Truck&Fleet ME May 2017

VEHICLES/ TECH / TranSporTaTIon/LogISTICS

O4O/MAY 2O17

MIDDLE EAST

PU BLI CATI O N LI CENSED BY D U BAI PRO D U CTI O N CIT Y

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contents

contents cover storY

12 / renAult reAdY for fight

Renault Trucks says it wants fighters as it renews its assault on the Middle East market

also this issue … netWorK & lAunches

06 / huge Merc KsA order

06

10

Al Khaldi Transport beats Saudi slump and orders 500-plus trucks. Plus the K Xtrem and new 3008 oeM insight

18 / the cost of copies Daimler discusses its battle against the counterfeit trade in the region report

20 / the hYpe trAin

22

34

T&FME looks at the progress of Hyperloop One ahead of its testing in the UAE oeM & distributor

22 / poWer pArtnership Iveco and FAMCO talk exclusively to T&FME on why they’re happy to play the long game in Egypt intervieW

28 / A true pioneer FMS Tech’s Bassam Alkassar explains how he is bringing the personal touch to telematics tech MArKet dAtA

20

34 / the neW norMAl Ian Batey examines the auto-trade in the GCC and why now could be the time to buy WorKshop

38 / not An Afterthought Automechanika Dubai previewed, plus tyre safety with SRME and budget insight from WABCO

42 MAY 2017 TRUCK&FLEET ME 01

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A TESTING TIME FOR OEMS AND DEALERS Hopefully your company is ready to make the most of what is turning out to be a torrid time for some manufacturers and dealers. While a lot of truck sales are done to order, fleet cars are shipped in on a conveyor belt. Ian Batey of Autodata provides us with a fascinating insight into how ill-prepared many vehicle sellers are – if we are experiencing what he describes as a long-term market correction. Sales may be down by over 50% compared to two years ago and yet cars are still being sent into the market in the hope that it will pick up again during the second half of the year. Batey thinks that any distributor – and by extension their OEM of choice – that is doing that is going to be disappointed cum the beginning of 2018, even with an expected push on the back of the introduction of VAT. Read on to understand why and how fleet buyers could make the most of it.

Changes between OEMs and their dealers can have a profound effect on the fleet sector and even the viability of an individual company through residual value. Time and time again, we have looked at the relationship of dealers and OEMs but in this issue we get some fascinating insights into how it works. The fleet industry can be distilled to the partnerships that link the chain from a job site or fleet office right back to the factory floors of the manufacturers. This month, we look at examples of how manufacturers are altering their approach to market and how they not only get product but services through the dealer to their customers.

For instance, I was in Egypt to hear how Iveco, which is traditionally strong in the market, is using its new partner FAMCO to go back to customers. I was also in Morocco to find out how Renault Trucks, on the back of its finest range in years, is re-thinking its own and its dealers approach to fleet owners.

This is an industry that only works with everyone pulling together. With commercial vehicle and fleet sales down across the board, now is the time for fleet owners to turn to their dealers and ensure they are not only getting the best deal, but the best help too. I’m sure that they’ll be willing to help.hey need to.

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ETERNAL HyPERLOOP OPTIMISM

CONSTRUCTION

Abu Dhabi: Aldar awards $136m Mayan contract

CONSTRUCTION

Nakheel awards contract for $1.7bn Deira Mall

In pictures: Big Project ME Contractors’ Cup – awards

Clearly lots of hype around Hyperloop One (Hyperloop One ‘well-positioned’ to deliver first working system”, March 10) Let’s remember that this startup has already has raised $160 million from leading U.S. venture capital investors.

The City of Los Angeles is host to 4 Hyperloop startups, which all still require significant additional investments.

I’m an eternal optimist!

‘EuroSven’, online comment

CONSTRUCTION

Qatar ‘cuts 2022 FIFA World Cup budget by 50%’ EMISSION OMISSION

CONSTRUCTION

Firefighters tackle blaze at Dubai construction site

FEATURES

Project profile: The Sustainable City, Dubai 04 TRUCK&FLEET ME MAY 2017

Video: 100 years of Caterpillar history – in colour

Interesting article (Thermo King launches zeroemission refrigeration unit , April 12). However this unit is ultimately still powered by a diesel engine (the van’s engine in this case) so is it really zero-emission? Where does the vehicle battery’s electricity originate from?

One could think that the batteries will be charged at night, but the vehicle’s batteries can’t hold enough energy for a day’s worth of refrigeration.

‘Etienne’, online comment

NETWORK

HUGE KSA MERC ORDER / TRL TO ADVISE RTA ON SMART TRANSPORT / IVECO REWARDED FOR NG DEVELOPMENT / RENAULT-NISSAN LCV PACT / SMARTER FLEET OPS EVENT REPORT

network

Al-Khaldi Transport makes huge Merc truck order KSA VEHICLE DEAL Dammam-based Al-Khaldi Transport recently concluded a deal with Daimler Commercial Vehicles MENA and authorised distributor Juffali Industrial Products Company (JIPCO), for 539 units of the full range of Mercedes-Benz medium- and heavyduty truck models.

According to a statement

by Daimler, the models

include the Accelo and Atego, the Actros 4×2 tractor-heads equipped with Mercedes PowerShift automated transmission, the Actros 6×4 and 6×6 tractorheads, and the Actros 6×4 and all-wheel drive chassis.

All trucks ordered by Al-Khaldi come with tailormade after-sales packages, including driver training, technical training and 24/7 roadside assistance,

Daimler said. The trucks will be delivered by JIPCO in the second and third quarters of this year.

“The latest major order of 539 Mercedes-Benz trucks by our standing customer Al-Khaldi Transport further proves that we (are succeeding) in our ambition,” said Stefan Buchner, head of MercedesBenz Trucks. “This fleet deal is also the result of our

new Regional Centre MENA in Dubai, which makes us even more effective – not only in sales, but also in customer services.”

Sheikh Hamoud AlKhaldi, chairman of AlKhaldi, added: “We have decided to further expand our truck fleet and, with this latest order, we will increase our total fleet of Mercedes-Benz Trucks to more than 1,000 units.”

ACCORDING TO DOMINIqUE BONTE AT ABI RESEARCH, 68% OF IOT TECHNOLOGY REVENUES WILL COME FROM APPLICATIONS, ANALYTICS AND SECURITY BY 2021

06 TRUCK&FLEET ME MAY 2017

NETWORK

rtA And trL ink r&d deAL SMART TRANSPORTATION

Dubai’s Roads and Transport Authority (RTA) has signed an MoU signing with the UK’s Transport Research Laboratory (TRL) which will see the two organisation partner on a series of initiatives and research develop the RTA’s smart transportation drive.

Nasser Hamad BuSehab, CEO of RTA’s Strategy and Corporate Governance Sector signed the MoU for RTA, while signed for TRL Rob Wallis, CEO of Transport Research Laboratory, in the presence of directors, managers and staffs from the two sides.

“We, at RTA, always attach a great attention to R&D, as these two elements move forward our efforts towards more innovative approach in uplifting our work performance, which would in turn lead to the upswing of our services provided to the public, especially the public transport users,” said BuSehab.

“Partnering with reputed organisations such as TRL would be an added value to RTA’s change drive that is taking the Authority to new horizons of excellence and innovation in a way that they become a daily culture all over RTA,” he added.

“RTA would carry on its pursuit of harnessing the latest in technology, research and development, excellence, sustainability and innovation. This is our methodology to be always on the climax of our performance to assist make the UAE, in general and Dubai in particular, the best place to live in the world thanks to the wise leadership of our government and the relentless perseverance and tireless efforts of our work team,” continued BuShehab.

“We are very proud to sign this MoU with the RTA, which demonstrates our continued support for enhancing Dubai’s transport systems.

TRL will work in partnership to enable access to expert advice and assistance covering research and innovation across its various projects and initiatives – helping them to generate innovative and creative ideas that will result in new products, services and improvements in their operations,” said Rob Wallis, CEO of TRL.

IVECO’S GAS WORK WINS GLOBAL INDUSTRY CHAMPION AWARD GLOBAL AWARD Iveco has won the “NGV Global Industry Champion” Award 2017 in recognition of its commitment to the natural gas sector and for its efforts in developing the compressed natural gas (CNG) and liquefied natural gas (LNG) markets.

The award is sponsored by NGV Global, the International Association for Natural Gas Vehicles, which represents the natural gas vehicle

industry worldwide and is dedicated to promoting the use of natural gas and biomethane for transport, with a view to increasing vehicle efficiency and safety in all areas.

“Iveco’s focus on natural gas propulsion, offering methane-powered alternatives on its entire commercial vehicle product range, significantly contributes to the reduction of transport-related emissions” said Diego Goldin, ED, NGV Global.

RENAULT AND NISSAN COMBINE LIGHT COMMERCIAL VEHICLE EFFORTS OEM STRATEGY The Renault-Nissan Alliance is creating a light commercial vehicle (LCV) business unit to expand its global presence in this growing segment.

Both partners will leverage complementary markets and products while maintaining their own brand identity, sales and revenue.

“The combination of Renault, Nissan and the early collaboration with Mitsubishi Motors in a single Alliance

LCV Business Unit will boost sales and deliver greater synergies,” said Alliance CEO Carlos Ghosn. “With this move, we plan to expand our market leadership by accelerating our performance in current and new, high-growth markets.”

Previous joint efforts include the Nissan NV300 van which is built on the Renault Trafic platform. The LCV unit will also handle Nissan’s body-on-frame SUVs, including the Nissan Armada and Nissan Patrol.

MAY 2017 TRUCK&FLEET ME 07

NETWORK

DUTCH FIRM WINS DUBAI AUTOMATED BUS VEHICLE SYSTEM CONTRACT

HOT NEW FRIDGE UNIT FROM THERMO KING REFRIGERATION

Mobile temperature control solutions provider Thermo King has launched a new refrigeration unit for small trucks and vans that runs fully on electricity and has zero emissions. The Ingersoll Rand Group company said the new B-100 30 non-diesel, vehiclepowered refrigeration unit also has an electric heating option within the same compact dimensions as others in its B-series refrigeration systems.

“The B-100 30 and the entire B-Series units are for customers looking for high performance refrigeration units for their ‘last mile’ applications, such as home deliveries or the transport of pharmaceutical products,” said Eneko Fernandez, product management leader.

“Having no diesel engine, the units give transporters the flexibility of inner-city, low-emission zones operations and contributes to the low total cost of ownership.”

A Dutch technology company says it has won a contract to deliver an automated vehicle system that will connect Dubai’s Bluewaters island to the city’s metro network.

2getthere said the system will feature 25 driverless Group Rapid Transit (GRT) vehicles capable of carrying 24 passengers each, connecting stations on the island with the Nakheel Harbour & Tower metro station, with the route spanning about 2.5 km. The capacity will initially be 3,350 people per hour per direction, with the possibility to increase to 5,000 people per hour per direction. The trip time will be approximately 4.5 minutes.

GOLDHOFER DEBUTS 52T TRAILER SEMITRAILER LAUNCH German heavy moving specialist Goldhofer has introduced the STZ-VP (285), the latest addition to its STZ-VP family of semitrailers. The new model owes its name to the new 285mm tyres and has the highest carrying capacity of company’s range of lowloader semitrailers er.

Announcing the new product, a statement

from Goldhofer said the model uses its pendular axle technology and is available in configurations with between three and 10 axles, and a choice of decks – vessel bridge, crawler deck and flatbed. The axle load is a technically permissible 16t and a deck profile of just 200mm for the flatbed is claimed to be the slimmest on the

market. Manoeuvrability is aided with a steering angle of up to 65O. In order to keep maintenance costs to a minimum, axle suspension is available with a choice of tapered roller or compact bearings, to meet customers’ individual requirements in terms of mileage and maintenance intervals, the statement added.

USe SMArt tech to iMprove fLeet opS A SMART CONFERENCE

Marcus Evans presented its Smarter Fleet Operations conference recently at the Le Meridien Dubai Hotel and Conference. The overall theme of the event surrounded on achieving overall excellence and driving cost reduction by enhancing operational efficiency, implementing an effective driver behaviour programme, optimising maintenance strategies and leveraging on smart technologies.

The event was chaired by Mansour Al- Walah who is the SVP of Operations and Transportation of GASCO, KSA as well as Shankar Subramoniam who is the Executive Director of the National Association of Freight and Logistics, UAE. With technology advance innovating rapidly, it offers meaningful and measurable insights to organisations to know exactly how to make their fleet operation efficiency to the most optimum level. In addition, the push from the government for the industry players to innovate, those who do not keep up are worried that they might not meet their deliverables and client’s expectation effectively, and potentially not be able to compete in the industry.

Delegates explored how to drive operational efficiency, optimise driver behaviour management, and carry out preventive maintenance, ultimately bring cost down. They also looked into the impact of future technologies of smart vehicles on the fleet industry and how you can better prepare for it.

SCANIA HAS REVEALED THAT IT HAS DEVELOPED THE WORLD’S FIRST EURO 6 DOUBLE-DECKER GAS-POWERED BUS, AND IT IS READY FOR FINAL TESTING

08 TRUCK&FLEET ME MAY 2017

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LAUNCHES

RENAULT UNVEILS NEW HEAVY-WEIGHT TRUCK, THE K XTREM, IN MARRAKECH / PSA GROUP READIES LAUNCH OF PEUGEOT 3008 SUV AS IT CHANGES TACK IN REGION

launches K RANGE HEAVY Max wEighT oF 36T

In the Xtrem

RENAULT’S K XTREME jUGGERNAUT IS READY TO ROLL IN THE MIDDLE EAST Renault used its Xtrem Days event held in Marrakech last month to formally launch the K Xtrem truck in the Middle East as well as demonstrate its latest C and K ranges.

Trucks in the C and K ranges are reliable, rugged, and always up to the job, no matter what the conditions.

They have undergone extremely rigorous quality control testing: test track trials, test benches, fording tests to check parts’ water resistance and splashing with saline mud to check corrosion resistance.

However, similar to the

10 TRUCK&FLEET ME MAY 2017

Mercedes-Benz’ Zetros that was debuted at last year’s Adipec, this is a muscular vehicle intended to demonstrate the truckmaker’s ability to meet the most, well, extreme, applications and roles.

In other words, The K Xtreme is the runaway sibling that has returned after two months of running up mountains and chopping trees while eating nothing but iron girders to be a much beefier member of the family.

Designed for the most heavy-duty uses on the most extreme terrains, this vehicle

comes with a reinforced chassis and an automated, reinforced Optidriver Xtrem gearbox that can handle even the toughest situations.

The new model offers a total capacity of 32 to 36 tons, and features a cast iron engine flywheel housing and C-shaped side member reinforcement. You can also specify 24” wheels, bolstering the model’s ability to tackle the toughest terrain.

Renault has known that it can make great trucks for years but it has been dogged by criticism of its transmission set-up.

Sharing much of the DNA with Volvo’s i-shift system, the 12-speed automated Optidriver transmission is building a reputation for its off-road mode and is already recognised as one of the best on the European market.

The K Xtreme takes this concept further with an entirely different set of programming on the gears.

It also has an entry shaft that boasts six toothed areas instead of the usual four. It is also built with cogs that have been treated thermally to boost the overall strength of the unit. What is more, the

LAUNCHES

PEAK PERFORMER PowER oF 165hP

a new era for Psa

ARRIVAL OF 3008 MARKS NEW APPROACH TO GCC

SPECIAL PROGRAMMING The K xtrem has been ruggedised to the maximum but the star could be its specially modified optidriver system.

Optidriver Xtrem also has traction capability of 120t in addition to the specially tailored gear-shift management application, which continuously adapts to the load on the vehicle by reacting to data from special sensors.

Adopting this approach means that the truck with the Optidriver Xtrem gearbox is able to change the gear ratios in

order to perfectly match every situation that the truck finds itself in.

Like other members of the K Range, the Xtrem is able to clear any type of obstacle thanks to its best in class 32° attack angle and its 380 mm under-axle and 515 mm under-tank clearance.

The tight turning radius and accurate steering give excellent manoeuvrability.

SPECIFICATIONS Max power

382 kw from 1432 to 1800 rpm

Max torque

2550 Nm from 1100 rpm to 1432 rpm

Engine

6 cylinder in-line diesel engine)

Transmission

optidriver gearbox aTo 2612F (11.73 - 0.79) automated

PTO

Torque 1000 Nm / Ratios: 0.90/1.14

PSA Group, the multinational company that owns Citroen, DA Automobiles and Peugeot has wasted no time in following up the unveiling of its first regional headquarters in the Middle East in the Dubai Airport Free Zone (DAFZA) by launching its best received Peugeot car in years – the 3008.

Peugeot will be using its state-ofthe-art facilities at DAFZA in order to further expand its presence in the region with the 3008 leading the charge.

Jean-Christophe Quémard, EVP, AfricaMiddle East of PSA Group used the official opening of the regional headquarters to announce the arrival of the 3008, adding that, “the GCC region is amongst the most important markets for the Group, and it is a high priority to establish tangible growth in this region. The company has set a target of selling 1 Million vehicles by 2025 in the MENA region.”

He added, “Our Push to Pass strategy continues to prove a great success with quality and innovative products being some of the main ingredients; and the European Car of the Year award for the all-New Peugeot 3008 SUV, is one of our greatest achievements under this strategy.”

While details at this stage of the trim of the 3008 have yet to be revealed for the region, the compact SUV has been warmly received elsewhere.

Peugeot has aimed at the high end of the market for the interior and tech-heads will feel immediately at home inside the all-encompassing i-cockpit, the company’s vision of an enhanced driving experience delivered by advanced ergonomics, head-up digital instrument displays and interactive touchscreen technology.

While it has been seen in other models,

the 3008 has the second generation version of the i-cockpit installed and that means a 12.3in screen instrument display and a smaller 8in touchscreen.

Alternatively controls on the steering wheels allow you to flip through a variety of functions including stereo controls and SATNAV. It is high end functionality but at family car costs.

It will be interesting to see if PSA Group dares to enter a trim below the Allure class which offers what you would expect for the more luxury-inclined Middle East taste that the SUV will probably aimed at. Standard features of the Allure include a 180 degree reversing camera, voice recognition control, stainless steel door sills and 18in diamond cut alloy wheels.

Much like the Citreon C3, the exterior could be a love it or loathe situation for some (although it the car itself is much more similar to that French sister company brand’s C5 car) given its meaty and sporty looks but it does have some nice chrome and stainless steel touches plus some truly fearsome-looking headlights.

Some observers have described the European model petrol engines as the 1.2l and 1.6l 3008’s secret weapon. The 2.0l 148bhp diesel engine on the GT is no slouch either but it remains to be seen what the final spec will be for the region.

SPECIFICATIONS 1.6L engine with maximum power of 165hp (121 kw) @6000 rpm 6 speed automatic transmission Maximum torque of 240Nm @1400 3D Connected Navigation (includes voice control and TomTom Live updates (3yr subscription) (TBC) MAY 2017 TRUCK&FLEET ME 11

COVER STORY

T&FME finds out how the new robust C and K ranges makes Renault Trucks stronger in the Middle East

A cleAr TrANSM

12 TRUCK&FLEET ME MAY 2017

COVER STORY

MISSION

MAY 2017 TRUCK&FLEET ME 13

COVER STORY

READY FOR lIFT-OFF Renault Trucks has made several upgrades to its previous designs with the C and K ranges combining its own and Volvo Group’s expertise.

W

hen T&FME last spoke to Renault Trucks in 2016, it was in the throes of a sweeping reorganisation of Volvo Group’s approach to the truck market.

Almost a year down the line, there is now clarity on how each individual company will progress as nearly autonomous businesses with very short lines of responsibilities.

Renault Trucks International’s SVP Christophe Martin and his recently installed VP for the Greater Middle East Gregoire Blaise explain how those changes have ultimately been for the better.

“I think Renault Truck’s mind-set right now is really to use the asset of the range that we have designed and developed with the new organisation that we launched last year.

Everyone is really committed within Renault Trucks to work alongside our importers.

Maybe we had been too close to our desks but now we are feeling positive,” says Martin.

Behind the scenes, the Volvo Groupowned but proudly French-based manufacturer has taken on criticism regarding its driveline and have used the transmission platform developed with its Swedish counterparts to create the Optidriver (it shares most of its DNA with the Volvo iShift), a highly optimisable but robust system.

Sitting down with both after a day out testing on the dusty outskirts of Marrakech you get the sense that they have been overwhelmed by the reaction to the latest C and K ranges.

Although many of those present were partisan 14 TRUCK&FLEET ME MAY 2017

dealers there were also customers present and during the supporting workshops most were impressed by what they saw and drove.

Martin and Blaise are quick to stress that when it comes to the Middle East, Renault Trucks will have to prepare for far harder days ahead despite their confidence in the C and K ranges. Although its efforts will soon be aided by its own dedicated combined new and used sales facility and a commitment to greater local Renault representation in the many countries it serves.

“When it comes to the Middle East we are the underdog when you talk about market share,” says Blaise. “Except maybe in Qatar

SMOOTHER DRIVING The Optidriver system automated gearbox is a huge leap forward for Renault Trucks in terms of driveability and reliability.

We want to be fully transparent and fully open.

I want us to be a Volvo Group technology solution that is super tough but also warm, close to the customer and not be arrogant.

We can compensate for lower brand equity with empathy and being available to serve the customers”

where we have a strong position. All the other markets will be conquests. We feel we have the right products and the right partners but it is not like we are defending something.

He continues: “We are playing like a French rugby team. Sometimes we might lose but (the way we play) is good to watch.”

Martin jokes dryly: “If we were to be the leader in most countries I would not cry but we need to first look after customer satisfaction first. If through our network of partners, we manage to provide our customers and their customers with the right level of customer satisfaction then I’m sure the other things will come.”

Renault Trucks will not look to quickly ‘buy’ market share, he states further.

Instead it will concentrate on listening to its customers and shaping its offering for their requirements: “Honestly, if it only starts with two units for a customer, let’s still show them that they can get a fantastic output.”

“As we are the underdog today, the people we need to work with within our company and our partners must be fighters. Everyone has a role to play and we want guts and heart.

We want them to wake up early morning to help a customer who has had a breakdown at 2am. We can’t afford to have farmers in the company, we need to work with hunters.”

On the frontline of Renault Truck’s assault of the Middle East truck market are of course its dealer partners. Martin admits ensuring they have the right skills and, as he puts it, ‘will’ is going to take time and persistence: “It is a journey and not an easy one.”

With the support from local distributors and dealers varying wildly in the region, an

Apollo Tyres Middle East FZE T : + 971 488 41603 www.apollotyres.com

COVER STORY

opportunity exists for OEMs that can convince fleet owners and contractors to choose a different make of vehicle. Blaise explains that Renault Trucks has developed a pillar of its strategy to test whether they may move to the French manufacturer’s products.

“We call it brand education and we want the importers to be proud about our products and brands.”

Blaise arrived in Dubai last year having built a considerable career representing the company in China and Asia from its Shanghai offices. He says he was surprised to see a lack of pro-activeness to go out and meet customers. It’s a surprising observation given the Middle East’s reputation for placing face-to-face business relationships far higher in importance than other regions.

“Maybe I had been brainwashed from the past but people were not very willing to meet with customers. For me, success starts from the sales force. We need to have a fighting spirit within that group and we need to give them the tools to address the customer and find the right solution for them.”

T&FME then addresses the elephant in the room. How does Renault Trucks separate itself from the competition particularly from those that may be within the same group.

“Yes, we enjoy Volvo Group technology, with engineers in Lyon and Gothenburg. If you take the driveline, the engine, the gearbox, I think we now have a fantastic match. But of course when people buy a truck, it is not the only thing that they are looking for.

“Behind the scenes, I can tell you the quality is the same, but till people

everyone has role to play and we want guts and heart. We want them to wake up early morning to help a customer who has had a breakdown at 2am. We can’t afford to have farmers in the company, we need to work with hunters”

A NEw AppROACH FOR THE REGION Renault Trucks is rethinking its approach to the region and is overhauling its Dubai operation to be an effective regional centre as it pushes to be closer to dealers and vehicle owners.

16 TRUCK&FLEET ME MAY 2017

are likely to say Volvo if you ask them which is the most reliable option.

“I don’t wake up in the morning and think, well let’s attack the Volvo or Mercedes customers. My feeling is that because we have the lower brand equity we need to go the extra mile. What is required from us is to do even more. It starts with my boss, it starts with me. Are we convinced that Renault Trucks is a great brand offering great solutions? I am personally convinced and now it is about convincing other people where the pride is obvious.”

He continues: “Today, testing the trucks (with the guests) only four of them were professionals. The others are people working in product departments, etc, and they wanted to join this event. I talked to them and some of them said ‘I can’t tell you the pride I have to talk to the customers, the dealers’… I know when they go back to Lyon they will talk in the canteen and they will talk to the switchboard operator.

“We want to be fully transparent and fully open. I want us to be a Volvo Group technology solution that is super tough but also warm, close to the customer and not be arrogant. We can compensate for lower brand equity with empathy and being available to serve the customers.

“I think what can happen for leading brands is there is a risk of becoming a bit arrogant where you wonder whether the customer is deserving of your product.

We are not there and I hope we will never be there. We are here to serve customers with a great solution.”

STRONG ON RObuSTNESS Robustness, working comfort, payload, pulling power, easy body mounting for all purposes and custom services: Renault Trucks’ C and K ranges are for customers working not only in the construction and long haul industries, but in heavy construction as well.

These new ranges have been designed and developed by working closely with international customers, who have been involved in the project from the design stage right through to testing in actual operating conditions. The Renault Trucks K range has been tested under particularly gruelling conditions, such as transporting logs in Cameroon, carrying 120t loads in Oman and mining in Turkey. These trucks have endured the most stringent and rigorous testing in the manufacturer’s history.

The C Range is designed for construction, construction site supply and long-haul conditions.

It has a high payload, low fuel consumption and comfort on par with that of a road vehicle. Its pulling power, manoeuvrability and obstacle clearance capacity make it suitable for professionals delivering materials in urban settings, and for those working in specialised fields such as earthmoving, concrete transport, fertiliser transport and snow removal.

The Renault Trucks K Range, sets new standards in terms of robustness for Renault Trucks. It has an impressive design with a full steel bumper, exceptional obstacle clearance and the best approach angle on the market.

The K Range’s variety of chassis reinforcements allow it to adapt to even the toughest conditions.

INTERVIEW

A seconD life Felix Schwarz, head of Customer Services and Parts, Mercedes-Benz Trucks & Vans on its parts offering for fleets

D

aimler Commercial Vehicles MENA Regional Centre and its general distributors in the individual markets are mainly supplied by a Regional Logistic Centre in Dubai, Jebel Ali, which houses a total of around 14,000 line items of genuine parts for Mercedes-Benz Commercial Vehicles. The regional hub is directly connected to the Mercedes-Benz Global Logistic Centre, located in Germersheim, Germany. This connection ensures that Daimler Commercial Vehicles MENA is able to deliver genuine spare parts to its authorised service centres and customers in the shortest possible time frame, explains head of customer service and parts Felix Schwarz.

He urges that for customers to be sure that they are buying Mercedes-Benz Genuine Parts, they should only purchase their parts at

18 TRUCK&FLEET ME MAY 2017

the respective authorised general distributor of Mercedes-Benz in their market.

“Often the visible indications of genuine and fake parts are very minute,” he says. “However, quality differences can be significant and severely influence the safety of the vehicle. Directly led by the brand headquarters in Germany, we have investigators on the ground at all times to trace and seize counterfeit products.”

The use of counterfeit parts can eventually lead to a breakdown of the vehicle and therefore to high costs. When it comes to safety related items such as brakes, the use of fake parts and consequent malfunctions can lead to severe accidents which cost more than just money.

“For that reason, we urge all our customers to refer to the official channel of the authorised network with all their aftersales requirements and openly scrutinise any suspicious offer outside of this channel.

The use of fake parts and consequent malfunctions can lead to severe accidents, which cost more than just money”

“Mercedes-Benz Genuine Parts are produced to the highest quality standards and technical manufacturer specifications of Mercedes-Benz,” comments Schwarz.

“Furthermore, the extensive experience and knowledge of Mercedes-Benz is used in the design and development of every single part, ensuring state-of-the-art technical advancement and extremely high reliability.

This ascertains that our genuine spare parts have an extremely high performance to best support our customers in their business. Product tests for safety relevant items in Germany have shown that they not only outperform competitor parts, but have a longer product life as well.”

He explains that parts are designed with the development of the vehicle and perfectly match the operational requirements as well as the defined service schedule: “This ensures a perfect fit to the respective truck. Ultimately,

INTERVIEW

the operating cost and the residual value of a vehicle are also conditioned by factors beyond, such as the operation itself or driver behaviour. Mercedes-Benz and its regional General Distributor network are providing bespoke downstream products such as service contracts, field service and in-depth qualification to our customers, which as a package ensures highest operational efficiency and minimised downtime along.”

In order to support its customers further, the company has launched MercedesBenz Service Solution in the region which provides customers with tailor made service options – combining Authorized Service and the use of Mercedes-Benz Genuine Parts – right from the start of their ownership experience. This service complements Mercedes-Benz’s genuine remanufactured spare parts programme which was launched in the region two years ago.

“With an increasing vehicle age, customers naturally become more pricesensitive,” says Schwarz. “As we increase the awareness and knowledge about this service, the portfolio is growing at the same

time to professionally serve increasing demand. All remanufactured parts are supplied through the same high performance supply chain, like any new part with no difference in handling or process.”

He adds that Mercedes-Benz Genuine Remanufactured Parts are manufactured to the same quality standards as new genuine parts in an extensive remanufacturing process.

“Providing the same warranty as with our genuine spare parts clearly differentiates the range from used parts commonly sold in the region,” he claims. “Since Mercedes-Benz Genuine Remanufactured Parts are produced to the same standards as our genuine spare parts, customers do not have to forfeit on quality or reliability. The decision to procure a remanufacture part rather than a new part is thus often driven by factors such as the vehicle age and residual value.

“They are a good choice for customers with older vehicles in their fleet. They provide the same quality and reliability as new parts paired with the advantage of returning the old or replaced part to

often the visible indications of genuine and fake parts are very minute.

However, quality differences can severely influence the safety of the vehicle”

the Mercedes-Benz Authorized Service network. This is not only a financially attractive solution for the customer, but also a great environmental deal as well.”

In a price-conscious environment remanufactured parts offer an alternative to new genuine parts without having to give up on quality or reliability. Schwarz suggests the programme fits well with the company’s evolving approach to meeting a need for greater aftersales support in the market.

“Customers want to focus on their core business and more and more asking for full-fledged management of all aspects of aftersales. With the Mercedes-Benz downstream portfolio, the authorised network in the region and the aftersales offer in place we are providing attractive solutions to our customers.”

Mercedes-Benz Genuine Parts can be purchased at any outlet of its authorised general distributors and authorised parts resellers. Furthermore our website (www.

Trucks.MercedesBenzMENA.com) provides customers with the opportunity to enquire about our Mercedes-Benz GenuineParts online.

LoNg hISToRY As the recent 20th anniversary edition of the Actros suggests, the region has a large fleet of older vehicles in the region.

PARTS INSIghT Franz Schwarz says with an increase in vehicle age, customers naturally bec ome more price-sensitive.

MAY 2017 TRUCK&FLEET ME 19

Future trAnsportAtion

hyperloop on Track for 202-one Ceo rob Lloyd promises revolutionary road will generate jobs in uAe

T

wo keynote addresses separated by 12 months and a chasm in ambition. When Henrik Holelei, directorgeneral for Mobility and Transport at the European Commission talked about technology being a game changer in rail he couldn’t have possibly imagined that a year down the line he would be followed by Hyperloop One’s CEO promising the most radical shake-up in transport for a century.

Holelei used the Middle East Rail event last year to articulate the EU’s expertise at creating modern cross-border transport networks. Conversely Hyperloop One’s Rob Lloyd told delegates that his company was working to render the distances between the region’s major cities irrelevant. He also revealed a timeframe for its introduction as well as a bird’s eye view of the construction of the world’s first fully functioning Hyperloop test site.

20 TRUCK&FLEET ME MAY 2017

Holelei’s pitch of European tried and tested nous was always going to appear to be stuffy compared to Lloyd’s vision of bullet time travel across a continent but perhaps we should wait for the company to have tried testing before getting onboard the hype train – as exciting as it is.

Lloyd told the conference that the company is looking to double its workforce in 2017 from 250 to 500 with “probably dozens and dozens will be based in the UAE”.

A Hyperloop system is a new mode of transportation, capable of connecting to all modes of existing transportation and helping individuals be anywhere and move anything with on-demand autonomous transport. The Hyperloop One system could ease pressure on existing infrastructure and present the potential for the Middle East to reinvent and transform transportation.

Hyperloop One is in the process of scaling up both its technology as well as

DeLhi to MuMbAi in 55 Minutes?

Rob Lloyd says that India could be the next market for Hyperloop One after the GCC: “The MiddleEast, India and parts of the US, where there is a renewed focus on infrastructure, are logically places where it could happen.”

its operation. The US-based company reportedly agreed to move its headquarters to Dubai after being selected by the Dubai Future Accelerators Programme late last year, and Lloyd revealed Hyperloop One is in the process of finalising an entity in the Gulf region. The funding it received in 2016, including a $50 million injection from DP World, is presumably behind an expansion of its engineering resources – including in the GCC - that Lloyd discussed at the event.

Lloyd shared some never-beforeseen shots of the ultra high-speed land transportation system’s development site (‘DevLoop’) in the Nevada desert at the event thus, “proving the company is well-positioned to deliver the first working Hyperloop.”

It has been barely a year since Hyperloop One’s first public test of a prototype propulsion system took place on the same stretch of desert situated

Future transportation

A tunneL vision Hyperloop One could ease pressure on existing infrastructure and present the potential for the Middle East to reinvent and transform transportation.

CLoser reGionAL LinKs? Hyperloop One has the ability to reimagine how a young and growing population works together, says co founder Shervin Pishevar.

KUWAIT

24MIN

28MIN

MANAMA 23MIN

9MIN

DOHA

RIYADH 17MIN

DUBAI

12MIN

ABU DHABI

20MIN

MUSCAT

41MIN

JEDDAH 5MIN

30 minutes outside Las Vegas in May 2016. The new footage of the 500m-long DevLoop, which has a diameter of just 3.3m, demonstrated how far the company has progressed in that time.

Speaking at the conference, Lloyd also shared the company’s vision for how Hyperloop One could transform the future of the Gulf Cooperation Council (GCC) with a faster, more efficient and cleaner system of mobility.

“While technology is revolutionising many facets of our lives, we have not seen a radical change in transportation since the Wright brothers introduced air travel over 100 years ago,” said Lloyd. “Tying together the Middle East region would produce greater virtual density, without congestion and pollution, spurring innovation, productivity, job growth and more powerful sharing of knowledge, labor and investment.

Building a Hyperloop would vastly impact

MECCA

With a hyperloop one system in place, there is ability to further unify the alliance of the Gcc, socially, culturally and economically”

the economy and make any major city in the GCC accessible within one hour.”

Josh Giegel, President of Engineering and Co-founder of Hyperloop One, joined Lloyd during his presentation at Middle East Rail via video from the DevLoop location in North Las Vegas, Nevada.

“I am so excited to be able to share images of DevLoop at Middle East Rail and update the world on our progress. Our team of more than 150 engineers, technicians and fabricators have been transforming what was, just over five months ago, a barren stretch of desert, into a hive of activity and now home to the world’s first full-scale Hyperloop test site,” said Giegel. “We have come so far in such a short space of time, and our team of over 240 employees are working tirelessly to eliminate the barriers of distance and time and reinvent transportation.”

The company says that not only will a Hyperloop system benefit the

GCC economically, but socially, “by facilitating easier access to critical infrastructure such as hospitals and schools, expanding access to city attractions and unlocking urban development. It could create a UAE pan-urban area within a 30-minute Hyperloop reach between Abu Dhabi, Dubai and Al Ain.” “With a Hyperloop One system in place, there is ability to further unify the alliance of the GCC, socially, culturally and economically,” said Shervin Pishevar, executive chairman and co-founder of Hyperloop One. “Hyperloop could further enable diversification and make a huge impact on the region’s relatively young and growing population, reimagining how cities and countries in the region work together. Progress made on the DevLoop in just five months demonstrates how quickly we could bring Hyperloop to the GCC and to the world.”

MAY 2017 TRUCK&FLEET ME 21

OEM & DEALER PARTNERS

a r y

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d i m

OEM & DEALER PARTNERS

e s d

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CO E V I s s e n n a t i o t w h o t c t t i t p p e y k h r g c ma in E e - l aun t s n i E r ta c s M e ’ F p x CO T& e M A F and

MAY 2017 TRUCK&FLEET ME 23

OEM & DEALER PARTNERS

s

peaking to them at the official launch of their partnership on the outskirts of Cairo, Iveco and its dealer partner FAMCO are ready to take inspiration from their venture in Saudi Arabia.

The acquisition of Omatra by FAMCO almost a half decade ago has given both companies the opportunity to re-assess their approach to the Egyptian market.

Iveco may have experienced selling its range in the country before but FAMCO via its association with Toyota, Honda among others also brings a weighty understanding of the market. The objective now will be to re-connect with Iveco’s loyal customer base in the North African country while expanding into new areas and segments.

At the heart of the venture is the new 3S (sales, service and spare parts) 15,000sqm facility in the Abu Rawash district of Giza.

Close to Cairo but with access to the country’s other main cities such as Alexandria, it provides a foundation for the two partners to re-ignite Iveco’s position in the market. However serving the Egyptian market is not an easy proposition.

It’s a vast country that is undergoing considerable changes that make strategic planning difficult even when you are armed with Iveco’s enviable product range that stretches from light to heavy vehicles, including the Daily, Eurocargo and Trakker (Iveco’s Astra range is incidentally handled by another importer).

The country is desperate for foreign cash to help fund the development on which they could presumably be deployed. Recent attempts by the government to address the so-called black currency market and shore up its ability to be an attractive investment destination halved the value of the Egyptian pound overnight. Vehicle sales are likewise suffering with some observers estimating that sales halved in February. Meanwhile the government is controlling imports and lending through banks has tightened.

If there is pressure on Famco to prove that it in can be nimble and adept at developing a sales and aftersales effort despite the tough conditions, then FAMCO’s president of its Automotive arm Len Hunt isn’t showing it. He explains that the launch has been planned for some time, especially as Iveco’s commercial vehicles could complement its passenger car presence in the market.

“Of course, you look at market size, who is buying, what’s being bought, what’s the availability of cash but I always think of a chain; if I have a passenger car business, I always think do I have an industrial business, do I have 24 TRUCK&FLEET ME MAY 2017

A hOME FOR ThE RANgE In Egypt, Iveco has a long history of providing a large range of vehicles and they maintain a strong residual value.

trucks and buses? And so on,” he says. “One thing I’ve learned is this whole thing is cyclical especially in the Middle East. OK it is down a little at the minute but let’s get in there.”

With a glint in the eye he recalls to T&FME seeing a carousel during a walk around the Dubai Marina: “You know I looked at that and thought this is my life. As one horse is going down, one is going up and never are all the horses up and never are they all down! It was the truest thing I’ve seen.

“We purchased the Omatra Group – and the big piece of that was Iveco in Saudi Arabia – but we also thought Egypt is a big market for us. They (Omatra) hadn’t done a lot with with it to say the least,” he tells T&FME on the sidelines of the launch. “We had some trouble finding the right facility so Egypt has been more of a gradual process. Despite the fact it was becoming more and more difficult, we knew it was a good market. We also knew that Iveco had been strong here.

We wanted to do it properly; we realised we needed a new facility and new people.”

He describes Al-Futtaim’s group presence in Egypt as a huge factor in taking the progress made in Saudi Arabia by the two companies into new territory.

We are trying to recover the residual value very quickly. as soon as you’ve got residual value up to the right levels you have solved your problems”

“We have been here with Toyota and Honda since 1979; this gives us a critical mass.

It’s also sensible because we’ve already got passenger cars and now we can have B2B. As you know, FAMCO has a range of brands in the UAE and we thought let’s get one in and see what happens. If you get in with a good firm anchor brand then you can start building it out from there: there will be people wanting generators, compressed air, lighting towers.”

Running with the concept of placing a B2B truck business into the country, Hunt details the process of getting parts supply, service vans and much more to drive upwards the level of support to Iveco’s existing customers, as well as driving sales to make the Italian brand more attractive to potential buyers.

“We have the 3S facility in Abu Ruwash as the anchor, then you need to have representation in cities like Alexandria. We’re also thinking about using gas stations as service satellites and placing a service van in Upper Egypt which utilises other facilities we have.”

As we talk, he recalls Al-Futtaim’s early experience with Lexus in the UAE: “It was so small, it was just one car but then it grows and it grows. You have to plant the seed.”

Seating during the official launch presentation was hard to come by. Initially planned for 200 guests, Hunt estimates that over 300 were crowded into the room. It’s a sign that the interest in Iveco is still strong in Egypt.

“They told me that 60% of the 240 people that were invited would come but I think we had 120%. They must have known that there was a good lunch coming!” He jokes. “But I think the customers will now sit back and go these are serious people.

When we’re at Al Futtaim or FAMCO we only know one way of doing it which is proper parts and proper training. Events like this will make sure customers are going to know we’re serious about this.”

TRuCkS AS A PRIORITY

Imports may be currently restricted by the Egyptian government but trucks remain on the priority list due to their importance as transporters and support for construction projects. However that hasn’t led to a huge bounce in truck volumes at the start of a year which has been hampered by the depreciation of the Egyptian pound. Iveco’s head of Africa and Middle East Fabio De Sarafini says that the truck industry must be prepared to take the long view in Egypt.

“I can see in the first two months of the year that the market has been dropping,” he says. “But in the past three or four years there has been a problem with the black

OEM & DEALER PARTNERS

ThE LARgEST COuNTRY IN ThE REgION Egypt is the fourth largest economy in the MENA region and single largest country with population of around 91 million. The population growth is projected to grow at 2.3% per annum to reach 110.0 million by 2025. The economy started to recover from 2014 political and economic crisis and the country’s GDP was estimated at nearly $331 billion in 2015, growing at 4.2% over 2014. The economic growth has doubled the growth rate observed during the past few years. The government is focusing on various sectors such as agriculture, electricity, and tourism to boost the economy.

It is noted that the government has scaled up infrastructure spending and is undertaking pre-emptive measures to restore macroeconomic stability in the country.

The Egypt Economic Development Conference (EEDC) which took place in 2015 saw the country signing some 40 new investment agreements and Memorandum of Understanding (MoU) worth $163 billion.

The foreign direct investment (FDI) was estimated at around $6.7 billion in 2015, and is gradually picking up its pace, up 56% from $4.3 billion in 2014.

The major factor influencing the growth of real estate sector in Egypt is the devaluation of the Egyptian Pound. According to Ministry of Finance, the Egypt’s construction and building sector accounted for 4.8% of the country’s GDP in 2015.

The sector grew by 7.4% and 9.7% in 2014 and 2015, respectively, which is projected to grow by 8.0% in 2016, amidst strong investments from public-private partnerships (PPP) and infrastructure projects in the pipeline.

The share of the construction and building sector of the total investment value in the country rose from 1.0% in 2014 to 1.1% in 2015.

26 TRUCK&FLEET ME MAY 2017

market and the exchange of money. This has now disappeared and will create much more stability especially for the people who invest. In the short-term we are suffering because of this and also because of difficulties in payment and gaining letters of credit.

“In the medium- to long-term the situation will be better than before. This is a country of 90 million people, the biggest in the territory.

The issue in this country isn’t what the government wants to do, it is how they fund it.”

De Sarafini feels Iveco’s long history in Egypt will help it to re-establish a footing in the market with the FAMCO partnership now formally unveiled. Drawing a comparison with Saudi Arabia where it formally re-launched with its UAE-based partner last year, he stresses that its strong brand awareness in the North African country makes it a very different proposition. (“In the past two years we didn’t have representation it was tough but due to our loyal customers we were able to sell 100 vehicles per annum through direct sales,” he says.)

He describes Iveco as the best value premium brand in the market.

“In Egypt, our brand recognition is very high.” he states. “Therefore so is the residual value is also high. In some other countries, like Saudi Arabia, we are still in a growing phase. There we have competitors with local assembly and better brand awareness than us.”

Residual value is key to ensuring that Iveco can re-affirm its leading position in market, he adds. The burden will be on FAMCO to ensure that it is able to

MOBILE SuPPORT In addition to a new 3S facility in Giza, mobile units will provide remote services for customers.

We have the 3s facility in abu ruwash as the anchor.

We’re also thinking about using gas stations as service satellites and placing a service van in Upper egypt which utilises other facilities we have”

protect the status of Iveco in Egypt.

“FAMCO are very organised and have the mind-set of high professionalism. They are very successful because they know what has been proven to work. With them we are trying to recover the residual value very quickly. As soon as you’ve got residual value up to the right levels you have solved your problems.”

From this point forwards, Iveco will be assessing its progress on a monthly basis.

As it does elsewhere it will be analysing how successful were deals made and why potential sales may have fallen through. In addition to chasing tender opportunities that are associated with the large construction or transportation projects that are needed for Egypt to develop, the Italian company will be looking to push retail sales.

“With a tender you can win an order for 40 or a 100 trucks, that’s why it is important. But the retail market gives you more profitability and fleet loyalty.”

Development of the service network will be critical for Iveco and FAMCO. The two companies are sharing investment to complete the network in Egypt as well as Saudi Arabia (Len Hunt suggested that they were also looking to see if they could pool resources between the two countries via Free Zones too). “Alexandria is probably going to be the next location for a facility and then possibly the Suez Canal.”

He concludes: “In Egypt we have a good image which we just need to cultivate and improve.”

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INTERVIEW

The end-To end-oF saFeTy T&FME talks to one of the region’s true telematics pioneers, Bassam Alkassar of FMS Tech

F

MS Tech has been in the business of fleet management solutions for the past ten years. The roll-out of its new Driver Merit System Robot (DMS Robot) for commercial fleets at ADIPEC at the end of the last year represents the culmination of its long-standing efforts to encourage commercial vehicle drivers to improve their performance and simplify the way managers monitor and manage their fleets.

The DMS Robot, which is the first commercial system of its type, can be set-up at any fleet operation and resembles a ticket kiosk or ATM. It can provide transparent and accurate feedback to the driver on their performance and rewards them for good 28 TRUCK&FLEET ME MAY 2017

driving, CEO Bassam Alkassar explains to T&FME. Each driver is given his own personalised RFID card. The system will address the driver by his own name and in his own language and give him feedback on his driving on any vehicle.

Able to identify reckless driving, traffic violations, time attendance and job completion rates, Alkassar says the DMS Robot continues his company’s efforts in tackling road safety. It helps fleet managers to save time and cut down on costs and accidents with accurate and transparent information that will support their business’ bottom line. He adds that FMS Tech is beginning to see a conversion from a trial to a purchase from many of its early adopters.

“We have had some fantastic feedback,”

If you have a problem in your fleet, and you are unable to pinpoint why, then you need technology to help you”

he enthuses. “Last week, I removed a kiosk from a client who has ten different subcontractors working for him in Abu Dhabi. So far they have loved it. If you have, say, more than 100 drivers – and I have some clients who have 4,000 drivers – it is sometimes impossible to go over all the driver performances, regardless of how many managers you have.

“Some companies in this region are active across all the countries and have people in the field or in the main office. Having people sit down with the drivers is not always something that is doable or easy. With this, every driver gets his own feedback in his own time.

“He will know how many points has accumulated and how many he could

INTERVIEW

pRoVIdINg FEEdBAck To dRIVERS “We counsel drivers by capturing data and giving feedback to the them once a week or once a month and engage him in a reward or incentive programme. In the Middle East, Oil & Gas drivers have come from different nationalities, different cultures and some of them don’t speak English very well. Part of my solution is that I developed the DMS Robot, a machine that lets him swipe his card and get feedback about his driving. This can be in the company office or perhaps by the canteen or the rest area.

“The driver uses his own personalised RFID card. The system will address him by his own name and language and give him feedback on his driving on any vehicle. It is absolutely personal. Every driver will have his own feedback for his own driving performance. It will walk him through every parameter and tell him what he did well or where he didn’t.

“It can be connected to a Loyalty Programme. So if he drives well, he scores points and if he drives lousy he will lose points. At the end of a specific period, like a month, the management can distribute prizes or even money.

They don’t earn much so this can be a big incentive for them to always keep safety on their minds in their driving.”

have accumulated if he had paid more attention to road safety. This is fully automated without human interaction and without confrontation with the drivers.”

The ADIPEC launch was appropriate for a company that has primarily served the Oil & Gas industry for many years.

Prior to founding FMS Tech, Alkassar had been known for his involvement in setting up in-cab monitoring systems for the industry but a decade down the line he finds himself pioneering technology designed specifically for the region.

“I used to use a variety of different devices to help my clients, including various operational units for Shell globally. I was mainly selling offline systems from vendors.

I used to do a GPS offline device and then

not just the oeM will be interested but the regulators and the traffic officials will be able to benefit”

get data by connecting them to boxes on a server. That was as far back as 1998. ” “I felt there was a real gap between the requirements of the Oil & Gas companies (and what was available). They used to have these offline systems that can capture speed and other parameters like harsh braking and harsh acceleration but we wanted our own systems based on their requirements.

“The company was set up in the UAE to mainly design and develop our own telematics devices – I started to produce our own platform and systems to really help these Oil & Gas businesses to reduce accidents and fatalities.

While he feels the DMS Robot completes FMS Tech’s end-to-end solutions for road safety, he believes there is still much

to be done in terms of lowering accidents both on-site and on roads. Telematics-based technoogy that gathers data from both the truck and driver can help but it needs to adaptable to serve different industries.

“It is such a big topic and it is sometimes complicated to tackle problems,” he muses. “There are different requirements for different markets and verticals that need modular devices that are scalable to the inputs and able to capture different parameters from all types of vehicles from small to large, as well as generators. “ He adds: “Now we have reached a point that we can do minor customisations and it will fit the customer’s requirements.”

In his opinion, telematics stands alongside other technologies such as the MAY 2017 TRUCK&FLEET ME 29

INTERVIEW

Internet of Things and smart mobility that will feed the developing realm of big data proving transparency to any party that needs it.

“Besides the owner, the driver and the manager of the commercial fleet, telematics data from the vehicle will benefit the OEM, meaning you can plan maintenance as you can get data daily from the engine.

Not just OEMs will be interested but the regulators and the traffic officials will be able to benefit from the information. It can help traffic planning for the police or the department of transport, for instance.

“In addition to that, and from the safety perspective, you will be able to analyse the driving patterns and behaviour of your drivers, and you can counsel those that really need more attention. Accidents happen even when drivers are well trained and have obtained a driving licence. Big companies have their own driver training but accidents still happen because it is related to driver behaviour.

“I’m focusing on drivers but there also lots of other factors in road safety - the road infrastructure, the suitability of the vehicles.”

Alkassar realises that there are differences between the Oil and Gas industry where driver safety, and safety in general, is considered an absolute priority and other commercial transporters.

“These Oil & Gas guys have the money: some of them if they have an accident or a fatality it can affect their stock price and their reputation. They pay a lot of money to educate,” he says. “For others, it can

accidents happen even when drivers are well trained and have obtained a driving licence. Big companies have their own driver training but accidents still happen because it is related to driver behaviour”

ThE IMpoRTANcE oF AN EducATIoN Every company should be able to benefit from embracing telematics, whatever their size. However training is essential to improve road safety.

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be about improving the fleet utilisation efficiency and time attendance as well as road safety. In these difficult times with low oil prices it becomes very important.

“I know a client who used to have 1,000 vehicles and has been able cut 18% of his fleet size – and this is money at the end of the day.

He has been able to say, ‘I don’t need 180 vehicles out of 1000 vehicles’. We saved this particular client around $4 million last year and now he has full transparency of his fleet in terms of utilisation: kilometres driven, the risky drivers, the good drivers, and which vehicles have been used by which drivers.”

He adds that every company should be able to benefit from embracing telematics and fleet management technology, whatever their size.

“If you have a problem in your fleet, and you are unable to pinpoint why, then you need technology to help you. In my opinion, if you manage more than five vehicles you really need some system to help you because, again, if you are in transport distribution logistics you are paying bills at the end of the month. You may not know which vehicles cost you more money than others and in terms maintenance and fuel as well. With telematics you have to complete picture.

“You can know how much money you spent on fuel and maintenance. I’ve seen the system paid for itself between six and 12 months.

“I’ve seen people become very much reliant on this technology to run and manage their business and fleet operation.”

ABouT BASSAM AlkASSAR Graduating in 1988 from the University of Missouri in Computer Science, Bassam Alkassar started his career in 1990 with the Star Project for Boeing. For 10 years in Silicon Valley, Alkassar participated in the migration of the proprietary network of AT&T, Bell South, NCR, Chrysler, GM, Ford, Boeing, Lockheed Martin and others to an Open Architecture Network (TCP/IP), the predecessor of the Internet we know today.

Driven by his passion for IT, he got involved in the advancement of PC-related web technology.

Bassam Alkassar, has an innate enthusiasm and in-depth understanding of the importance of internet technologies, and was always convinced that vehicle data recorder will play an important role in road safety.

In the late 1990s, he was involved in the development and the adoption of Shell’s In Vehicle Monitoring Systems (IVMS) in Oman, Nigeria, China and Syria to reduce and eliminate road accidents and Lost Time Injuries (LTI).

In collaboration with Shell and the SWOV Institute of Road Safety, Alkassar presented a research based paper “Making IVMS work” HSE SPE, during The Society of Petroleum Engineers (SPE) conference in 2000 delivering the concept of the first efficient and intelligent IVMS and tracking solution.

He is the author of multiple policies developed for Oil & Gas, logistics and transport companies.

Best IVMS systems and practices, Driver Merit Systems, Road Safety policy are few of his projects that helped the industry to evolve.

7 - 9 May 2017

Visit Our

Stand: B12 , Hall: Saeed 3 Dubai World Trade Centre

ConferenCe review

How do you Handle bIg daTa? Connecting to the ioT is the next step forwards for telematics

T

he third global Telematics Conference Middle East & Africa was recently held at the Conrad Hotel Dubai.

This annual event welcomed more than 100 delegates. The main topics addressed connections between (commercial) telematics and the Internet of Things (IoT).

The event was attended by highprofile speakers and representatives oftelematics companies from more than 20 countries from the region and elsewhere – companies interested in Middle East and Africa telematics for fleet management and automotive segments. T he conference offered many networking opportunities during the event, as well as a small exhibition showing the latest technology developments in the industry.

IoT and commercial telematics systems are witnessing various adaptations and progress on a technological level as well as on segmentation and revenue levels.

Keynote speaker Dominique Bonte, managing director, B2B, at ABI Research, explained how the IoT delivers a business revolution: “IoT is more than just connecting things; it’s about reorganising the economy.”

32 TRUCK&FLEET ME MAY 2017

IoT fosters new business models and enables cross-vertical, end-to-end services and solutions. In his presentation, Bonte presented many opportunities and synergies between commercial telematics and IoT. A new range of connectivity solutions allows for new use cases, and it goes beyond connectivity. In 2021, Bonte stressed, 68% of IoT technology revenues will come from applications, analytics and security (in comparison to 54% in 2015).

Today, IoT and telematics offer many different connectivity and connectedness opportunities. One such opportunity was presented by Elie Aad, director of Global Partnerships for MEA at Sigfox, who explained the advantages of using Low-Power Wide-Area Connectivity (LPWAN) in telematics. “LPWAN technology is perfectly suited for connecting devices that need to send small amounts of data over a long range, while maintaining a long battery life,” explained Aad and added that: “LPWAN can be used for any type of telematics application in all verticals, as long as the customer requirement is not hindered by technical and regulatory constraints.”

Conference day one ended with an interesting panel discussion, moderated by

IoT technology has brought greater efficiencies and improvement to how businesses manage their fleets”

Alexander Smirnov, business development director, Middle East, at Gurtam. Panel guests Elie Aad, director of Global Partnerships for MEA at Sigfox, and Dominique Bonte, managing director and vice president, B2B, at ABI Research, discussed new solutions for establishing connectivity, with a special emphasis on the Middle East region. The discussion was not limited to the technologically most advanced solutions; it also addressed the simplest and cheapest IT solutions that promise the lowest costs and the longest battery life.

Stefan Schnitzler, management consultant at Mercedes-Benz Consulting and the keynote speaker of the second day of the event, raised many provocative questions in his presentation and gave participants a lot of food for thought.

He calculated that 100 connected trucks submit 1.59 million data information per day and asked the audience: “How do you handle this?” In this pool of big data, it is not easy to bring the added value to the users. He added that all data is meaningless as long as the Magic Seven and Chunking (a concept originated by a famous paper on information theory by US psychologist George A Miller in the 1950s) are not taken into account.

ConferenCe review

insurAnCe TeleMATiCs MArkeT Close To Tripling According to the Insurance Telematics Market report by RnR Market Research.com, the insurance telematics market size is expected to grow from $857.2 million in 2015 to $2.21 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 20.9%. Consumer’s enthusiasm for in-car connectivity and growth of smartphone penetration in insurance and automobile sector are among the factors driving the insurance telematics market.

The other factor driving the growth of the insurance telematics market is the increase in regulatory compliances and regulations.

Furthermore, the market is expected to be driven by opportunities such as the growth in IoT and increased demand for telematics solutions in insurance and automotive sector.

RnR Market Research says large enterprises are investing heavily in these solutions to simplify their insurance process and sustain competitive advantage due to the emergence of digital channels and evolution of technological advancement in cloud and mobile business operations, data infringement issues, and operational risks.

However, on-premises deployment is expected to contribute the largest market share during the forecast period. The Asia-Pacific (APAC) region is expected to be the fastest growing market in the insurnace telematics market followed by Latin America says the report.

“Small or big data do not create added value per se. Only humans do,” the speaker continued. At the same time, it is necessary for all relevant industry stakeholders to educate, develop, enable and empower clients, employees, suppliers and leaders to create tangible added value through the marriage of telematics and the internet of things, Schnitzler emphasised.

The second panel discussion, moderated by Sebastian Stefan, CEO at Load-me.com, focused on the need for the telematics industry to adapt to new trends in automotive and logistics industries. Brent Melvin, growth and innovation manager at Almajdouie Logistics, and Stefan Schnitzler, management consultant at Mercedes-Benz Consulting, highlighted the novelties that will transform the industry in the future.

Mohammed Hasan Al Qrinawi, general manager at Creation Heavy Equipment Trading, explained many advantages of using IoT in fleet management for end-users – fleet owners. Al Qrinawi said that, “IoT technology has brought greater efficiencies and improvement to how businesses manage their fleets.”

Marek Pukel, Senior International Sales Manager at Ruptela, presented the practical application of IoT in fleet management and explained that we can all benefit from applying IoT solutions to fleet management, but that we will need to adapt and always be ready for the future and its uncertainty.

In his presentation, Alexander Smirnov, business development director, Middle East,

lPwan can be used for any type of telematics application in all verticals, as long as the customer requirement is not hindered by technical and regulatory constraints”

at Gurtam, exposed the need for choosing the right and complementary business partners in order to be able to develop in the future as an industry. The last speaker at the event, Denis Demianikov, Head of Global Business Development at Navixy, presented possibilities for creating opportunities for the rapid growth of telematics for the fleet management business.

Demianikov explained that we must search for easy-to-use and scalable products, reduce support costs and minimise side expenses to offer affordable products, and, “we have to do more than meet our customers’ expectations – we have to amaze people – because only an environment like that will let us grow as an industry.”

The closing panel discussion, moderated

by Dominique Bonte from ABI Research, focused on the future of commercial telematics.

Bassam Alkassar, Founder and CEO at FMS Tech, Hani Almaktoum, Co-owner and Business Development Consultant at Saferoad, and Elie Aad, Director of Global Partnerships for MEA at Sigfox, presented their views on the topic and interacted with audience members.

Among other things, Alkassar described the trajectory of development from his past experience in creating the predecessor of the internet as we know it today, including the IoT. Almaktoum described the huge potentials of the Middle East region, and Aad stressed the need for finding solutions adaptable to local environments. At the end of the discussion, the guests emphasised the importance of focussing on Africa as well, which should be understood as a specific and very diverse market.

ConneCTing To effiCienCY Mohammed Hasan Al Qrinawi of Creation Heavy Equipment says that IoT has brought greater efficiencies and improvement to how businesses manage their fleets.

MAY 2017 TRUCK&FLEET ME 33

INTERVIEW

a s i s i h t

Autodata’s Ian Batey argues that the GCC automotive industry needs a reality check

mar e r r o c 34 TRUCK&FLEET ME MAY 2017

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n o i t c

INTERVIEW

BIRd’s EYE VIEW oN ThE MARkET Autodata has the most accurate understanding of sales volumes in the market. It currently believes its data is 95% accurate.

GCC NEW CAR sALEs (MARCh 2015-2017) 80,000

2015

2016

2017

70,000 60,000 50,000 40,000 30,000 soURCE: MEAC DATA

i

f you’re hoping for a sudden surge in vehicle sales at the back end of 2017, then look away now. Poring through the biggest pool of data available in the GCC, Autodata has an almost real-time overview of the car sales market and its best case scenarios forecast growth of just 5% over the next five years.

“It’s tough for want of a better phrase,” says Autodata’s general manager Ian Batey.

“The GCC is down 30% on Q1 2016; and Q1 2016 was 27.3% down on Q1 2015. So you are talking about a nearly 60% drop from 2015 to 2017. However 2016 and 17 for the GCC is not a recession, it is a market correction: the markets have been punching far too above their weight for far too long.

“A lot of the re-export markets have started to close down... Someone asked me about oil prices – and I replied that’s old news. Forget oil prices. Even if the oil price doubled tomorrow, the oil companies aren’t going to re-hire 3 million people. They will be extremely cautious because it’s volatile. It also means that if they do re-employ people, the westerners with the big fat packages won’t be employed because they cost too much money.

“This is a market correction. This is the new normal. I can see some growth from this point but definitely not this year. Next year will be flat. Maybe in 2019. possibly by 2020 we might see 5-7% growth.”

20,000 10,000 BAhRAIn

KsA

Batey lingers on the word correction and it comes up a number of times during our conversation. He has been in the market long enough to remember past collapses like the end of the last decade when many owners fled the region leaving their cars and financing behind. He feels this time the circumstances are different and a change of mindset is required. In his view, manufacturers and distributors have been happy to go for short-term gains at the

KUwAIT

the Gcc is down 30% on Q1 2016; and Q1 2016 was 27.3% down on Q1 2015. so you are talking about a nearly 60% drop from 2015 to 2017. however 2016 and 2017 for the Gcc is not a recession”

oMAn

qATAR

UAE

expense of the long-term health of the car market for too long. While he now oversees Autodata’s progress in the Middle East, Batey has worked, to use his own words, on both sides of the fence in these markets.

Pulling on all the different strands of his career to date, he pierces through the big picture worries of economic and regional troubles and is clear on how the automotive industry faces an uncertain future of its own making.

“The manufacturers and distributors have a completely different set of objectives.

There is a constant battle between them as distributors are scared of holding too much stock” he states bluntly. “When the year-end numbers come out and it is on Sky News and they say the top manufacturer of the year is VW with 3 million units, etc. – that’s only how many cars, they have sold to distributors.

It’s not registrations; that’s how many cars they managed to stuff into the distributors this year. They’ve got a sausage machine called the factories and they are trying to stuff them into the distributors at a rate of knots.

“For example, at the end of Q1 2015, manufacturers tried to get prepared for Q1 2016 by getting distributors to order a load of cars. So, January/February 2016 was a disaster. Then across the board in the GCC they cut production by 50%. Distributors that normally carry an average of 2.5-2.9 months’ stock depth have not got 4.5 to 6 months’ worth of stock on the ground.

Then distributors turnaround and say ‘this is killing me, I’m not going to order any more cars’. This is the disconnect.”

Batey warns that distributors expecting to see a bounce in sales later in the year MAY 2017 TRUCK&FLEET ME 35

INTERVIEW

could face yet more disappointment.

“People are now saying we will wait for Ramadan. Rubbish. It has been done to death.

You can’t give anymore away. It’s not going to give you a respite,” he says. “Everybody is also saying there is going to be a spike at the end of the year because of VAT. Forget it. That won’t happen either. I guarantee you that on the 1 January, 2018, every distributor will go... ‘pay no VAT, 5% off’.

“A combination of the manufacturers and the distributors will swallow that 5%. Let’s be honest, you could probably swallow 3% and have a 2% price increase and mitigate some of your losses – I think that’s what I would be doing.”

Batey argues that the introduction of VAT could make nearly new vehicles an attractive proposition for fleet and public buyers.

“The thing about VAT that is very interesting is how it is calculated on used cars compared to new cars. On new cars VAT will be on the price of the vehicle. So if you’ve got a 100000 dirham vehicle that will cost 105,000. Simple. But with used cars VAT is only payable on the profit that the distributor makes from the sale of that car,” he explains. “So you could have a six-month old equivalent vehicle but two trim levels higher than the new one for 80,000 dirhams – and it would mean that if the distributor has got 10% margin in that car, it’s only 400 dirhams VAT. I can anticipate that nearly new cars are going to be in high demand in 2018.”

He continues: “If I was heading up a distributor, I would do short- to mediumterm leasing because a lot of people are moving away from wanting to own a depreciating asset. So what you can do – if you have a sensible offer – is go to market with a one- stop-shop monthly payment, and across a range of 1, 2, 3 years with different mileage combinations. All of the vehicles then don’t come back at the same time. You are feeding nice, shiny, constantly serviced used cars into your certified used car programme at the end of the lease term.

“I would be doing short cycle PCP (personal contract purchase) stuff and short- to medium-cycle personal leasing, and obviously your normal retail stuff. If you did that you’ve got demand for used.

You can continue to supply new cars because the monthly payment is lower.”

While the distribution channel is being squeezed, Batey feels that fleet buyers that are cash rich are in a strong position.

“I think every offer is out there at the moment,” comments Batey. “Yes it’s a buyer’s market but margins are squeezed as much as 36 TRUCK&FLEET ME MAY 2017

IAN BEATTY ExpLAINs hoW AuTodATA WoRks Autodata was acquired by skelmore Consulting Group in 2013 which has had a Middle East Automotive presence for the last 35 years. By 2015, Autodata had become the leading data and software solution provider for the automotive, insurance and financial institutions. with a recent agreement with JD Power, and Vicimus from Canada, it now has the ability to provide 360 software solution when it comes to used cars, websites, digital marketing, market research/CsI and valuation. “we deal with all sorts of automotive data, it’s not just about used and new car sales numbers,” says Ian Batey. “we started primarily as Glass’s or Kelley’s blue book type of operation, and data started to be collected on values in 2006. In 2010 Autodata was launched here and it didn’t really take off the ground. From my perspective I think it was too early the market wasn’t ready for it the market was too secretive. All the owners and distributors were sat on a big fat pile of cash, so why should it be changed? Used cars were a dirty word when it

came to manufacturers and the mainline distributors. “we get our data from a plethora of sources. 80% of the insurance market use our data to value a vehicle when they’re writing a policy. we get actual transaction data from our automotive distributor and used car partners.we get new car sales data from new car distributors. we get the latest MEAC new car report data. we have people going around the auto markets and checking cars, grey imports what’s coming in what’s going on. “we also have people that are trawling through automotive sales portals checking to see what vehicles are being sold and what for. “we’re constantly crossreferencing data sources to come up with a credible number. Anything that we take to market, we have to be as accurate as it is possible. You’re never going to get 100% but I can guarantee that as far as our evaluation systems are concerned through retail, open trade and also wholesale pricing, we are at 95% accuracy at the moment.”

they can be. Really it depends on how they fund their fleet. If they’re on balance sheet and are cash rich, then hey-ho. they can buy what they want, they can buy nearly new cars.”

Undoubtedly, the incoming introduction on VAT will have however on effect on those purchases.

“Is a business going to be VAT-exempt when they buy a car? I don’t know. That hasn’t been discussed or there is no news about that. It really depends on what their purchasing methods are. It depends on whether they are going to be VAT exempt.

And it depends on how they fund their fleet purchases. Some banks will not finance used cars to companies and they sometimes won’t finance if the car is an ex-lease.”

Leasing companies will still want to have a nice, fresh new fleet because that’s what gives them the edge, he says.

“There are all kinds of specs for leasing companies. You’ve got the budget end and you’ve got the high end. Those that are in the middle, such as the Budgets and the Hertz for example, like to keep the fleet fresh and turn it over fairly regularly. What I can see is, that residual values from 0 to 1-year will probably be stronger than have historically have been because of how the VAT will be calculated on new car sales. Which is good.

“It’s not all doom and gloom. If I set my business up right now. I could start to some short cycle six-months stuff. Get some new cars out on the road, bring them back in six months time and I’ve got some nice low-mileage, quite high trim level used cars to sell when VAT comes in.

He then pauses to note: “The unfortunate thing is, the distributors can’t see that far ahead.”

With its birds eye view on the market that offers greater transparency for manufacturers, dealers and buyers, Autodata is clearly primed to offer whatever insight it can.

“I am absolutely ecstatic because our phones haven’t stopped ringing this year.

It has been crackers. The reason for that is, because of the market correction and that the mess that the new car market is in now, everyone is going, ‘I need some help, I need some data, I don’t know where my business is, I don’t know where I stand in the market. I don’t know which segment I play stronger in and so on’.

“We’re flexible and transparent in the way we operate to look after our partners’ interests. The need for data, especially in this part of the world, has never been as important as it is today. It’s our time really, we’re very much coming to the fore this year.”

WORKSHOP

SPONSORED BY

APMG SET TO BE GLOBAL PARTS HUB / SSAB HOSTS MIDDLE EAST INDUSTRY IN SWEDEN / SYNTIX NEW LUBRICANTS / MCB IN HD

workshop APMG will be global hub for spare parts SPECIAL INTERNATIONAL ACCESS UNIqUE IN UAE AUTOMOTIvE zONES The chairman of the Auto Parts Merchants Group (APMG) says its new wholesale and retail hub for spare parts offers unparalleled access for international traders.

Speaking to Tires & Parts, APMG’s chairman Ahmed Juma Ahli said that Spare Parts City close to Al Maktoum International Airport will offer special access not requiring a UAE entry visa.

“From the perspective of customers, many

overseas customers who will not be able to gain access to the other auto zones will benefit from special visas which will be issued to give them entry into the zone,” said Ahli. “The facility will serve as a one stop destination for auto parts and will offer everything they need with multiple outlets under one roof.”

He added that traders based in the zone will also enjoy several benefits of a free zone license

including a facility for the 100% repatriation of their profits, “and lack of any restrictions like labour or access restrictions.

“The automotive aftermarket in Dubai offers immense potential and was valued at $11 billion in 2015. The UAE serves an important hub for the entire MENA region and even beyond.

APMG members can, by working together, help the industry in the region to get global recognition.”

MIDDLE EAST SET FOR SSAB AWARDS GLOBAL EvENT

SSAB, a global and regional leader in high-strength steel has highlighted the participation by their Middle East customer base at May’s Swedish Steel Prize event in Stockholm. Submissions include new technical design features, lighter products, simplified production, longer life, improved performance or beneficial environmental effects using the strength steel.

“This is the only international award for engineers in the steel industry. And it is more than an award. It is an entire event dedicated to hard work, innovation and a curious mindset. It also attracts competitors from all over the world. There will be a large group of customers from the Middle East region who will participate in this event,” says Ozgur Yalcin, area sales manager, Middle East.

“A record number of 102 applications from 32 different countries were sent it.

The high overall quality shows that this prize has an important role in encouraging the industry to find new and innovative ways to use high-strength steels for higher performance,” says Eva Petursson, chairman of the Swedish Steel Prize jury.

INSIDE THIS MONTH’S WORKSHOP T&F ME CONTINUES OUR COvERAGE OF AUTOMECHANIKA DUBAI AND FIND OUT HOW TO PREPARE TYRES FOR SUMMER 38 TRUCK&FLEET ME MAY 2017

WORKSHOP

MCB GETS ITS BEARINGS AT AUTOMECHANIKA DUBAI

syntix brings sporty approach to cV lubricants LUBRICANTS

Visitors to this month’s Automechanika Dubai will have the opportunity to find out Syntix Lubricants has made the transition from motorsport to heavy duty and commercial road transport.

Founded by Pieter Dubois and Nick Catsburg, two automotive and business professionals with a background in motorsport, Syntix Lubricants produces high quality of lubricants for a broad diversity of industries and

applications, such as automotive, agriculture, heavy-duty and professional road transport.

Syntix has developed several ranges of products, based on high quality base oil, combined with proven additive packages.

“All Syntix products are being blended with state-of-the-art technology and latest high-tech equipment. Samples from each batch are being taken, analysed and stored, with a 100% quality score,” claims the company.

BEARINGS Mineral Circles Bearings is using this month’s Automechanika Dubai to showcase the new face of its flagship brand, MCB, as well as NTN-SNR’s Heavy Duty High Load grease, and ILJIN’s Tapered Roller Bearings (TRB).

Hassanein Alwan, marketing director, said that the annual automotive aftermarket trade show is the best venue to highlight the company’s rebranding and product diversification efforts

due to its consistent large visitor and exhibitor turnout.

In celebration of its 15th anniversary, MCB unveiling reflects the continuous development of a product range that includes grease, universal joint, and bearings. The latter, which are made from forged GCr15 steel, have undergone demagnetisation, anti-corrosion treatment, and Shell lubrication during manufacturing, continuous to be distinct from its competitors.

MAY 2017 TRUCK&FLEET ME 39

AutoMechAnikA DubAi Preview

STop AT THE BoDY SHop T&FME looks at ground-breaking bodywork at this month’s Automechanika Dubai event

A

utomechanika Dubai is nearing its 20th birthday (the event held between the 7-9 May, 2017 is its 17th edition) which makes it a relative veteran compared to other shows in the Gulf that have come, and mostly gone, since it first opened its doors to the aftermarket.

It might be getting easier to source product online in the region but Automechanika Dubai is really the place to go if you prefer the personal touch. It is a shame, then, that while its now familiar mix of workshops, vast exhibition halls and focuses on truck competence and safety actually works, it is a formula that has not really moved on in recent years. This is a small gripe in a time of tightening purse strings and slimmer margins and it is a more relevant show than ever if you’re looking to cut costs.

The show starts at 10am and runs until 7pm at the Dubai World Trade Centre and is expected to once again house 2,000-plus exhibitors and welcome tens of thousands of visitors.

While looking for something cutting edge isn’t always the main reason you may 40 TRUCK&FLEET ME MAY 2017

go to this event, Italian company Symach is promising to reinvent “the way body shops operate” with its FixLine system.

FixLine consists of a layout and repair process that combines the company’s patented Drytronic technology, specialised drying robots and the Symach Paint Application Process (SPAP) painting cycle. SPAP or the Symach Paint Application Process can save: “60% of the application time compared to the conventional paint process and every brand of paint can be utilised,” says Osvaldo Bergaglio, CEO of Symach.

Established in 2001, Symach offers a wide range of equipment and technology aimed at increasing productivity and efficiency in body shops. Symach has built a reputation for highquality equipment and is building body shops around the world using its groundbreaking repair process. There are currently 46 shops using the FixLine process in Australia, North America, Europe and the Middle East.

“Compared to conventional methods, the FixLine system reduces the average cost of repair by 25% and the key-to-key time to approximately two days,” said Bergaglio.

FixLine includes all phases of repair and is customised for every shop to ensure a

The shine actually comes from the car’s clear coat, not from a makeup product, which in turn guarantees that even after a few rainfalls or car washes, the car will still look good”

more organized workflow and optimal repair times. There are three different layouts and repair processes, which are segmented based on the amount of damage and the number of panels involved in an accident. “This makes it possible to optimize each phase of the repair, the skills of the technicians and the equipment,” said Bergaglio. “It also maximises quality, efficiency and production.”

The FixLine conveyor allows a continuous workflow throughout the day, allowing a shop to use approximately 30% fewer technicians than a conventional shop to repair the same number of cars per day. It is available in two different configurations.

The SprayTron has the capability to repair 10 cars per day with one painter; the KombiTron can repair 20 cars per day with two painters.

When the company first opened, Symach developed and patented a new technology to dry paint called Drytronic, which drastically reduces drying times. Bergaglio said the technology generates various infrared wavelengths, which penetrate directly into the paint molecule, instantly drying it.

“Symach’s Drytronic technology dries body filler, primer, waterborne and clear in one minute and 30 seconds per panel,

AutomechAnikA DubAi Preview

which allows a continuous workflow during each phase of the repair,” said Bergaglio. “This means that damaged cars can be repaired without interruption and technicians don’t have to handle three or more different cars at a time during the working process like they do today.”

Symach is one of the first companies to have produced a robot for drying paint.

The FixLine process uses the robots for body filler, the preparation of primer and for waterborne and clear inside the paint booth.

As part of the FixLine system, Symach assists with the design of the work process and body shop layout, which usually requires at least 30% less area compared to a conventional layout. The company also conducts a training program for technicians and management that includes programming roles, daily scheduling of repairs, correctly managing spare parts flow, maintaining a weekly report and addressing KPIs. As part of the 130-strong collection of exhibitors that form the Repair and Maintenance section, French company Saint-Gobain Abrasives will deliver live demonstrations of its Norton Car Spa system, a vehicle detailing service that

r&M stArs At AutoMechAnikA Repair & Maintenance is one of six product groups at the show, and has doubled in size over the past seven years.

Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “Repair and Maintenance is a key component of the automotive aftermarket.

The strong growth in the section underlines the rising regional demand for high quality workshop equipment and tools,

bodywork repair, paints and corrosion protection products, all targeted toward fleet, garage, and workshop operators.”

Big names in the section include Ravaglioli – one of the world’s top-ranking companies in the garage equipment industry; Clas Equipment; Spanesi; Honeywell, and Altia. Italy’s Rupes will showcase its latest range of electric and pneumatic tools, accessory items and vacuum systems.

stands “out like a shining beacon”.

Marc Borlinghaus, Regional Sales Manager at AAM Saint-Gobain Abrasives, said its unique car spa concept is carried out only by highly qualified, trained technicians, while no wax products are used to bring about a car’s showroom glow.

“Norton Car Spa technicians will achieve the same level of gloss as a wax would achieve, but without the drawbacks of wax,” said Borlinghaus. “In the end, the typical wax is like a makeup – it’s designed to hide small flaws and create a perfect looking result.

“But like makeup, it’s a short-term solution and will easily be removed by a few rainfalls or visits to the car wash station, which then returns a car back into the old and scratched optical appearance situation it had been prior to having given it to a detailing centre for polishing and waxing.

“In the case of a polish done by a Norton Car Spa, the final result is purely achieved through mechanical means – abrasives products and polishing compounds. This means the shine actually comes from the car’s clear coat, not from a makeup product, which in turn guarantees that even after a few rainfalls or car washes, the car will still look good.”

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MAY 2017 TRUCK&FLEET ME 41

TYRE SAfETY

WHY TYRES FAIL

Sumitomo Rubber ME looks at what can be done to prevent tyres failures in the summer heat

A

fter a relatively chilly winter in the Middle East, the temperature is beginning to hot up and will soon reach the scorching heights of 45OC-plus in some areas. Typically this is the time of year that it is not unusual to see breakdowns and accidents that have been the result of tyre failures on the roads. Masatada Hachiya, general manager, sales and marketing at Sumitomo Rubber Middle East (SRME) explains why.

“The hot summer months automatically mean high heat and hot road surfaces.

This combination of low pressure running and overloading can be dangerous,” he says before adding that improper tyre maintenance is also often a significant factor in most of the tyre failures that the global rubber and tyre company has observed.

“Of the many aspects in tyre maintenance, improper pressure maintenance, overloading, a lack of periodic visual tyre inspection and ignoring minor tyre damages are significant contributors to tyre failure.

“Irrespective of the season, proper tyre maintenance should be carried out at all times throughout the year to reduce the possibility of tyre failures.”

His colleague Toshifumi Yuze, the senior general manager of SRME’s Technical Services Department, advises that correct inflation pressure should be of the highest importance to ensure vehicles are being driven safely in fleets.

42 TRUCK&FLEET ME MAY 2017

“Most tyre failures are due to, or aggravated by, incorrect inflation pressures,” he says. “Over-inflation makes the tyre more susceptible to impact damage and in extreme cases may result in tyre failures. Under-inflation causes over-heating and can greatly shorten the life of a tyre. It can cause irregular wear, internal damage and, ultimately, even tyre break-up.

“Tyre pressures must be checked regularly at least once every two weeks using an accurate pressure gauge (including the spares). These checks should be made when the tyre is at ambient temperature (cold condition). An increase of pressure during running is normal.

Therefore the inflation pressure of warm tyres must never be adjusted back to the recommended cold values. The use of a valve cap is a must in any pressure maintenance.”

Some fleets in the region frequently head out with vehicles that are loaded beyond the manufacturer’s recommended limits. Yuze emphasises that it is dangerous to drive with pressures different from those recommended by the tyre and vehicle manufacturers.

“In general, tyres for trucks and buses must be inflated according to the load they carry.

For easy reference, load/pressure tables are available for proper pressure recommendation.

Pressures other than those in the tables may nevertheless be recommended by tire manufacturers for particular applications or to improve the stability of the vehicle.”

He notes that some countries in the region have introduced weight regulations to curb the practice of overloading, adding that

Underinflation causes overheating. It can cause irregular wear, internal damage and, ultimately, even tyre break-up”

SRME is supporting greater tyre safety with its own training programme designed for fleets.

“From our side, we have training sessions with some of our fleet customers where we provide info on general tyre maintenance including proper pressure maintenance and recommended loads for each tyre.”

“Usually in these programmes, we include drivers, tyre technicians/fitters, workshop supervisors and workshop managers,” Masatada Hachiya tells T&FME. “Classroom sessions usually cover proper tyre maintenance topics. Practical sessions include tire fitting, pressure checks, scrap tyre checks etc.

The response to the training programmes are usually positive, he adds. “Many fleets usually take feedback and work to implement these ideas in their maintenance programmes.”

The region’s fleets work on a huge variety of terrains and run an almost countless range of vehicle types, driving styles, speeds, loads, attitudes to maintenance.

It is almost impossible for SRME to specify an average lifespan of a tire especially as many end-users remove tyres early to retread them but will advise individual fleets on how they should be utilising its tyres to make them last as long as possible.

“In order to make such recommendations, it is necessary to study each fleet and have separate recommendations for each fleet based on their operating conditions.

Sometimes, within the same fleet, for different applications, there needs to be separate recommendations,” says Hachiya.

Unreserved auction

Dubai, UAE | May 16 & 17

View complete equipment listi ngs

rbauction.com

Auction Location: Gate 8, Junction 9, Jebel Ali Free Zone, Dubai, UAE

Some highlights in this upcoming auction:

13 / 17 – 2009 & 2008 – MERCEDES-BENZ AXOR 3028B 6x4

4 – UNUSED – 2012 MERCEDES-BENZ ACTROS 3332 6x4

2 – 2008 MAN TGS33.400 6x4

2008 MERCEDES-BENZ AXOR 1840 4x2

2012 MAN TGA41.400 8x4 w/ HIAB

MAN TGA33.430 15000 LITRE 6x6

2014 MERCEDES-BENZ 3340 8x4 w/ PUTZMEISTER

Do you want to buy or sell equipment?

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AutomechAnikA DubAi Preview

For proS on a budget

S

ince founder George Westinghouse first created his air braking system for trains in 1869, WABCO has gone on to earn a reputation for providing the commercial vehicles industry with robust components and parts over several decades. The company launched its ProVia brand, a range of budget spare parts, in 2016 and will present it to the region at this month’s Automechanika Dubai. T&FME asks its VP, Aftermarket, Phillip Colpron if the range is a sign that it recognises that the industry is becoming more cost-conscious.

WABCO on launching its budget range at Automechanika Dubai “ProVia is the answer to the rising demand from fleets for an alternative for reliable and safe budget parts. Before launching the ProVia range, WABCO did extensive market research and identified a gap in the market for budget spare parts in the aftermarket segment: A solution for those who cannot afford or do not want to pay for original spare parts – which we are already offering through WABCO – but want consistent, safe and reliable products with a clear pay-back,” Colpron explains. “At the same time, we know that there is a strong need for high availability of spare parts with short lead times and also

We now offer more than 100 products in more than 30 countries worldwide”

a dedicated technical support after the part is bought. With ProVia we now bridge this gap by offering spare parts with a solid quality at budget prices while relying on WABCO’s proven service network offering best availabilities and a strong after sales support.”

Colpron says that ProVia has been well received in its first year with the company keen to expand the products available as well as their availability at retail.

“We now offer more than 100 products in more than 30 countries worldwide – especially re-engineered for the specific aftermarket needs. By the end of 2017, we plan to offer MAY 2017 TRUCK&FLEET ME 45

AutOMeChAnikA DuBAi preVieW

approximately 25 product categories globally,” he says. “This means our product portfolio will cover all key replacement parts for the key vehicles in the market! So we are on the way to becoming the leading commercial vehicle budget replacement parts brand with no compromise on safety and reliability.”

Developed by aftermarket specialists, ProVia parts provide a reliable performance and are manufactured to precise standards, he says.

“We first examine the dedicated OE products to define the certificates and security specifications we need to meet. Then we look for potential cost-savings. In essence the Original Equipment products are stripped from any frills without sacrificing on safety and reliability,” Colpron enthuses. “To give you an example on our no-compromiseson-safety philosophy: ProVia brake pads are validated according to ECE-R90 standards.

In addition our brake pads also undergo diverse additional tests to guarantee their quality and safety. We are therefore able to ensure reliable braking performance combined with satisfactory lifetime and highest safety standards at a reasonable price.”

During development extensive computational and simulation testing is conducted on the parts. Colpron admits that with budget parts there will always be compromises, namely shorter lifespans than the OE-quality of the higther premium WABCO range, but ProVia does not compromise on safety and quality.

“Safety and reliability of is crucial to ensure overall road safety and avoid unnecessary vehicle downtimes,” he says.

“Ensuring the safety, efficiency and reliability of all parts is in the brand’s DNA. We

46 TRUCK&FLEET ME MAY 2017

WabCo did extensive market research and identified a gap in the market for budget spare parts in the aftermarket segment: a solution for those who cannot afford original spare parts, but want consistent, safe and reliable products with a clear payback”

strongly believe in our responsibility to protect customers against potential parts of questionable reliability and quality. For example, we are helping our customers to identify genuine WABCO parts easily, with a dedicated packaging. With a quick glance at the PrioSpot® code and by using the simple online tool to verify the unique serial number, you can be always assured that you are using a WABCO Original product.

“In addition, we inform workshops and fleet operators about the added value and advantages of our products through various channels, like our website, product brochures and seminars / trainings. But if customers are not willing to pay for such OE parts, we now offer with ProVia a low budget alternative.

By buying ProVia customers can be sure that their spare parts come from a reliable source, ensuring high quality and safety.”

Distribution for ProVia in the GCC and African region is covered by WABCO’s distribution centre in Dubai. Customers also have access to the company’s skilled team of sales and engineering experts.

“This enables us to be close the local market – not only in terms of sales but also when it comes to after sales support.

We have a strong technical support team which helps our customers to install our spare parts and gives them sound advice.”

Despite a background in serving the industry’s global manufacturers, he says ProVia is firmly pitched at the budget buyer. “We try to be as competitive as possible versus today’s price standards and we believe that we are competitive in this given segment, driven also by the differentiation in our focus on safety, quality and a clear pay-back for our customers.”

WhY AutOMeChAnikA DuBAi 2017 is iMpOrtAnt fOr prOViA The GCC region has become a very attractive market for transport and logistics in the last years.

As the oil price is declining, the region is looking for new ways to grow, for example with a stronger focus on tourism.

In the next years there will be a significant number of big events in the region, including the Expo Dubai 2020 and the Qatar 2022 FIFA World Cup. These events are connected to giant infrastructural projects which result in a higher demand for transport and logistics. Our role is to support the transport and logistics companies in the region to reduce the downtimes of fleets and to maximize their efficiency.

As the Automechanika series of events is known as one of the automotive service industry’s leading trade fairs, the event in Dubai 2017 is the perfect place to get in direct contact with the industry and to show them how we can support their needs and help them to address the infrastructural challenges.

ProVia will exhibit together with WABCO in hall 2, booth A32. Besides ProVia spare parts, visitors can experience WABCO’s whole range of technologies and services in the aftermarket that improve the safety, efficiency and connectivity of commercial vehicles.

The Big Project Me Awards has become an important annual event to attend. Over the years, we have witnessed the efforts from the organiser to promote the best projects in the region and recognise the efforts and achievements of the contractors. I wish that the event will become even more successful!

YU TAO

PRESIDENT & CEO

CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (MIDDLE EAST) (L.L.C.)

27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com

PARTING SHOT

Al QASSimi mAkeS hiStory

Emirati ends 25-year wait for an FIA winner

SUPREME IN THE SANd Sheikh Khalid Al Qassimi proved to be a master on the dunes of the Abu Dhabi Desert Challenge, an official statge of the FIA Championship.

S

heikh Khalid Al Qassimi has made history after steering his Peugeot 3008DJR to the winner’s podium of the third round of the 2017 FIA Cross Country Rally World Cup. The UAE’s most celebrated racing driver behind the wheel, Sheikh Khalid bin Faisal Al Qassimi claimed an historic overall victory on the third round of 2017 FIA Cross Country Rally World Cup. His Peugeot 3008DKR scorched to the best time on the fifth and final stage of the Abu Dhabi Desert Challenge.

An official driver of Peugeot Sport, Sheikh Khalid excelled during racing on the dunes of the Abu Dhabi Desert Challenge aboard his 3008DKR – which is run by PH Sport.

Edging an epic last stage win with a steady

pace, he pulled through five days of intense action and 1.324km of timed sections with the overall best time of 19 hours, 16 minutes.

Mohammed Mattar may have won the race fback in 1991-92 when the event was known as the UAE Desert Challenge but the victory is the first time an Emirati has won the Abu Dhabi Desert Challenge since it was made an official round of the FIA Cross Country Rallies World Cup in 2009.

The victory meant Sheikh Khalid and the Peugeot 3008DKR took the lead of the general classification of the FIA Championship with 85 points.

The new PEUGEOT 3008 DKR, inspired by the series car the SUV Peugeot 3008, dominated the gruelling 2017 Dakar Rally

that took place in South America last January.

There, Team Peugeot Total scored a one-twothree podium finish in the famous race.

Cedric Zayoun, managing director of the GCC region at PSA Group, stressed the Group’s keenness to support motorsport in the region and to take part in different rallies, especially the Abu Dhabi Desert Challenge, that has become a mainstay on the international motorsport calendar.

He said: ‘’We would like to congratulate Sheikh Khalid bin Faisal Al Qassimi on the occasion of his admired win at the Abu Dhabi Desert Challenge. We are very proud of him as PEUGEOT SPORT’s official driver, who is always eager to reflect the brand’s image at its best.”

NEXT ISSUE: AUTOMEcHANIkA dUbAI REvIEw, FlIPPING THROUGH TRAIlERS, NEw OIlS ANd lUbRIcANTS, PROTEcTING YOUR RESIdUAl vAlUE, AUcTIONS ANd MUcH MORE!

48 TRUCK&FLEET ME MAY 2017