neversweat1:
American Midliners - I presume these were set in CKD form Was there any local content into them Mr Saviem
1
0
Steve
Evening all, steve, to our European eyes those Midliners do look odd, yet in the States operators raved about them, the economy, the comfort, (drive a GMC petrol engined conventional 6tonner to understand poor ride and handling)!But the RVI/Mack saga is both convoluted, and frought with lost opportunities!
When Zanotti first looked at external growth, the US was a prime candidate. It possessed potential enormous volumes, (the developed worlds largest truck market by far), coupled with an educated, skilled workforce, where labour costs were more reasonable than in Europe, and the workforce spoke a single language. Odd paramaters to our eyes in 2013, but in 1978 significant to warrant a strong exploration! The decision was made, RVI must be represented in the US truck market. But how, the obvious route was via an existing manufacturer, (Renault cars had already signed a co-operation with AMC, which due to AMCs association with Israel, created the circumstance to put all truck products on the Arab boycott black list in 1981, costing about 2000 truck sales)!!
So which manufacturer would be suitable to form a co-operation?And the candidate was Mack, owned by Signal Industries, who in a lethargic truck market wished to redeploy their funds.(Much as Michelin-Citroen had wished to do with Berliet back in 1975). Initially a 10% holding was secured, 1981 saw that increased to 20% The US truck market, in volume terms had collapsed, and Signal, now seeking to merge with Wheelabrator - Frye, were prepared to exit Mack, (for a very reasonable sum), but the French Government would not release funds for a total acquisition, despite both Mack, and RVI senior people seeing the viability of such a move
Why, (and forgive me for quoting seemingly boring data, but this is the vital and true background that created the model types, and actual vehicles on the ground that we talk about)! By 1978, three years into the merger of Saviem and Berliet, RVI employed over 33000 people, by 1981 only 28200 were employed, in ten factories, (Rhone-Alpes, Central, and Normandy). Yet RVI was the third largest truck and bus producer in Europe, behind Daimler Benz, and M Agnelli`s Fiat. (Newly created as Iveco). In 1981 RVI produced about 47000 vehicles, and had sales of (circ), £1.1billion. 47% of production went for export. From 76, to 81, the Regie Renaut provided only £109million of extra capital, so the Group was being run on a very tight fiscal ■■■■■, oh, and as I have said previously, 4.5% of turnover was being spent on R&D. A very large research budget indeed.
So back to Mack. Primarily a vertically integrated manufacturer, utilising its own engines, gearboxes, and axles, (although in 1980, 40% of its class 7&8 tractors were component builds, or Glider kits, (eg, ■■■■■■■■ CAT, Fuller, Rockwell). But the big US volumes were in the class 6&7 markets. And RVI had the basic product in the Saviem J , (and later S), ranges. They just needed to be re-engineered for the US customer!
Venisseux/Saint Priest concentrated on the “heavies” for Europe, and the rest of the World, and the test, and R%D facilities at Villiers Saint Frederic, (around 30 odd kms from Paris), working closely with the production site at Blainville were tasked with creating the “French Mack”!!
Villiers Saint Frederic was a site of around 15hectares, having a staff of around 360, made up of 125 production technicians,200 specialists, and 38 Senior engineers, working in a modern facility of about 1600sq metres. That they created a tremendous product could not be denied, the original 797, and 798turbo engined J series were strong products, but refined to suit US requirements, and developed with the help of Mack personnel they were potential winners…then the US market collapsed in 79!!! But by 81, “we” had 6% of the total market, and were a major player in the US. Quite some feat, as Mack were a "heavy end " company, and all the volume was conquest business.
The Midliners were a total French product, built at Blainville, shipped by CAT, a Regie subsidiary, and sold by the Mack Network. The tribulations of trying to get some of the Mack Dealers into lighter markets would perhaps form an interesting subject for a future post, believe me, it was not easy, even when you showed them the potential profit! (Peterbilt staff had the same problem when they marketed their VW cabbed attempt at Class 6)!
The collaboration, was about much more than Class 6&7. Mack engine design was close to that of Berliet/RVI, and French and US engineers worked in close collaboration on many aspects of engineering design. And if one adds together the potential of the “joint” company, in 1981 the realisable potential volumes were in excess of Daimler Benz at 60000 plus units. Certainly scope for economy of scale, let alone the realisable scale of operation in South Central America, a prime RVI objective.
The merger/takeover was the idea of Zanotti, he saw the potential scale savings, and sales volumes. His political masters did not, a familiar story, but it gave me some interesting years work, and those Mack people were so positive, and real “goers”, a blooming good outfit!
Cheerio for now.