Scania Returns to Taiwan Truck Market by Acquiring Griffin Automotive From Forefront

Taipei, Jan. 3, 2006 (CENS)--Swedish truck and bus maker Scania AB recently acquired Griffin Automotive Ltd., a Taiwanese subsidiary of Hong Kong-based Forefront International Holdings that locally assembles Scania trucks in Taiwan, for about US$1 million and plans to return soon to the local truck and bus market.

Griffin Automotive will be a wholly owned Scania unit, the Sweden-based truck maker said, to take charge of Scania's vehicle sales and service in Taiwan. Griffin plans to contract a former assembler of Daewoo trucks in Taiwan to build Scania trucks from imported semi-knocked-down (SKD) parts.

Griffin Automotive is a 100%-owned subsidiary set up in May 2005 by Forefront International, in which Scania holds a 23% stake.

Griffin Automotive has started to take over Forefront's original truck sales and maintenance networks throughout the island, and is actively evaluating possible partners to locally assemble Scania trucks.

Griffin Automotive CEO Liu Wei-chen said that his company does not rule out the possibility of importing complete trucks and buses for local sale.

Scania was the first European truck brand to locally assemble products in Taiwan in order to obtain higher cost competitiveness. In the first 11 months of 2005, a total of 577 Scania trucks were sold in Taiwan, making it the No.3 truck brand on the island trailing Fuso and Hino of Japan.

Scania's sales in Taiwan have been stuck since mid-2005 due to an operating-rights dispute inside Forefront, with the Swedish truck brand's former local market share divided by other companies. This situation in turn led to Scania securing its local sales by running its own subsidiary on the island.