump truck ended up in the river. As a result of the accident, the driver died.

During the inspection of the vehicle, numerous serious damage to the car was recorded due to the exit into the ditch and flooding with water. As the examination showed, it was economically impractical to carry out restoration repairs. Soglasie IC paid the insured a full insurance amount for the constructive death of the car.

2014

Scania truck market share in Russia amounted to 29.5%

According to the results of 2014, Scania is the leader in the Russian market for new trucks with a gross weight of over 16 tons among European manufacturers. During the specified period, the company sold 5499 new trucks. Scania's market share in 2014 was 29.5%. Over the last month of 2014, 543 cars were sold, which helped reach 31% of the market share among 7 European brands of trucks during the specified period.

In the passenger transport segment, 105 Scania tourist and intercity class buses were delivered, including a bus chassis. Scania hit record levels for engine shipments and delivered 172 units last year, including marine and power-generation engines.

Thanks to the services of Scania Leasing, 1907 units of equipment were financed in 2014, which is almost 19% more than in 2013 and equivalent to 9.4 billion rubles.

The volume of the Russian truck market in 2014 decreased by 20.5%, to 88 thousand units in quantitative terms, excluding leasing transactions (according to Avtostat). Against the background of the fall in the freight transport market, Scania managed to maintain sales almost at the level of 2013. This became possible due to a well-thought-out strategy for working on the Russian market and a comprehensive offer for Scania technology and service services.

The presence of a wide range of models also had a positive impact on sales volumes. In 2014, construction equipment, mining dump trucks, utility vehicles, as well as special-purpose equipment were in great customer demand. In addition, Scania is constantly expanding service coverage in Russia, offering equipment service in more than 60 official Scania service centers today. Last year, the following were opened: BorovskTrakCenter in Borovsk (Kaluga Region), DV Scan in Yakutia, SkanKavkaz in the Republic of Adygea, TradeTrak and Service in Murmansk and St. Petersburg, Ulyanovsk-Skan in Ulyanovsk, AlfaSkan in Ufa, Spetstekhnika in Vladivostok.

More than 50 Scania dealerships and service centers operate in Russia

As of March 2014, more than 50 Scania dealerships and service centers operate in Russia.

Scania operates in about 100 countries and has more than 35 thousand employees.

The 1990th

It was not until 1990 that Scania returned to Russia again. In May 1993, the opening of the Representative Office of Scania CV AB in Russia took place in Moscow, and since 1998 Scania has been represented by the exclusive importer and distributor of Scania equipment - The company "Scania-Rus," which is a dynamically developing company and supplies to the Russian market not only high-quality equipment of the world concern Scania, but also offers an exhaustive range of services - from financing the purchase of equipment, its maintenance to the subsequent redemption of the client's cars through the purchase of new Scania equipment.

1910

The history of Scania in Russia began before the 1917 revolution. The first samples of fire fighting equipment and Scania marine engines appeared in Russia before the First World War. In 1910, Scania sold its first truck to Russia in St. Petersburg. However, the First World War, as well as the subsequent revolution, interrupted the company's activities in the Russian market for more than 70 years.

Notes