Supplier Letter_2024-07-04

Dear supplier,

We are producing on a historically high level in our global production system. This is possible only with your strong commitment and tireless efforts in securing material availability and a production free from disturbances and disruptions.

In light of the more normalized market demand in Europe, we have decided to slightly reduce our production capacity. Decision is to adjust the basic rate of European production to meet market demand.

The impact on your parts may prove different due to natural variations, and you might therefore see higher or lower adjustments of your delivery schedules.

The adjustment of the basic rate will be stepwise from first of September and we are now conducting an analysis of how the new basic rate will be handled at each production site in the European production system.

The Latin American market situation remains strong, with no changes to plans. With our global production setup and multiple sourcing strategy you might see an increase in forecast of expected deliveries towards Latin America.

This adjusted level in our production system is reflected in the delivery schedules starting 2024-07-04.

We will closely monitor the market development, and adapt our production according to this when needed. At our side we will keep some extra capacity in production to handle any potential increase, which also needs to be considered in any decision regarding capacity adjustments at your end.

As usual, we are counting on your co-operation and expect you to contact us in real time if you see any risks in your ability to deliver as per our demands.

For operational questions and detailed plans, please turn to your regular contact person within material planning.

For other questions, please turn to responsible purchaser.

Best regards,

Scania Procurement and Logistics, 2024-07-04