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OPINION * UK - The Commoditzation of Transport and the End of Brand
London,UK -The World Trucks Blog, by Oliver Dixon -30 Aug 2008: -- One issue that applies to each OEM in equal measure is that of the diminishing value of brand within the transport sector. This is a philosophical as opposed to a quantitative discussion, and one that does not lend itself to ready measurement, but we make no apologies for posting it here, as it is one of the key developments that we see likely as the Commercial Vehicle industry moves forwards... The consolidation of OEMs, which have, over the past three decades, morphed from small, nationally-focussed assembly operations into regional and, increasingly, global full-line manufacturing businesses has been one of the key trends observed within the Commercial Vehicle industry over the past thirty years... But such consolidation has not just been witnessed on the supply side of the industry. Increasingly, the profile of the end user is changing... Many vehicles are already sold on the basis of guaranteed uptime. Should an OEM enter the market with some means of underwriting cost, it would get a hearing. There seems to be no reason why this OEM should be one with its roots away from the Triad -Europe, North America and Japan -... We make this argument for the simple reason that manufacturing location is no longer an issue in most procurement decisions... A Chinese or an Indian-sourced truck with a guaranteed cost ceiling would be an eminently palatable proposition for any logistics operation... This is a view of a future, and one that may be some way away. However, we see the European truck market - and, by extension - the entire Triad market - as being receptive to one more cohort shift. Today's global logistics industry is populated one the demand side by global companies providing a commodity product. That the supply side should follow suit would seem to be an inescapable conclusion...
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