[binaiks]

Originally Posted by treadmark

Nope, that's not the reason from what I know.
EVACAY Scania's were all leased from Chirag Travels like few other (Parveen. Hebron...). Now Chirag had got all their buses back and they themselves are venturing into new routes. Don't know the reason for this move though.

The buses were actually repossesed by the financiers, not "taken back" by Chirag. Yes, Evacay is coming back with new Mercedes Benz SHD 2441 coach.

[swamaz]

As per the latest news, Volkswagen Group is going to integrate MAN Trucks India and Scania India Commercial Vehicles. They are coming up with new brand TRATON to challenge rivals Daimler and Volvo.

The sale of Scania Premium buses were 181 nos. in CY 2015, 231 nos. in CY 2016 and 187 nos. in CY 17.

As per the informal chit-chat with Scania former employee, the issues began due to numerous under table payments made to secure State Transport orders. These unaccountable payments resulted into questioning from Head Quarters and proceeded by Audits. Many of Sales employees who were under scrutiny left their jobs voluntarily. This unprecedented move has left Scania no choice revamping the operations.


Source: https://auto.economictimes.indiatime...raton/64675668

[pedrolourenco]

Originally Posted by GTO

Is it Volvo's first-mover advantage?

Or that Volvo has become the default choice that bus customers ask for (like taxi customers ask for 'Innova')?

Both actually. Volvo is benefiting from the "Thanda Matlab Coca-Cola Funda". For most people Luxury Bus = Volvo. There was a story (not sure if it's true though) that when Mercedes Benz launched their Bus some drivers were heard saying "Mercedes ne bhi ek Volvo launch kiya hai".

[binaiks]

Originally Posted by pedrolourenco

Both actually. Volvo is benefiting from the "Thanda Matlab Coca-Cola Funda". For most people Luxury Bus = Volvo. There was a story (not sure if it's true though) that when Mercedes Benz launched their Bus some drivers were heard saying "Mercedes ne bhi ek Volvo launch kiya hai".

Volvo deserved that. They had to work hard to break into a market that bought buses for one third the price of a Volvo. It was not easy to convince pax either to pay more for what looked like a normal bus to them.

Scania did come in with a bang - they capitalised on the safety issues that plagued Volvo at that time (remember the two fire incidents). But they lost steam soon after - poor after sales support, slow response to issues were among some issues they had. The usual VAG group attitude of sell it forget it too played a role here.

But then, Scania realised, albeit late, that India is not a small market to ignore. They are pulling up their socks and getting their pieces together. There is a strong industry rumour that Scania and MAN would merge in India, and sell under a common banner soon.

[moralfibre]

Originally Posted by swamaz

As per the informal chit-chat with Scania former employee, the issues began due to numerous under table payments made to secure State Transport orders. These unaccountable payments resulted into questioning from Head Quarters and proceeded by Audits. Many of Sales employees who were under scrutiny left their jobs voluntarily. This unprecedented move has left Scania no choice revamping the operations.

This I completely agree with. Everyone knows how difficult it is to acquire a government contract. On a route that was completely dominated by Volvo's B9R (9400) and B11R (Shivneri), Scanias were rapidly making inroads and slowly wiping out Volvo's domination.

One could clearly see something fishy because even Mercedes wasn't able to displace Volvo in this field.

[silversteed]

Originally Posted by binaiks

...There is a strong industry rumour that Scania and MAN would merge in India, and sell under a common banner soon.

It's no longer a rumour:

https://www.reuters.com/article/us-v...-idUSKBN1JG1E9

The VW Truck & Bus division could also get converted to a stock corporation next year, to raise capital. The rechristening to TRATON would happen in the third quarter of 2018 itself.

Perhaps VAG is following Volvo's and Daimler's footsteps - offer premium products under one brand and mass market products under a different brand. Volvo's case is slightly different but similar strategy.

[Motard_Blr]

Scania seems to have made the same mistakes as many other MNCs. They underestimate the investment and commitment required to set up a business in India. Ford, GM, Peugeot, Nissan (to some extent) Mitsubishi have all done it. The lesson to be learnt is that in India, go big or go home! Hyundai has proven it, so has Tata now with several new models.

They have also turned a blind eye to unscrupulous activity from sales staff and are now paying for it. While the repercussions from this might be small in India, they will certainly be big at the scania head office.

It's funny how the Scania story has many parallels with the GM story - fraud, bribery, stopping production, worker layoff, etc.

[binaiks]

Originally Posted by Motard_Blr

They have also turned a blind eye to unscrupulous activity from sales staff and are now paying for it. While the repercussions from this might be small in India, they will certainly be big at the scania head office.

It's funny how the Scania story has many parallels with the GM story - fraud, bribery, stopping production, worker layoff, etc.

True that. And the mess they cause is too big to be brushed under the carpet, as well. The new Sales/Service heads are on the road daily, meeting each of their old customers, renewing the relation and offering a lot of service support now.

[arvindmanju]

Malpractice is been reported during Scania operation in India.

Sweden's Scania admits 'misconduct' in India after contract-for-bribes report
Source Reuters

Scania paid bribes to win bus contracts in India in seven different states between 2013 and 2016, according to an investigation by three media outlets, including Swedish news channel SVT

An investigation started by Scania in 2017 showed serious shortcomings by employees including senior management, a Scania spokesman told Reuters when contacted for comment on the report.

“This misconduct included alleged bribery, bribery through business partners and misrepresentation,”

Scania had also falsified truck models by replacing chassis numbers and license plates on trucks in order to sell them to an Indian mining company in a deal worth close to 100 million Swedish crowns ($11.8 million), according to the report.

[hserus]

Additionally senior Scania India executives (both Indian and Swedish) seem to have bypassed all internal controls and delivered a Metrolink HD bus with a custom paint job and red leather seats as a gift for Nitin Gadkari’s daughter’s wedding.

That is a 80 lakh to 1.5 crore ex showroom vehicle depending on the model.

The bus was transferred through a dealer using a roundabout method with involvement from Scania and VW management in India.

This was disclosed by Scania HQ after an internal audit.

Article in Swedish - please use google translate

https://www.svt.se/nyheter/gransknin...otters-brollop

[VKumar]

Now I understand why they wrapped up so quickly, even after their buses came on the road too quickly for a new company. They just went too fast and far I believe.

I was casually going through the news, came across this Scania India bribery issue, came to TBHP to find the Scania thread, and the issue is already under the discussion. Long live TBHP, it has grown from a forum to an ocean of knowledge now.

Originally Posted by arvindmanju

Malpractice is been reported during Scania operation in India.

Looks like they went too far in the game. In fact, it looks like the management at VW was a bit too desperate for ruling every segment those days, dieselgate happened then only, this one is now uncovered, and probably a few more at other places.

The statement from CEO clearly proves that they did it for gaining a market share quickly:

“We may have been a bit naive, but we really went for it... we really wanted to make it in India but underestimated the risks,” CEO Henrik Henriksson told SVT.

Originally Posted by hserus

Article in Swedish - please use google translate

Man! You've dug out a gem, but this one has got me shocked

A centrally located person tells SVT that Minister of Transport Nitin Gadkari was very involved in the bus deal. But because it was sensitive to make a deal directly with the minister, the bus was sold via Scania's dealers who in turn sold or leased the bus to a company with connections to Gadkari's sons.

At the end of 2017, Scania's auditors received tips that Scania had provided India's Minister of Transport with a specially designed “luxury bus” as a gift. According to the report, sources also provided information to the German vehicle manufacturer Volkswagen, which owns Scania, that the bus was a gift to an Indian minister with the aim of getting an assignment in India.

The internal investigation shows that there is support for the accusations that Scania provided the Minister of Transport's family with a bus that at that time had not been fully paid for. And that the deal brought a financial benefit for a "senior public official".

The affair around the bus, which in Scania mail is called "the minister bus" and "Bus given to a very big man", was sensitive.

Request to mods: As a token of appreciation to Scania and our people related to this case, a 'suitable' thread title is requested.

[tj123]

Originally Posted by hserus

This was disclosed by Scania HQ after an internal audit.

Article in Swedish - please use google translate

https://www.svt.se/nyheter/gransknin...otters-brollop

Wow, I hope this will become a big news in Indian media or may be it will be swept under the carpet

[JithinR]

Originally Posted by tj123

Wow, I hope this will become a big news in Indian media or may be it will be swept under the carpet

It doesn't augur well for us as a country that we seem to be heading for monopolies in our industry. It would benefited the end consumer immensely if there were two international companies competing with their best products rather than just the one.

[hserus]

Originally Posted by VKumar

Man! You've dug out a gem, but this one has got me shocked

https://www.moneycontrol.com/news/in...i-6631071.html

I’m amused .. the relevant section of the report talks about how VW / Scania booked the cost of that gifted bus and Gadkari’s statement is

"The media reports that the bus was financed by a Volkswagen finance company, but Scania stepped in to pay for the part that the above-mentioned company did not, that itself contradicts that the bus was a gift to Shri Gadkari," read the clarification.

[VKumar]

Originally Posted by tj123

it will be swept under the carpet

You have already answered it. This is too small for the media houses to even look at. I mean, 1 bus, only 1 bus! You think even our aam-junta will approve such a small gift. IMO, this raises serious questions on the competence of the gift receiver himself. That's too small a gift for offering the ocean!

Originally Posted by JithinR

if there were two international companies competing with their best products rather than just the one.

Don't we already have Volvo and Mercedes Benz?

Originally Posted by hserus

I’m amused .. the relevant section of the report talks about how VW / Scania booked the cost of that gifted bus and Gadkari’s statement is

I am not very good at reading and understanding such statements like the one quoted by you. If possible, can you please elaborate a bit, connect the dots and explain it slightly?

OT: This discussion has a decent possibility of crossing the borders of forum rules. Let's keep it inside the borderline. Additionally, the new law, which says "Intermediary needs to self regulate", covers us too, and that's when we realize, we are already the best self-regulated set of people on a forum in the country.