Safety and performance VBG Group

mr Anders erkén, the managing Director and Division manager of VBG Truck equipment

SAFETy AND PERFORMANCE

Traffic safety is a concept on which the Sweden-based VBG Group was founded. Today, with its global operations covering all continents, the core values remain the same, as Mr Anders Erkén, the Managing Director and Division Manager of VBG Truck Equipment, confirmed. Romana Moares reports.

VBG Group, headquartered in Vänersborg, Sweden, covers four divisions, each holding a leading position in their respective niche markets, operating worldwide under strong brands aimed at different customer segments: VBG Truck Equipment, Edscha Trailer Systems, Mobile Climate Control, and Ringfeder Power Transmission.

The group’s development is a story of continuous growth and expansion. Founded in 1951 by Herman Krefting, an active member of society and passionate about traffic-safety issues, who himself designed the drawbar coupling that VBG uses today, the international group’s identity still fully reflects the founder’s values and beliefs to contribute to a better, safer environment. “The social role is very important for us. This is also demonstrated by the three organisations that Herman Krefting established and which became the principal owners of the group, providing valuable financial support to various research projects at the University Hospital in Gothenburg,” affirms Mr Erkén.

Speaking about the group’s development in recent years, he explains that after last year’s acquisition of the Swedish company Mobile Climate Control Group Holding AB, which today accounts for about 50 per cent

of the VBG Group’s turnover, the Truck Equipment division has become the second largest member of the group, with a 30 per cent turnover share. The VBG Truck Equipment division develops and manufactures drawbar couplings and related equipment for trucks with heavy trailers, supplied to truck body builders, truck manufacturers, emergency and commercial vehicle markets, hauliers, and importers.

The division’s two brands for drawbar couplings, VBG and Ringfeder, account for more than 50 per cent of the world market. VBG is the leader in Scandinavia and the UK, while Ringfeder is strong in the rest of Europe and other markets, such as Australia. VBG Truck Equipment also holds a world-leading position in automatic tyre chains through the Onspot brand, with a market share of approximately 65 per cent and well-established sales in North America.

Record performance

In 2017, the group recorded its highest sales and earnings in its history. Total sales grew by over 10 per cent, setting a new overall profitability record. “2017 was a very successful year particularly for the Truck Equipment division,” confirms Mr Erkén. “Not only did we succeed in setting sales records in drawbar couplings and strengthening our position as systems suppliers in Central and Western Europe, we also launched a digital marketing initiative and established ourselves in China and Brazil.”

He explains that the market position in China was boosted by a distribution agreement with Hyva China Mechanics signed in 2017, while sales in Central and Western Europe increased as a result of a revised business model – by more clearly establishing itself as a systems supplier and offering certified solutions to end users and body builders, the company can take a spot higher up on the value chain and simultaneously increase its volumes.

Mr Erkén affirms that VBG Truck Equipment is not just a product supplier. Given its many years of contact with both national and international government authorities and legislators, the division has a good understanding of the policy processes driving the market, which in turn provides crucial insight into its own strategy and product development

initiatives. By working together with government authorities for a more harmonised legislation – primarily in the EU – VBG Truck Equipment has the opportunity to affect developments in traffic safety.

Shaping the market

“Generally speaking, the need for sustainability must align with the need for improved road transport capacity. Goods transportation is expected to grow by 50 per cent by 2030, with the EU commission setting the target to reduce CO2 emissions by 30 per cent. How could this equation be resolved? There are many initiatives going on but there is one segment that would bring the largest benefits but that still stands outside the decision-makers’ attention: High Capacity Transport, i.e. longer and heavier vehicles. Their deployment would not only reduce fuel consumption per tonne-kilometre but also road wear and congestion.”

Mr Erkén points out that VBG Truck Equipment is well positioned to meet the challenge and participates actively in projects that support the development towards longer and heavier vehicles. “We are a future-oriented company and generally see ourselves as contributing significantly to enhancing the sector. This is supported by continued investment not only in increased efficiency but also increased functionality. For example, by adding digital functions to coupling equipment, the driver can obtain important information while driving, which promotes increased traffic safety and reduced wear on components. Digital information also facilitates service work for workshops, and enables hauliers to become more productive.”

As part of digitalisation, VBG Truck Equipment is also involved in developing product solutions for autonomous vehicles. “The future holds many challenges but also opportunities that we plan to grasp to secure continued growth. Basically, we will continue to operate in the same way as before, on the basis of our core values, with the ultimate objective of contributing to improved road safety and ensuring a better, cleaner vehicle performance,” Anders Erkén concludes. n