What started as a promising year turned out to be "extremely difficult" for Mexico’s Consorcio G. Grupo Dina.

The company recently released year-end financial results showing a net loss of 296 million pesos ($30.6 million) in fourth quarter 2000 and a net loss of 980 million pesos ($101.3 million) for the year. Cancellation of its contract to build trucks for Western Star got much of the blame.
The company said its 1999 contract to supply medium duty trucks for the U.S., Canada and Australia was especially important because Din'’s inability to provide lease financing for its customers had hampered its sales in domestic markets.
"Since the 1994 economic, crisis the Mexican financial system had been inhospitable and unreceptive in providing loan facilities for its clients," the company said.
But after Freightliner LLC bought Western Star it cancelled the Dina contract. Dina has filed a lawsuit with the International Arbitrage Court of the International Chamber of Commerce, charging breach of contract and asking $110 million in damages.
Market conditions also hurt Dina. The company said the Mexican market for commercial vehicles for both domestic and export customers declined by about 15 percent last year, to 49,747 units. Dina Camiones’ volume dropped 6.6 percent, to 2,135 units. Sales to the domestic market were down 17 percent. While its exports rose 34 percent, at 602 units, they were "substantially below" earlier projections.
A bit of good news came from Dina’s Plasticos Automotrices de Sahagun (PASA) unit, which supplies parts for Chrysler de Mexico as well as its own operations. Sales in 2000 were up 10.8 percent from 1999. A portion of the Chrysler contract expired mid year, but PASA has a new deal to supply components for General Motors de Mexico.
Dina’s total sales for fourth quarter were 206 million pesos, a 56.5 precent decrease from fourth quarter 1999. Full year 2000 sales were 1.33 billion pesos, down 78.7% from 1999.