Scania has announced record financial results for 2024, despite being plagued by software-related setbacks that led to delivery delays and a slower-than-expected ramp up of its BEV production.
“2024 was an exciting but sometimes frustrating year, with financial results at an all-time high but also delivery problems and challenges in our battery electric vehicles ramp-up,” explained Scania Group CEO, Christian Levin.
“We saw robust demand for our products and services throughout the year and delivered outstanding financial performance.”
Scania surpassed 100,000 truck deliveries for the first time, capturing market share in Europe and Latin America in the process, as well as celebrating 500,000 trucks produced in Brazil since kicking off there in 1957.
“I am proud that Scania delivered at record levels in 2024, despite macroeconomic and geopolitical concerns,” Mr Levin said.
“We captured market share in Europe and Latin America: a testament to the excellence of the Scania Super driveline and the successful reduction of our order book to more normal levels.”
Scania faced significant challenges across the year, despite the record result, which were the result of a software update to meet new cybersecurity legislation.
“Complexity and quality issues in the implementation of the software meant that many of our customers had to wait too long for their vehicles to be delivered,” Mr Levin said.
“Letting customers down is not acceptable, and I can assure you that everyone at Scania is doing their utmost to resolve these issues.”
Scania’s BEV production also fell short of expectations, Mr Levin explained, due partly to supply chain issues the company is working to resolve.
“Converting an entire industrial system to electrification is a major undertaking that requires new types of partnerships and taking bold decisions in often unchartered territories,” Mr Levin said.
“The transition to electric is core to Scania’s business strategy, and we are focused on establishing the resilient supply chains needed to make large-scale electrification feasible across different regions and applications.”
Mr Levin outlined that the truckmaker’s BEV delays had impacted its decarbonisation goals, and while it is on track to meet its scope 1 and 2 targets, it is unlikely to meet its scope 3 targets – which include emissions from customers’ trucks.
“Our commitment to decarbonising our business in line with science is unwavering, and we are determined to do all we can to narrow the gap as we approach our 2025 target horizon,” Mr Levin said.
“We have also introduced new targets for 2032 across all scopes to ensure our continued efforts and full focus in the years ahead.”
Scania is calling for greater collaboration across the transport industry and urgent political support as the industry aims to decarbonise.
“To accelerate the transition, we need to get the enabling conditions for sustainable transport in place – and that depends on will and ambition from leaders across the whole transport ecosystem,” Mr Levin said.
“I am deeply concerned that faltering political support for zero emissions commitments is slowing the pace of change.
“We urgently call on politicians and governments to show coordinated leadership on this issue.”
Despite the challenges faced in 2024, Mr Levin is optimistic about the future for Scania and the broader transport industry as it transitions to a cleaner future.
“I am convinced that the winners in the new ecosystem of transport and logistics will be the ones who embrace change, turn risks into green opportunities and demonstrate bold, brave and sometimes stubborn leadership,” Mr Levin said.
