VEHICLES/ TECH / TRANSPORTATION/LOGISTICS
O92/NOVEMBER 2O21
MIDDLE EAST
LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y
E A U F O E R U T U F THE
Y T I L I B O M T FLEE
logy o n h c e t d n sa e l u r g n i s a ile e b l o w m e y n l d r w o a H s upw t e e fl E A U are keeping
ONS G A W R E POW TICK TO IT S O T T H IG DI R
IS AU AVANT ? 6 S R E H T GUNS WITH
CONTENTS
CONTENTS MOBILITY
14 / GENERAL MOTORING General Motors discusses how it is going to take mobility technology mainstream for drivers and fleets.
ALSO THIS ISSUE … NETWORK
06 / NEWS FROM THE MONTH FedEx steps up Saudi strategy while Aramex targets further emission reductions. LAUNCHES
10 / TEVVA TO COME The UK’s first electric delivery truck set for debut in the region following launch. INDUSTRY INSIGHT
06
10
12
20
26
28
12 / SAFETY AND EFFICIENCY Experts gather at the Valvoline headquarters in Dubai’s JLT to discuss some of the key issues transforming the T&L sector. INTERVIEW
16 / LEASING UNLEASHED Changes to leasing laws in the UAE could cause a fundamental shift in the way we build up our fleets of vehicles and equipment. SPECIAL REPORT
20 / ICE HERE TO STAY? Dr Otto Preiss, COO, Rolls-Royce Power Systems believes that there is a future for the internal combustion engine (ICE). TEST DRIVE
20 / THE AUTO ATEGO T&FME test drives the Mercedes Benz Atego 4x4 and its Allison Transmission 3000 Series on the fringes of Dubai. TEST DRIVE
28 / VADER’S WILD WAGON Audi sticks to its wagon guns with the new RS 6 Avant – and it is all the better for it, Jason Saundalkar writes.
meconstructionnews.com
NOVEMBER 2021 01
WELCOME
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 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474
OUT AND ABOUT, FINALLY Welcome back to another jam-packed issue of T&FME. This was truly one of the busiest months for us in terms of being out and getting stories for as long as I can remember. Certainly, since the wheels came off the global economy at the start of the pandemic. It is always a tricky act as an editor to have to balance out the limited amount of space in the magazine with the amount of interesting interviews and articles we gather. Fortunately, the truckandfleetme.com website helps plug those gaps more often than not – and hey there’s always next issue! Having said that, last month was the real first opportunity to be out discussing what is going in the market since the Truck & Fleet Conference and we have got coverage of two excellent events from October in this issue. First there’s the Valvoline hosted ‘Maximising vehicle uptime with innovative lubricants and understanding the key dynamics transforming the transport sector’ roundtable. That event featured a really good mix of people from the supply and the operators sides of the fence. The full coverage can be found inside the pages of this issue but it was fascinating to
hear that some transporters have been forced to learn the financial benefits of bringing back maintenance in-house during the pandemic. And so successful that process has been, they may keep it that way for the foreseeable future. In the second round of event coverage this month, we look at the inaugural Dubai Lease Conference which laid out the pathway to leasing that fleets will be able to take once new legislation comes into effect (hopefully later this year). Seeming a dry subject from the outside, the event itself had plenty of interesting papers looking at the future of fleet financing and how we may soon be able to finally find a less risky way to grow our ranks of vehicles. Talking of vehicles we have two very different test drives in the Workshop section of this issue, with the 4x4 Atego out in the desert fringes of Dubai, as well as a look at the potential SUV beater that is the Audi A6 Avant… …and talking of events and vehicles don’t forget that we will be holding our first ever Machinery and Truck Awards early next year. So if you think the Atego or indeed any other truck launched in the last 18 months is worthy of the Truck of the Year award let us know!
STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 NOVEMBER 2021
PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473 EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 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 MARKETING & EVENTS EVENTS & CONFERENCE PRODUCER PAUL GODFREY paul.godfrey@cpitrademedia.com +971 4 375 5470 EVENTS EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 433 2856 SOCIAL MEDIA & MARKETING EXECUTIVE GLADYS DSOUZA gladys.dsouza@cpitrademedia.com +971 4 375 5478 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DATA & DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE 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. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2021. All rights reserved.
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Date
25 Jan
Venue
Dubai
DUBAI / UAE
Celebrating the truck and machinery industries, commending organisational and individual excellence 25 January 2022
About
The Event
Judged
Winning an inaugural MAT Award will be a recognised badge of excellence amongst clients and peers.
Built around the concept of transparency and clarity, the awards are decided upon by an independent panel of judges from across the spectrum of the industry.
By Professionals
These awards celebrate the champions whose vehicles and machinery are at the heart of every construction. They award the manufacturers and dealers whose equipment leads the way – whose out-of-the-box innovations deliver critical on-site commercial ‘edge’, day in, day out. They honour the achievements of contractors and fleets who excel in the midst of Covid restrictions and the industry’s dramatic re-set. The inaugural Machinery and Truck Awards is brought to you by Construction Machinery ME and Truck & Fleet ME, two of the leading trade titles in the region. Most importantly of all, in a competitive and contractdriven environment, the MAT Awards are a snapshot of the touchstone products enabling efficiency and safety – and bringing best-ever uptime.
Given that the awards are targeted at the Construction Machinery & Heavy Fleet industries; the editorial team take considerable efforts to ensure that nominees are assessed by the appropriate persons who have a chance to assess nominations both individually, and in a group discussion. This ensures that winners are chosen on the basis of the work they do over the course of the year, and on the reputations they develop with the industry. At CPI Trade Media, we are proud to state that our awards are unbiased, transparent and fair, with no external influences on the decision-making process.
To ensure complete objectivity, the Awards are judged by a mixture of public votes and a specially recruited judging panel; they are influenced by one criteria only – the informed decision that they are truly the best-in-class.
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HOW MACHINERY IS SHAPING THE FUTURE OF CONSTRUCTION
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04 NOVEMBER 2021
READERS’ COMMENTS
VIDEO: AMANA powers the UAE’s digital transformation
I thought it was very interesting to see so many articles come up last month on the subject of how machinery can affect change in the construction industry such as this piece by Jeff Bennet (of Husqvarna Construction). Indeed, we read how Volvo and SSAB are now able to produce fossilfree machines as well as how JCB is moving into green hydrogen power all within a couple of days of each other. Bennet says in his article that machinery advances are currently focused on more environmentally friendly and efficient ways of working, with the most exciting of these developments in electric powered tools and equipment. Obviously, there are a lot of electric tools on sites already but I see very few signs of us being able to cut the cord to the diesel generators that power them. Major steps need to be taken in terms of infrastructure and logistics to make this practical. However, I think it may be only intervention by governments and city planners which not only reward developers but also their contractors too which will truly lead construction to going green. Name withheld by request
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FOR A WORLD THAT’S ALWAYS ON
TM
NETWORK
FEDEX GOES DIRECT IN KSA / NISSAN LAUNCHES ARIYA AT EXPO 2020 / TEVVA TARGETING MIDDLE EAST FLEETS / FUSO ENTHUSES AT WETEX
NETWORK
FedEx to invest $400mn into Saudi Arabia DECADE OF SPENDING IS EXPECTED TO HELP LOCAL RECRUITMENT AND OPS INFRASTRUCTURE LOGISTICS FedEx Express says it will invest $400 million as part of its transition to a direct-serve presence in Saudi Arabia to meet the Kingdom’s growing international shipping demands. The strategy to get closer to the Saudi market includes a decade-long programme to bolster talent management, local operations and infrastructure. This investment will reaffirm the company’s commitment to the country’s non-oil economic growth, in line with Saudi Arabia’s Vision 2030 goals, and the ‘National Industrial Development and Logistics
Program’ which seeks to increase non-oil exports to more than SAR 1 trillion (approximately US $266 billion), said the US firm. FedEx Express has been facilitating trade in Saudi Arabia since 1994, but has historically only offered international solutions and connectivity through local service providers, most recently through SAB Express. The October announcement fortifies a direct presence in the country which it says will further help local businesses trade with ease and expand their reach into the more than 220 countries and territories FedEx serves. Jack Muhs, regional president
of FedEx Express Middle East, Indian Subcontinent, and Africa added, “Our customers will be able to take advantage of FedEx digital tools and a wider service portfolio. This strategic expansion in the Kingdom will help Saudibased businesses connect to new markets and customers around the world, supporting Saudi Arabia’s Vision 2030 goals to diversify the national economy.” “We see FedEx Express playing an important role in developing the SME environment in Saudi Arabia, which forms the backbone of the economy, and represents 99% of Saudi Arabia’s private sector,” continued Muhs.
FedEx Express will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country. Sheikh Salah Al Bluewi, chairman of SAB Express said, “We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey, and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure, in line with the country’s coordinated efforts and strategy in diversifying the economy. The logistics sector is a key contributor towards employment, investment, and overall economic growth in our nation.”
ROAD TRANSPORT ACCOUNTS FOR 10% OF GLOBAL EMISSIONS, AND ITS EMISSIONS ARE RISING FASTER THAN THOSE OF ANY OTHER SECTOR
06 NOVEMBER 2021
meconstructionnews.com
NETWORK
ARAMEX DRIVING DOWN EMISSIONS LOGISTICS
ECANTER TAKES CENTRE STAGE AT WETEX FUEL DELIVERY
ENOC Link, the digital mobile fuel delivery service for businesses in the UAE, showcased its range of sustainable best practices at WETEX and Dubai Solar Show 2021. Taking centre stage was Daimler’s FUSO eCanter electric truck ahead of its debut at ENOC’s Service Station of the Future at the Expo 2020 Dubai site. The eCanter is an emission-free light duty truck and is virtually noiseless. As previously tested by Truck & Fleet Middle East, the vehicle is designed to increase comfort for drivers, reduce maintenance costs for operators, and “embodies a more sustainable option for urban mobility”. ENOC Link announced at WETEX that it is partnering with Daimler Commercial Vehicles MENA to “showcase the future of mobility and sustainable urban transportation solutions”. “We are committed to promoting awareness and strengthening positive action on the adoption of clean and renewable energy solutions,” said His Excellency Saif Humaid Al Falasi, Group CEO, ENOC. “At ENOC, sustainability is an integral part of our DNA, and we will continue to support the nation’s commitment to innovative approaches to sustainable development. “Our partnership with Daimler resonates with our ‘reimagine energy’ vision for Expo 2020 Dubai, which seeks to be one of the most sustainable World Expos.” “The FUSO eCanter is our answer to the public’s need for a zero-emission, very quiet truck for inner-city distribution. It helps to solve the increasing noise and pollution problems in urban environments across the globe,” added Kay-Wolf Ahlden, CEO Daimler Commercial Vehicles MENA. meconstructionnews.com
Aramex has signed a commitment with the Science Based Target initiative (SBTi) to significantly reduce its greenhouse gas emissions by 2030. This initiative is part of Aramex’s sustainability strategy to reduce its impact on the environment, prevent climaterelated risks, drive down energy consumption, and ensure that the company’s progress towards net zero carbon is aligned with climate science, it said in a statement. By signing this commitment, Aramex will work with a clearly defined science-based carbon targets to put the company on track to reducing its emissions in line with the Paris Agreement’s goals of curbing a rise in global temperature to well-
below 2°C. The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF) and defines and promotes best practices in sciencebased target setting and independently assesses companies’ targets. “Companies in the transport and logistics industry have a major role to play in reducing harmful emissions
and support countries to reach their GHG emission targets,” said Raji Hattar, chief sustainability officer at Aramex. “In recognising the significance of our role, Aramex has been taking proactive measures to reduce carbon emissions for over a decade, and we continually seek ways to improve our efforts, in line with the national commitments to the United Nations Sustainable Development Goals (UNSDGs), through all the visions and strategies, 2021, 2025, 2030, 2050 and 2071.”
NISSAN UNVEILS ARIYA AT EXPO 2020 DUBAI CARS Nissan says it is moving towards sustainable mobility with the first regional showcase of its all-electric Ariya crossover car. Targeted towards the mass market, the Japanese company unveiled its all-new electric vehicle last month at the Let’s Move event at Dubai Exhibition Centre, Expo 2020 Dubai. Thierry Sabbagh, managing director of Nissan Middle East, described the showcase of the electric CSUV as a really
exciting moment for the brand: “Our partnership with Expo started three years ago and we have been a part of the entire development, whether it is of the site or also of all the plans that have been set. And today, the partnership between Expo and Nissan is very natural,” said Sabbagh. Joni Paiva, divisional VP, Nissan Motors, added: “When you align Nissan’s purpose to drive innovation to enrich people’s lives and you look at Expo 2020’s purpose [and
theme], ‘Connecting Minds, Creating the Future’, these two visions align extremely well, especially when you use the subthemes of Expo 2020 of Sustainability, Opportunity, and Mobility.” Sabbagh said that unlike other electric vehicles currently available on the market, the new Ariya is designed for mass appeal. “We want to ensure that people from different categories are able to drive our product.”
NOVEMBER 2021 07
NETWORK
IVECO GROUP REVEALS NEW UMBRELLA BRANDING
OEMS
The newly formed Iveco Group has unveiled its logo as a further step towards the completion of the spin-off of eight individual brands from its parent CNH Industrial N.V. group. The Iveco Group said that as the new holding company of these brands, its own institutional logo depicts its position and, “with a light and understated design, places the
importance on the brands which it houses and pays homage to their rich and shared heritage, clearly delineating a forward trajectory for all of them, together”. Explaining the details of the new logo and branding, a statement from the Iveco Group said the logo expresses a “unique identity which uses a sober typeface, featuring cuts and inclinations
into some of the letters to express the group’s sharp focus”. “The colour grey evokes a sense of stability and a strong industrial DNA, acting as a cue for the humble, yet hardworking way forth for the Company, as it works in earnest determination to achieve its goals. The blue dot between the words “Iveco” and “Group” interrupts the colour scheme to signal the future, one that is influenced by sustainable innovation. This circle adds a further element that will serve as a centre point and dynamic graphic device, suggesting balance and placing attention on the details in the full logo composition,” said Iveco’s statement.
RITCHIE BROS. OFFERS FINANCING IN DUBAI FINANCING Buyers at the Ritchie Bros. online auction held last month were eligible for financing from Emirates NBD bank after the global machinery and heavy equipment auction powerhouse announced a partnership with the UAE financial institution. A statement from Ritchie Bros. said that the Dubai Online Timed Auction saw customers based in the UAE offered a broader range of financing options, which
will see an expanded range of heavy equipment and machinery eligible for financing by Emirates NBD bank. The auction inventory ranged from wheeled loaders to massive all-terrain cranes, from utility vehicles to graders, as well as heavy goods trucks and many other types of machinery. Unused Hyundai excavators and Sinotruck boom trucks were also available together with s selection of scooters and passenger cars to complete
the line-up said Ritchie Bros. Overall, 1,170-plus items were consigned to Ritchie Bros.’ Dubai Jebel Ali yard as well as a second site located in Kuwait as a result of an on-going partnership with Q8 Auctions. Interested parties resident in the emirates were able to contact Ritchie Bros.’ team in advance for details of UAEbased auction items eligible for Emirates NBD financing and also for referrals to obtain banking eligibility criteria.
DHL TO BUILD 14K MWH SOLAR PROJECT IN DUBAI LOGISTICS
A contract has been signed between DHL Global Forwarding and TotalEnergies that will see a solar energy project take shape across eight of DHL’s sites in Dubai. The project will produce over 14,000MWh of electricity per year, which is said to be enough energy to power over 16,000 homes yearly in the UAE. According to a statement, the project will see DHL’s various sites equipped with solar solutions, in addition to eight electrical vehicle charging stations. With this, DHL Global Forwarding contributes to the group’s goal of electrifying 60% of its fleet by 2030. The move is said to be a continuation of the firms’ Strategic Cooperation Agreement, which was signed in 2019. As per the terms of the deal, TotalEnergies will solarise eight of DHL’s sites in Dubai to cover the equivalent of over 46,000sqm of photovoltaic panels. The solar system will save more than 6,000 tonnes of CO2 in the first year.” “With an annual average of 8.7 hours of sunshine per day, Dubai has a clear advantage in terms of solar energy. I am alpleased that we can use this asset to advance our sustainability goals. With TotalEnergies, we have a partner at our side to drive forward the use of alternative fuels but also to optimise energy consumption. In this way, we are going step by step.” to achieve our ambitious target to reduce all logistics-related emissions to zero by the year 2050,” said Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa.
INSIDE THIS ISSUE: THE LAW THAT COULD REVOLUTIONISE FLEET RENEWAL AND LEASING, GM ON THE EDGE, EFFICIENCY ROUNDTABLE AND MORE!
08 NOVEMBER 2021
meconstructionnews.com
NETWORK
SERVEU LAUNCHES APP AT EXPO 2020 DUBAI SERVICES
SAIC DEBUTS KUN CONCEPT IN THE REGION CARS
SAIC Motor has unveiled its new-energy “KUN” concept car at the China Pavilion during the first few days of Expo 2020 Dubai. The concept car is jointly created by design teams in both Shanghai and London and integrates bio-intelligent interaction, photosynthetic energy, zero-gravity seats, holographic image interaction and advanced AV driving technologies to reflect the future of smart mobility, said the company.
UAE-based facilities management company ServeU has launched its own dedicated customer mobile application to manage its FM operations at the Expo 2020 site, where the company is set to manage 14 pavilions, including the UK pavilion. The newly launched mobile app is designed with a builtin booking system that provides customers direct access to the mobile teams stationed at the Expo 2020 sites. The company said in a statement that the ServeU Essentials mobile teams “can be deployed at a tap of a button” by customers through the app, who will then be directed straight to the company’s Computer Aided Facility Management (CAFM) system. Further, as part of the company’s sustainability initiatives, ServeU will be operating an electrical
fleet which will be used around the Expo 2020 site, part of a wider initiative to move towards a greener transportation network across the UAE. Gary Reader, GM, ServeU, said: “The Middle East, Africa, and South Asia (MEASA) region’s first World Expo began in October in Dubai, and it’s all about being digitally connected. ServeU is pleased to be a part of this muchawaited global event to deliver and demonstrate our innovative solutions and
services to our participating clients. We created this app with the goal of contributing to the success of our clients as well as to give the visitors and guests a distinct and memorable Expo 2020 experience.” ServeU is set to manage and maintain facilities covering a total area of 30,000sqm at the Expo 2020 site. The company’s team of 300 technicians and specialists will deliver services that include human resource and staffing for the pavilions, with guide management, cleaning, security and administration, and logistics.
n o i t c e j n I l e u BG Diesel F g Service Cleanin & Restores Power
Diesel Injector Plunger with deposits buildup
Fuel Efficiency!
Diesel Injection Service prevents deposits formation
Benefits:
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BG maintains optimal fuel spray pattern
on comm New l injection al iese rail d onvention s c m d e an yst ion s le t c je in atib comp
9 Cleans New Common Rail High Pressure Diesel Fuel Injectors without removing 9 Removes Combustion Chamber Deposits 9 Cleans the entire Diesel Injection System, including injection pump & oxidation catalyst 9 Reduces harmful emissions, black smoke
www.BGMiddleeast.com NOVEMBER 2021 09
LAUNCHES
TEVVA UNVEILS FIRST BRITISH DESIGNED 7.5-TONNE ELECTRIC TRUCK / HYUNDAI MOTOR COMPANY OFFICIALLY LAUNCHES BRAND’S NEW MPV LINE-UP IN MEA
LAUNCHES TEVVA RANGE 250KM
Tevva joins electric fleet ranks TEVVA UNVEILS FIRST BRITISH DESIGNED 7.5-TONNE ELECTRIC TRUCK INTENDED FOR MASS UK PRODUCTION, AND IS SET TO ARRIVE IN THE MIDDLE EAST IN LATE-2022 The new Tevva Truck – the first British designed 7.5-tonne electric truck intended for mass production in the UK is set to go on sale in the Middle East in 2022. Engineered by a team led by Ken Scott, formerly Engineering Director at both Bentley and Alexander Dennis, and styled by Dale Grewer, former Chief Designer at Jaguar Land Rover, the Tevva Truck will be manufactured in a brand-new facility in the Thames Freeport area, in close proximity to London. According to the firm, the global electric truck market was valued at $1.15 billion in
10 NOVEMBER 2021
2020 and is expected to grow to $14.19 billion by 2027. In a statement, it added that the Tevva Truck has been “unveiled to address the immediate industry need to electrify.” Offering a range of up to 160 miles (250 km) in pure battery electric vehicle (BEV) form or up to 310 miles (500 km) with its patented range extender technology, which has now been upgraded to use hydrogen fuel cells; the Tevva Truck, “brings a best in class combination of capability and cost efficiency from a zero emissions medium duty truck, while offering the ruggedness and resilience of traditional trucks.”
The truck is being assembled at a 11,000m2 manufacturing plant, roughly the same size as the inside of an Olympic running track. Tevva said mass production will create an additional 1,000 skilled mechanical, software, engineering, and manufacturing jobs in the next 24 months. The facility is expected to ramp up manufacturing to 3,000 trucks per annum by 2023. The Tevva Truck addresses established industry, reliability, and maintenance expectations, explained Tevva, adding: “Strong supplier partnerships, fleet operators can benefit from an extremely reliable BEV powertrain paired with an
exceptionally robust and proven truck-derived chassis, as well as quick access to low-cost parts. Tevva is offering technologies that have been proven in real-world, in-service environments today.” Marking the announcement, Asher Bennett, founder and CEO of Tevva remarked that technology is transforming the commercial vehicle sector at pace, making it safer, greener, and entirely more efficient. “But meaningful change is a gradual process, it must happen one step at a time, even if those changes are needed in fast succession,” Bennett added. “The Tevva Truck provides a natural transition into electrification
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LAUNCHES
STARIA OF THE MPV SHOW
HMC OFFICIALLY LAUNCHES STARIA, THE BRAND’S NEW MPV LINE-UP IN THE MEA AFRICA MARKETS VIA A DIGITAL PREMIERE
SEVEN-YEAR HITCH The Tevva Truck is Tevva’s third generation vehicle, representing the culmination of seven years of engineering development and the learning gathered from over 200,000 miles (350,000 km) of in-fleet trials.
PREPARING FOR PRODUCTION Production of the Tevva Truck is due to commence in July 2022 ahead of its regional launch later that year.
for fleet managers, providing total peace of mind and a compelling total cost of ownership proposition, with no compromise on range and reliability and minimised compromise on payload.” The Tevva Truck can carry up to 16 Euro pallets and over two tonnes payload at 7.5t GVW. The total cost of ownership is comparable to a diesel; parity is achieved
at approximately 3,000 km or when 500 litres of diesel is consumed per month. For fleet managers concerned about range, the truck will offer unique range extension technology with its REX solution available for delivery in 2023. Its compact hydrogen fuel cells recharge the battery on the move, allowing the vehicle to fulfil longer duty cycles and carry heavier loads even further.
Last month saw Hyundai Motor Company (HMC) launch its new MPV line-up. Dubbed STARIA, a name which combines ‘star’ and ‘ria’, the future-fixated vehicles features a streamlined design combined with a strikingly futuristic and mysterious exterior, “resembling a spaceship”. The front is highlighted by a long, horizontal daytime running light and headlamps positioned underneath. STARIA is equipped with various driver-centric features and futuristic design elements that deliver new experiences for drivers and passengers that make time in transit more productive and worthwhile. Bang Sun Jeong, Head of Hyundai Motor Company Middle East & Africa HQs, said: “It is characterised by a futuristic exterior design that really makes it look unlike anything else on the road and will provide a completely new experience for customers.” STARIA Premium includes upgraded features and variant-exclusive finishes for a more luxurious look and feel. These include a tinted brass chrome treatment, applied to the Hyundai emblem, grille, headlamp bezels, front and rear bumpers, wheels, side mirrors and door handles to emphasise the vehicle’s premium and modern look. The design theme carries over to the
rear, featuring a wide window framed by elongated vertical tail lamps. The rear bumper is lowered so passengers can quickly load and unload cargo. The 7-seat Premium model is equipped with Premium Relaxation Seats in the second row that recline electronically and have sliding capabilities for easy reach or maximising cargo space. The 9-seat Premium model’s individual seats in the second row can swivel 180 degrees to face passengers in the third row. The flexible seating configuration makes STARIA Premium ideal for corporate vehicles or mobile offices as passengers can turn their seats around and conduct face-to-face meetings. A 64-colour ambient mood lamp provides a lush interior atmosphere. The harmonious direct and indirect lighting can selectively illuminate the cockpit, console, doors and cargo areas. The Bose sound system further enhances the premium feel. SPECIFICATIONS Engine
Smartstream G6DIII 3.5-l MPI (petrol)
Power
272 PS
Torque
33.8 kgf-m
Wheelbase
3,273mm
ALL-STAR VEHICLE 9 PAX
SPECIFICATIONS Power
1,800Nm
Top speed
80km/hr
Range
Up to 500km
Capacity
16 Euro pallets
Payload
2t
meconstructionnews.com
NOVEMBER 2021 11
FEATURE
“NOW IS NOT THE TIME TO BE
THINKING ‘CHEAP”’
Experts gather at the Valvoline headquarters in Dubai’s JLT to discuss some of the key issues transforming the transport sector. Mark Dowdall writes
O
ver the past couple of years, budgets everywhere have been affected. Even without Covid, the transportation and logistics sector was already grappling with its own challenges of being part of a supply chain demanding quicker and more efficient workflow but, at the same time, keeping operational costs low. And doing all of this in an environmentally sustainable way. Despite that backdrop, the view from the experts at Valvoline’s round table was that now is definitely not the time to be thinking cheap – we should instead be thinking ‘value’. This was the theme set to dominate an exclusive, live roundtable discussion, titled ‘Maximizing vehicle uptime with
12 NOVEMBER 2021
innovative lubricants and understanding the key dynamics transforming the Transport sector’, held at Valvoline Middle East & Africa headquarters, in Dubai, last month. The session, moderated by Vishal Pandey, managing partner, Glasgow Consulting Group, brought together key players from the region to discuss why thinking long term while putting ‘quality first’ can reduce fleet costs. By buying value, they can save time and money in the long run, emphasised Martin Roberts, director of Transportation at Momentum Logistics, when he remarked that the initial purchasing price is not the cost of the truck. If a company buys an older truck, they end up having to spend more on maintenance or having to get rid of it, shortly after.
Lubricants are about 2-3% of the budget. But out of that we can get good value”
“It is cheaper to operate a new truck than to purchase trucks eight years old with 900,000km and then get rid of them,” said Roberts. He added: “Remarkably, the time through the pandemic was actually our best couple of years. We were able to reduce costs because we did maintenance inhouse. If you are offered a service package there are often extras that go with that.” Subin Mohan, regional manager at Mercedes-Benz Commercial Vehicles, Middle East and North Africa (MENA), said that the truck itself will always be capital intensive and will not get cheaper. He questioned why some places still service trucks every 20,000km. “Maybe it is because of experience in the past, or habit. They do not need to service meconstructionnews.com
FEATURE
until the truck says it needs to be serviced. There needs to be a comprehensive service package, so you know what your fixed costs are and so your costs are not changing,” he said. “We need to focus on things like how your fleet is running and how your driver is performing. Less than 10% of operators in the region are managing their fleet professionally.” Hans Wising, sales director, Scania Middle East, agreed, saying it was important that companies are prepared to spend where it matters. “People who want longevity in vehicles will spend but unfortunately others who are taking a short-term approach won’t.” Some of the other distinguished guests at the table included Nicholas Brooks, cofounder of Zaeto; Mohammed Faisal, senior sale executive at Galadari Trucks and Heavy Equipment, Valvoline’s sales leader manager (MENAP), Karim Hashem and regional technical manager, Mahir Bousellham. There was a consensus among them that companies should spend on good quality lubricants from day one to maximise vehicle uptime and reduce costs in the long run. It is difficult to extend the service interval, as suggested, if a poor-quality lubricant is being used from the very beginning. Again, they made a clear distinction between what is cheap and what is valuable. This was the general theme of the first part of the discussion: that companies need to spend on quality - on what’s valuable – whether it be on the truck itself, the tyres or on lubricant. Costs elsewhere can be kept at a minimum by focusing on how the fleet of trucks are being handled and maintained on a day-to-day basis. Galadari Trucks and Heavy Equipment’s Faisal raised concerns that some key customers were not taking this approach and were using not only cheaper oils but spare parts from the local market too. “Everyone out there is looking to cut costs,” added Roberts. “Sometimes you don’t realise something until you’ve done it. You can buy a cheaper lubricant but what’s it doing to the engine 20,000km down the line?” Valvoline’s Bousellham said it was important to think about how new technologies - for example, EGR (Exhaust Gas Recirculation) - and good quality lubricants can reduce emissions. A good lubricant does not just mean that vehicles can stay on the road longer, but it can also play a part in building towards a more sustainable industry. “We need lubricant that will be practical in reducing emissions too and we need a fuel type that is compatible with that,” he said. “Lubricants meconstructionnews.com
DOING THE RIGHT THING The right lubricants can help the transportation sector lessen its environmental impact while improving the bottom line.
are about 2-3% of the budget. But out of that we can get good value. Low viscosity lubricants will help reduce fuel consumption. The less fuel that is consumed the less emissions there will be. We need to use high quality lubricants and services. We also [at Valvoline] get good data about contamination and condition of lubricants so it can be monitored this way.” The leading industry experts then turned to consider the likelihood of fully electric and automated vehicles in the market; and the key challenges that the industry faces in terms of testing and regulations. Mohan predicted that electric trucks are, at minimum, five years away, and that they would, most likely, appear in Europe before the Middle East. He added: “I see more of a push towards Hydrogen fuel technology. It looks more logical. The roadmap is different for commercial trucks versus commercial vehicles.” Wising agreed saying: “Trucks need to be operated 24/7 unlike commercial vehicles. Commercial vehicles are not running all the
You can buy a cheaper lubricant but what’s it doing to the engine 20,000km down the line?”
time, so it is easier and less costly to make these fully electric. The business cause for trucks is not there. We need more stringent rules” According to Roberts, electric trucks would not take over for at least another ten years. In the meantime, there needed to be better enforcement on weight restrictions and on the general condition of vehicles after they had passed a test. “The drivers’ hours legislation needs to be implemented too,” he added. “We won’t let our drivers work more than 16 hours in a day. We have telematics to monitor it.” One idea that was shared was to have an operator license for each company and to use a traffic light system to track companies after the test. So, each company would be red, amber or green. If they are green, it means they probably don’t need to be stopped as they are operating their trucks the right way but if they are amber or red it means they have violated the rules and need to be monitored more closely. Another suggestion made was to have a code to check that tyres used in a test were the same tyres being used when the truck was back in operation. It was noted that this was not just about cost, but it was also an important safety consideration that such things be implemented. Going for value rather than what is cheap not only benefits the company financially long-term, but it also enhances truck safety and the safety of its drivers. Although most truck companies these days have an electric prototype, the live Valvoline discussion revealed that concerns remain about the cost of running commercial electric trucks as a significant proportion of a company’s fleet. There are still long-term challenges about how this can be done on a cost-effective basis, especially in the Middle East. A final point, however, was made about remembering the social responsibility to do the right thing. Transportation was responsible for about 26% of CO2 emissions globally in 2018, according to the International Energy Agency. Although this dramatically reduced during the pandemic; as the volume of activity in the industry picks up again and as the world confronts the long-term sustainability goals set by the Paris Agreement, it must also be considered the impact the trucking industry can have by being at the forefront of this social change. Many companies may be tempted to spend less and buy cheap in order to maximise profit, even as operations increase. But, at what expense in the long term? According to this panel, shortcuts and short-term gains simply can’t be the sector’s legacy. NOVEMBER 2021 13
FEATURE
THE
CONNECTED FLEET
Sajed Sbeih, managing director, commercial operations, GM (UAE) talks the future of fleet mobility
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hen you think General Motors (GM), you probably think Detroit. But the venerable marque – celebrating its 115th year in 2021 – is truly a global company, spanning six continents and employing 150,000 people. Its operation in the Middle East and Africa counts 1,100 employees alone and is coordinated via its hub in Dubai. It also operates a separate manufacturing facility in Egypt. As such, the company can be regarded as heavily invested into the region and when it talks about creating a world of zero emissions, zero crashes and diversity it is doing so with a huge, vested interest. Talking 14 NOVEMBER 2021
at last month’s Dubai Lease Conference, Sajed Sbeih, managing director, commercial operations, GM (UAE) explains that he and the local team take their cues from the top. “Our chairman and CEO Mary Barra is not only from the top hundred most influential woman in the world. That says, a lot about our culture and how we value diversity, equity, and inclusion within the workplace, in our organisation. We work in a male dominant industry, so it is vital that we support women and leadership.” Sbeih has been in the industry for 17 years. While that time has flown by, he says he has seen more changes in the past 18 months than the previous 15 years combined. He adds that those changes are coinciding with
GM’s vision and the UAE’s vision is very much aligned”
huge changes in the region, particularly when it comes to mobility and connectivity. “Connected technologies is part of the aim of this country but as GM’s vision and the UAE’s vision is very much aligned,” he chimes. “The thrill of discovery and innovation is what propels us at General Motors. We’re not just focusing on where we will be in 10 years, but on how we will reimagine the customer experiences as they are at the heart of everything.” Nothing is more future facing than the electric, autonomous lunar truck, GM is developing with Lockheed Martin. Announced early in the summer, the extreme temperatures and vacuum conditions of the lunar surface will test GM’s on- and off-road knowledge to the maximum. meconstructionnews.com
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“This truck can travel further than ever before on hazardous terrain and explore the dark side of the moon where no man has ventured ever before,” says Sbeih. He adds that the technology could help the more Earth-bound development underway at GM in fuel efficiency, lighter models and safer and more efficient driver: “And, by the way, help drivers have a more fun time on the road.” GM’s development strategy has three main pillars: electrification, autonomy and connectivity. Of the three, it is connectivity that could have the most profound effect on fleets in the near-term: “I believe that connectivity will drive a change in what, and how, we experience as mobility in the future. From helping to reduce traffic accidents to entertainment and personalisation, it would allow our vehicles to talk to each other and infrastructure. As well as help them to drive safely. It will also allow for automatic updates and ease interaction all through connectivity and data management,” he explains. The OnStar FMS service launched in Kuwait in the summer and GM is hoping that it can soon offer a wide range of fleets services that give small business owners and fleet managers meaningful insights, including actionable data, and the confidence they are maximising their RoI: “We have already some of these services available in the market particularly in Kuwait, and we can roll it out in other markets in the future.” “OnStar brings a whole new level of safety and security and thereby peace of mind for all of our customers, OnStar also enables the underlying connectivity exclusively in our vehicles, and enables them to offer connected services,” he explains, adding that all new cars will be connected in some-way by 2030. “It’s real. It’s coming.” Specifically for fleet owners, Sbeih says connected vehicles powered by OnStar create a new world of opportunities for operators: “For example, Fleet Management Solutions enable vehicle sharing and, and also the keyless entry solutions mean you don’t need additional hardware while keeping you and your most valuable assets, your people and vehicles, safe and secure,” he says adding that he believes that there are five ways that telematics help increase a fleet’s return on investment. “First, it actually decreases the operational costs as telematics provide meaningful insights and recommendations backed by real-time data. It reduces your operating cost: preventing or minimising costly downtime; getting maintenance alerts; or even using a feature like meconstructionnews.com
remote unlock, so there is no need to call or pay for a locksmith. This all can help save your brand and your business money every year. “Second, it helps protects your assets. Telematics offers asset protection solutions, like real-time location tracking, and geofencing alerts allowing you to always be aware of where your most valuable assets are or if any of them leave a designated area. “Third it helps improve Road Safety by dramatically and quickly improving driver behaviours, cutting risk and decreasing collisions. For example, having visibility into which drivers are accelerating or braking heavily. This will automatically reduce vehicle downtime and increase profit. There’s a sign over the back of some vehicles saying am I driving safely? If not, please call X number…. with OnStar you don’t need to have such a message because you can get this information in real time. “Forth, OnStar optimises productivity and there are driver management tools that help operators gain a total perspective of their fleet by providing meaningful data that will maximize on the efficiency from a macro
OnStar brings a whole new level of safety and security to our customers”
SERIOUS COMMITMENT GM has invested over $35 billion in electrification, connectivity and autonomy. In the region it is working with several governments to support some of the infrastructure of cities to enable smart technology in the future, says Sbeih.
view to individual vehicles,” he says. “And lastly the experience that you provide your own customers. These systems are easy to use built-in technology creates efficiencies that help optimise your operation and bring peace of mind to the end user or to your customers. The beginning of 2021 saw GM launch the BrightDrop electric delivery arm of its business. August’s recall and concerns over Chevrolet Bolt EV notwithstanding – or more specifically the batteries being provided by LG – he says that electrification is a key driver: “There are 7.2 million electric vehicles on the road today and by we are looking to have more than 240 million,” he explains with GM aiming for an electrical equivalent across all its brands by 2025. “The Chevrolet Bolt EV will soon be launched in the region. There is also the Cadillac LYRIQ which will be using our own new, propulsion battery system, Ultium, which combines performance and fast charging and includes a 33in advanced LED screen for interaction across the driver viewing area. Next will be the GMC Hummer EV, which is a revolution of what is possible with zero emissions: it delivers a 1,000 hp and it can go from zero to a 100mph in only 3 seconds. This has all been confirmed that will be coming to Middle East in late-2022.” Sbeih concludes that the US firm is working on the world’s most advanced self-driving vehicles. He adds that the its own Bolt-based Cruise AV will be coming to Dubai. “We are continuing to invest for largescale deployment. This technology won’t just allow flexibility in commutes, but will be safer on the roads. We also believe all EVs will be AVs and further help reduce emissions again. We have been conducting of a number of pilots and are excited to announce that with Dubai’s RTA, we will be bringing the Cruise to Dubai in 2023. Dubai is the first city outside the US, where Cruise will be launched.” NOVEMBER 2021 15
FEATURE
THE FUTURE OF
FINANCING The way we build up our fleet of vehicles and equipment has changed dramatically over the past decade but the pace of that change could be set to ramp up even further in the UAE with the onset of new leasing regulation
16 NOVEMBER 2021
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easing has long been a useful route for businesses to build up assets in other markets but due to a variety of factors hasn’t yet established itself in the GCC. The UAE’s commitment to revamping even its most recent laws on lending to businesses could help hundreds of fleet owners to expand without risking further debt and borrowing. The recent Dubai Lease Conference looked at the new regulatory landscapes introduced by the UAE Ministry of Finance with the redrafting of the country’s Finance Leasing and Secured Movables Financing laws. After a brief introduction, experts were soon discussing how the country can get its laws to match international standards and what that means for SMEs in particular. Dr Hussam Sameer Al Talhuni, senior advisor of the Ministry of Finance has been heavily involved with the changes to the Finance Leasing Law and says he has been helping to build on the significant steps taken by the newest leasing regulation brought in 2018. “That law created a standard of modern framework for leasing operations in the UAE, however, experts have raised concerns about them and that it did not meet the required standards of international practice. I agree with that. I think there are many aspects that should be improved. In the law, particularly issues that concern relationships between the relevant parties, the lessee, the lessor and the supplier, which have not been dealt with effectively,” he says. “There are other various aspects related to leasehold rights and issues concerning leasing company regulation, which have not been structured fully in line with International standards. After the law was issued in 2018, I advised the Minister of Finance to change it and take advantage of applicable modern rules, particularly the new secure transaction law enacted in 2020.” Taking his advice, the minister of finance secured approval from the UAE cabinet to start working on a new draft law started with the aim of developing the leasing sector and improving access to finance. “The good news that I can share with you today is that we have finished processing the new draft and a new version has been discussed in depth with the selected group of experts, including my colleagues Patrick Ger Regan and Michael Savva, and others.” Once implemented, the new law is expected to enable manufacturers and their
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distributors to offer greater choice to their customers as well as open up their services to new clients. That is partly enabled by a revised approach to what can actually be leased in the UAE. Currently, the law limits leased assets to those that are used in the craft or trade of the business that is hiring the vehicle or equipment, but that definition will now allow hire companies to offer their products, ie. the long-term hire of vehicles, for personal use. The draft law, on the other hand, takes into consideration extending that scope to include consumer personal transactions. The law should also help strip down the reams of paperwork that have been needed in the past; speeding up process and allowing a little more ‘give’ in the market. “The draft law relies more on our freedom of contract principle, where parties are free to determine the extent of their rights and obligations of each of the parties and the type of these contract,” says Dr Al Talhuni. Unfortunately, businesses are not always successful and able to fulfil the terms of their contract. In the past, this has caused issues where financed vehicles and equipment have not been able to be reclaimed by a bank, leaving that asset in limbo. Unable to be sold back or sold on, firms can’t liquidise a valuable asset to raise cash when they need it and instead have to watch it deteriorate and lose value. Dr Al Talhuni says that bolting onto the recent secure transaction law, which enabled the selling of an asset to settle a debt, protects a leasing company from, say, a customer going bankrupt. It will also ensure that a leased asset doesn’t fall straight into the hands of an administrator should a business become insolvent. Less risk to them means more opportunities for customers in the market to get access to leased equipment and vehicles. “The current law does not provide efficient enforcement and reposition procedures in case of a lesee’s default or bankruptcy. Whereas the draft law has taken to consideration the use of effective enforcement procedures already addressed in the secure transaction law. So, there is a link of course, between the two laws in this respect and they use the same central mechanism of registration,” he explains. Work on the new law continues and there are currently talks to shift the taxation status from goods to services and which repayments could be exempted from tax. Finally, the draft law also allows for a broader definition of a leasing company which does NOVEMBER 2021 17
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not need a license from the Central Bank of the UAE. Essentially, freeing up the market for more competition and choice. “We weren’t convinced that there was a real need from an oversight point of view for every lessor entity internationally to be governed by the UAE central bank,” explains aviation and shipping veteran Michael Savva, partner, Watson Farley and Williams, who was part of the team invited to consult on the law. “It would require for example, Japanese and Chinese lessors to set up business here in order to obtain a central bank license. There is no way that was ever going to happen.” Savva says that one of his first questions was whether it should be aimed at big-ticket leasing or smaller firms, but it was soon clear that it was most needed by the SME market: “The previous law included very prescriptive provisions as to what a lease contract needed to include. And in a lot of cases, they were not provisions that we would expect to see in a standard lease. Certainly, in the leases that we review, one of the key critical ones that we had a big problem with was the fact that both lessors and lessees were to be given a mandatory 60-day grace period for any default. Having it mandated in a law that a lessee is automatically granted two months leave even force a payment default would, in our view, just not be acceptable to the lessor market. Thankfully, as Dr Al Talhuni said,
A MUST FOR FLEXIBILITY Ger Regan says that the new laws provide flexibility for the leasing market but also the structure needed to provide long-term stability and assurance for businesses.
These changes to regulation are going to have a huge impact”
SME IMPACT IN THE UAE Experts during the Dubai Lease Conference discussed how the UAE can get its laws to match international standards and what that means for SMEs in particular.
18 NOVEMBER 2021
the new draft law leaves a lot for the parties to agree on and so the vast majority of the provisions of the law contain carve outs to say that the parties may agree otherwise,” he says. A third member of the working group developing the law is Patrick Ger Regan, Business Partner, Invigors EMEA Ltd (UAE) and founder of Sama Group. He brought a ground-level view of what was needed from an operational point of view in the market. Looking back to his first experiences in the UAE a decade ago, he recalls his reaction when he realised leasing wasn’t available to firms.
“I was very surprised,” he exclaims. “While I was financing equipment in the UAE you realise that the concept of financing using a ‘mortgage’ or ‘asset pledge’ with a loan to secure assets created a block of nonflexibility in funding opportunities for SMEs. It created this situation where enforceability, accountability, flexible funding, recovery, and models of asset ownership were impossible for institutions to assume risk. It forced a lot of distributors and manufacturers to look at the way they did business, forcing many to self-finance their clients with payment plans and on book finance solutions, many found it difficult to secure vendor finance partnerships with financial institutions. partnerships that we see too good effect across Europe and the US.” To Regan, the market was stuck in a situation where recovery of an asset was so difficult in an event of default, with no valued routes to dispose or remarket the asset, many institutions were risk adverse when it came to asset-based lending, the Secured Transactions Law now will have a big impact to support this process. “I’ve worked within a number of non-banks in the region in the equipment finance space, managing deals from a credit & risk management perspective was seriously impeded by the fact that we just did not have leasing that allowed that flexibility of ownership to a lessor and end user who would gain the benefits of asset ownership at the end of the lease term. “We’ve since enacted the secure transactions law which opens the door to defined security rights to funders for assets secured, but does not cover RTAregistered assets, yellow plant, trucks and meconstructionnews.com
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transportation which are still underwritten via a mortgage with a loan. This leasing law will allow end users to look at their fleet and project requirements and then decide on how best to invest in their fleet, with lessors holding the residual value and asset security risks the rewards can be managed.’’ In the past, many distributors have been forced to find ways of independently supporting their customers, often by turning to self-funding: “By doing this, they take on many financial and liquidity risks to encourage customers to purchase or at least get access to the new equipment. This should not be the case and as a group we hope in time to support these industries with new lease funders. We are sure many global lessors will see the UAE as an investment opportunity. “These changes to regulation are going to have a huge impact, we have witnessed significant blocks and financing challenges in the past 10 years for SMEs, many Non-Banks have ceased lending due to liquidity challenges’’ but overall, Regan insists: “There’s an absolute need for OEMS and distributors to have flexible funding solutions and this leasing law will ensure that, my goal over the 12 months, while we worked on the redrafting of the law, was to establish operating structures and to learn from OEMs and distributors what they wanted to see within the law, how their captives may operate within the UAE, the role of supervision and operational parameters.” Regan now believes that, “We have in the law all the credentials, including recovery and repossession methodology to ensure its success.’’
STATE-OF-THE-ART HEAVY DUTY SOLUTION THAT ARE TRUSTED BY OEMS IN THE HEAVY INDUSTRY
There’s an absolute need for OEMS and distributors to have flexible funding solutions and this leasing law will ensure that”
Ultimately, it is hoped that by bringing the leasing law up to international standards, it will free a raft of companies to offer leasing of their vehicles and equipment – and possibly help to not only minimise risk by making it easier to recover assets but also spur an economic recovery in the market. “The bigger picture here is that, and the reason why this law was redrafted, is to ensure that these laws when enacted will support government initiatives on the ease of doing business and the ease of obtaining credit – both of which can speed the UAE to achieving its industrial strategy. This leasing law has the opportunity to attract FDI, but needs to contain pertinent features: there needs to be a supervisionary framework for operational practice, registration and recognition of the rights of lessor and lessee. But most importantly, there needs to be a clearly defined enforcement and repossession process for when things go wrong, and I think it’s probably the latter that’s been mostly missing within existing lending activity.”
UNRIVALLED RELIABILITY AND QUALITY IN HANDLING HIGH WORKLOADS
RELIABLE SLIP-PROOF POWER TRANSFER FOR OEMS’ STRINGENT PERFORMANCE REQUIREMENTS
HIGH-QUALITY BELT DRIVE ACCESSORIES FOR A MORE RELIABLE ENGINE PERFORMANCE
LET’S HAVE A TALK
ONE RULE FOR THEM, ONE RULE FOR SMES The new rules consider that international crossborder, big-ticket asset finance is very different to the needs of leasing in the SME space domestically, says Watson Farley and Williams’ Michael Savva.
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NOVEMBER 2021 19
FEATURE
A CASE FOR
CHANGE
Dr Otto Preiss, COO, Rolls-Royce Power Systems believes there is a future for the internal combustion engine
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nternal combustion engines made their way into many applications with the invention of spark ignition gasoline engines and compression ignition diesel engines before the turn of the 19th century. Both principles are the prevailing ones in use still today. In general, ICE range from small (single digit kW or even smaller) to very large (up to 80.000 kW) power output. Most relevant for Rolls-Royce Power Systems are off-highway engines in a power range starting at 560 kW up to around 10,000 kW, because they are at the core of the power trains in Power System’s end markets. This market segment represents a specific
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part of the overall global ICE market, which is dominated by on-highway applications In the most recent decades of ICE development, the main focus was on the increase of power density, on the performance map (aiming at optimising fuel consumption at given load and speed profiles), on efficiency improvements and on emissions reduction. In recent years, the increasing focus on de-carbonisation of the power train of onhighway applications has also reached many applications in the off-highway markets. It goes without saying that certain technology advances in the on-highway market were and will be transferred and innovated into
ICE-based applications play a key role in reaching climate goals”
the off-highway market and thus also into Power Systems products and applications. Given that we have a limited, accumulated budget for Green House Gas (GHG) emissions to keep global warming well below 2°C or preferably 1.5°C compared to pre-industrial levels, ICE-based applications play a key role in reaching climate goals. Off-road transport (6%) and power and heat generation (42%) account for almost 50% of the global CO₂ emissions from fossil fuel combustion in 2020. Hence, the use of pure fossil-fired engines must be reduced drastically and with that the deployment of ICE, or even the substitution thereof, must become CO₂ neutral or CO₂ free, eventually. meconstructionnews.com
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Fuel efficiency improvements and exhaust emission reductions of ICE, mandated by ever stricter emission regulations have made significant steps over the past few years and will continue to do so. However, it would not be near way enough to reach the GHG 2030 reduction ambitions and by that the 2050 net zero ambitions to stay below the 2°C warming increase scenario. It is for this reason that new technologies must be developed and deployed, which will gradually replace conventional fossil-fired ICE. Besides continuous fuel efficiency and emissions reduction efforts for fossil-fired ICE, the following technological principles have the most leverage for emission reduction and promise substantial GHG emissions improvements: a. Continue with fossil-fired engines but capture the GHG emissions at the “exhaust pipe”, i.e. capture and store the emissions so that they would never be emitted to the earth’s atmosphere. Usage of combustion engines with sustainable, i.e. non-fossil, fuels (synthetic fuels or e-fuels often subsumed under “Power to X” (PtX) fuels such as eDiesel, eHydrogen, etc., but also 2nd generation Biofuels). Hence, the aim is to reach a CO₂ net zero operation of combustion engines. Depending on fuel type, it either relates to a fuel that revokes as much CO₂ from the air, binds it from biogenic sources or from other CO₂ emitters for its production as is emitted by the use in the ICE when burning that fuel. Or it relates to fuels, like hydrogen, that would not at all emit CO₂ at the exhaust pipe. Switch to alternatives for combustion engines. Depending on the application this can be an electric motor, if rotatory mechanical power is needed, or a static solution, like a fuel cell or battery. Products and infrastructures leveraging solar and wind energy to charge a battery or produce green hydrogen are already available, although their amount and accessibility are very dependent on country and location. Taking into consideration technical, commercial, and regulatory constraints, besides the important ecological aspects, combinations of the above with today’s fossil-fired fuelled ICE are possible. Regardless of whatever principle or combination of technologies is chosen, we believe it is of utmost importance to consider the complete GHG balance and thus the complete value chain “from well to wheel” or in terms of the product lifecycle “from cradle to grave”. For example, with respect to the GHG emissions and targets, it is of no use to burn meconstructionnews.com
EMISSIONS RESTRICTIONS NOT ENOUGH Dr Otto Preiss argues that fuel efficiency improvements and exhaust emission reductions of ICE have made significant steps over the past few years but will need tech solutions to impact climate goals.
a fuel in an ICE that does not emit CO₂ (say hydrogen), if the fuel was produced with the help of CO₂ emitting energy sources (e.g., electricity from fossil-fired power plants). Since many chemical processes, like creating hydrogen, require electricity, it is crucial that the latter is produced, transmitted, and stored in an ecological friendly way, i.e. by renewable means. Hence, sector-coupling and alignment of the power generation industry and energy-consumption industries will become very important. We believe that the power demand for our applications and thus the ICE and alternativeto-ICE demand will co-exist for many years.
The aim is to reach net zero operation of combustion engines”
However, the distribution of the variants will evolve with an underlying pattern which is discussed in this chapter. We derived our market expectations assuming three scenarios of emission reductions based on IEA and IPCC reports. One scenario with today’s policies and decisions in place; one which would assume much stricter policies and a very strong push for and availability of a green hydrogen ecosystem; and one with similarly strict policies but the hydrogen ecosystem is not build as fast and sustainable fuels are ramped up accordingly. The translation of the global warming scenarios onto our markets allows the creation of strategic roadmaps for the development of technologies. In June 2021, the Rolls-Royce Group committed to a GHG reduction goal within the context of the “Business Ambition for 1.5°C” campaign. The share of the ICE as single solution or part of a hybrid system will still be between 60-90% by 2030. With orientation towards the third scenario and possibly even a stronger hydrogen pick up, ICE will still make up two thirds or more of the deployed portfolio. However, to meet the underlying emission values, one half of the ICEs would need to be fuelled by sustainable fuels. To what extent such a scenario will become reality depends on a number of drivers to be in place. The major ones are sustainable finance standards, market framework regulations like the CO₂ price or CO₂ emissions limits, a global alignment on standards, and the energy supply chain including the availability of infrastructure. As result of these scenarios, we are preparing
REVOLUTION VERSUS RETROFITTING Customer studies are under way where retrofit options are considered in the new design of engine rooms, so that vehicles do not need to be re-designed or scrapped when propulsion technology requires changes.
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for a technology mix of ICEs and electrical (including hybrid and fuel cell solutions). But whatever the detailed mix, we strongly believe that battery systems will play an increasingly important role in all our applications. Especially in combined technology solutions, batteries will allow to cope with the inherent peak demands in our applications. In general, but specifically also in our fields of application, purchase volumes of battery systems will increase exponentially. They represent a significant part of total costs in hybrid and electric systems (approx. 25-30% of a marine/rail hybrid system). It can be expected that the relevant success factors for adoption of battery systems, namely price and energy density (gravimetric and volumetric), will continue to improve over the next decade, especially also in our fields of application as they have already in other application domains. For instance, in the automotive industry the battery prices dropped almost 90% over the last ten years. Technology drivers for further improvements in battery technology are found outside of our industries. Examples include the automotive sector, where energy density, fast charging performance, durability, etc. are crucial, or in the utility sector where high energy and long storage times are a must. Thus, it will not be feasible to develop own battery technologies tailor-made for our fields of application. However, the application-specific packaging of battery-based systems will be a decisive factor
Battery prices dropped almost 90% over the last ten years”
2030 A MAJOR ICE LANDMARK Rolls Royce believes that ICE technology will be partially replaced by new technologies in 2030 subsumed under the category “Electrified & hybrid”, the level of substitution is strongly dependent on the application.
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due to the low volume/high mix nature in our industries. It will be key to harmonise and standardise on an architecture with re-usable modules across our industrial applications – at the same time we need to be able to benefit from battery technology advances which we will see every few years going forward. GHG ambition and new technology deployment must be viable for the diverse customer segments and applications at the time of installation and over the life cycle of the solution. The following four key aspects are to be considered when deciding on options as outlined in the previous chapters.
In an industry where asset lifetime spans over decades, the management of the installed base and the customer relationship are key. Given that off-highway vehicles or buildings and infrastructure are built around the drive systems, fulfilling future GHG requirements must consider the specifics of the installed base and related application realities. Rolls-Royce Power Systems internal calculations show that following the Science-Based Targets (SBTvi) definition the lifetime GHG emissions of our products deployed in a given calendar year are approximately 1,000 times higher than the annual GHG emissions of all sites of Rolls-Royce Power Systems combined. Thus, the use of CO₂ neutral fuels for any products deployed into the field or reduction of total emissions through technology combinations (such as gas ICE + battery) would have a high leverage on reducing GHG emissions still in this decade. It will not only promote different technologies like PtX fuels or batteries, but also ICE conversion kits for alternative fuel use (e.g. natural gas ICE to hydrogen ICE). The latter will help to secure investments in the already installed base or the soon-tobe installed base. Total cost of ownership (TCO) is key to customers, especially with continuously running equipment. Most of our ICE are operating in a range above 3,000 running hours annually. The reduction of operational expenditures is a constant driver for further improvements of ICE. TCO also incorporates cost of fuel and related taxes, fees for emissions and a regulatory framework that safeguards investments with long pay back periods. The cost of sustainable fuels is determined by the cost of feedstock, of power and of the chemical transformation process. First studies show possibilities for competitive costs comparable to biofuels, but this is strongly dependent on the availability of accessible and stable renewable energy sources. Our analysis and estimations predict higher average costs for sustainable fuels, in a range of 2-3 times compared to fossil fuels by 2030. This would increase customer TCO unless there were balancing measures in place related to the use of fossil fuels. However, real future TCO will also depend on cost of emissions, especially for emitted CO₂. Taking it into consideration, future CO₂ pricing can potentially offset additional cost for sustainable fuels, because the reduction or complete avoidance of CO₂ emission costs will have a positive effect on the TCO. Lastly, the regulatory framework has to be such that there can be a high confidence that meconstructionnews.com
FEATURE
today´s investments will yield the calculated return. Hence, customers and investors must be re-assured that the solutions conceived today and deployed in the near future are compliant with the standards and policies in the long run. For instance, the IMO must give guidance with respect to emission requirements of the future. A patchwork quilt of standards must be avoided under all circumstances. If the TCO criteria are favourable, CO₂ neutral and CO₂ free fuels for combustion engines are a viable alternative for many years. It would avoid the high costs and risks of entirely re-designing the primary applications and allow to continue with proven designs while still meeting the GHG reduction ambitions. 3. Feasibility of bridging technologies Bridging technologies are needed to mitigate possible high costs and risks for applications in switching over to more disruptive technologies. We expect sustainable CO₂ neutral fuels to play an important role, especially until CO₂ free technologies reach a higher level of maturity. Our customers are already strongly demanding these fuels for use in their existing fleets. Especially “drop-in” fuels like sustainable diesel or sustainable methane have the benefit of using existing infrastructure for distribution. Hydrogen fuelled ICE and hybrid propulsion are further options to reduce emission impacts to the environment across all segments and build the bridge towards net zero propulsion. Rolls-Royce Power Systems clearly sees ICE as a viable bridging technology towards a CO₂ neutral economy. Since the development of new CO₂ free substitute technologies for ICE need time, we expect more than 60% of our delivered products still
ICE LIKELY TO SURVIVE BEYOND 2050 Even in 2050, ICE will likely be the base technology for some specific applications. Considering the key buying criteria related to fossil fuel and assuming an acceptable TCO assessment, availability of bridging technologies, and the specific priorities of the applications, we expect a change in technology.
being based on ICE technology in 2030. Enabling ICEs to be a bridging technology means to adapt today’s and future ICE platforms to a wide use of CO₂ neutral fuels. Currently available Gas-to-Liquid (GtL) and Hydrotreated-Vegetable-Oil (HVO) fuels have similar characteristics compared to future CO₂ neutral PtX fuels. They can be used to develop and demonstrate the PtX fuel usage capability of ICE platforms, until PtX fuels are available in large quantities. Taking hydrogen into consideration, natural gas ICEs with options to retrofit to partial or full hydrogen combustion, are not only a bridging technology but a CO₂ neutral, or even CO₂ free technology for the future.
The market will be transformed in a magnitude not seen before”
While we see a momentum in the market and customer base to reduce GHG emissions, the willingness to deploy new sustainable technologies is very different across customer groups. Technological change will not happen simultaneously across all customer segments. The different applications will evolve at their own pace and will likely go with different technological concepts. Unfortunately, there will not be a one-fits-all underlying technological basis, like a diesel or natural gas ICE has been, but rather a number of coexisting technologies for many years to come. The ICE will not vanish as a key technical option in the future.
ROLLS-ROYCE AND DAIMLER TRUCK AG COOPERATE ON FUEL-CELL TECH Rolls-Royce plc and Daimler Truck AG are to cooperate on stationary fuel-cell generators as CO2-neutral emergency power generators for safety-critical facilities such as data centers. They are to offer emission-free alternatives to diesel engines, which are currently used as emergency power generators or to cover peak loads. In April 2020, Daimler Truck AG and the Volvo Group signed a preliminary, non-binding agreement to establish a new joint venture for the large-scale
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development, production and commercialization of fuel-cell systems for heavy-duty commercial vehicles and other applications. The Rolls-Royce Power Systems business unit plans to rely on these fuel-cell systems from the planned joint venture – as well as Daimler’s many years of experience – in the emergency power generators it develops and distributes for data centers under the mtu product and solution brand. “Data centers are the nodes of the global information and
communication network, whose vital importance has become particularly clear in these difficult times and whose operation must therefore be reliably safeguarded. Through the cooperation with Daimler Trucks, we will gain access to fuel-cell systems that meet our demanding requirements and will thus further strengthen our outstanding position in this growth market,” said Andreas Schell, CEO, Rolls-Royce Power Systems. “For Daimler Truck AG, fuelcell systems play a decisive
role in achieving CO2-neutral transport – as a supplement to battery-electric drive. Only End of April, we announced our intention to establish a joint venture with the Volvo Group. With the agreement for stationary fuel-cell systems concluded, we are already demonstrating very concrete opportunities for the commercialization of this technology through the joint venture,” stated Martin Daum, chairman of the Board of Management of Daimler Truck AG.
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WORKSHOP
VOLVO AND SSAB PRODUCE NET ZERO CONCEPT / MAGNA TYRES APPOINTS NEW REGIONAL EXEC / COMBILIFT LAUNCHES NEW TRUCK / FREIGHT AT THE SPEED OF FLIGHT
WORKSHOP
Volvo and SSAB demo net zero vehicle VOLVO GROUP LAUNCHES WORLD’S FIRST VEHICLE MADE WITH FOSSIL-FREE STEEL ASSEMBLY
Volvo Group has revealed the world’s first vehicle made of “fossil-free” steel and has announced that more such vehicles will follow in 2022 in what will be a series of concept vehicles and components. According to Volvo, the machine, a load carrier for use in mining and quarrying, was made using green steel produced by Swedish steel maker SSAB, and was produced in Volvo Construction Equipment’s facility in Braås, Sweden. The carrier was unveiled at a green steel collaboration event yesterday in Gothenburg hosted by
Melker Jernberg, president of Volvo CE, and Martin Lundstedt, president and CEO Volvo Group. During the premiere, which was broadcast online, attendees got to see the world’s first machine made of fossil-free steel. In addition, insights were also shared about yet another ground-breaking sustainable steel collaboration. The Volvo Group has committed to be climate-neutral and achieve net zero value chain greenhouse gas emissions by 2040. Along with the electrification of its vehicles and machines, Volvo is determined to reduce the carbon footprint of
JUST THE START OF GREENER MACHINES This first concept machine produced at Volvo CE’s facility in Braås, is just the start, with smaller-scale series production planned by 2022, and mass production set to follow, said Volvo.
its entire supply chain. During the launch, Jernberg explained: “Our ambition is to have fossil-free steel used across all our products, with a step-by-step approach. This machine is proof that we really can make fast progress, when we work together in strong partnerships, when we are determined to act and we enable our skilled people to contribute to building the world we want to live in. Not only for our generation, but for generations to come. Our team in Braås is understandably proud to help make this innovation happen.” CEO Martin Lundstedt added: “This initiative with SSAB sets the benchmark for a fossil-free future. Just as the nations of the world come together at COP26 to address climate change, so too must organisations and industries work in collaboration to develop innovative new solutions for a greenhouse gas emission free future. Volvo Group is committed to pioneering partnerships such as this with SSAB to develop attractive, safe and efficient new vehicles and machines that pave the way for a more sustainable transport and infrastructure system adopted for the future.”
COMBILIFT LAUNCHES XLE ELECTRIC LIFT TRUCK LOGISTICS
Combilift has launched its latest product, the emission-free CombiXLE. The multidirectional forklift has a lift capacity of up to 5t, which it combines with emission-free operation and powerful performance for a wide range of industries and applications. A statement from Combilift said the new model is in response to the growing demand for electric powered equipment. The original engine powered model addressed the requirements of tough working environments such as those in the timber, concrete and steel sectors. The new Combi-XLE incorporates the same key design features as its predecessor such as “high ground clearance, large, cushioned front and rear tyres and a spacious cab, allowing smooth operation on semi rough terrain whilst offering a high level of driver comfort.”
INSIDE THIS MONTH’S WORKSHOP: ATEGO TESTING OUT IN THE DESERT WITH DAIMLER AND ALLISON TRANSMISSION, THE NEW AUDI A6 WAGON, AND MORE
24 NOVEMBER 2021
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WORKSHOP
OFF-HIGHWAY COMPONENTS DEMAND SOARING
MAGNA TYRES APPOINTS NEW COMMERCIAL DIRECTOR TYRES
Magna Tyres has announced the appointment of Ywenco Philipsen as its new commercial director at its headquarters in the Netherlands, where he will be responsible for all marketing and sales related operations. The off-highway tyres specialist said that Philipsen, who took over his position on October 1, is a “highly qualified commercial director with a strong background and a broad exposure in several sales and marketing disciplines”. “His expertise will be a major asset to contribute immediately to advancing our priorities along with further developing the strong market position,” said Magan Tyres in its announcement. Speaking about his new position, Philipsen said: “I am very excited about this new experience and enormous challenge. I am really looking forward to establishing Magna Tyres as a strong brand and achieving tremendous growth with both customers and employees. We are aiming for more global awareness and the best customer experience.” The company added that with the appointment of Philipsen, Magna Tyres Group is “assured of substantive expertise, leadership strength and business acumen, as we continue to grow and embark in the upcoming years on the challenging tyre business”. According to the Magna Tyres Group, Philipsen “is a tremendous asset for the company and will play a valuable role in the company’s longterm strategic vision. His background, knowledge and management style are an excellent fit as we expand our global presence and work to enhance our already-strong on- and offline position”.
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PARTS The electrified off-highway components market will grow at a CAGR of 8%, hitting a value of $25bn in 2030, and generating a total of $186bn in revenue between 2019 and 2030, according to new research from market intelligence firm Interact Analysis. Battery packs will generate the greatest amount of revenue across the forecast period. However because batteries are already well established, the growth rate – at a projected CAGR of 5% – will be smaller than that of other components such as inverters. Hydrogen powered machines are forecast to have relatively low sales volumes but, due to the high price of the fuel cell systems and tanks, revenues are expected to grow rapidly. Alastair Hayfield, senior research director for commercial vehicles at Interact Analysis says, “One
ON BOARD CHARGING GROWTH The global market for on-board chargers will grow from $1bn in 2019 to $2.5bn in 2020 as there will be no off-board charging options in most real-world scenarios, says the report.
interesting thing to come out of this research was the finding that the global market for on-board chargers will grow from $1bn in 2019 to $2.5bn in 2020. This is due to a unique issue that the electrified off-highway market will face – there will be no off-board charging options in most real-world scenarios. On-board chargers are therefore likely to be a point of competition between manufacturers.
“I do think it’s reasonable to ask if it’s feasible to electrify all categories of the market. One particular difficulty for off-highway powertrain engineers is the lack of scale: given the small volumes of some machine categories, and the wide array of duty cycles, it’s tough to standardise to drive down costs. And for the heaviest applications there’s a serious question of whether batteries can do the job at all.”
HYPERLOOP TO FREIGHT AT THE SPEED OF FLIGHT
TECHNOLOGY
Josh Giegel, CEO & Co-Founder of Virgin Hyperloop, the American transportation tech company saus the transportation system will forever change the way we think of distance and time. Speaking ahead of this month’s Hypermotion Dubai event he said that he wants to use give delegates an insight into what it’s like to ride in a hyperloop and address its benefits for
transporting cargo and passengers. “I hope the audience gains an understanding of how hyperloop will forever change the way we think of distance and time,” he said, adding that the all-electric hyperloop with zero direct emissions will address three key challenges of transport today - sustainability, cost, and speed. “Virgin Hyperloop will be significantly more cost-efficient than other modes of mass mobility,”
he says. “The key to these cost savings is building a new mode from the ground up and optimising for the real world at an advantage to rail. Hyperloop can address scenarios such as tunneling under a busy street, taking a tight turn to remain within an existing right of way, or serving demand with pods scheduled in real-time—all in a more cost-effective way. There’s no one-size-fits-all, and previous technologies have not been able to adapt well to these scenarios – leading to massively underserved markets.” “Hyperloop can deliver cargo at the speed of flight and closer to the cost of trucking,” stated Giegel. “Today, on-demand deliveries are novel. Tomorrow, they will be the expectation. The need for faster trade continues to grow and existing systems are outdated. With hyperloop, transport can take hours versus days. NOVEMBER 2021 25
TEST DRIVE
DESERT
STORMING
T&FME test drives the Mercedes Benz Atego 4x4 and its Allison Transmission 3000 Series
L
ast month saw Truck & Fleet Middle East participate in a test session with a Mercedes Benz Atego 1726 A 4x4 to see how its Allison Transmission 3000 Series transmission copes in desert conditions. It doesn’t seem that long ago that if you suggested to most fleet operators in the Gulf that they should switched to an automatic transmission that you would be greeted with a polite, but blunt ‘no’. Pushed to explain why, a typical response would be that drivers simply don’t want them or trust them. Delving deeper you would hear anecdotes about failures, long repair times
26 NOVEMBER 2021
and worries about their reliability out in the field. To an extent, the scepticism was right. You can delve into early issues of T&FME and find notes about upgrades that tackled previous problems with automatic and automated transmissions. Many a system has come to the market, get put into a largely oil and gas role, and be largely ignored by the majority of fleets. But then that began to change, and it was arguably the UAE market that became the earliest adopter in the region when FAMCO and Volvo started to push the I-Shift system to their customer base almost ten years ago. So successful was this strategy that Volvo Trucks Middle East
The risk for wrong shifting is out of question and uptime is increased”
reported a 112% increase in sales of trucks equipped with its I-Shift automated gearbox in 2014, compared to the previous year. As the numbers suggested, the 12-speed gearbox immediately had a significant impact on Middle East sales with the number of trucks sold in the Middle East that were equipped with the I-Shift contributing to 40% of sales that year, as opposed to 24% in 2013. Getting to that point had been a slog for both companies but since its launch in the region in 2006, the I-Shift underwent hardware and software updates to improve performance. It was reintroduced on Volvo’s new FH, FM and FMX ranges in 2014 and they never looked back with meconstructionnews.com
TEST DRIVE
fleets buying into a gearbox that offered up to 7% fuel-efficiency saving, particularly when combined with other services such as Dynafleet, Volvo’s telematics solution. In addition, the I-Shift also provided high comfort for drivers, said Ralf Lind, Product Manager at Volvo Trucks Middle East at the time. “The I-Shift’s intelligent electronics constantly monitor factors like road grade, speed, weight, and engine load to help keep the truck in the most fuelefficient gear possible. This technology allows drivers the safest, most efficient, informed and comfortable driving experience possible,” he noted. Years after that success, the perception of non-manual transmissions has improved even further as fleet roles have evolved. Heavy duty and medium truck driving isn’t dominated by the off-highway operations that served the vast construction projects of the boom years and instead are spread across a wide range of missions. In today’s more cost-conscious era where it also pays for fleets to be thinking of the residual value of their vehicles; and besides less wear and tear means less downtime and higher fleet productivity. September saw Allison Transmission and Daimler Commercial Vehicles MENA open up on their partnership in front of the UAE media; letting them take a MercedesBenz Atego 4x4 controlled by the Allison 3000 Series transmission through its paces. Allison Transmission is at the forefront of the design and production of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of mediumand heavy-duty fully automatic transmissions for commercial and defense vehicles. Muhammad Ibrahim Khan, Allison Transmission Middle East Area Sales and OEMs account manager said the ‘Ride & Drive Experience’ event on the outskirts of Dubai was the latest venture in a longstanding global collaboration with Mercedes-Benz Trucks. “We are pleased to add value to the Mercedes-Benz Trucks vehicle range. Through this partnership, we look forward to jointly providing a reliable and powerful solution to customers in the market,” said Khan. “When you consider harsh and demanding environments like off-road terrain or heavy start-stop operations, you want maximum power and vehicle control. Fully automatic transmissions will meconstructionnews.com
increase driver comfort, provide ease of operation and optimal manoeuvrability.” The Atego 1726 A 4x4 was test driven on the off-road site. Built to be an able offhighway support vehicle in comes packed with a 6-cylinder in-line engine meeting Euro V emission norms, three mechanical differential locks, and has payload capacity of 11,700kg. Allison Transmission and Mercedes-Benz Trucks said they have maintained a strong partnership in the region. The companies plan to further serve the region with the same dedication and relentless efforts. According to Allison Transmission, the 3000 Series transmission is designed for medium-duty commercial vehicles
We look forward to jointly providing a reliable and powerful solution to the market”
FLEET CHOICE While fully automatic transmissions will increase driver comfort, provide ease of operation and optimal manoeuvrability according to Allison Transmission’s Muhammad Ibrahim Khan, fleets are also getting a choice of close- or wide-ratio gearing and up to seven speeds. An engine-driven Power Take-Off (PTO) is also an option.
and is engineered to adapt and operate efficiently in a variety of applications. Fleets get a choice of close- or wide-ratio gearing and up to seven speeds. An enginedriven Power Take-Off (PTO) is an option, says Allison Transmission, as well as an integral output retarder that provides enhanced vehicle braking and reduces brake wear. Operation is further enhanced by Allison’s advanced electronic controls, which also have prognostics capabilities for greater performance insight. Despite a minor technical hitch on the day, the truck performed admirably on the run and in typically hot and dusty conditions in and amongst the dunes. While this was a demonstration of off-highway prowess 3000 Series is flexible enough to work in a wide variety of vehicles, designed with a choice of close ratio for city streets and highway driving and wide ratio for construction and refuse applications. The torque converter results in better startability, particularly on gradients and an optional output retarder provides effective auxiliary and vehicle braking, says its manufacturer. The Mercedes-Benz Atego meanwhile is a fully-fledged member of the product portfolio offered by Mercedes-Benz Trucks in the MENA region. Strapping the Allison 3,000 to it offers a great deal of flexibility in terms of potential roles, such as firefighting in remote areas that aren’t possible on other models. It also epitomises value, efficiency and dedication, argue both manufacturers. Driving a 4x4 Mercedes-Benz Atego 4x4 equipped with an Allison 3000 Series transmission provides uninterrupted power to the wheels and makes it easy for a driver to focus on their job, keeping both hands on the wheel and eyes on the road, explained Olaf Petersen, general manager Mercedes-Benz and Fuso Trucks Sales. “It is great to finally see the new development of the Allison 3000 Series built into our Atego 4x4 on the road, as this project was specifically developed for the needs of our customers in the MENA region,” said Petersen. “We see several special applications benefiting from this combination, from firefighting to off-road operations in our trucks. “The fully automatic transmission with torque converter allows vehicle owners and drivers to work with high confidence. It relieves the driver from shifting activities, allowing them to fully concentrate on their driving. The risk for wrong shifting is out of question and uptime is increased offering a high benefit to the truck owner.” NOVEMBER 2021 27
TEST DRIVE
VADER’S WILD
WAGON
Sometimes a lack of choice isn’t a problem writes Jason Saundalkar following his time with the fourth generation RS 6 Avant
28 NOVEMBER 2021
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TEST DRIVE
I
t’s not a stretch to say that we love our cars in the UAE. That obsession, plus a healthy per capita income and access to finance mean that, often, whenever a new car goes on sale, it’s barely a day before you see several examples on the roads. There are a few exceptions: multi-million dollar hypercars aren’t as visible in this market as they are in Monaco and, joining that rarified crowd in the UAE are performance wagons. At the last enthusiast meet I attended (pre-pandemic), I saw several McLarens, Ferraris and Lamborghinis but just one thirdgeneration Audi RS 6. It looked good and as I’d been fortunate to have experienced a couple of hot laps and some drive time in one in 2015, I knew it could perform. I also remember that car being supremely comfortable and packing enough carrying capacity for most day-to-day hauling requirements. But, despite the utter usefulness of wagons and the capabilities of performance wagons, a preference in recent years for high riding crossovers/SUVs and the availability of hot versions of these tall vehicles has exacted a toll on wagon sales – even in car obsessed Dubai, you rarely see wagons or their performance cousins on the roads. Waning interest means there’s now little choice in this segment - the Mercedes Benz E63 Wagon isn’t on sale in the UAE (as per the brand’s local website at the time of going to press) and, from a more global standpoint, BMW hasn’t even released a M version of its current generation 5 Series wagon (though the F90 M5 sedan has been on the market since 2017). What this means is, today, if you fancy a performance wagon in the UAE, your sole choice is the Audi RS 6 Avant. For once though, the lack of choice doesn’t really bother me because the latest RS 6 Avant comes close to performance wagon perfection. Performance wagons
Once again, Audi is seemingly making a statement in support of performance wagons with its fourth generation RS 6 because, despite what I said earlier about waning interest in this type of vehicle, there’s no sedan on offer. Yes, you read that right, like Audi’s third generation offering, the fourth generation RS 6 is only available as a wagon (‘Avant’ in Audi speak). Audi clearly believes there’s a niche for this type of product and is sticking to its guns, and I think that’s worth applauding. T&FME’s 2021 RS 6 Avant was dressed in ‘Nardo Gray’ and it screamed special right meconstructionnews.com
NOVEMBER 2021 29
TEST DRIVE
from the off. On first seeing the car, one quick walk around was all I needed to declare “I’m in love!” The design is cohesive and equal parts sleek, muscular and intimidating, and there’s simply not a bad angle to view this vehicle from (the side profile is my favorite). Although this car belongs to the A6 family, Audi points out that the only carry over exterior parts from the standard A6 are the roof, front doors and tailgate. Francesco D’Amore is the man responsible for the exterior design of the RS 6 Avant and on the brand’s press website, it states he is a Star Wars fan and that he likened the car to Darth Vader. I get it. Adding to the car’s already sinister look was the optional ‘carbon/glossy black appearance package’, which included black
roof rails, a plethora of glossy black/carbon RS parts on the car’s front bumper (RS 6 badge, centre grille, side radiator intakes), as well as the rear (badge, black tipped RS oval exhausts, carbon rear diffuser, glossy black faux grille). The car was also fitted with the optional 22-inch 5-V-spoke trapezoidal style, Matte Titanium Gray, diamond-turned rims and mated to low profile 22-inch rubber. The wheels are fantastic to look at and filled the wheel arches perfectly. The rims also provide suitable housing for massive, cross-drilled RS steel brake discs and finished in red (optional extra) calipers. Those front calipers are massive 10 piston grabbers, which hint at just how much performance this wagon packs. Opting for the ‘dynamic package plus’ will add much pricier carbon-ceramic
DARTH IS THE FATHER OF THE DESIGN Exterior designer Francesco D’Amore states he is a Star Wars fan and has likened the car to Darth Vader. The interior is likewise is as feature-heavy and as stylised as the deck of a star destroyer – albeit one featuring a valcona leather trim.
30 NOVEMBER 2021
The design is equal parts sleek, muscular and intimidating. There’s simply not a bad angle to view this vehicle from”
brakes but will also unlock the car’s top speed of 305km/h. With the steel brakes, it’s electronically limited to ‘only’ 251km/h. Menacing on the outside, palatial on the inside…
The RS 6 Avant’s interior was beautifully appointed and exudes quality. The T&FME tester featured the ‘valcona leather package with honeycomb stitching’ and the entire cabin was dominated by brown-cognac, black and gray colors, which contrasted beautifully with each other. Sitting in the car and having a bit of a look and feel around, all the touchpoints felt premium and despite the tester having nearly 14,500km on it, there were no squeaks or rattles on the go at all. The driver’s leather sport seat featured memory functions and was comfortable to sit in for hours at a stretch – the cooling function was particularly welcomed, given that the test period took place in early August, when humidity was at its absolute worst. The AC system also did a good job of maintaining comfort levels in the car, though it does take a while to blow cold air after the car has been sitting in the sun for a while. And, despite the fact that this is a ‘RS’ vehicle, you even get soft close doors and acoustic glass for the doors and side windows, both of which amp up the vehicle’s luxury/comfort. Like the S8 I reviewed last summer, the RS 6 Avant packed a plethora of luxury and convenience features that make living with and using the vehicle a pleasure. You get adaptive cruise control, lane keeping and blindspot monitoring technology and, thankfully, Audi has equipped the long roof RS 6 with a 360-degree camera as standard. This made getting in and out of tight spots easy – you’ll never have to worry about scuffing those gorgeous rims against a kerb or rubbing up against another car’s bumper, while parallel parking what is a long car (16.3 feet from end-to-end). That length gives you a significant amount of second row legroom and boot space at 565 litres. The latter means you’ll be able to accommodate your shopping or luggage for five with ease. The only minor gripe I had with the interior had to do with the cupholders. They aren’t the biggest which meant I couldn’t get my phone to stand in them, nor could I get my glass-bottled energy drink of choice into them. The tensioners also exert quite a bit of force on whatever you do manage to get in the cupholders, so you’ll have to be careful getting them out if they have an open top. I can see meconstructionnews.com
TEST DRIVE
why Audi has opted for these tight tensioners though – taking one corner aggressively on a spirited drive, my iPhone shot out of the cupholder and into the passenger footwell. …And a monster on the road
The 2021 RS 6 Avant features the familiar small block, 4L twin turbo V8 with a 48-volt belt alternator/starter mild-hybrid system and cylinder-on-demand technology. It belts out a potent 591hp and 590lb-ft of torque and is mated to an eight-speed ZF gearbox, which drives Audi’s quattro system with a self-locking centre differential. The Quattro system features a standard power split of 40% to the front wheels and 60% to the rear but it can send as much as 70% of the engine’s torque to the front, and as much as 85% to the rear when needed. As standard the RS 6 Avant also features progressive steering and RS tuned adaptive air suspension. On the road those components work together to create one heck of an asphalt destroying monster. Despite the nearly 2.2 ton weight, the RS 6 Avant, with launch control, will deliver neck snapping acceleration – Audi claims it’ll do the 0-97km/h dash in 3.6 seconds but I’m sure it’s even faster than that. In fact, a quick look online confirms several testing sites with timing gear have clocked the car doing the dash in a barely believable 3.1 seconds. The powertrain is supremely capable – put your foot down even at 120km/h and the car will surge forward with serious authority. Needless to say, overtaking barely requires a thought and if you do need to scrub speed in a hurry, those massive brakes do a fantastic job of bringing the heavy Avant to a stop. meconstructionnews.com
On the road, those components work together to create one heck of an asphalt destroying monster”
Thanks to the Quattro system, tuned air suspension and reasonably wide rubber, the RS 6’s talents aren’t limited to straight line performance either. You can attack corners quite aggressively and Audi even seems to have dialed out the understeer that I noticed on the third generation RS 6 Avant. I reckon the vehicle’s trick differential and Quattro system are to credit for this transformation, though, sadly, the steering still doesn’t give you much feel for the road surface. As capable as my RS 6 Avant was with the options it was spec’d with, if you want something that takes away some of the car’s comfort but amps up grip, stability and responsiveness (useful if you’re hitting the track often), you can opt for steel coil springs
and advanced three-way adjustable dampers. Where I was left wanting for more was with engine noise in the cabin. Whereas the last RS 6 Avant featured less aggressive looks, the sweet racket emanating from that twin turbo V8 could be heard in the cabin as it popped, banged and drank petrol every time you got aggressive with the throttle. With this fourth generation RS 6 Avant however, the engine is quite muted in the cabin, and even with the windows rolled down, it seemed to lack that outright aggressive character of its predecessor. I suspect it’s all in the name of fuel saving but I miss that audible aggression. Speaking of fuel saving, the engine’s cylinder-on-demand technology, eight speed transmission and mild hybrid system do give you decent economy if you aren’t driving like your pants are on fire – I was able to do about 490km on a full tank of petrol in mixed city/highway driving coupled with the odd blast. That’s not bad at all for a nearly 2.2-ton performance wagon with 591hp. Verdict: The king is dead, long live the king!
Audi has done a fantastic job with the fourth generation RS 6 Avant. I reckon it’s the bestlooking performance wagon the brand has ever produced and, even without the top options, it’s a capable steer with performance and handling that’ll embarrass a fair few performance vehicles on sale today. And it’ll do this whilst cosseting you in luxury and comfort. The as tested price on the T&FME RS 6 Avant is a significant AED 579,000 but I’ve already justified the purchase in my head. Time to ask for a raise.
RIDING THE WAGON TRAIN Like Audi’s third generation offering, the fourth generation RS 6 is only available as a wagon indicating that the German manufacturer believes there is a niche market for it.
NOVEMBER 2021 31
PARTING SHOT
PLAY HARD,
WORK HARD Ford has long played a key role in computer games but it is not playing as it takes gaming into its own processes
F
ord has designed a vehicle in collaboration with the gaming community and is now testing features with customers via virtual clinics. It could even lead to a new commercial vehicle. For the first clinic, Ford engineers wanted to find out if participants prefer pressing the automated parking button and holding it pressed, or simply pressing it once – and created a short online video game where participants executed several parking manoeuvres (88% preferred the single button press, which could lead to a change in Ford’s Active Park Assist functionality). The game also featured a cow passing in front of the vehicle, to test how quickly participants would react and stop the vehicle. Longer reaction times could result in changes to the automated parking feature, with the vehicle set to move
at a slower speed, or the feature tailored to specific drivers. With more participants from different markets and demographics, and with a wider range of situations possible, Ford learns more about what customers to implement their preferences into vehicle development. In the Design Studio, game engines build animations that visualise how future vehicles look and function in real-world environments. Working in different locations can also be a challenge for design collaboration. At nearly two metres high and five metres across, its Powerwalls display vehicle designs at a scale of 1:1 allowing connected teams to analyse lines, shapes, shadows and reflections in collaborative sessions. To take a new approach to design and anticipate future trends, Ford co-created a virtual gaming race car with gamers. Almost a quarter-of-a-million esports fans took part in
online polls to help determine the appearance of the extreme Team Fordzilla P1 leading to an interior which focuses on the gaming essentials, including speed, race position and lap time. Ford is now looking to apply this minimalistic method to vehicles, as part of the company’s human-centric approach to design, where what goes in are the things customers want the most. The power of co-creating, as demonstrated by the P1 race car, also finalised the Puma ST Gold Edition. Fans cast almost 275,000 votes on colour combinations of elements including the model’s paint, decals and brake callipers, as well as deciding its name. Team Fordzilla is now looking to work with gamers and Ford’s designers to create a new Supervan. The new Supervan Vision Concept will imagine what an extreme performance model of future Transit vans may look like as it takes the Supervan story into a new dimension.
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32 NOVEMBER 2021
meconstructionnews.com
25 January 2022 DUBAI / UAE
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