VEHICLES/ TECH / TRANSPORTATION/LOGISTICS
O82/JANUARY 2O21
MIDDLE EAST
LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y
T S U J E V A H S D R A D N A T S
D E S I A R N E E B to E A U e h t n i ives r r a 5 o r u E t er n a C O S U F The t, n e i c fi f e e r mo s t e e fl e k a m r e f a s d n a r cleane
A R E A R R E X-T UNVEILS THE NEW
NISSAN ERR A 2021 -T X E R E H G O -A N Y W
Volvo fmX a Construction Giant Our toughest, strongest, most robust truck. Capable of transporting large loads in rough conditions without getting bogged down. And a secure and comfortable workplace for drivers - ensuring productivity and safety. Introducing the Volvo FMX with 52 Ton Gross Vehicle Weight, most suitable truck for construction assignments. Biggest in the region equipped with unique designed Hardox tipper body for heavier loads. The Volvo FMX is designed to help you get the job done. Minimum downtime. Minimal delays. For more information please visit volvotrucks.com/FMX
Al-Futtaim Auto & Machinery Co. LLC, Dubai: +971 4 213 5100 Dubai Investments Park: +971 4 815 4800 Abu Dhabi: +971 2 502 9100 Ras Al-Khaimah: +971 7221 6120 e-mail: famco@alfuttaim.ae, https://www.famcouae.com/
CONTENTS
CONTENTS FEATURE
20 / MAKING THE STEP UP FOR LCVS The new Fuso Canter takes UAE fleets into the Euro 5 era but keeps its performance and reliability.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH
06
10
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20
26
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Sustainable transporters and fleets call for The Red Sea Project in Saudi Arabia. LAUNCHES
10 / THE NEW X-TERRA This month’s launches includes Nissan’s 2021 X-Terra, as well as the new Jaguar F-Pace. INTERVIEW
16 / A TIERED APPROACH T&FME talks to mobility pioneer TIER about its hopes for its new partnership with Dubai’s all-important RTA. MARKET ANALYSIS
20 / BODY MOVEMENTS Experts discuss the slow collision caused by the digitalisation of insurance and bodyshops. OPINION
26 / GOING DIGITAL What are the challenges of taking your organisation into the digital space? TECHNOLOGY
28 / HYDROGEN EXPLOSION Deloitte looks at why hydrogen could prove to be the most viable fleet fuel of all. PARTING SHOT
32 / TESLA TOPS OUT Can Elon Musk use Tesla’s rise to the top of the auto industry as a force for change?
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JANUARY 2021 01
NETWORK
GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDITORIAL
TOUCH-LESS DOESN’T MEAN OUT OF TOUCH I don’t know about you but I’m looking forward to a little less screen time this year. If the positive reports about the coming vaccines for the Coronavirus hold true, then we can hope to see a return to some sort of a new and maybe a bit of the old normality in 2021. Hopefully this means we will be able to venture out more and more in both our home and work lives. Obviously, the fleet and transportation sectors are already out there, so to speak, but there is no doubt that other areas of the economy haven’t been as fortunate. And certainly not at the levels we have seen before. In fact, they may never be. Looking at the automotive industry with the keen eye that I have to apply, there has certainly been a huge change in the way that internal teams and those within the supply chain collaborate and integrate. Last month, we looked at how Volvo Cars used virtual technology and remote working tools during 2020 and we have a few more glaring examples in this issue of how we are becoming much more of a touch-less industry, such as Bridgestone and Lamborghini leaning into virtual development to hone the design of the new
Huracán’s tyres. There is also in-depth coverage of a fascinating discussion between insurers and bodyshop owners, courtesy of Automechanika’s series of webinars, which shows how the latter’s businesses are being left behind by technology. For me, this raises the issue of how far down this road do we want to go? If technology is enabling us to create a safer and better industry then that is a good thing. Likewise, if this is what the consumer or enduser wants then it must be embraced. However, I still don’t believe they want to only deal with companies through apps or online portals. In some ways, this industry is lucky. It’s a service provider that must deliver the personal touch at some point of its business. And it seems to me, that the more we push people into our digital outlets, the more we need to understand if we are delivering the right service. I’m not suggesting you dig for feedback at every opportunity, particularly if it interrupts a 5-star shuttle service or a last minute on-site delivery, but as managers and business owners, if you don’t do it, there is a risk that you can lose touch with what made you successful in the first place.
EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERTISING SALES MANAGER BRIAN FERNANDES brian.fernandes@cpitrademedia.com +971 4 375 5479 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE ACCOUNTS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 CREDIT CONTROL EXECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 FOUNDER DOMINIC DE SOUSA (1959-2015)
The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Printwell Printing Press LLC.
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CONSTRUCTION
TOP FIVE TIPS TO KEEP YOUR CONSTRUCTION SITE CLEAN
AECOM to build The Red Sea Project airport
It is so important that we clean up after ourselves. I’ve spent many years trawling around construction sites across the globe and it has never ceased to amaze me that
INFRASTRUCTURE
there are still contractors
Emicool revises fuel surcharge across district cooling plants
that take far too many risks – especially with keeping their sites clear and tidy. I am a big believer that the cleanliness is the
ANALYSIS: Oman’s construction sector could fall by 5.8% in 2021
first principle of safety on site – so this guide to me is well-overdue (Top five tips
to keep your construction
FLEET
site clean, posted 14/12 on
Evoteq announces deployment of smart surveillance system at Bee’ah landfill
MECN). Obviously, there is a reason why all of us have spent countless hours in meetings being told what to do and what not to do when we are on site; but tidying and cleaning during the day seems to be left up to enlightened self-interest,
MACHINERY
rather than be drilled into
Caterpillar announces first appearance at Consumer Electronics Show
workers. Construction and building sites are never going to be completely clutter-free but it is vital that pathways are kept clear and we minimise the amount of scrap around us. This will help minimise injuries but also save so
CONSULTANT
Eltizam signs $100 million agreement with Egypt-based real estate developer
04 JANUARY 2021
ANALYSIS: How Abu Dhabi is unlocking the power of PPPs
much time in the long run. Name withheld by request
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NETWORK
CALL FOR SUSTAINABLE TRANSPORTERS FOR SAUDI ECO-PROJECT / ASTON MARTIN GETS 5 STAR TREATMENT FROM ESMA / AL WEGDANIYAH SWITCHES TO BIOFUELS
NETWORK
State-of-the-art transportation wanted for eco-super project MOTT MACDONALD TO PROVIDE CONSULTANCY SERVICES TO DETERMINE THE OPTIMAL SUSTAINABLE VEHICLE AND FLEET CONFIGURATION AT THE RED SEA PROJECT IN KSA FLEET Providers of sustainable transport and tourism services and solutions are set to be given a boost in Saudi Arabia after The Red Sea Development Company (TRSDC) formally appointed global engineering firm Mott MacDonald to provide consultancy services to determine the optimal sustainable vehicle and fleet configuration at the destination. The developer of the world’s most ambitious regenerative tourism project said vehicle fleet to be assessed includes e-bikes, golf buggies, cars, vans, trucks,
buses, seaplanes, helicopters, VTOL, passenger ferries, boats, maintenance vehicles, airside vehicles and even offroad leisure pursuit vehicles Mott MacDonald will be tasked with delivering a comprehensive and robust analysis of the total land, sea and air transport needs for the development and operation of the 28,000km² site, from its opening in 2022 to its completion in 2030. This will involve a strategy for destination-wide clean mobility using electric and hydrogen vehicles, boats and
aircrafts. Mott MacDonald will also propose the best fleet propulsion systems from a range of available sustainable options. “We believe that environmental regeneration and commercial development do not have to be mutually exclusive. Our destination is one of extraordinary natural beauty, which we have a responsibility to protect and enhance for future generations,” said John Pagano, CEO of TRSDC. The company will also be required to identify the most appropriate supporting infrastructure, such as electric and
hydrogen vehicle charging stations, in line with TRSDC’s ambitions to power the destination with 100 percent renewable energy. Mott MacDonald will also propose the best fleet propulsion systems from a range of available sustainable options. Chris Seymour, Middle East Managing Director at Mott MacDonald, said: “At Mott MacDonald, we embed the key aspects of sustainable development into all our projects and business activities. Sustainable development is a matter of making choices and decisions that satisfy all.”
BY 2030, THE RED SEA PROJECT WILL INCLUDE 50 HOTELS, 8,000 ROOMS AND 1,300 RESIDENTIAL PROPERTIES ACROSS 22 ISLANDS
06 JANUARY 2021
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NETWORK
ENOC CONTINUES EXPANSION INTO AJMAN FUEL RETAILERS
ESMA RATES ASTON MARTIN DUBAI SC WITH 5-STARS AFTERSALES
Aston Martin’s exclusive dealer in the UAE has had its dedicated service centre for the famous brand certified with a 5-star rating from the Emirates Standardization and Metrology Authority (ESMA), the UAE’s standardisation body. During the process, Pegasus Automotive Group UAE said ESMA assessed its operation according to the country’s national standards. Pegasus Automotive Group UAE added that the rating it has received from ESMA provides further assurance that service centre conforms to the government regulations and quality standards of the UAE in terms of providing professional services and customer experience. “We are highly pleased for the highest rating awarded by ESMA to Aston Martin Dubai’s Service Centre,” said Dr Saeed Dana, managing director, Pegasus Automotive Group. “As the exclusive dealer of a prestigious brand, Aston Martin’s accreditation is testament to Pegasus Automotive Group’s commitment to maintain the brand’s reputation and quality of aftersales care services for our discerning customers who expect nothing less. “We ensure that highly specialised engineers, trained and qualified staff, and technicians look after our customers’ precious investments, while meeting international standards.” Located in Al Quoz Industrial Area 1, the Aston Martin Dubai Service Centre is the only certified body shop in the Middle East to structure body repair and chassis for the luxury brand.
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ENOC Group has opened its new service station in Al Tallah Road in Ajman, bringing the total number of ENOC’s service stations to four in Ajman and 148 across the UAE. According to a statement from ENOC Group, the new service station is equipped with five bridge canopies, 10 multimedia fuel dispensers and five fuel tanks with a capacity of 15,000 imperial gallons. It is also powered with stage two vapour recovery systems to reduce emissions while the fuel is stored into storage tanks and during refuelling of vehicles. It is powered with a fully automated fuel system with auto tank gauging as well as an electronic leak detection system, the statement added.
Al Tallah road is a densely populated area and is also a key route that leads to the E311 highway, and the new service station will cater to the residents of Ajman as well as commuters travelling from neighbouring emirates. Saif Humaid Al Falasi, group CEO of ENOC, said: “As we conclude the
year 2020, we remain committed to develop robust retail infrastructure and support the government’s aspirations towards the next 50 years . This is reflected in our expansion plans across Dubai, Ajman and Northern Emirates. The new service station is a testament to our efforts to support the economic growth of the Emirate.”
AL WEGDANIYAH TRANSPORT SOLUTIONS BUS FLEET SWITCHING TO NEUTRAL FUELS BIOFUEL FLEET UAE-based operation Al Wegdaniyah Transport Solutions is set to switch its bus fleet to biofuel supplied by Neutral Fuels. Al Wegdaniyah owns a large private fleet and has been providing corporate rental and leasing services for over a decade in the UAE, including staff transportation services and shuttles for Emirates Airlines and shopping malls such as Nakheel Mall and The Pointe. It also serves a range of hotels including the Palazzo Versace and Jood Palace and says the move will continue its
push to lower its emissions. “We maintain our leadership position by adopting the latest technologies, not just in our vehicles but in our operations too,” said Mohamed Lashin, general manager, Al Wegdaniyah Transport Solutions. “In this case, we’ll be using a very modern fuel to support our client’s wishes to reduce the carbon footprint of their road operations.” Al Wegdaniyah’s new supplier Neutral Fuels was recently recognised as the winner of the 2020 ADIPEC Company of the Year Award in ‘the Solutions to Climate
Change’. It is regarded as a pioneer in the provision of biofuel in the UAE helping fleets to make the transition from traditional diesel engines. Neutral Fuels’ CEO Karl Feilder commented that Al Wegdaniyah was to be: “admired for its carbonsaving initiatives. They have put many initiatives in place to reduce the road transport carbon footprint of their clients.These include using more fuel-efficient vehicles, optimising trip planning to reduce the number of routes and empty trips, and teaching fuel efficient driving practices.”
JANUARY 2021 07
NETWORK
MITSUBISHI MEA APPOINTS NEW PRESIDENT RETAIL
Mitsubishi Motors Corporation has appointment Yutaka Yano as its new president of Mitsubishi Motors Middle East and Africa. Yano will be looking after the GCC, Levante and Africa regions and will be based in Dubai, UAE, confirmed the company in statement. The experienced automotive executive has spent over 28 years of his career with Mitsubishi Motors Corporation. His rich industry experience spans across several European and Middle Eastern markets, said the auto giant.
“The Middle East is a crucial region for Mitsubishi Motors, and I look forward to working with such dynamic markets that
represent a promising platform for growth,” commented Yutaka Yano. “Mitsubishi Motors’ track record of producing quality vehicles will help us tremendously during these unprecedented times. Since the pandemic started, we have gone above and beyond to ensure we adapt to the new normal and cater to our customers’ needs across the region.” Before assuming the President role in the Middle East, Yano was General Manager for the Middle East department at Mitsubishi Motors Corporation in Tokyo, Japan.
AL FARIS-GOLDHOFER MARK LONGSTANDING PARTNERSHIP TRANSPORTATION Middle East heavy lifting and transport services provider Al Faris has marked 12 year of its association with Goldhofer, the global manufacturer of land transport modules such as low beds, axles and self-propelled modular transporters (SPMT). Goldhofer said that Al Faris has been relying on flexible Goldhofer solutions in the form of low loader semi-trailers and heavy-duty modules for 12 years now, to deliver heavy construction machinery and generators, long components, outsized vessels, and even ships and ship-loaders to their destinations. It quoted Hillary Pinto, founder of the Al Faris
Group, as saying: “Whatever type of vehicle involved – low loader semi-trailers or towed or self-propelled heavyduty modules – the flexible configurations available with Goldhofer put us in a position to provide a rapid response with reliable transportation solutions for our customers and to implement them quickly and economically.” In the course of its close partnership with Goldhofer, Al Faris has handled almost everything that is long, high, heavy and voluminous in the petrochemical, construction, oil & gas and manufacturing industries. Goldhofer said that in the last several months
to a year, this includes the transport of 19 oversized separator vessels over a distance of 150km to a crude oil production facility in Abu Dhabi, as well as the transport of extremely heavy ship loader and bucket wheel stacker components to Dubai’s Jebel Ali port for onward shipment to the Canadian Baffin Islands. Al Faris recently transported a tugboat and pontoons over a distance of 140km to the Hatta Dam in Dubai, where an environmentally friendly pumped storage hydropower plant is being built. The route involved several narrow passages as well as overhangs and power lines.
DRONES CONTROL VEHICLE ACCESS TO AL SAJAA LANDFILL SITE WASTE MANAGEMENT
Evoteq has deployed its AI-powered smart surveillance system comprising over 90 smart cameras at Bee’ah’s Al Sajaa landfill. The Evoteq Smart Surveillance system is said to set a new standard in facility security management with advanced capabilities and includes a network of AI-enabled and thermal detection smart cameras, next-generation machine learning algorithms and an autonomous drone system. Jihad Tayara, CEO of Evoteq said the firm has deployed a network of smart cameras including license plate reading cameras at entrance and exit points that only allow access to approved vehicles; thermal cameras installed at high-importance zones that detect anomalies in temperatures, and AI-powered thermal and motion detection cameras that offer 360 degreesurveillance of vast areas that are all remotely connected to a control centre. The solution uses real-time monitoring; identifying and analysing potential hazards before they escalate. Landfill sites have several unique security requirements, from controlling site access and securing sophisticated machinery to monitoring environmental variables and ignition points among others. The system acts as a replacement for the traditional security approach of utilising CCTV cameras and patrols through the use of its smart cameras.
INSIDE THIS ISSUE: THE NEW CANTER SETS NEW BAR FOR UAE LCVS, SPECIAL INTERVIEW WITH RTA MOBILITY PARTNER TIER, AND MORE!
08 JANUARY 2021
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NETWORK
CNH APPOINTS NEW CEO TO LEAD ON-HIGHWAY SELL-OFF OEMS
CNH Industrial, the owner of brands such as Case Construction Equipment, New Holland, Iveco and FPT, has announced the appointment of Scott W. Wine as its new chief executive officer, effective January 4, next year. Announcing the new CEO appointment in a statement, CNH Industrial said that as a “proven leader with considerable international experience across a variety of industries, Wine has a track record of producing exceptional results”. Wine joins CNH Industrial from North American company Polaris Inc. where he was CEO since 2008 and chairman and CEO since 2013. Polaris is a major player in all-terrain vehicles, motorcycles and industrial products segments with several globally recognised brands. The CNH Industrial statement added that Prior to joining Polaris, Wine held executive positions with United Technologies Corporation, Danaher Corp. and Allied Signal Corp., which became Honeywell International, Inc. after a 1999 merger. He also served as a United States naval officer. Wine brings extensive expertise in mergers and acquisitions in the USA, Europe and Asia. Suzanne Heywood, chair and acting CEO, CNH Industrial, said: “The Board is delighted at the appointment of Scott Wine, given his broad industrial experience and strategic expertise. Scott is committed to delivering the strategy that the company outlined at its Capital Markets Day in 2019, including the plan to spin-off its on-highway activities.” meconstructionnews.com
HYUNDAI’S S-A1 FLYING TAXI DROPS INTO GITEX E-MOBILITY Hyundai Motor Group’s air taxi concept vehicle, the S-A1, dropped into GITEX Technology Week last month. Hyundai Motor Group was invited to showcase a full scale, all-electric model at the event after the gamechanging technology was named on Etisalat’s ‘Best Innovations in 2020’ list. The display also featured
a virtual reality zone that illustrated how Hyundai Motor Group’s Urban Air Mobility (UAM) vision will ‘help reduce passenger commute times and relieve congested ground transportation’. “Hyundai is developing core technologies that will establish it as the driving force behind Urban Air Mobility, offering a new and affordable transportation paradigm,” said
Jaiwon Shin, EVP and head of Urban Air Mobility Division, Hyundai Motor Group. According to the South Korean firm, UAM is expected to become a critically important component of integrated mobility solutions as “cities worldwide continue to grow, with the world population projected to reach 9.7 billion in 2050 — two-thirds of which will live in urban areas.”
ROUTE 2020 BEGINS SERVICE IN CRUCIAL YEAR TRANSPORTATION
The extension of the Dubai Metro line, Route 2020, begins commercial operations this month, Dubai’s Roads and Transport Authority (RTA) has announced. The route runs from Jebel Ali station to the Expo 2020 station. According to a statement from the RTA, the initial operational phase will cover four stations; Jebel Ali
(interchange station), The Gardens, Discovery Gardens, and Al Furjan, with the remaining three stations scheduled to open later in 2021. Mattar Mohammed Al Tayer, director-general, chairman of the Board of Executive Directors of the RTA, said the opening of Route 2020 follows the successful completion of four operational tests and trials. The tests included a static test of
metro carriages and systems, the test of the rolling stock without passengers, an operational trial to check system reliability and stability, and operational trials carried out by the operator of the metro service to verify the readiness before the start of commercial service. The journey on Route 2020 starts from Jebel Ali Station to Al Furjan Station and takes about six minutes to cover the distance “The service frequency (headway) will be 10 minutes at a rate of six trains per hour. The route can serve 4,176 riders per hour per direction,” explained Al Tayer. The four stations designated to open in January are all elevated stations. The first, Jebel Ali, is an interchange station with the Red Line. It spans 8,800sqm and extends 150m in length and can serve 17,000 riders per hour during peak times and 320,000 riders per day. JANUARY 2021 09
LAUNCHES
NISSAN UNVEILS THE ALL-NEW NISSAN X-TERRA 2021 IN THE MIDDLE EAST / SUPER SPEEDY JAGUAR F-PACE SUV ON ITS WAY
LAUNCHES FUEL CONSCIOUS? 11.4KM/L
Nissan X-Terra 2021 joins Middle East SUV Lineup BOLD DESIGN, SPACIOUS INTERIOR AND ADVANCED TECHNOLOGIES MAKE THE ALL-NEW SUV READY TO GO ANYWHERE – BEYOND BOUNDARIES – SAYS NISSAN Nissan unveiled the all-new Nissan X-Terra 2021 in the Middle East last month via a virtual event. During the presentation it said that the tough yet sophisticated and ‘go-anywhere’ vehicle, which follows its Nissan Next peers the Nissan Ariya and Nissan Z Proto, promises to be an ideal partner for customers seeking exciting outdoor adventures. According to Nissan, the X-Terra is “Built on 70 years of unmatched Nissan SUV expertise, the all-new Nissan X-Terra 2021 reflects the evolution of four-wheel adventure travel and a growing consumer desire for connection. It effortlessly combines impressive strength with bold new design and built-for-comfort roominess. Underlining this is breakthrough
10 JANUARY 2021
engineering and a suite of cuttingedge Nissan Intelligent Mobility (NIM) technologies to offer a superior driving experience and adventure-ready confidence for drivers to explore new places.” The vehicle houses a robust four-wheel drive system, including a four-wheel lock, brake limited slip differential and electronic locking rear differential. While the SUV’s rugged frame has been designed with durability and functionality underneath, it does feature a few flourishes including quad LED projector lamps and a bold new V-motion grille. The revised rear and new LED taillights add to the all-new X-Terra’s athletic look, reflects the Nissan Design team’s dynamic and modern philosophy.
The Japanese giant is also promising the interior will lead its class in interior room and comfort. “At Nissan, we understand the value our customers place on staying connected to the people and places that matter to them – and we are committed to continue driving innovation within our SUV experiences,” added Thierry Sabbagh, managing director, Nissan Middle East. “The all-new Nissan X-Terra 2021 is designed for adventures, with a roomy interior and advanced technologies to ensure safety and comfort, and empowers customers go anywhere, beyond boundaries. “The all-new X-Terra demonstrates how sophistication and ruggedness can co-exist. We are proud to build a product
that offers customers best-inclass riding comfort while also creating a relaxed and quiet setting for togetherness. We believe it will redefine what an SUV in this segment can do, and we are delighted to expand the realm of possibilities for our customers,” Sabbagh continued. “It is a catalyst for new experiences, allowing our customers to connect with the people in their lives, and to confidently ‘Go Anywhere’ together,” explains Ken Lee, Senior Design Director for pickups and frame SUVs. “It is both good for city use, and great for an adventure with family and friends. Developed in line with the “unbreakable” frame vehicles design philosophy, it combines
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LAUNCHES
JAGUAR F-PACE SUV IS FASTER THAN EVER
NEWCOMER HOPES TO BUILD ON THE ORIGINAL F-PACE SVR WHICH HAS GONE ON TO BECOME THE HIGHEST-SELLING JAGUAR SV PRODUCT EVER
FORM AND FUNCTION While it was important to make the all-new Nissan X-Terra look rugged, it was vital that the capability underneath the skin lived up to its design, said Nissan.
FAST BUT ECONOMICAL The X-Terra is the most capable in its class in a number of categories including acceleration, while achieving a competitive fuel economy of 11.4km/L.
masculine solidity with sleek and modern execution.” Styling of the all-new X-Terra was overseen by the Global Design studio in Japan with Nissan designers working for various projects side by side “allowing them to inspire one another.” Nissan admits that vehicle is intended as a smaller sibling to the all-conquering Patrol. Having said that, at
4.9m in length, 1.9m in height and just over 2.1m in width – with a ground clearance of 243 mm – the X-Terra is a sizeable road-hog in its own right, even if it does borrows some design elements from the Patrol, such as its front face and new V-motion grille (repleat with signatory thick frame “contrasting with the refined horizontal chrome bars within”).
Jaguar says its new F-PACE SVR is faster than ever and features a motorsportinspired exterior design, a luxurious interior and the latest connected technologies. Jaguar SV has refined the F-PACE flagship with a range of enhancements, providing sharper responses and heightened composure to accompany the latest Pivi Pro infotainment and connectivity technologies available across the rest of the performance SUV line-up. The new F-PACE SVR is available exclusively with Jaguar’s 550PS 5.0-litre V8 Supercharged petrol engine, now with 700Nm torque – an increase of 20Nm. This uplift in torque delivers enhanced performance, with the F-PACE SVR capable of 0-60mph in 3.8 seconds (0-100km/h in 4.0 seconds), three-tenths of a second faster than before, and a top speed of 178mph (286km/h), an increase of 2mph. The powertrain now features the same torque converter used in the record-breaking Jaguar XE SV Project 8 sedan, to withstand the higher loads produced. As well as the improved torque and acceleration, CO2 emissions are also reduced from 281g/km to 275g/km with fuel economy now up to 23.1mpg (12.2l/100km). Enabled by Jaguar’s advanced new Electronic Vehicle Architecture, dubbed
EVA 2.0, the transmission and dynamics systems have also benefitted from incremental tweaks. The uprated Dynamic mode features unique tuning, delivering a focused and honed driving experience. Jaguar SV’s engineers have recalibrated the software to provide sharper throttle response, stiffen the suspension set up, optimise steering weighting and enhance the exhaust mapping. A new Dynamic Launch feature also uses driveline inertia to maintain power to the wheels during gear changes, contributing to the SVR’s sharper acceleration from a standstill. The 5.0-litre V8 Supercharged petrol engine is paired with Jaguar’s ultraresponsive, smooth-shifting eight-speed automatic transmission which delivers rapid gearshifts for effortless performance, while adapting the way power is delivered to suit the driving situations. SPECIFICATIONS Engine
5.0l, V8
Power
550PS
Torque
700Nm
0-60mph
3.8 seconds
CO2 emissions 275g/km Fuel economy 12.2l/100km
FASTER THAN EVER 178MPH TOP SPEED
SPECIFICATIONS Engine
2.5l, 4cyl
Power
165hp
Torque
241Nm
Fuel economy
11.4km/l
Cost
$27,200 exclusive of VAT
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JANUARY 2021 11
FEATURE
THE NEXT STEP
The FUSO Canter Euro 5 could be ideal for UAE fleets wanting a fuel efficient, safe and environmentally friendly vehicle
E
ver since the UAE took a lead in GCC emission regulation in 2018, the country has become a major destination for vehicle launches for commercial vehicles fleets that are far closer to what is currently available in other markets. That stepchange has also coincided with a shift in focus to lighter vehicles in the Gulf state as the market experiences a boom in e-commerce and last mile deliveries. The time is right, then, for vehicles that can achieve the more demanding requirements of Euro 5 12 JANUARY 2021
while opening up exciting new business possibilities for fleets in the UAE. Leading the way is the new FUSO Canter range which made its debut at a special event hosted by Al Habtoor Motors and Daimler Commercial Vehicles MENA in Dubai last month. It is the first series production LCV (light commercial vehicle) in its class to be officially available in the GCC. “The FUSO Canter in Euro 5 is the first truck offered for sale in this segment in the UAE. The truck is overachieving the legally compulsory Euro 4 emission norm mandated in the UAE,” explains Olaf
The Canter Euro 5 has the best fuel consumption in its class”
Petersen, General Manager, Daimler Trucks Sales, Daimler Commercial Vehicles MENA FZE. “By introducing the Euro 5 engine, we are offering customers the latest technology for the available fuel in the UAE. This enables our customers to reduce their CO2 footprint and benefit from the lower fuel consumption, and thus a more profitable business.” The FUSO Canter is produced by Mitsubishi Fuso Trucks and Bus Corporation (MFTBC) of Japan at its world-famous Kawasaki plant. Since the introduction of the Canter in 1963, more than 3.5 million units of the vehicle meconstructionnews.com
FEATURE
have been produced; making it the bestselling truck model at Daimler Trucks. Over eight different model generations, Canter has continued to build a reputation for overall economy and is highly popular in the region’s light-duty truck segment. The vehicles in the latest range to hit the UAE all feature a robust and durable design, a wide selection of models, as well as low fuel consumption and improved payload. The result is a vehicle that offers fleet’s choice without compromising outstanding performance. “The new generation is cleaner and more fuel-efficient than previous models and provides the highest eco-friendliness. It offers maximum efficiency with reduced fuel consumption compared to previous generations,” says Petersen, adding that this is very much a product bringing the best of global knowhow and experience to the UAE commercial vehicle buyer. He says that while the new vehicle range arrives in the UAE having proven its reliability and efficiency throughout the world – and in many different countries – fleet buyers can further rely on proven fuel economy data from regional trials and tests ahead of the launch. Petersen explains to T&FME that during the FUSO Fuel Challenge 2020 programme held last year in the UAE, the Euro 5 emission engine proved that it can still continue to deliver less CO2 and NOx emissions, even in the toughest conditions; resulting in a reduced carbon footprint. This, he enthuses, is a new Canter that far-exceeds the current government mandate of Euro 4. “The results from the fuel test – which was performed in September with six other comparable vehicles – demonstrates that the Canter Euro 5 has the best fuel consumption in its class, and can achieve fuel savings of up to 14% compared to other competitors following the Euro 4 emission norms,” he remarks. “The Euro 5 engines overfulfill the UAE’s emission laws.” Petersen told the media during the vehicle’s Dubai launch event in December that the Euro 5 certification means that the fitted Diesel Particulate Filter (DPF) filters and Exhaust Gas Recirculation (EGR) systems are far simpler to maintain than the after-treatment systems required at Euro 6 and upwards. By achieving Euro 5 the new FUSO Canter can cover all the key segments for light-duty trucks meconstructionnews.com
KEY BENEFITS OF THE NEW FUSO CANTER EURO 5 • Full portfolio and configurations • Cleaner emissions • Outstanding vehicle performance • Latest safety systems
• Comfort features • Best fuel consumption in its class • High quality aftersales support • AMT coming in 2021
in the UAE – and still remain costeffective over years of hard work. In many ways, the Euro 5 standard is currently the best of all worlds for fleets using traditional fuels.In all models, the Euro 5 emission norm is achieved through an EGR system and DPF. Beyond the demands of Euro 5, several other modifications have been implemented into a newly designed common-rail 4P10 engine. With a CC rating of 2,998cc or 3.0l, the inline 4-cylinder power unit delivers two engine outputs with 96 kW (130 ps) and 110 kW (150 ps). Both engines offer a flat torque curve with 300Nm and 370Nm at 1,300rpm and 1,320rpm respectively. The settings applied by FUSO ensure a higher torque engine with lower RPM
PROTECTING FLEETS AND DRIVERS The new Canter focuses on economy with lower fuel consumption and higher payloads. It is also packed with state-ofthe-art safety features including ABS and EBD (Electronic Brake Force Distribution).
PROVEN RELIABILITY The new FUSO Canter Euro 5 arrives in the UAE having proven its reliability globally. Using a higher torque engine with lower RPM ensures lesser strain on the engine and an overall longer engine life.
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TESTED IN THE REGION The FUSO Canter passed rigorous testing in the region ahead of its UAE launch (pictured). During special fuel trials held in Dubai last year, it had the lowest fuel consumption in its class.
which, in turn, ensures less strain on the engine and an overall longer engine life. LCVs are an increasingly desirable option for fleet buyers looking for performance and power to suit their requirements and also flexibility. With the new FUSO Canter, your choice goes beyond the engines to two different axle configurations of 4x2 and 4x4 and a wide range of permissible gross vehicle weights ranging from 5.7 tons to 8.55 tons. There are also three different cab configurations available: the streamlined standard narrow cabin, which is just 1,695 mm wide and suitable for use in restricted spaces; and the comfortable wide cabin, measuring 1,995 mm in width. In addition, the wide cabin is also available with a crew cabin option (named the Wide Double) - fitting up to seven persons. Other special features of the new FUSO Canter Euro 5 range include the variant with manually selectable all-wheel drive with a permissible gross vehicle weight of up to 6.0 tons, a 1,995mm comfortable wide cabin and an engine output of 110 kW (150 ps). The all-wheel drive can be engaged whenever required; the Canter 4x4 includes the standard-fit engageable reduction gear. This reduces the maximum speed in the respective gears by a factor of 1.987 and also increases traction by this amount. The crew cabin option will also be available on the 4x4 model. More options for fleets are planned too. Currently, the range is limited to a 5-speed manual transmission, however, a 6-speed automated manual transmission 14 JANUARY 2021
The new generation is cleaner and more fuelefficient than previous models”
(AMT) will soon be launched for the new range in the 6.5 tons weight variant of the Canter. This could be a major plus for drivers and fleet owners largely operating on stop-start urban routes. The brands under the Daimler Commercial Vehicles’ umbrella are expected to meet stringent safety standards and the new range offers a number of systems which take the FUSO Canter beyond most of the vehicles in its class in the UAE. Headlining the safety technologies installed into the Canter Euro 5 range are the ABS (Antilock Braking System), EBD (Electronic Brake Force Distribution) and BOS (Brake Override System) features. Safety is also enhanced with the use of driver and codriver airbags, tubeless tyres and much more, including a standard braking system which is equipped with disc brakes on both axles. This guarantees “superior braking performance and heat dissipation under continuous heavy braking.” The Canters with the highest GVW and 4x4 configurations are equipped with drum brakes on both axles. The standard Exhaust Brake System (EBS) valve is fitted on the turbo charger outlet. This system uses the vehicle exhaust gas to create a backpressure to slow down the engine, enabling wear-free braking. This results in reduced stress on service brakes when driving downhill and, again to the benefit of fleets, reduces maintenance costs of the vehicle.
THE IMPORTANCE OF AFTERSALES As a further help to owners, C.V. Ravin, general manager – sales, Al Habtoor Motors says that Al Habtoor Motors has always focused on building customer confidence by providing FUSO customers not only the best choice of vehicles through its eight showrooms network, but also high quality after sales support through its 11 Parts Outlets and seven Service Centres spread across the UAE. There is also ‘in the field’ backup with two Mobile Service Units as well. Fleets wrapped in Al Habtoor Motors’ aftersales eco-system can benefit from an excellent range of support for drivers and technicians. Fleet customers can access extensive customer training at its Technical Training Center in DIC. It also has a Central Parts Distribution Warehouse in DIC along with two PDI and Logistics Facilities to ensure uninterrupted supply of vehicles as well as spare parts.
EXCEEDING THE NORMS Its Euro 5 engine enables the FUSO Canter to be a cleaner operator in urban environments and overfulfills current emission norms in the UAE.
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FEATURE
CHASING GREEN MOBILITY IN THE UAE Roger Hassan, COO, TIER Mobility says Dubai shares the company’s ambition to ‘change mobility for good’.
A TIERED APPROACH
Roger Hassan, COO, TIER Mobility talks to T&FME about his firm’s e-scooter work with the RTA
16 JANUARY 2021
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A
s start-ups go, TIER Mobility’s e-scooters have some serious backers. SoftBank Vision Fund 2i has just rounded up $250 million in support for the micro mobility provider; bolstering a rank of backers that includes former F1 world champion Nico Rosberg and the UAE state via Abu Dhabi’s influential Mubadala Investment Company. TIER’s mix of app-ordered, affordable, shared technology has marked it out as the leading European firm in its corner of the e-mobility wheelhouse and it is already operating in more than 80 cities across 10 different countries worldwide. Thanks to a new partnership with Dubai’s RTA (Roads and Transport Authority), the Berlin-based company’s ties with the Gulf are set to go deeper than a financial bond with TIER pledging itself to a mission to ‘change mobility for good’. Roger Hassan, COO, TIER Mobility tells T&FME, that TIER wants to support Dubai’s vision in becoming a futuristic, smart and sustainable city. “The history of TIER starts back in October 2018, when we launched our e-scooter service in our first city, Vienna, Austria. We are headquartered in Berlin, Germany, and within the last two years, we have successfully expanded our offer to more than 80 cities across 10 countries worldwide and established ourselves as the European micro-mobility leader,” he begins. “This is owed to our clear and ambitious mission to ‘Change Mobility for Good’ and we are very happy that we can pursue the same goal in the UAE, with our launch in Dubai.” Offering rides priced at 1dhs per minute or on a subscription basis, TIER’s fleet of e-scooters began offering their services in Dubai’s JLT and Mohammed Bin Rashid Boulevard in Downtown in October 2020. One of the charms of the set-up is that the fleet stays out almost continually, with even the replacement of batteries being straightforward enough that it can be done in the field. The service is also paying heed to the extra scrutiny on sanitisation in a post-COVID-19 market. “Especially now during these uncertain times, our service provides a safe, sustainable, and socially distant way to make essential journeys. We are taking extensive precautionary measures, following WHO guidelines as well as the local policies set in place. To increase safety during the meconstructionnews.com
Covid-19 pandemic, we have developed and implemented various key measures for our e-scooter service such as the frequent disinfection of all e-scooter ‘touchpoints’ such as the handlebars or breaks.” Hassan describes TIER as the first and last mile solution to link people with public transport stations, their homes, offices, and retail outlets across the city. “We are the first provider in the UAE to introduce scooters powered by swappable batteries. This innovative technology is a real ecological game-changer and positions us at the industry forefront in terms of sustainability,” he enthuses. “Empty batteries are swapped on-site
Our service provides a safe, sustainable, and socially distant way to make essential journeys”
from the local team, instead of having to transport the e-scooters to warehouses every day back and forth for charging. “Something else that makes us stand out from the crowd is our cutting-edge safety e-scooter features, which include the largest front wheel in the market, a wider footplate, dual suspension, a double kickstand, and dual drum brakes for a safe yet comfortable ride.” As with any city TIER serves, Hassan claims that it is bringing the safest and most advanced e-scooters to the market. He adds that the company is focused on responsible operation and unparalleled standards of sustainability. “Our e-scooters are a complement to A HANDLE ON TRANSPORT The new mode of transport will make urban transport greener, smarter and more convenient for people living around the city of Dubai.
SWAPPABLE BATTERIES E-scooters with swappable battery technology will be deployed in Dubai across different areas such as Jumeirah Lake Towers (JLT) and Mohammed Bin Rashid Boulevard in Downtown.
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existing non-motorised vehicles. Depending on the situation, the optimal emission-free form of mobility can be chosen at a certain moment and for the respective purposes,” he says. “Our service will help reduce the use of cars in Dubai and offer an environmentallyfriendly alternative, whilst enjoying the outdoors and discovering the community.” It feels like the beginning of a mobility, ride-sharing and ride-hailing boom time in the UAE, led by the RTA’s opening up of its service to Careem’s pioneering work in the country. E-scooters offer a compelling last-mile method to link the sprawling communities and districts of a modern city like Dubai. TIER isn’t the first e-scooter entrant, others like Lime Arnab and Skurrt, are already active but, at the moment, the city’s ambitions are large enough to accommodate them all. “Our emergence in the UAE market comes within the larger framework of supporting UAE’s 2021 vision to become a world-leading green and sustainable country. TIER was therefore chosen by the Roads & Transport Authority (RTA) as a micromobility partner to support Dubai on their way to a greener tomorrow and its Smart City Agenda, whilst enriching the city with an additional transportation service to enhance liveability and convenience,” says Hassan. He explains that the current approach in Dubai is to have a selected number of e-scooter spots located at strategic locations around Dubai.
DEALING WITH THE WEATHER “In general, our scooters stay on the road all year round, in Europe as well as the UAE. We are prepared for the fact that during some times of the year – for example,
We are the first provider in the UAE to introduce scooters powered by swappable batteries”
during winter in Europe or summer in the UAE – there will be fewer users than during peak times, but still so many that we can keep operations running regularly.”
“Those spots are non-physical docking-stations and with the help of our technology such as the virtual parking spots, users will be able to park their scooters in an orderly and responsible way within the designated parking zones, which are available and visible in our app,” he says. “This approach has proven to be successful in our current cities of operation, as it is a non-intrusive alternative to enforce parking while reducing the need for physical infrastructure, which is considered costly and clutters the city in the longterm. Downtown Dubai and Jumeirah Lake Towers (JLT), for example, are both high-dense areas in terms of people living
and moving across the city. We are also looking at the possibility of expanding our services to other locations in the future.” Beyond the UAE, TIER is continuing the roll-out of its TIER Energy Network in Europe where local businesses are encouraged to host charging locations with the obvious benefit of bringing to footfall – scoot-fall perhaps – to their own offices, restaurant, café or shop. Hassan describes it as a revolutionary approach to charging infrastructure that, “links residents and stores to create an electrified city, enabling our users to easily swap depleted vehicle batteries for charged ones at a network of charging stations hosted by local businesses such as cafes and convenience stores. This concept is also an integral part of our vision for a successful operational framework in the UAE and the Middle East.” Returning to Dubai, Hassan notes that the Emirate shares this desire to constantly look at new ways to leverage technology and innovations to become a greener, smarter, and a more connected city; particularly as cities become denser and more populated. “E-Mobility projects are being piloted globally at the moment and we have proven that through close collaboration and alignment with all stakeholders in the city which includes city officials as well as residents and other operators, the pilot is a successful opportunity to constantly improve the concept and hence to ensure
A SAFE RIDE TIER’s e-scooters safety features, include the largest front wheel in the market, a wider foot plate, dual suspension, a double kick-stand and dual drum brakes for a safe yet comfortable ride.
18 JANUARY 2021
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the durability of this new transport mode.” He continues “E-mobility as a means of transportation has seen a rise in popularity across Dubai particularly with the introduction of bike and scooters, and now we are stepping-up the game with a more seamless and smart application that allows everyone to use our service with just a few clicks. To rent a TIER e-scooter, users only need to download the TIER mobile app and register. After scanning the QR code on the e-scooter, the ride can start using it immediately. We have witnessed great reception from our initial launch in Dubai and aim to expand to more locations over the coming years.” That expansion will be aided by the now completed Series C funding led by SoftBank Vision Fund. “The round was joined by our existing investors, including UAE-based Mubadala Investment Company’s financial investment arm, Mubadala Capital,” Hassan elaborates. “We were able to raise $250 million and after achieving profitability with our e-scooters, we will use the investment to fully accelerate our ambitious expansion plans into strategic growth markets like the UAE. We want to expand our footprint here – apart from Dubai and Abu Dhabi. Additionally, we will be fast tracking the roll-out of our previously mentioned TIER Energy Network.” While the development of the TIER Energy Network is essential to rapidly reaching a scaled infrastructure, to be
INCREASING TIER MOBILITY’S FOOTPRINT “We are on track to expand our footprint into more cities and countries worldwide. We are profitable and will use additional external investments to accelerate our vision to revolutionise urban transport with innovative new technologies. It is our goal to free cities from cars and pollution by creating a sustainable, seamless, and convenient urban mobility mix. For us, it is all about rethinking public
space and giving it back to the people rather than focusing on cars as was done in the past decades. “With TIER, we want to contribute to this new and future-oriented mobility mix the best we can – with our e-scooters, our e-mopeds, and other electric modes of transport, but we want to do that in conjunction and with close collaborations with public transport companies and other mobility providers.”
successful in the long-term, TIER is going to need to encourage people to use this it. Hassan sets out an approach that relies on making the service as straightforward to use for riders as possible. “In addition to simplifying the use of the service itself, we believe that educating users about the technology, the product, and how to properly use it are just as important,” he says. “When you use our app to rent a scooter, there are a series of non-skippable tutorial screens that help everyone understand the basics about how to use the e-scooter and park the scooters responsibly, as an example. Our experience has shown that this encourages people to try this new form of mobility and overcome their inhibitions. Another thing that is certainly useful here is our subscription models and packages that can be bought in the in-app store, and which provide advantages with regards to the price for commuters and frequent users.” In terms of which demographic those users come from, TIER is keeping its options open. “In general, our customer base is very broad,” he says. “It’s the morning and evening commuter as well as the visitor to a city who wants to explore it in a sustainable way which is also fun! We don’t have a specific age range or demographic that we target more towards to. We want to reach everyone living in a city who are also keen on helping us to ‘Change Mobility for Good’ by using our service and helping to avoid congestion and emissions.”
LINKS ACROSS DUBAI TIER will be the first and last mile connectivity provider to link people with their vehicles, public transport stations, homes, offices and retail outlets across Dubai, providing them with an eco-friendly, safe and accessible approach to avoid traffic whilst enjoying the outdoors.
meconstructionnews.com
JANUARY 2021 19
FEATURE
DEALING WITH THE BODY BLOWS
The worlds of bodyshop and insurance experts collide in a cracking Automechanika debate
T
he COVID-19 pandemic presented serious challenges to bodyshops. While some in the region were forced to close due to local restrictions, others remained open but had to deal new regulations and safety rules in what remains a largely physical occupation. On the other side of the fence are the insurance companies that work alongside them but are also having to make their own transition into the so-called low touch economy, where paperwork and practices become largely digitalised. Frederik Bisbjerg, executive director, Digitalization, Daman National Health 20 JANUARY 2021
Insurance Company, says that everything in the low touch economy has to now be filed digitally: “I think it’s important especially with the way that insurers are working with their partners. Insurance companies and companies in general have become no touch and digital. Either they’ve taken whatever they do – their processes and paperwork – and made scanned copies and PDFs out of it. Basically, saying this is how we work now,” he explains. “Or, and this is more the difficult thing, but also the future-proof way of working, they’ve looked at how we push paper around today (with the approvals, the inspections and all these things) and asked how can we do this smarter? We have to
Everybody is talking about how we can move from the old practices to the new practices”
add digital anyway because we have to we cannot have physical interaction anymore. “And if you start looking at how you can work smarter or differently in the insurance company all of a sudden this reaches out not only to the customers but also to the partners. If we don’t need three approval processes and only one or maybe don’t even need one and can still have some automated rules to do this, you are changing the way your partners work. He continues: “I’m sure many insurer company partners have experienced the insurance company saying hey we used to do this but now we have to do that, and, oh by the way, it is fully digital. It is quite meconstructionnews.com
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an extensive change with the partners because all of a sudden they have to change their processes to accommodate the payer… the insurance company.” According to Bisbjerg, while there are many different barriers to implementation to these two differing approaches, the biggest one is changing the habits that have been entrenched over decades at firms. “They’ve been used to doing the same things for years: this is a paper process and we need a paper signature and this has to be approved by places, and so forth, and, all of a sudden when you digitise things or even start to consider the smartest thing, you also start changing people’s habits. Humans are very tightly connected with our habits. It’s difficult for us to change.” He adds that having IT systems and infrastructure is a second challenge for removing the paperwork from the insurance claims business. “Making sure that your IT systems are capable of coping with the changes is the second art to this,” he affirms. “Many insurers because of their heritage and legacy are old companies. That means that they’re actually running on decades-old IT systems. And this is fine and they are still working, however, when you want to make changes it is a big challenge because everything is interconnected. So, even changing a button on the website may have impacts in the core system that you don’t know….Even these changes require analysis and it may take longer than then you will expect.” Robert Snook, CEO of multi-award winning MSO body shop group CEO says that ultimately changes being made in the leading workshops and body shops are being driven by their customers. “So the leaders are really taking on board what the customers are doing in their lives and thinking we need to follow the same path,” he begins. “This technology already existed before COVID-19, but traditionally insurers and body shops are not very good at change. It’s the customer dissatisfaction with the current process that drives to change. “And as Frederick alluded to, going forward everything is connected to everything. The customers want to be connected to everything but they also want it to be personal to them. The insurers and body shops needed COVID-19 to change our relationships. There aren’t many insurers happy with the way it works with body shops. Not every body meconstructionnews.com
SPARKING INTO LIFE Emerging from the peak of the pandemic, both the repair and insurance sectors have had to change the way they work.
shop is happy with the way it works with insurers. They needed enough pain in terms of the COVID crisis, to overcome their inherent resistance to change.” He pauses a moment to draw a finger to this forehead: “The first step is up here with changing your mindset and your approach and attitude towards needing to change.” According to Snook, there are already clear winners in the race to be digitalised: “The winners are already done that that’s why they’re emerging as the winners.” He continues: “I can tell you, there are a lot of body shops out there that are already achieving some surprising results
When you start to consider the smartest thing, you also start changing people’s habits”
because of COVID-19. They’ve stripped back all that over-processed fleshiness that they built up over the years since the pain of the past serious recession and they have come back to the golden nugget of the idea in the middle…and really started seeing some better performance in terms of lead time, key to key time, the approach with their customers; linking and communicating with their staff. They’ve come back to the core nugget of being a good body shop business. The insurers are seeing a much simpler process. Every time you have a piece of paper or you have an action or a step, someone needs to administer it and it just causes delays for the customer.” “The customer got given the Old World claim management process. They didn’t choose it. They got given it and now we’re starting to reset and give the modern customers what they want which delivers what they get elsewhere in their life.” Digitisation is having a profound effect on the customer experience across the automotive sector. Jihad Faitrouni, CEO, Aman Insurance says it is time for the insurance claim and repair process to be transformed in the region. “Everybody is talking about how we can move from the old practices to the new practices. During my studying at MIT on the artificial intelligence, the first advice from our professor of AI said it is a tools created by people for people. From this definition, we can start thinking about our situation, our
INSURANCE DIGITALISATION RISES AS BODY SHOPS GET LEFT BEHIND Srederik Bisbjerg, executive director, Digitalization, Daman National Health Insurance Company, says that everything in the low touch has to now be filed digitally – but body shops have been slowed to react.
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ONLY WORKS IF YOU WORK TOGETHER MSO CEO Snook believes that insurance and body shops must work together.
BEING POWERED BY THE CUSTOMER Robert Snook says that ultimately changes being made in the leading workshops and bodyshops are being driven by their customers.
IT’S NOT JUST ABOUT TECHNOLOGY Greater digitalisation and its promise of lower premiums will need buy-in from the insurers, to the repairers and down to the consumer.
companies,” he muses. “The game is over. We cannot continue as before. We have to now act with different practices, especially when we talk about the new technology and see the impact of this technology on our business.” Faitrouni uses the example of the health sector, and the way that it has to galvanise both technological and human resources to find a solution for COVID-19 pandemic. The answer he says it’s not always about finding the right technological solution. “It’s all about how can we convince our team and our end-users in order to accept these changes,” he explains. “Because it’s about a combination of parties – the company, the clients and the team – accepting together change.” Aman Insurance witnessed a profound change in attitudes towards digitalisation 22 JANUARY 2021
during the first wave of the COVID-19 pandemic in the UAE with the online business growing from a share of 13% to 45% between March and September. “People are now happy to get everything through online and have no need to spend any time outside the offices or their places because everything is fully integrated through their devices.” He continues: “When we heard about the COVID-19 virus for the first time if felt like it was a movie. But unfortunately this movie became a reality and we have to had act and to see how we can manage to protect ourselves and our team and our clients at the same time clients.” While he recognises that the UAE took a rapid and robust approach to fighting the pandemic, Faitrouni, looks
Insurance and body shops must work together. The insurers are the paymaster and you’ve got to look up to the insurer”
back on the events of the early months with misgivings on how some other governments and sectors reacted. “Before COVID-19, it was a completely different life for everybody. For us as an insurance company, it was like the best of life with no issues. No problems. After COVID-19, things are not as before. We have to think about how we live with it, especially now we are talking about a second wave. Our experience with the first wave was it was very bad with many players and some countries that did not correct their health system. Thankfully, from day one the UAE government decided to take measures to protect our country.” While the health sector has presented Aman Insurance with challenges, this has contrasted with a quieter period for its driver meconstructionnews.com
FEATURE
and car protection operation. Particularly during the quiet stretches of lockdown. The reasons are obvious: “Nobody moved his cars. Nobody move from his home...we have a good loss ratio from the motor business.” Returning to the theme of digitalisation, Daman National Health Insurance Company’s Bisbjerg says he feels that the Middle East collision repair sector must take responsibility for getting itself up to speed with the digitalisation of insurance as well as keep pace with ever-more savvy customers expecting greater choice to drive down the amount they are having to pay for repairs and cover. “This is a pet peeve of mine,” says Bisbjerg. “I’ve said this many times, but when I look at the collision repair body shop business as a whole, they tend to play the victims….like, oh, it’s such a shame that the insurance companies are trying to cheat us and everything is such a big problem and we can do nothing… and I’m very much against this. “It is my honest opinion, that if you want to build a business today and in the future – and you want to have a successful
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TIME TO CHANGE Jihad Faitrouni, CEO, Aman Insurance says it is time for the insurance claim and repair process to be transformed in the region.
Traditionally insurers and body shops are not very good at change”
bodyshop – you have to embrace the facts that this is life. You cannot cry that insurers want to put pressure on prices. “You cannot change it, right? Find ways of partnering with the insurance companies. Find ways of working with their digitalisation and find ways of saying, how can we how can we put our systems together so you can only work with us and be the best body shop in the world for you? This is the mentality that I so much wish we could instill into body shops because the mentality that I’ve that I have faced is
very much…we don’t do anything. We just we just have to be priced pressured by the insurers. A drive from within from body shops who actually want to do digitalisation, has not really been there. I wouldn’t say that that body shops in the Middle East are not that advanced to be honest. I think there is there’s a lot of great opportunities for body shops to partner with insurers and despite the price competition they can build up quite a good and profitable business. But of course, it requires the change in mindset. Speaking from within the body shop sector, Snook interjects: “I’ve always believed and have said this every time that insurance and body shops must work together. The insurers are the paymaster and you’ve got to look up to the insurer. You got to make a deal with the insurer because on the other end you have a customer who is the body shop customer, but at the same time he’s “Stuck in the middle and you’ve got to play the game. You’ve got to move on with the time. Otherwise, you’ll be closing your shop soon, and somebody else will be opening up.”
JANUARY 2021 23
WORKSHOP
AL MASAOOD AND TOTAL SMOOTH DEAL / HURACAN TYRE SUPPLIER REVEALED / PIRELLI PRAISED FOR GREEN INITIATIVES / HYVA LAUNCH
WORKSHOP
Al Masaood TBA and Total tie-up lubricant deal STRATEGIC NEW DISTRIBUTORSHIP AGREEMENT TARGETS SLICKER SERVICE TO CUSTOMERS WITH EXPANDED PRESENCE LUBRICANTS Al Masaood Tyres, Batteries and Accessories (TBA) Division has signed a strategic new distributorship agreement with Total Marketing Middle East (TMME), one of the leading lubricant companies in the GCC region and an affiliate of Total, a global energy major. The agreement was signed between Salah Adib, General Manager, Al Masaood TBA and Karine Singh, Managing Director,
Total Marketing Middle East, in the presence of representatives from both companies. Under the terms of the new partnership, Al Masaood TBA will serve as an official distributor of Total branded lubricants in the Abu Dhabi and Al Ain. The newly signed agreement proves to be very timely and strategic with both parties combining their industry expertise to further expand their presence in the automotive aftersales
COMPLEMENTARY EXPANSION Both Total and Al Masaood claim the deal helps them to strengthen their position in the UAE’s aftersales market.
market in the UAE, declared the firms in a joint-news release. The distributorship agreement will further reinforce the existing partnership that spanned over 20 years between Al Masaood TBA and Total Marketing Middle East. With the new agreement in place, Total Marketing Middle East said it is planning to increase its number of oil change outlets in the UAE “reinforcing its position as one of the market leaders and being able to expand its geographical reach in the country.” Customers are also expected to benefit from the partnership as they will now have better access to premium quality lubricants. Salah Adib, general manager, Al Masaood TBA aded: “It’s a powerful partnership that has remained solid over the years and has identified Total Middle East as one of our most reliable partners for more than two decades. We remain steadfast in our commitment to provide premium products and services to enhance the reputation of our brand and gain the trust of our customers.”
VIRTUAL DEVELOPMENT RESCUES HURACÁN STO TYRES TYRES
Bridgestone has been revealed as the official tyre supplier for the Lamborghini Lamborghini Huracán STO ahead of the new supersports car 2021 debut. Bridgestone has developed a tailormade Potenza tyre for the Huracán STO which it describes as having the high-performance needed to maximise the Huracán STO’s “traction, handling, control, and extreme overall performance. Development on the tyre coincided with the peak months of the COVID-19 pandemic with teams from both Lamborghini and Bridgestone forced to collaborate using virtual development technology. Bridgestone said its own capabilities in virtual tyre development proved crucial reach the target performance in the given timeframe, with the tyre manufacturer testing several combinations in its virtual environment.
INSIDE THIS MONTH’S WORKSHOP: DIGGING DOWN INTO THE BENEFITS OF FCEV TECH, THE PROS TO GOING DIGITAL AND ELON MUSK’S $100BN BOOST!
24 JANUARY 2021
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WORKSHOP
ENERPAC’S ‘ONE WRENCH TO RULE THEM ALL’
PIRELLI NAMED AS WORLD’S GREENEST PARTS AND COMPONENTS COMPANY TYRES
Tyre giant Pirelli was been ranked as the world’s sustainability leader in the Automobiles & Components sector by the Dow Jones Sustainability Indices (DJSI) index. Evaluated at both Europe and global level, the Milan headquartered group earned a total score of 84 points, compared with an average for the sector of 35. The DSJI of S&P Global are considered to be among the most significant stock market indices regarding sustainability at the world level. The annual analysis covers more than 7,300 companies and about 95% of the capitalisation of the global market. To reach its rankings, the DJSI combines float-adjusted market capitalisation weighted indices to measure the performance of companies against environmental, social and governance (ESG) criteria. “The confirmation of Pirelli’s world leadership on the Dow Jones Indices acknowledges once again the value of integrating sustainability into our company’s development strategy,” said Marco Tronchetti Provera, executive vice chairman and CEO of Pirelli. “The constant commitment to improving economic, social and environmental performances along the whole value chain, from the selection of suppliers to ensuring workplace health and safety, from respect for the environment to the sustainability of new products, are essential for our business model which aims to create value for all its stakeholders.”
meconstructionnews.com
TOOLS Enerpac has introduced its new HMT series modular torque wrenches, designed to be flexible, two-in-one tools that can be used with a low-profile hex or square drive cassettes with built-in interchangeability with a wide range of hydraulic torque wrenches and cassettes on the market. According to Enerpac, the HMT series is the “one wrench to rule them all” and its modular parts eliminate the need to select and purchase separate tools, thus helping reduce the cost of ownership. The ATEX and CE approved Enerpac HMT torque wrenches are the most durable wrenches in their class, the manufacturer claims, with up to a 2.5X longer life expectancy than other leading tools. “Housed in lightweight alloys,
the HMT provides strength and versatility to a variety of bolting applications, all in a single tool. When it comes to speed, Enerpac HMT torque wrenches have bestin-class efficiency and are up to 25% faster than competitor torque wrenches. It’s low maintenance too, with only three moving parts; all of which are enclosed, minimising pinch points,” said Enerpac in a statement. Features and benefits of the new Enerpac
torque wrench include 30 degrees of stroke allowing up to 25% faster bolting than other known brands, while the tool’s fine tooth ratchet prevents it from locking on, thus speeding up the bolting process. Supplied with an ergonomic safety handle as standard, the Enerpac HMT torque wrenches include a push button, quick release, reversible square drive, while the HSQ square drive reaction arm has a single dial lock for rapid change. The HMT series’ square drive reaction arm also allows the body to move away from any obstacles. Used with Hex sizes from 1 1/16-inch to 3 15/16-inch AF or 26-100mm AF, the torque wrench has an accuracy of +/-3%. For additional safety, a link pin retainer prevents dropped objects.
HYVA RECEIVES LIFT FROM TITAN DEAL IN MOROCCO PTO
Hydraulic telescopic cylinder specialist, Hyva North West Africa says it has completed a ‘highly prestigious sale’ of a dozen Titan hookloaders to a global waste solutions provider serving businesses and municipalities with ‘waste and environmental management solutions in several cities in Morocco’. According to the firm, its
26t hookloader’s deadweight and high lifting capacity makes it ideal for picking-up the fleet’s loaded compactor units which are used for discharging garbage by hydraulic tipping. The operator needed an efficient reliable container handling solution for transportation to the transfer station or waste disposal site, it added in a statement.
FULL SUPPORT FROM HYVA The fleet is supported by Hyva’s customer service team in Casablanca which is also home to dedicated regional installation repair and technical application engineering team.
“This is a sizeable order from a global company for an important waste handling project in Morocco,” explained Youssef Hachama, managing director, Hyva North West Africa. “The number of engineers on the road and our application support team make a big difference to us, we are more reliable and able to provide a betterquality service to our customers. “In addition to the supply of hookloaders, it has allowed us to remind the market of Hyva’s capability to supply other related equipment – cranes, skiploaders, mobile compactors – to waste handling projects. This is a great success story for Hyva North West Africa.” The hookloaders, were equipped with a fully automated sequence control lift system which helps to save time and can increase productivity and safety, benefiting the customers fleet operation with peace of mind, said Hyva. JANUARY 2021 25
OPINION
GOING DIGITAL
Dr Julia Saini, Associate Partner & Vice President - Mobility Practice at Frost & Sullivan, looks at the digitisation of the GCC’s aftermarket
W
e’ve been doing a lot of analysis around the general forces that are shaping the automotive industry. These are the forces that really over the past half year have become defined as The New Normal. Those are in our personal but also in all our professional lives. So there are some common themes and lifestyle changes that we’re seeing across different markets worldwide and in the past year have brought all sorts of new dynamics for the automotive industry. Governments have released stimulus packages or they have intervened very quickly and come in hot with new regulations. And like it or not, all know 26 JANUARY 2021
our Mobility habits have changed and there are definitely different factors influencing our lives and the way we do business – and that has brought us on a trajectory that probably about 12 months ago we would not have anticipated. Taking a step back to where we all were in Q1 and Q2 of 2020, we basically, had extreme strict restrictions that we faced here in the region – but also around the world. This had a massive impact on the automotive industry. Here in the region we have seen car sales plummeting by about 50% to 60%, for instance. Average daily footfalls in the local showrooms have fallen from 10 to 12 visits the day down two to three customers per day. Obviously servicing and maintainence of our vehicles in the aftermarket have
Less vehicles driven had a negative impact on the requirement for maintenance, parts and lubricants”
been deferred as much as possible. We are all trying to recover from this curve, but that’s still at the end of the year, this will have translated in about 24-25% drop in new car sales and a drop of up to 16% in revenues coming from vehicle servicing and the sales of parts in the aftermarket. That is not to mention the impact that the lockdown and travel restrictions had on mobility as a whole: through the way we move. We still see a hangover today in public transport, the usage of taxis, of Ubers and of car sharing and more. Now we did see an impact on driving behavior during lockdown – or let’s call it the non-driving behaviour but what does that mean for the aftermarket? Less vehicles driven had a negative impact on meconstructionnews.com
OPINION
the requirement for maintenance, parts and lubricants, plus a lower demand for breakdown parts. And, of course, there was a drop overall in the number of accidents and a lower demand for collision parts. This has a created a problem and challenges not just in the region but worldwide for garages within the aftermarket because in order to make money and be profitable bays need to be utilised at about 80 to 90% of capacity - and this is where access digitalisation comes in. It has already pushed the industry to experiment with new business models and new ways of bringing the customer back both into the service operation and injecting back money into the aftermarket sales. We have seen collaboration between service aggregators and new business model that have proven to be vital for the survival of the industry and especially for those who are without an established online presence. Looking carefully at digitalisation, as we settle into The New Normal or more hopefully find a cure for Covid-19, which elements are here to stay and are not just a stopgap solution? We ran through some of the key trends and opportunities that actually might be in the market post-COVID and although it has turned out to be a catalyst for digitalisation in the aftermarket we have seen a further push of business models that were present before but did not have the necessary focus. With focus comes investment and this is a slight positive out of the entire situation. If we look at the parts and accessory business, we expect global revenues to reach up to $75 billion. That’s the value of the parts transacted online B2C but this is not just limited to parts selling, we see the facilitation of the service side of businesses: That includes the online service aggregators; the marketplaces; and what customers actually identify in garages and booked online. In the UK, we have who can fix my car? and here in the region we have with Open Bonnet. That is the first aftersales aggregator in the UAE, and it was actually only founded last year. It already has a network of service garages of 60 garages, but there are numerous players emerging in this space and, based on our research, we believe that by the end of 2025 we will have close to $6 billion worth of service jobs that will be booked on these platforms online. Another opportunity that we picked up at the beginning of the year and has been increasing since lockdown is the demand for on-demand vehicle service models. These meconstructionnews.com
PART OF THE PROBLEM The Coronavirus pandemic is not the cause of a sudden shift to digitisation but has focused efforts to compete in the digital space.
include services like the fuel delivery offered by CAFU, but also repair services and some of companies are now offering sanitisation washing services – everything at your beck and call, either at home or at your offices. With the increasing reluctance to visit workshops and the fears of contamination, we expect more and more customers to opt for those solutions and look into it as an alternative. Lastly, we’ve also seen more demand in the hygiene and car care markets. And we are seeing improved cabin air filters. These are are actually one of the most popular categories in the aftermarket right now without even mentioning companies that push first virus filtration technology. So there are opportunities in the aftermarket for diversification within your garage: looking at air purification
We are seeing this increased focus around what we call health wellness and wellbeing within the car ”
solutions and sanitisation options. We are really seeing this increased focus around what we call health wellness and well-being within the car - and we expect this trend to grow and to generate over $2 billion by 2025. The aftermarket is - through digitalization – using new business models and has definite potential to emerge and show resilience. We can shift the way we are used to doing business by engaging and investing more and more into digital elements. Looking at a long-term perspective, we will see four big disruptive things that will affect and change the aftermarket. One of them is the chase to shared, connected, automated and electrified vehicles. This is a change and disruption that will happen within the vehicle - the data itself is changing. From the outside of the vehicle, the second trend are the new entrants coming into the value chain, and they have changed the way we are used to doing business in the aftermarket. They are coming in offering new service models and their own branded Amazon solutions. We also have a third area of disruption being how vehicle ownership is changing and therefore the approach to the end user in the aftermarket is going to change. All of these changes in this sort of those has the servers are linked to digitisation and digitalisation and this is an approach that generates data. Data obviously can eventually be monetised. So in the future, the aftermarket should be looking at solutions that do not just focus on repairing the car but also on solutions that help to manage the car, and the customer, and the data and the wealth of experience around it.
HELPING TO MANAGE YOUR VEHICLE The auto aftermarket should be looking at solutions that do not just focus on repairing the car but also on solutions that help to manage the car, and the customer, and the data and the wealth of experience around it, says Dr Saini.
JANUARY 2021 27
FEATURE
FUELLING THE FUTURE
Deloitte and Ballard look at the ‘wondrous technology’ of fuel cell vehicles, as well as their commercial applications
H
ydrogen is the single most abundant substance in the universe. Perhaps due to this abundance, we sometimes forget how useful hydrogen is. From being used in the very first internal combustion engines as an inflammable fuel, to powering flight by airships, hydrogen has once again taken center stage in mankind’s quest for energy sources, in the form of fuel cell applications. We are taking a comprehensive look at hydrogen and its role to power the future of mobility. This first paper focuses on an introduction of hydrogen and fuel cell technology, as well as a deep dive into a total cost of ownership view of fuel cell, batteryelectric, and traditional internal combustion 28 JANUARY 2021
engine vehicles. We took a bottom-up approach of a Total Cost of Ownership (TCO) analysis across the regions of US, China, and Europe, across a 13-year timespan. Our approach looks not only at detailed build costs for a Fuel Cell (FC) vehicle, down to the nuts and bolts of drivetrain, fuel system, and others, but also at operational costs such as fuel, infrastructure, maintenance, and so forth. We believe that this approach is not only unique in the marketplace, but also offers our readers a perspective that can be applied to almost any operational business model. Indeed, we applied our model to 3 specific case scenarios of Fuel Cell Electric Vehicle (FCEV) use today – focusing on an logistics operator in Shanghai, a drayage truck operator in California, and a bus operator in London.
FC heavy duty trucks are able to travel longer distances than battery electric trucks”
Our TCO analysis shows consistent and highly encouraging results. Even when ignoring qualitative benefits of hydrogen (i.e. zeroemission at the use end, among others), FCEVs are forecasted to become cheaper from a TCO perspective compared to Battery Electric Vehicles (BEV) and Internal Combustion Engine (ICE) commercial vehicles over the next 10 year period in all use cases. This is driven by a combination of vehicle build cost declines as technology matures and economies of scale improve, as well as other factors such as hydrogen fuel costs, infrastructure, and so forth. It is unsurprising, then, to also find that major governments across the world are focusing their efforts on these pieces to drive hydrogen technology and use forward into the future. meconstructionnews.com
FEATURE
In our high-level TCO analysis, our results show that, in 2019, FCEVs are approximately 40% and 90% more expensive than BEVs and ICE vehicles, on a per 100km basis considering acquisition and operational costs together. From an acquisitions cost perspective, the higher cost is primarily due to high cost of the fuel cell system, as well as a markup on other components due to lower economies of scale. From an operational cost perspective, the higher cost is primarily driven by the cost of hydrogen fuel. However, the TCO of FCEVs is forecasted to be less than BEVs by 2026, and less than that of ICE vehicles around 2027. Overall, we estimate that the TCO of FCEVs will decline by almost 50% in the next 10 years. This is driven by several factors. From an acquisition cost perspective, fuel cell systems are forecasted to decrease in cost by almost 50% in the next 10 years. The fuel cell system is relatively light in terms of materials cost but high in manufacturing costs, due to high technological requirements. For example, contrary to common thinking, the cost of platinum makes up less than 1% of cost of the fuel stack system. This is compared to battery vehicles, in which commodity-type raw materials, such as lithium and cobalt, makes up a significant portion of total costs. The relative raw-materials-light fuel cell system leaves significant room for cost improvements in the future, together with dramatic improvements in economies of scale. Another large factor in terms of decrease in operational cost is the cost of hydrogen, which is forecasted to decrease significantly across all geographies in the future. This is due to the increased usage of renewable energies to produce hydrogen (which is less than 5% of hydrogen production today), as well as buildout of supporting infrastructure and transport mechanisms. Our TCO forecast is furthermore relatively conservative in several aspects. For example, as history would show with emerging technologies, production costs often decrease much more dramatically than forecasted. We have also not included any government subsidies and incentives (acquisition, infrastructure, or operational) in the TCO model. When looking at the specific case scenarios in Shanghai, California, and London, the crossover of FCEVs with BEVs and ICE vehicles are much faster, due to a variety of subsidies on FCEVs in each geography, or additional taxes on ICE vehicles or fuel. Indeed, we have also been quite conservative on pricing pressure on ICE vehicles in the future, which could meconstructionnews.com
CATCHING UP ON TCO The TCO of FCEVs is forecasted to be less than other electric vehicles by 2026, and less than that of traditional engine vehicles around 2027.
be driven up significantly from quantitative (cost of fuel, higher emission standards), or qualitative (restrictions on entering city areas, or planned banning of pure ICEs) perspectives. Therefore, it is likely that FCEVs will become cheaper than BEVs and ICE vehicles from a TCO perspective sooner than 2026. Our high level analysis in this paper can allow the reader to start garnering some insights into the incredible complexity of the hydrogen value chain and possibilities for improvements in the next years to come. For example, today, the subsidies and incentives of FCEVs are higher than ICE vehicles, but lower than BEVs today due to inefficiencies in the hydrogen production process. In the future, where renewables energies such as wind and
$243 The Total Cost of Ownership of Fuel Cell Electric Vehicles is around $243 per 100 km
solar play more part in the hydrogen production process, the energy efficiency of FCEVs will see dramatic improvement. For example, renewable energies (or even nuclear energy) are affected by seasonality and peak usage cycles, resulting in overcapacity of electricity production which is often wasted. The marginal cost of renewable energies is near zero, which results in their being priced below prevailing market – even negatively priced in certain countries in Europe. This wasted energy can be captured by hydrogen as a clean and efficient alternative. From a lifetime emissions and environmental impact perspective, FCEVs are also cleaner than BEVs and ICE vehicles, with even more room for improvement as hydrogen production and delivery matures. The production or FCEVs are also significantly cleaner than BEVs due to very low requirements on raw materials, compared to the mining and heavy usage of heavy metals such as lithium and cobalt for BEVs. At the end of life process, FCEVs are also easier (and more economically attractive) to recycle than BEVs. As Bill Gates famously said, “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.” Fuel cell is not a new topic. It can be traced back to 1839 when it was firstly invented by a Welsh scientist by the name of William Grove. However, the first time fuel cell vehicles were in the international spotlight was during the oil crisis in the 1970s 14. In the next few decades, carmakers from different countries spent various
REMAINING CHALLENGES Challenges remain for widespread adoption of FCEBs, including the price of hydrogen, concerns over reliability and relatively high maintence and repair costs.
JANUARY 2021 29
FEATURE
degrees of efforts developing fuel cell vehicles. The year 2014 was marked by the world’s first commercialised fuel cell vehicle by Toyota, representing a culmination of years of R&D efforts. From then on, in the eyes of the public, fuel cell vehicles were no longer experimental, but were recognised as one of the key driving technologies of the future of mobility. In the next five years (till now), countries such as China, US, Japan, and various countries in Europe focused have their efforts on driving this technology forward. Through a combination of governmental policy, technology advancement and industrial involvement, fuel cell applications are now entering into a golden era of advancement. According to the Hydrogen Council, transportation is one of the most critical applications of hydrogen and fuel cell technology. From the perspective of most countries with FC initiatives, FCEVs are seen as a critical pathway to meet goals both in terms of energy strategy as well as decarbonisation goals. Using hydrogen in fuel cells in mobility have been explored since 1966. Like any new technology, nascent development has been slow primarily due to a lack of existing infrastructure to support wide adoption. However, the very real benefits of fuel cell technology have led governments around the world to continue exploring it as a form of green and emission-friendly energy. Fuel cells for transportation include a wide range of use cases. Some of these applications, such as trains, unmanned aerial vehicles, and e-bikes are still quite early in development with limited deployments to date. Passenger and commercial vehicle
A CLEANER ALTERNATIVE FCEVs are cleaner and more environmentally friendly across their entire lifecycle than BEVs and ICEVs, with more improvements to come as hydrogen production shifts toward a broader role in renewable energy development
Electric vehicles have less maintenance costs due to simpler mechanics of its electric motor�
applications of fuel cell technology are perhaps one of the areas showing highest signs of promise for widespread adoption. To most consumers, fuel cell vehicles sound incredibly complex and sophisticated. However, when broken down into pieces, fuel cell vehicles are quite simple. Partially because of this simplicity, fuel cell technology is used in a wide variety of vehicle types. FCEBs are already widely in buses due to most of them being publically operated, as well as predictable operation patterns. There are a variety of activities surrounding deployment of fuel cell light and medium-duty trucks among major markets studied, which offers an interesting comparison to buses, as most of these deployments are privately operated (albeit with government support). Fuel cell technology is regarded as a strong contender for inner and inter-city logistics for several reasons. From a technology standpoint, fuel cell
TRUCK OPERATORS TO FOLLOW BUSES? Bus operators across the world are already enjoying the benefits of FCEV, which is at a relatively younger stage of development than battery-powered BEVs and certainly ICEs.
30 JANUARY 2021
trucks typically exceed 150 km in range, enabling them to accomplish most of the inner- and inter-city deliveries of goods. Secondly, fuel cell trucks can meet stricter environmental requirement and noise regulations in urban areas, which encourages the government and fleet operators to accelerate its adoption. Thirdly, compared with BEVs, FCEV have very short refuelling times, which greatly improves the operational efficiency of a logistics fleet. Freight transport accounts for large portion of total traffic flow in urban areas (e.g., 8-15% 129 in Europe), making fuel cell technology a promising way to reduce emissions. It is expected that in the near future, the application of fuel cell light and medium truck in inner- and intercity logistics will continue to grow, especially in China where development of commercial infrastructure is proceeding at a rapid pace. Considering the high pollution and greenhouse gas emissions, heavy-duty trucks are regarded as a promising segment to develop zero-emission vehicles. The development of fuel cell heavy duty trucks are relatively lagging behind other applications. Most major OEMs are in the R&D stage, and only limited products are launched or being tested. The relatively slow development of fuel cell heavy duty truck can be attributed to a combination of high vehicle cost, high hydrogen cost (to carry heavy loads over long distances) and limited refueling infrastructure. On the positive side, fuel cell heavy duty truck could offer faster refueling times compared with battery electric trucks, which is essential for fleets to reduce the downtime in their daily operations. FC heavy duty trucks are also able to travel longer distances than battery electric trucks with similar specifications. Fuel cell technology is becoming increasingly mature and optimised for heavy duty applications. Ultimately, fuel cell heavy duty truck could provide range and refuelling time closed to conventional vehicles, while also benefiting from zero-emissions. This provides fuel cell heavy duty vehicle a great potential to displace diesel and battery electric heavy duty truck in the long term. No discussion of new and emerging technologies can be complete without deep analysis of its commercial viability. To compare and contrast the economic efficiency of fuel cell vehicles, we built a Total-Cost-of-Ownership model that examines FCEVs in detail, in relation to BEVs and ICE vehicles. We took a highly-granular bottom-up approach of building a vehicle by analyzing the cost of each of its components. Furthermore we analyzed operational considerations and costs, such meconstructionnews.com
FEATURE
as fuel, maintenance, infrastructure, etc. The operator may not care about detailed component prices, but rather a retail cost of the entire vehicle. However, this would present a rather limited view of the whole picture. The reason for such a deep level TCO analysis is to understand exactly what components are driving current and future costs, both from a vehicle-build and operational perspective. Once this is understood, we can then apply nuances of different operators and business models, such as a logistics fleet operator, drayage truck operator, and an intra-city bus operator. When taking a current snapshot, it is unsurprising that FCEVs are more expensive compared to BEVs and ICE vehicles. The TCO of FCEV is around 243 USD per 100 km, while that of BEV and ICE vehicles are 166 and 125 respectively. The biggest costs differences come from the energy module. Current fuel cell system is still expensive and costs approximately 1,500 USD per kw, which makes up around 73% of energy module cost and around 13% of total fuel cell vehicle cost. Other than the fuel cell system itself, hydrogen tanks also make up around 15% of the energy module costs. When taken together, these two components result in the majority of cost increases over the other two vehicles. However, as with any emerging technology, component costs continue to decrease in price. Other than the energy module, the component mark-up costs for FCEVs and BEVs also play significant roles in their overall price. However, as expected, this component cost is lower for BEVs, due to its earlier commercialisation and being closer to massmarket status. The industry consensus from our interviewed experts suggest that FCEVs might reach full scales of economy within the next 10 years, which in our model would eliminate this additional component mark-up. Fuel cost makes up the largest proportion of FCEVs operational costs due to high hydrogen prices, while BEVs have the cheapest fuel cost due to low electricity costs (which, coincidentally, is a major selling point for passenger BEVs). Compared to ICE vehicles,
WHAT EXACTLY IS A HYDROGEN FUEL CELL ELECTRIC VEHICLE? Similar to the majority of modern day vehicles, fuel cell vehicles are comprised of four basic component categories: propulsion system, chassis, automotive, electronics and body. The propulsion system provides electricity to power the car through a fuel system and electric motor. This power is derived from hydrogen, which is stored in pressurised tanks in the vehicle. A fuel cell stack converts this energy to electricity, which is supplemented by a battery to drive the electric motor. This is not dissimilar to BEVs, although FCEVs have batteries with much smaller battery capacity. Whereas BEV batteries
50%
Estimated decline in Total Cost of Ownership of FCEVs by the next decade
are used to store the entirety of the power used to move the car, FCEVs only use batteries to smooth fuel cell power fluctuation: absorb extra electricity when power requirement is low and release more power when required. Theoretically, BEVs have higher energy efficiencies, but the heavy battery weight minimises this advantage especially for heavy duty vehicles in long distance transit. BEVs must add more battery capacity for every additional mile the vehicle should operate, which adds extra weight. For example, Tesla’s electric heavy truck model is estimated to reach 4.5t of battery weight.
electric vehicles have less maintenance costs due to simpler mechanics of its electric motor. However, fuel cell and battery replacement costs for FCEVs and BEVs add an additional burden to the operator. This is due to capacity attenuation of the fuel cell system (which lasts approximately 25,000 hours currently), as well as for the battery pack (typically replaced every 5 years for commercial vehicles). As expected, these replacement costs are driven down rapidly as technology matures for new energy vehicles. Another large component of operational cost stems from infrastructure build costs for FCEVs and BEVs. For example, a hydrogen
fuelling station for such a fleet in our framework costs approximately $6-7 million. Similarly, BEV infrastructure requires a large amount of investment; large scale operations even require grid and substation modifications, as well as opportunity charging stations. Infrastructure costs would differ quite dramatically by operating model, but this framework presents an illustrative perspective for the reader to consider. We have forecasted ICE operational costs to be relatively stable over the next 10 years. However, this may not be the case as jurisdictions across the world continue putting pressure on the use of fossil fuel vehicles. For example, ever-tightening restriction standards on emissions may cause engines and catalytic convertors to spike in costs. Other qualitative restrictions, such as bans from entering city regions, for instance, may have a pronounced impact on operators not currently reflected in this TCO analysis. Various countries have also announced plans to ban pure ICE vehicles by 2030-2050. The TCO of FCEVs is forecasted to be less than ICEVs by 2026, and less than that of BEVs around 2027. Overall, we estimate that the TCO of FCEVs will decline by almost 50% in the next 10 years. Fuel cell system price is highly related with purchase cost as well as parts replacement cost. We forecast cell system pricing from 1,500 USD per kw in 2019 to 600 USD per kw in 2029 166. The fuel cell system is relatively light in terms of materials cost but high in manufacturing costs, due to high technological requirements. This leaves significant room for cost improvements and dramatic improvements in economies of scale. Furthermore, the lifecycle of systems are also expected to improve quite significantly. Currently, the lifecycle of a fuel cell system is approximately 25,000 hours, but is forecasted to reach 30,000 hours by 2026.With these two factors combined FCEVs will be affected not only by decreases in purchase cost, but also maintenance and parts replacement cost. We estimate the total maintenance and parts replacement cost will decline over 60% in the next decade.
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JANUARY 2021 31
PARTING SHOT
A LOT TO SNIFF AT
Elon Musk says the word ‘hatchback’ and makes a $100 billion from it
T
here has been a saying bandied around the financial outlets in recent years that if the Chinese economy sneezes – like it did last year – then the rest of the world catches a cold. Not to be outdone, Elon Musk dropped a hint recently that Tesla could do a hatchback and was immediately jettison up the ladder into the rarified position of being the world’s second richest man. All without the aid of his own personally designed space suit or reusable rockets. It’s been a while since T&FME dropped in on Musk and in that time he has Zoom called, pressered and tweeted his way into the position of arguably the most important tech leader on and off the planet. And whatever scepticism he has outwardly shown regarding the Coronavirus pandemic and the efficacy of lockdowns, the lead designer and CEO enjoyed a pretty storming 2020 by anyone’s standards.
There were the successful tests and then trips by Space-X up to the ISS and then there was Tesla’s outlandish and lavish share price ahead of its formal entry as one of the top 500 companies listed on the Dow Jones with a market cap of half a trillion dollars. According to most analyst’s measurements that’s more than several of the world’s three biggest auto-makers combined. Mind boggling stuff. Small wonder then, that Musk can currently command quite a lot of attention – and thus drive up that share price - when he says that the Test Semi aka Cybertruck could use new battery cell technology to extend its range of 800-1,000km. A figure far beyond the best-case 500km touted by most engineers working in electric vehicles labs. He also has the muscle and clout to turn heads and the rolodexes (or rolodexi? I’m sure Musk would know) of automotive headhunters when he says he wants to build a design centre in Germany using local talent
to build a smaller Tesla electric car. “In Europe, I think it would make sense to do I guess a compact car – perhaps a hatchback or something like that. Something that answers ‘what do most people want?’ in a given region. In the US, cars tend to be bigger for personal taste reasons and in Europe, it tends to be smaller. If you try to park in dense urban environments, having a car that fits in tight parking spaces is important. “I think there’s a lot of talent, talented designers and engineers, in Europe,” he said. “And a lot of the best people, they want to work somewhere where they are doing original design work. They don’t want to just be doing the European version of something that was designed in California. So, I think it’s important in order to attract the best talent to do original design.” If Musk can drag Europe’s automotive industry out of an economic slump, then that would really make him worthy of his accolades and current market value.
NEXT ISSUE: HEAVY DUTY CONSTRUCTION TRUCKING, FLEET TECHNOLOGY TRENDS REPORT, AND MUCH MORE!
32 JANUARY 2021
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TRIO HAS THE ANSWER
Whether you need crushers, screens, feeders, washers, conveyors, or all of the above, the Trio® range has you covered. We’re not here to sell you one piece of the puzzle, our highly skilled team of Weir Minerals engineers look at your entire operation and decide how the Trio ® range can help. It’s everything you need to run a Construction Aggregates plant, all in one place.
Visit www.theanswer.weir to learn how the Trio range helped Pattison Sand. ®
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