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Ashok Leyland's UK arm Optare Group Limited, the wholly owned trading company of Optare plc, has appointed Enrico Vassallo as CEO of the company. The former senior representative at Iveco Irisbus, one of the leading bus company globally, is expected to play a significant role as Ashok Leyland is betting big on the UK subsidiary to expand its global bus business.
Yorkshire based Optare is one of the Britain’s leading bus makers, in which Ashok Leyland owns 75% stake.
The 45-year old Vassallo will replace P G Nilsson, who has been the Interim CEO since January 1, 2013.
Optare’s Chairman, John Fickling commented that Vassallo brings a wealth of international sales experience in the bus industry gained in several of the key markets that we are targeting as part of company's strategic aim of developing a stronger export business.
“This will significantly strengthen the leadership team at Optare by combining his considerable international automotive management and sales experience with Glenn Saint’s wide knowledge of, and high standing in, the British bus industry,” he said.
Vassallo comes to Optare with a strong record of success in vehicle manufacturing and international sales.
After his graduation at University of Genoa he joined the Iveco Group in 1996, since then he held number of senior management positions covering purchasing, manufacturing and overseas sales of commercial vehicles and components in Africa, Australasia and latterly, South America.
His involvement in the bus industry began in 2005 with his appointment as the Iveco Irisbus Sales and Marketing Director for Africa and the Middle East. Two years later he became General Manager for Irisbus Italia, where he was responsible for an operation employing 750 people designing and selling a full range of buses and coaches.
In 2011 he moved to Brazil to take up a post as President of FPT Industrial, which manufactures commercial vehicle components at two plants and has 680 employees.
On his appointment Vassallo commented that “i am looking forward to the challenge of building on the strong reputation that Optare has as an innovator in the design, development and manufacture of buses and in particular in the field of low carbon vehicles. I also see great opportunities to use my own experience to help expand Optare’s presence in overseas markets, where it is already achieving some encouraging results with support from Ashok Leyland.”
It may be noted, Optare as part of a three-year turnaround plan since 2009 and said the measures taken by the company has started giving rewards to the company. The measures include closure of its Rotherham facility, followed by relocation of Leeds factory to Sherburn in 2011 and closure of Blackburn facility in 2012. The moves resulted in the loss of 155 jobs with the number of employees falling from 531 employees in April 2012 to 376 in March 2013.
The company also brought down its loss almost 50% to £7.4 million in 15 months ended March 2013, from £13.4 million a year ago.
Turnover rose 6% to £75.9m, The group posted a pre-tax loss of £7.4m, down from £13.4m the previous year. following the restructuring.
Optare believes that the UK market will be flat in the near future, but there are growing opportunities in the Middle East, South East Asia and Africa.
The group is pitching for a number of contracts in overseas markets.
