Truck&Fleet ME September 2020 by CPI Trade Media

VEHICLES/ TECH / TRANSPORTATION/LOGISTICS

O78/SEPTEMBER 2O2O

MIDDLE EAST

LI CENSED BY D U BAI D EVELO PM ENT AU TH O RIT Y

E T E L P M O C E TH

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CONTENTS

CONTENTS FEATURE

14 / A GOOD TIME TO WASTE Why West Coast Saubermacher turned to HINO for its latest major waste management contracts.

ALSO THIS ISSUE … NETWORK

06 / NEWS FROM THE MONTH

Lucid Air sets new EV record and CAFU takes on fuel retailers. LAUNCHES

10 / V-CLASS REVAMP State-of-the-art and smart interiors come to the V-Class in the region. TEST DRIVE

12 / AUDI S8 IMPRESSES The 2020 Audi S8 is a true Q-Car that’s at the top of the luxury super sedan game, says this month’s tester Jason Saundalker. FEATURE

18 / BRIDGESTONE BUILDS T&FME talks to Stefano Sanchini about why the direction of Bridgestone’s Middle East future can be found in its past. OPINION

22 / CATCHING THE BUG Serkan Sarikaya, acting general manager, Mercedes-Benz Vans looks at COVID-19 and the rise of e-commerce. FEATURE

26 / ADAPTING TO CHANGE Why major international markets have adopted a variety of measures in the face of lockdowns. ANALYSIS

28 / KSA: BEYOND 2020 Vishal Pandey, director, Glasgow Consulting Group, looks at the trends shaping the GCC’s largest auto-market.

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SEPTEMBER 2020

NETWORK

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5483 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 EDITORIAL

PSA: THIS YEAR’S TRUCK AND FLEET CONFERENCE It is my happy privilege to reveal that we will once again be hosting the region’s only event dedicated to fleet operations and operators in November. The team at T&FME have always set ourselves the task of helping transport and logistics fleet owners gain a better understanding of the major trends in the market and how they need to adapt. But the market is changing and so is the conference. This year, we will be expanding our scope to focus on the industry’s links with ecommerce and the opportunities presented by the digital space; including carsharing, ride-hailing, last mile deliveries and a host of other fleet missions powered by new and disruptive technologies. In whatever field a fleet business is operating in, we are putting together a programme that will help them to run faster, longer and leaner by bringing together the leading ideas, technologies and individuals to the annual conference. As before, it will address a variety

of topics: from solutions and service to technology and safety, from general to specialised and from the micro to the macro, but always with a multi stakeholders approach. With the involvement of a veritable who’s-who of the transportation, logistics and commercial vehicles sectors, and with the support of our sponsors, supporters and our media channels, our goal is to enable better planning, fleet management and financing, as well as safer driving, to ensure that your investment brings you the best outcome you are looking for. We received such great feedback from last year’s unique blend of on-stage interviews, round-tables, technology insights and vehicle displays, that it is exciting to me to bring back a forum that will enable fleets from to share intelligence, present best practices and compare notes with industry peers and experts. Hopefully after what has been a challenging year, this will be the perfect opportunity to help shape a better one for the sector in 2021.

EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 SUB EDITOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVERTISING SENIOR SALES MANAGER BIPIN SONEJI bipin.soneji@cpitrademedia.com +971 4 433 2856 DESIGN CREATIVE DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOTOGRAPHY MAKSYM PORIECHKIN maksym.poriechkin@cpitrademedia.com MARKETING MARKETING ASSISTANT AYSHA SULTAN aysha.sultan@cpitrademedia.com +971 4 375 5498 CIRCULATION & PRODUCTION PRODUCTION MANAGER VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DISTRIBUTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT SADIQ SIDDIQUI ABDUL BAEIS FINANCE ACCOUNTS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 CREDIT CONTROL EXECUTIVE CAMERON CARDOZO cameron.cardozo@cpitrademedia.com +971 4 375 5499 FOUNDER DOMINIC DE SOUSA (1959-2015)

The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority

STEPHEN WHITE EDITOR, TRUCK&FLEET ME STEPHEN.WHITE@CPITRADEMEDIA.COM 02 SEPTEMBER 2020

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FEATURED

CONSTRUCTION

ENEC: BARAKAH

Amaala awards marina services contract to Saudi startup

NUCLEAR PLANT NOW SENDING MEGAWATTS OF POWER TO UAE GRID

It’s the nature of projects like this that they tend to stretch over many years, and sometimes CONSTRUCTION

decades (ENEC: Barakah

Phase Two work on track for Bahrain’s Water Garden development project

nuclear plant now sending megawatts of power to UAE grid). As such, there is a danger that the original requirement will have been surpassed by events in

Expert Voice Webinar: Ian Williamson and Shaping the Kingdom’s Future

the years that follow the initial green light. However, given the volatility

CONSTRUCTION

(socially, economically

Azelio and ALEC Energy to build verification project in Abu Dhabi in Q3 2020

and in the energy market) that we have seen in the intervening decade, this is one infrastructure project that seems more relevant than ever. Obviously, this is only the start of a long phase of testing ahead

CONSTRUCTION

of commissioning and

Riyadh’s The District Al Faisaliah redevelopment project starts second phase

then, finally, full operation but I see this as a major milestone for the region’s clean energy ambitions. Major progress, then. We just need to ensure that we continue to explore all the other potential renewable technology out there.

CONSTRUCTION

Le Carrousel, the Moroccan capital’s new waterfront development, on course for 2022 completion

04 SEPTEMBER 2020

It’s the environmentally

Webinar: How digitalisation of the rental sphere works for equipment users and owners

responsible thing to do. Name withheld by request

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NETWORK

CAFU OFFERING FREE FUEL DELIVERIES / BEE’AH CONTINUES IMPRESSIVE SAUDI EXPANSION / FORD NAMES NEW CEO / LUCID AIR SETS NEW EV DISTANCE RECORD

NETWORK

Saudi-backed Lucid Air sets electric vehicle record THE SAUDI-FINANCED LUCID AIR GOES INTO PRODUCTION THIS MONTH HAVING SET A NEW RANGE RECORD FOR ELECTRIC VEHICLES ELECTRIC VEHICLES Lucid Motors claims the independently verified distance of 517 miles on a single charge for the all-electric sedan is a new benchmark for electric vehicles. The US company is backed by the Saudi Public Investment Fund and plans to formally launch the car on 9 September. “I’m delighted that the Lucid Air has been independently verified by FEV to achieve an estimated EPA range of 517 miles, and that this landmark in the history of EV development has been achieved entirely through Lucid’s in-house technology,” said Peter Rawlinson,

CEO and CTO of Lucid Motors. “I believe that our 900-volt architecture, our race proven battery packs, miniaturized motors and power electronics, integrated transmission systems, aerodynamics, chassis and thermal systems, software, and overall system efficiency has now reached a stage where it collectively sets a new standard and delivers a host of ‘world’s firsts.’” This new benchmark range was secured with FEV North America, Inc. in Auburn Hills, Michigan, applying the EPA’s Multicycle Test Procedure (SAE J1634 Oct 2012 Standard) with

the standard adjustment factor. The FEV range estimate closely matched Lucid’s computermodeled range prediction. Lucid achieved this result through proprietary technology along with careful engineering of every aspect of the Air’s performance and efficiency. Starting with the in-house development of an industry-leading drivetrain, Lucid miniaturized and integrated the Air’s motors, transmission and inverter, and paired this with an ultra-high, 900+ volt architecture to achieve unmatched compactness and efficiency. In creating the Air’s battery

packs, Lucid drew upon 10 years of experience and over 20 million miles of real-world testing. In addition, the expertise of Lucid’s technology division, Atieva, played a large role, as it supplies battery packs for the entire field of the Formula E racing series since 2018 and continuing through 2022. The result is a battery system for Lucid Air that provides unparalleled safety, performance, and energy density. “Such exceptional efficiency, achieved through in-house technology, is undeniably a measure of a true EV tech company,” added Rawlinson.

THE LUCID AIR WILL BE THE FASTEST CHARGING EV SO FAR; WITH THE CAPABILITY TO CHARGE AT RATES OF UP TO 32 KM PER MINUTE

06 SEPTEMBER 2020

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NETWORK

FIAT CHRYSLER OPENS CONTACTLESS ISHOWROOM DISTRIBUTORS

SPARK HUB IN DHARAN WILL BE READY TO OPEN IN 2021 LOGISTICS

Work is in full swing at the King Salman Energy Park (SPARK) industrial city, coming up in the Saudi Arabian city of Dhahran in the Eastern Province, with 60% of Phase One facilities – including infrastructure, roads and utilities, and real estate assets established across 14sqkm, in addition to a dedicated 3sqkm logistics zone and dry port – fully completed. Investors and neighbouring regional hubs will be able to benefit from world class logistics infrastructure and enhanced global reach, according to the development’s owners. SPARK is being designed as a fully integrated city that will become the gateway to the regional energy sector, a statement said. It added that the city will include an industrial area, dry port and logistics zone, as well as a residential, educational and commercial zones. A total of $1.6 billion has been invested into Phase One of the megaproject, which is set to be completed next year. Fifteen major energy companies have already signed agreements to invest in SPARK, while another fifteen are currently in the pipeline. Forecasts predict that foreign direct investment in Spark will exceed $2 billion over the next two years, once investors finalise the construction of their facilities, the statement added. Furthermore, it predicted that once the project is completed, it will add $5.86 billion annually to the Kingdom’s gross domestic product by 2035, while also creating thousands of new highly skilled job opportunities. SPARK Chairman Dr Mohammed Yahya Al Qahtani said: ““SPARK will be a new engine fuelling the growth of the energy sector .” meconstructionnews.com

Fiat Chrysler Automobiles (FCA) says it is providing its dealerships in the Middle East region with iShowroom, “a virtual sales tool which offers customers a contactless and unique digital experience conveniently though their screen.” Customers are now able to interact with dealerships from the comfort and safety of their own homes via a range of video conferencing applications, including Zoom and Microsoft Teams. The manufacturer of Chrysler, Jeep, Dodge, RAM, Fiat, Abarth and Alfa Romeo added that its new initiative builds on the success of FCA’s ‘Car@home’ program which allows customers to order test drives to their doorstep.

When combined with FCA’s OwnerSupport+ tools, customer can access a range of services from vehicle selection to purchase, online delivery through to after-sales care. “iShowroom is set to revolutionise the buyer experience for FCA customers,” said Orhan Sozen, network development director, FCA Middle

East. “Our Sales Consultants are able to highlight every single aspect of any of our models with the tap of a finger and broadcast this experience directly to the homes of our customers. “This wholly digital experience maximises comfort, convenience and safety for both our clients and our employees.”

CAFU TAKES ON THE PETROL RETAILERS FUEL DELIVERIES CAFU has removed its delivery charges to customers in the UAE. The move effectively means that the fuel delivery company is now offering contactless refuelling at the same price as a petrol station, “at no extra cost and without having to physically wait in line at one.” The Dubai-based start-up said that it is rethinking

its business model two years after its launch with “renewed optimism” as the UAE transitions into the new normal following the Covid-19 lockdown. “The Covid era has been challenging for us all. It has changed our way of life, impacting how we live, work, and socialise, but It has also given us a moment to pause and reflect on how we can do more for our community to try and ease their dayto-day lives,” said Rashid Al Ghurair,

Founder and CEO of CAFU. “As a business, we constantly find ways to increase the value we bring to our customers, as we continue to innovate and adapt to serve them better. CAFU has been a key part of the community and has played an active role in making life better for our customers by bringing to life the idea of fuel on-demand.” According to CAFU, the drop in delivery charges could mean an annual saving of nearly 9 hours waiting at fuel pumps for customers as well as up to AED 1,000, “putting Dirhams back into their pocket.”

SEPTEMBER 2020 07

NETWORK

THIERRY BOLLORÉ TAKES OVER AS CEO OF JLR CARS

Former Renault group CEO Thierry Bolloré has been announced as the new CEO of Jaguar Land Rover, effective 10 September 2020. Natarajan Chandrasekara, chairman of JLR owners Tata Motors and Jaguar Land Rover plc said he was delighted to welcome the executive to the famous brand. “An established global business leader with a proven track record of implementing complex transformations, Thierry will bring a wealth of experience to one of the most revered positions

in the industry,” he said. Before his role as CEO of Groupe Renault Bolloré held senior positions at global automotive supplier Faurecia. “JLR is known around the

world for its peerless brand heritage, exquisite design and deep engineering integrity,” said Bolloré. “It will be my privilege to lead this fantastic company through the most testing time of our generation. “Renowned for their passion and spirit, the people of Jaguar Land Rover are the driving force behind its success. I couldn’t be more excited to join the team continuing to shape the future of this iconic company.” Bolloré predecessor Sir Ralf Speth is to take up his previously announced position of Nonexecutive vice chairman of JLR plc.

KSA COVID-19 PROTECTS HAJJ PILGRIMS TRANSPORT The Saudi Arabian Ministry of Transport says it has completed the maintenance of 491 km of roads leading to Makkah, as well as assigned transportation for each pilgrim group with “full precautionary measures”, ahead of this year’s Hajj pilgramage. Periodic and preventive maintenance was carried out on several major roads leading to Makkah Al Mukaramah, including Al Madinah Highway, Jeddah Highway, Old Jeddah Road, Al Sail Road, Al Hada Road, Al Layth Road. Completed works included

new lighting, bridge expansion, fence repair, scraping and asphalting, “as well upkeep of directional signs, road signs, road sign holders, paints, cat eyes, construction of concrete and metal barriers, and fence wires. Wadi Ash Shu’bah ferry also started its operation,” the ministry explained in a statement. With this year’s pilgrimage coinciding with the Coronavirus pandemic, buses have been organised for each pilgrim group with a dedicated seat number for each pilgrim for their entire Hajj trip. Other precautions include

asking pilgrims, except for those needing assistance, to enter and exit the bus through different doors. Should a passenger found to be COVID-19 positive, the bus will be held until it has been thoroughly disinfected. The number of passengers must not exceed 50% of the total capacity of the bus with a seat left vacant between two passengers and standing inside the bus is not allowed. All prigrims must adhere to physical distancing inside the bus although families can sit together. All passengers must wear facemasks.

MAJORS PASS ON COVID-19 TRAINING TO AD TRUCK DRIVERS TRAINING

Some of the UAE’s biggest commercial vehicles suppliers have teamed up to provide truck drivers in Abu Dhabi with the essential tools and training they need to prevent the spread of the coronavirus disease (COVID-19). Japan’s UD Trucks, Bridgestone and Abu Dhabi conglomerate - Al Masaood Group said they wanted to launch the ‘Serving our Heroes’ CSR initiative to highlight the importance of health and hygiene practices. Working in cooperation with Abu Dhabi Ports, they have recently distributed safety kits to over 900 truck drivers across various truck rest areas in the emirate of Abu Dhabi, including Khalifa Port. Mourad Hedna, president, UD Trucks Middle East, added: “UD Trucks understands the important role played by all truck drivers in the country. Every year, around 3,000 HD & MD trucks are sold in the UAE, with the heavy-duty trucks alone making up 6% of the total road traffic (cars and light commercial vehicles included). In the UAE, logistics is the lifeblood of our society.” Stefano Sanchini, regional managing director, Bridgestone, said the ‘Serving our Heroes’ CSR campaign reflects his company’s belief in serving society with superior quality: “This is a highly significant campaign as it helps in ensuring that truck drivers are aware of their health and can take preventative measures to ensure their own well-being.”

INSIDE THIS ISSUE: WHY ECOMMERCE IS PRIMING SAUDI ARABIA, BRIDGESTONE LOOKS TO THE FUTURE IN THE REGION, AND MORE!

08 SEPTEMBER 2020

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NETWORK

FORD’S PRESIDENT HACKETT TO STEP DOWN CARS

Ford Motor Company’s CEO and president Jim Hackett will step down in the coming months. Hackett has been leading the company’s transformation since 2017, and plans to retire from the company. The 65 year old is due to be succeeded by Jim Farley on 1 October. Hackett and Farley will work together on a smooth leadership transition over the next two months, said Ford in a statement. Announcing Hackett’s departure, Ford noted its aggressive movement into the new era of smart vehicles and drove a deeper focus on customers’ wants and needs under his leadership.Ford has also restructured its operations, refreshed its range and reduced bureaucracy during his tenure. “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” said Bill Ford, executive chairman, Ford Motor Company. “Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. Farley joined Ford in 2007 as global head of Marketing and Sales and went on to lead Lincoln, Ford South America, Ford of Europe and all Ford global markets. He subsequently headed its move into areas such as software platforms, connectivity, AI, automation and new forms of propulsion. He is described as an automotive leader with deep global experience and a successful track record. He collaborated with Hackett over the past three years to develop and execute Ford’s Creating Tomorrow Together plan to transform Ford into a highergrowth, higher-margin business. meconstructionnews.com

BEE’AH WINS TRIPLE WASTE MANAGEMENT CONTRACTS IN MADINAH CONTRACTS Waste management firm Bee’ah has been awarded three new contracts for waste management services in Madinah. Bee’ah will now be tasked with covering the North, West and East regions of Madinah, an area that covers 70% of the city and a population of 1.2 million people. The contract asks for solid waste collection and transport services along with disinfection and sanitisation of waste bins with operations scheduled to begin in August. The operation will employ 3,000 workers, 350 pieces of heavy equipment, including waste collection units, street sweepers and disposal trucks.

Bee’ah said it will also conduct training sessions, workshops, and awareness campaigns. Bee’ah said it will deploy its end-to-end waste management solutions “based on the twin pillars” of sustainability and digitalisation, and provide a comprehensive roadmap for waste services, “helping transform Madinah into a sustainable city of the future.” “As Bee’ah continues to prove itself as the leading sustainability pioneer here in the UAE, we are delighted to introduce advanced waste management services and work with Madinah Municipality to ensure a sustainable quality of life for over 1.2 million people in Madinah City,” said HE Salim bin

Mohamed Al Owais, chairman of the Board of Directors, Bee’ah. Bee’ah’s group CEO HE Khaled Al Huraimel added: “To be chosen as waste management partner for Madinah, known as the Enlightened City and one of the holiest Islamic sites, is a great honour. The two countries share strong ties and have a firm commitment to driving the sustainability agenda. “Bee’ah will bring its expertise, a proven track record in the UAE, and best industry practices to the partnership. Together, we will ensure sustainable living standards, in line with Madinah’s zero-waste goals and the wider objectives of the Saudi National Transformation Plan.”

GENESIS GRABS EARLY GV80 MODELS FOR REGION CARS

Genesis Middle East & Africa HQs has revealed it has secured early production models of the muchanticipated Genesis GV80 for a select group of loyal customers in the region.

The SUV, which was first shown as a concept vehicle at the 2017 New York International Auto Show, is not expected to be formally launched in the region until Q4 2020. According to Genesis, the ‘V’ in the GV80

marque represents versatility that “only a Genesis SUV can offer” and joins the South Korean car-makers lineup of G70, G80 and G90 sedans. Since being officially launched in South Korea earlier this year, unprecedented demand has grown for the model throughout the GCC – as a result, Genesis Middle East & Africa worked closely with Genesis HQ to deliver a select number of the cars ahead of its official launch. “With the car set to launch during Q4, customers can expect a new level of excellence with the entry ,” said Bang Sun Jeong, VP, head of Genesis Middle East and Africa Operation. SEPTEMBER 2020 09

LAUNCHES

MBUX SMARTENS UP THE V-CLASS AND LEARNS WHAT SUITS INDIVIDUAL DRIVERS / KIA REVEALS MORE DETAILS ON ITS GRAN TURISMO – THE STINGER

LAUNCHES VOICE CONTROL

V-CLASS BOTH LISTENS AND LEARNS

Enhanced V-Class launches in the region MBUX IS AN INTUITIVE AND INTELLIGENT MULTIMEDIA SYSTEM, CLAIMS MERCEDES-BENZ In 2019, the Mercedes-Benz V-Class facelift was introduced to the region with a new front design, new colours and upholstery choices, as well as an extended range of safety and assistance systems. Mercedes-Benz has further enhanced the model with the integration of the intuitive and self-learning MBUX (MercedesBenz User Experience) multimedia system in the V-Class, available now in showrooms in the region. “We are excited to introduce the sophisticated MBUX multimedia system to our V-Class models. Digitalisation and connectivity are important components of our product strategy. By integrating the

10 SEPTEMBER 2020

MBUX multimedia system familiar to Mercedes-Benz cars, the V-Class becomes even more compelling,” says Serkan Sarikaya, acting general manager and head of sales of Mercedes-Benz Vans Middle East and North Africa (MENA). The central element of the MBUX multimedia system is its intuitive operating concept. The voice control system can recognise almost any sentence, activated using a button on the steering wheel or by saying “Hey Mercedes”. In addition to this, the voice control system is also capable of learning. In the V-Class available in the MENA region, there are two baseline MBUX systems to choose

from. MBUX Entry is equipped with a 7-inch display and touchpad and MBUX Mid adds the navigation system. Customers can specify individually desired functions to enhance the MBUX multimedia system, such as a larger 10.25inch display, smartphone integration package and Burmester surround sound system. MBUX combines learning capabilities to provide predictive functions, to anticipate what the driver would like next. For example, if the driver often calls home on the drive back from work, the driver will receive a prompt on the display to place the call. Various infotainment settings

can be configured individually and stored in a profile, as many as eight profiles can be created, ideal when the vehicle is used by more than one driver. Apart from the voice control system, MBUX can also be controlled using the high-resolution, 7-inch or 10.25-inch touchscreen central display or the touchpad on the centre console. When the navigation system is fitted, touch gestures can be used to enlarge or move the map, making it easier to gain a precise view of the route ahead or explore the area. The touchpad also recognises handwriting, for inputting telephone numbers or addresses.

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LAUNCHES

KIA STINGER UPGRADE DETAILS RELEASED TWO NEW EXTERIOR PACKAGES FOR THE GRAN TURISMO MAKE THEIR DEBUT

CUSTOMISED CALLS With Apple CarPlay and Android Auto, it is also possible to mirror the user interfaces of all common smartphone operating systems on the central display.

FROM APP TO APPROPRIATE LISTENING Owners can discover all the setting options for the Burmester surround sound system in V-Class with the Daimler SoundCheck app from Burmester.

With the larger 10.25-inch display option, the Burmester surround sound system is available for specification. The custom-made high-end surround sound experience sets new quality benchmarks for the pleasure of all music lovers, with 15 speakers plus a bass reflex speaker, together delivering 640 watts of output. Visually, the Burmester logo on

the speakers refers to the high-quality surround sound system. A voice amplification feature is also included within the Burmester surround sound system, which discreetly channels the voices of the driver and front passenger through the speakers in the rear – allowing driver and passengers to communicate safely, while the driver focuses on the road ahead.

Kia Motors Corporation has released the first images of the upgraded Kia Stinger, revealing a refreshed design for the highperformance fastback sports sedan. Changes to the appearance of the enhanced model amplify its gran turismo character, while improving cabin quality and giving owners more choice of colour and material. The upgraded model boasts a range of design updates, inside and out. Outside, the changes add a new touch of drama to the car’s design and give buyers more options for customisation; inside, the upgraded Stinger offers a more comfortable space in which to travel, with a revised design, new higher-quality materials, and updates to the infotainment system. Karim Habib, head of Kia Global Design commented: “The Stinger projects an air of elegance and comfort, and also great purpose, for long distance driving. The updated model builds on the svelte gran turismo design we introduced three years ago with modern flair and a subtle hint of aggression to enhance its on-road presence. The interior, too, has been enhanced, and the new design elements and technologies incorporated into the Stinger reconfirm its credentials as the consummate grand tourer.” At the front of the Stinger, Kia’s signature ‘tiger-nose’ grille sits between new multifaceted reflector LED headlamps,

with a new design and LED daytime running lights. The new lamps appear darker and sleeker with the lights out, while giving the car a more high-tech light signature, with sharp slashes of light angled slightly towards the front of the car. At the rear, a new rear combination lamp displays a distinctive new light signature, extending the full width of the car and mimicking the shape of the subtle spoiler integrated into the trunk lid. The new turn signals comprise a collection of 10 individual LED units each, arranged in a grid pattern to mimic the appearance of a checkered flag, used in motorsport to signal the end of a race. Buyers of more powerful examples of the Stinger now have the option to specify larger wide-bore bright silver exhaust mufflers, with a more purposeful, performance-inspired rear diffuser to give the car a more muscular rear appearance. Two new exterior packages are also introduced for the first time. For high-performance variants in many markets worldwide, a new ‘Dark Package’ brings with it a gloss black diffuser surround and black wide-bore muffler tips. The Stinger emblem on the tailgate is also finished in black. While the architecture of the cabin in the upgraded Stinger remains unchanged, with a sweeping, driver-oriented dash and comfortable space for up to five occupants, it boasts a range of subtle enhancements.

SET THE CABIN MOOD A CHOICE OF 64 COLOURS

SPECIFICATIONS (V 250 STANDARD) Engine

2.0 L - 4 Cylinder, turbo

Horsepower

211 hp (at 5500 rpm)

Torque

350 Nm

Acceleration

0-100 km/h in 9.4 sec

Top Speed

210 km/h

Emission

Euro 5b+ Gr.III

meconstructionnews.com

SEPTEMBER 2020 11

TEST DRIVE

FOURTH TIME’S THE CHARM

The 2020 Audi S8 is a true Q-Car that’s at the top of the luxury super sedan game, Jason Saundalker writes

he first generation Audi S8 was produced from 1996 to 2003, back when I knew almost nothing about cars. I was aware of the Audi S8’s existence however, thanks to the late John Frankenheimer’s action thriller masterpiece, Ronin. Being young and thoroughly enthralled by the film and those spectacular chase sequences, I had to find out about the cars involved and turned to the internet. Eventually, I found out that the car driven by Skipp Sudduth’s character Larry was an Audi, more precisely an Audi S8 D2 (first generation). The car has been on my radar ever since. Since the S8’s release all those years ago, Audi has kept refining the car’s formula. The 12 SEPTEMBER 2020

fourth generation vehicle premiered in 2019 and, from a design standpoint, it’s a handsome yet modest looking full-size luxury sedan. My test car was equipped with what I like to call ‘anonymous spec’ because it had a glacier white metallic exterior with the de-badging option applied. The latter takes away the model, engine power and technology nameplate, which made this S8 a stealthy car that blended in, whether in traffic or in an office tower parking lot. Even with the badges on, I reckon it’s a still a car that won’t draw much attention to itself or its owner - the same can’t be said for its immediate competitors also hailing from Germany. Eyeballing my tester, I noticed just one S8 badge on its front grille and the only telltale signs that this Audi means business are the quad tailpipes and gigantic

From a visual standpoint, the cabin is a treat whether you’re driving or sitting in one of the passenger seats”

steel disc brakes with large red calipers. Compared to the A8, the S8’s body isn’t massively different; there are mildly reworked bumpers and side sills but nothing ostentatious or shouty. The first time I saw it, I immediately thought to myself ‘Q-Car’. Oodles of Refinement

With a number of choice options including a handy cool box, radar cruise control and ventilated and massage seats, my S8 tester was priced at a little over $170,000. That’s a serious amount of money but it doesn’t take long to see what you get in return for that significant outlay. Opening the door of the S8, the predictive active suspension system almost instantly raised the body of the car. ‘That’s freaking cool!’ I said to myself. Audi says the car can meconstructionnews.com

TEST DRIVE

raise itself by as much as 50mm to make getting in easier. My daily driver is a SUV, so when I have to get into cars, which sit lower to the ground, I always find myself struggling to avoid plopping myself ungracefully into a seat with an accompanying ‘ugh’. With the S8, I just had to step in and then found myself wondering why other cars don’t also do this. If the entrance experience doesn’t sell you on the S8’s suspension system, its on-road capabilities certainly will. Working in-tandem with a front-mounted camera, the suspension adjusts itself so ride quality over broken road surfaces and speed breakers is velvety smooth. Approaching a raised pedestrian crossing on the way out of Dubai Studio City, I felt the S8 suspension raise the body and cushion the impact of the crossing, while driving over it at about 20km/h. It’s an odd feeling at first but one that I quickly got used to and completely forgot about as I went through the day. Audi says the predictive active suspension works best on straight roads, whereas curved roads or T-junctions where speed breakers are at a right angle to the car are beyond the system at the moment. Even so, the suspension still does a fantastic job of maintaining ride quality in those scenarios. There’s a bit of unavoidable broken road on a roundabout near our office, and while driving over it sends shockwaves through to passengers in almost every other car/SUV I’ve driven, the S8 dealt with it like a champ, whether I had it in Dynamic or Comfort+ mode. The latter is the mode you want to be in, if you want a seriously comfortable ride. Suspension aside, the S8’s cabin quietness is worth mentioning because it is eerily quiet in there. It isn’t by accident of course, Audi has incorporated active noise cancelling technology, which compliments the car’s swathes of acoustic glass. On top of that, Audi says there’s sound reducing foam inside the vehicle’s tires. It’s so quiet in the cabin that even when other drivers inevitably honk at you for not flying off the line the millisecond the signal goes green, you barely notice it. From a visual and tactile standpoint, the cabin is a treat whether you’re driving or sitting in one of the passenger seats. There’s tons of head and leg room in the back as you’d expect, the seats all around are plush and comfortable and almost everything you can touch feels high quality. There’s fantastic ambient lighting that can be configured along with tons of other technology that you can spend hours playing with. The great news is you don’t have to; meconstructionnews.com

the technology is unobtrusive and just lets you get on with the business of driving. A Thoroughbred

The S8 can be configured to your heart’s content but I was more than happy with the car’s driving characteristics by simply engaging ‘Dynamic’ mode. The transformation isn’t quite Dr. Jekyll to Mr. Hyde however, as the S8 is still quite comfortable when you’re hammering along. You won’t find something as garish as a ‘Sport’ or ‘S’ button anywhere in this car, at least not that I saw. During spirited driving, thanks to rear wheel steering and the predictive active suspension, the sedan turned in precisely, while body movements are very controlled with minimal roll and even pitch. The S8 isn’t an all-out sports car of course but the only way you’d know and feel its limits would be to take it to an actual race track. On everyday roads, it’s offers more performance and grip than you’ll ever realistically need or be able to use unless you’re being incredibly silly.

Opening the door of the S8, the predictive active suspension system almost instantly raised the body of the car. ‘That’s freaking cool!’ I said to myself”

Audi claims the car will do the 0-100km/h dash in a supercar challenging 3.8 seconds and although you don’t quite get shoved violently into the seat because of that trick suspension, the car felt even faster than that. The Biturbo V8 serves up a potent 571hp and 590lb-ft of torque; the engine working with a quick, yet smooth eight speed gearbox and rear biased Quattro system make mincemeat of overtaking maneuvers and offer cornering grip, and exit speeds, that’ll make you do a double take. Verdict

Audi’s managed to create something very special with the fourth generation S8. I was a fan of the third generation S8, which I was lucky to be able to spend a lot of time with through friends, but it’s clear that Audi has raised the bar with this new model. It’s a car that seamlessly offers an intoxicating blend of comfort and sportiness in a package that’s handsome and slips neatly under the radar. Needless to say, I know which dealership I’m going to, if I ever win the local lottery.

CONFIGURATION AND OPTIMISATION The Audi S8 offers a typically daunting number of options for buyers in its class but its on-road driving modes are where it excels.

SEPTEMBER 2020 13

FEATURE

SUSTAINABLE PARTNERSHIP

West Coast Saubermacher (WCS) and Al Futtaim Motors - HINO talk about their exciting new truck partnership

he Coronavirus (COVID-19) pandemic has thrown the importance of ensuring our cities are safe and clean onto the front pages of our newspapers. Few organisations have taken the threat more seriously than Tadweer, Abu Dhabi’s Center of Waste Management, which has rolled-out an unprecedented assault on the virus to keep its streets clean. The challenge for the companies tasked with handling waste disposal and collection for the emirate is to deliver world-class service 14

SEPTEMBER 2020

while bringing the fight to the Coronavirus. Front and centre of this mobilisation is West Coast Saubermacher (WCS), a powerhouse partnership between the UAE’s leading waste collection West Coast firm and Saubermacher Austria. As one of the dominant players in the UAE market, they operate a fleet of over 700 units which handles non-hazardous solid waste collection services for commercial, municipal, industrial and residential customers in more than 1,000 locations throughout the UAE. For many years, WCS has been serving Tadweer by collecting and then transferring

The performance in the field is what counts the most”

waste – cleaning the streets, coastline and beaches of Abu Dhabi – before separating all the recyclable waste and green waste for reuse in the production of fertilisers. Speaking to T&FME, West Coast Group’s General Manager Dany Rmeily, says that the partnership continues to expand and was recently awarded two major contracts with Tadweer which involve the provision of municipal solid waste collection and transportation – as well as street sweeping and cleaning services – for two sprawling areas (Lot 3 and Lot 5) in the emirate. To fulfil this new contract, it has sought meconstructionnews.com

FEATURE

out 220 light, medium- and heavy-duty HINO trucks through Al Futtaim Motors (AFM). It is the first time that WCS has had the opportunity to work with AFM’s HINO business. Beyond AFM HINO’s burgeoning reputation in the UAE, built on its highly adaptable trucks which have been entrusted to brands such as Pepsi and rising fuel delivery star CAFU, Rmeily realised that here was a partner that understood the unique demands placed on WCS. “The deal was very smooth as the sales team had been accommodating, open to negotiations and more importantly, always meconstructionnews.com

available and prompt in responding to our necessities,” he notes. “As a customer, besides value for money which we always look for in most of our purchasing deals, good business relationships established with the suppliers is of paramount importance to us.” Ramez Hamdan, Managing Director, Al Futtaim Commercial Vehicles, says that the relationship with WCS can be traced back through its Abu Dhabi partner’s sister company Crown Paper Mill and a deal that brought Toyota Forklifts into the firm’s ranks via when Al Futtaim Motors - Toyota Material Handling. “From the start, this meant we were able to demonstrate the extended support already on offer from AFM’s service team to their group,” he says. “AFM is working as a total partner with WCS and they know they will get our full support for aftersales service and spare parts availability in order to minimise any downtime or unplanned stoppages for their vehicle operation.” He adds: “We are also bringing our 3S total support solution which includes providing the right fit of product at a competitive price, faster delivery time and availability for units; and our unrivalled aftersales support in terms of service, spare parts availability, with 24/7 road assistant whenever it is required.” The contracts with Tadweer cover two of the biggest areas (in terms of square kilometres) in Abu Dhabi with the trucks from Hino deployed with the vital task of waste collection and transportation, as well as cleaning operations. Rmeily explains that fleet purchasing always starts by first defining client and operational requirements specified in the tender. Afterall, a client like Tadweer will need to approve the trucks utilised for their project ahead of awarding a contract. “As a company that is certified against ISO international standards, our purchasing procedures are based on documented processes from our with a QMS (quality management system). The entire process is being managed by our Purchasing Department under the direction of the general manager.” He expands: “The usual evaluation of prospective suppliers of compliant trucks applies with high consideration of the defined criteria to come up with the final decision. Aside from valuing our client’s requirements; we must consider all aspects of the projects we manage: from the scope of services to the characteristics of the service area and all operational strategies befitting the requirements.

A SUSTAINABLE PARTNERSHIP West Coast Group’s General Manager Dany Rmeily (left) signs the deal for 220 new HINO trucks with Ramez Hamdan, Managing Director, Al Futtaim Commercial Vehicles. Both expect it to be the start of a long partnership.

220

Total number of HINO trucks fulfilled in the contract by AFM

“The process of purchasing of these vehicles has been rigorous; undergoing series of evaluations before we came up to the final decision. All client requirements are major considerations in choosing too. And prior to final purchasing, we assessed all the specifications and capabilities of the HINO trucks offered to us and matched them with the requirements,” he explains. Ramez Hamdan adds that the HINO light, medium and heavy trucks suited most of WCS’ needs in terms of the required dimensions and loads specified by Tadweer. “HINO is really the only brand that could

LOCAL BODYBUILDING West Coast Saubermacher turned to the world-class bodybuilding expertise of Gorica to meet strict requirements.

SEPTEMBER 2020

FEATURE

CAREFUL PROCUREMENT Purchasing at West Coast Saubermacher is a careful and thorough process shaped by client requirements to ensure it delivers the highest value and quality service.

UP TO THE CHALLENGE Despite dealing with the ‘new normal’ in waste collection, West Coast Saubermacher’s Dany Rmeily is confident that the new HINO trucks are “up to the challenge.”

fulfil the requirement for light-, medium- and heavy-duty trucks. WCS also analysed and recognised our advantages in terms of lower operational costs due to HINO’s EURO4 engine which has the advantage of not needing an additional tank for Ad-Blue,” says Hamdan, before adding the variety in the full range of HINO trucks gave his company the upper hand in terms of faster delivery times. “Even on the units with more specialist specifications, we were able to reach out to HINO in Japan and they were able to quickly turnaround production to satisfy WSCs own commitment to start 16

SEPTEMBER 2020

We need trucks which are heavyduty and dependable”

operating the trucks to a deadline.” While the two companies pawed through Tadweer’s requirements they were able to bring in a third party, and one of the world’s leading trailer companies, to match the demanding specifications and handle bodybuilding on trucks in the UAE – Gorica Group. “You always want to be able to make it easier for your customer to outsource their spare parts and service from one source under one roof,” Hamdan explains. “Gorica worked with us to streamline the costs and do the job faster in terms of providing all the required support on technical information and build

the customised bodies required for trucks over several applications; with the advantage of using existing stock on the ground.” Hamdan stresses once again that, beyond the trucks themselves, it was a strategy based on maximising uptime that proved decisive for both WCS’ final selection and its securing of its two latest major contracts. “This is a truly sustainable partnership. Our efforts to minimise downtime and ensure truck stock availability was a major benefit particularly for the second LOT 5 tender which required 90 units. With the first LOT 3 batch of 130 units we delivered a total of more than 220 units trucks all on time. Going forwards we will be supporting the operation by providing our ECO driving training and technical support information for their drivers. This means that they will not only be successful and safe drivers but WCS will benefit from minimal downtime for the vehicles and cost savings for the operation.” WCS’ Rmeily adds: “We are confident that our team and HINO’s vehicles are up to the challeng. The same process shall continue to be implemented in future purchasing requirements.” The new trucks arrive into a fleet of existing medium to heavy trucks which form a reliable core for the operation. Rmeily says that through the company’s extensive and long years of experience in the industry, it has learned that vehicles in this class offer better and more efficient service delivery and are the most cost-effective for its clients. “We need trucks which are heavy-duty and dependable,” he remarks. “The performance in the field is what counts the most. Bigger trucks means bigger capacities; and bigger capacities equates to lesser trips and improved truck uptime. This makes everything cost-effective, environmently-friendly and sustainable.” Real-time data and uptime are hugely important to a company which must meet rigorous standards in terms of service delivery and sustainable transportation. Migrating the new trucks into WCS’ fleet management system has been reassuringly straightforward, he remarks and then adds: “Integration of the database management system with the hardware specifications of HINO trucks had been smooth so far, there have been no issues encountered.” The easy transition has been important during a time where fleet operators and drivers have earned the status of key workers and proved vital in keeping the UAE’s cities and economy moving. As is the case for many meconstructionnews.com

FEATURE

A COMPLETE RANGE The complete range of HINO from Al Futtaim Motors proved to be a major advantage for West Coast Saubermacher in securing major contracts in Abu Dhabi.

fleets, the events of the past six months have brought the need for additional working hours for WCS’s trucks from “time to time” beyond regular and projected services, says Rmeily. “The recent throttling to global economic stability has brought about by the unprecedented impact of the pandemic in all countries even in the UAE. Despite the stricter requirements for health and safety, WCS has resolutely endeavoured to bring value at the forefront of waste management while keeping the highest standard of quality of services,” he says firmly. “As this is expected to continue in the succeeding years, this is a great challenge for us as a service provider. The reliability of the HINO trucks shall be of substantial advantage to us in terms of cost-effectiveness and operational performance. We do not anticipate any delay or interruption in our operations as the trucks are serving their best purpose at all times.” The talk of the future allows us to look at the changing regulation and rules which helped Abu Dhabi reduce the total waste collected from 2,259,508.64 tonnes in 2018 to 2,189,416.90 tonnes in 2019. The drop represents a decrease of 3.10% and the emirate, led by Tadweer, remains committed to minimising waste and improving waste management practices in line with the highest global standards and latest technologies. WCS is likewise constantly evolving to keep pace with its client’s green ambitions. “We have always perceived any change in rules as a welcomed opportunity to be better. Anything that would improve the operations and the service delivery overall is recognised as an advantage to enhance business strategies from our day-to-day operations to plans for the future,” says Rmeily. “As Abu Dhabi gears towards modernisation and optimisation of waste management services, WCS will be in the front row; offering advanced and meconstructionnews.com

sustainable solutions while incorporating the use of technology in our operations.” He continues: “If there are three things that essentially contributes to the success of the Company, that would be firstly the genuine desire and commitment to service – we always strive to put the client’s needs first by finding the most efficient and appropriate solutions. Secondly, we always considering the value-formoney not just for our benefit, but that of the client’s as well. Thirdly openness and honesty are the major foundations in building and keeping the great business relationships we have with our clients and even with suppliers.”

We are confident that HINO’s vehicles are up to the challenge”

Looking ahead, AFM’s commercial vehicles managing director Ramez Hamdan says he expects the two companies to continue to build on their impressive start. “We are always keen about extending our relationships with all of customers. WSC is one of our biggest fleet customers in waste management applications with more than 220 HINO trucks,” says Ramez Hamdan. “And we are looking forward to supporting them on any new projects awarded to them. Ultimately, we view our customers as true partners. We care about their daily operation. Their success is our success too!”

THE HIGHEST QUALITY OF SERVICE With the fight against the Coronavirus still ongoing West Coast Saubermacher has committed to balancing value with the highest standard of quality of service.

SEPTEMBER 2020

INTERVIEW

TAKING THE INTELLIGENT APPROACH

Bridgestone MEA’s Stefano Sanchini talks to T&FME about seven decades of regional success and what lies ahead

lobally Bridgestone is the number one tyre manufacturer and has been for more than 10 years - and every year it is getting bigger. As Stefano Sanchini, regional managing director, Bridgestone Middle East & Africa FZE is quick to remind me, the brand is now into its eighth decade in the Middle East and Africa, and, as such, knows a thing or two about the tyre market in the region. “We are consolidating our leading 18

SEPTEMBER 2020

position globally but there are many different parts of the world where we have different positions in terms of the competition,” he starts. “I joined Bridgestone in the Middle East quite recently, but of course I was in the region before I joined. I had the pleasure of looking at Bridgestone as a competitor and I have to stay in the Middle East and Africa it is by far the number one brand.” The company celebrated its 70th anniversary with its Saudi Arabian partners last year, and Sanchini believes

In the Middle East and Africa it is by far the number one brand”

that Bridgestone benefitted from its pioneering work all the decades ago. “From the start, our Japanese colleagues did a great job coming in the region – some of our partnerships have lasted more than 70 years. They really started looking at this part of the world much earlier than a lot of the other major brands,” he explains. “They were looking outside of Japan in the 1950s: the Second World War had just ended; they were looking for opportunities to expand in this part of the region. meconstructionnews.com

INTERVIEW

“The Japanese influence has been always very strong in the Middle East and Japanese brands have always quite being appealing. Trading houses were going to Japan looking for brands and (on the other side) of course Bridgestone was also looking for opportunities. It was a good combination of factors.” From the start, he says, the tyremaker realised that it needed to focus on products that could survive an intimidating environment for tyres which may have been meconstructionnews.com

a lot less humid than its home territory but forced it to create new rubbers that could deal with extreme heat and loads. “They could see potential in the region but had to massively invest. Fortunately, Bridgestone is also a strong engineering company and came not only to sell the product but also understand the region – and by that I mean understand which product they could produce for this kind of market, roads and weather conditions.” Even back then, it was clear that one ‘Middle East-specific tyre’ wouldn’t survive the extreme temperatures and the different needs of the transporters based in a continent of almost endless diversity. “They started making Saudi tyres, Oman tyres…products tailored for each specific market with a lot of investment in field engineering to get them right,” says Sanchini. “People from Japan were coming for years and studying the market and then went back to create the best product for Saudi, Egypt, the UAE, and so on.” Today, Bridgestone produces a complete range of tyres from passenger cars, to buses and the full range of truck sizes (it also produces tyres for industrial and off-road equipment uses). It also runs its own offices in key markets across the region that can provide technical support to distributors and their customers. This support infrastructure and the long legacy in developing an astonishingly varied range were something that Sanchini spent many years fighting against as a competitor but is now happy to be able to work with: “You can imagine the complexity in managing it an industrial level. I would say between the premium brands we are almost 50% of the market: For every two bus and truck tyres, one will be a Bridgestone.” Once in contact with a customer, Sanchini says that he and his team can often identify potential roles for products throughout an operation: “We can really satisfy all their needs in terms of tyres. We strongly believe that the only way to understand what is happening is to be in the field; visiting the fleets and doing scrapyard surveys to see what kinds of damage is on the tyres.” He describes this as part of an ongoing process of giving feedback to the technical and design teams that staff Bridgestone’s development hubs. Whether it is customers in the established markets of the GCC or more recent, emerging countries such as the Ivory Coast or Cameroon, driver usage and road/

The Japanese influence has been always strong in the Middle East”

external conditions remain important factors in the final production of a tyre: much as it has been since mid-way through the last century. “The tyres can be similar, but the construction can be quite different to cope with different types of performances. The distance you can drive in Saudi is much further than it is in the UAE. Overloading is another big factor. You still have massive overloading in Egypt and the UAE but much less in Saudi. I mean, I saw a truck in Egypt so overloaded to a point that I couldn’t believe it was possible. It must have been 120 or 130t. You see this especially in Upper Egypt

A REGIONAL JAPANESE LEGACY Early on, Bridgestone sent experts from Japan to understand the needs of the Middle East market.

SEPTEMBER 2020

INTERVIEW

MIDDLE EAST FLEETS LEARNING Bridgestone has started taking fleet owners over to Europe to meet their peers on the continent and understand what those operators believe the benefits are.

where marble is being transported. Pausing to recall his disbelief, he then adds: “This is why Bridgestone has the reputation it has. It can cope with this kind of extreme performance. Like I said before, Japanese engineers started trying to understand what would be the best formula in Egypt a long time ago.” Like its fellow tyre manufacturers, such as Continental or Goodyear, Bridgestone wants customers to think beyond the rubber on their vehicles. It has its own TPMS system and tyre management strategy on offer to those who want to improve uptime in their fleets and lower costs. “The time of being merely a supplier is over. The integration between the tyre manufacturer, the local distributor and the customer is getting tighter and tighter,” he remarks. “You need to be a service provider that’s in the field to understand how the business and how the operation is working. It’s no longer a ‘nice to have’ but a must-have.” He continues: “The tyre with the service, the fleet solutions and the TPMS, all go together so you need to have a strong understanding of the fleet’s needs if you want to be a successful service provider.” Bridgestone made its biggest-ever non-tyre acquisition last year with the purchase of TomTom and its telematics know-how for $1 billion. Sanchini explains that the purchase is an example of a company convinced that needs to go beyond selling rubber and offer fleet solutions, like Tirematics Solution which uses sensors to remotely monitor, transmit and analyse real time data from the tyres. (The premium version, Tirematics solution for yard management is described by Bridgestone as a comprehensive package that includes a full range of premium fleet solution services to address customers’ needs. The combination of sensors and a new cloud-based engine enables real-time 20

SEPTEMBER 2020

monitoring of tyre pressure and temperature, with a high degree of accuracy and instant alerts when vehicles enter the depot.) “The tyre is becoming a centre for data collection which you can use to give information back to the fleet operator and the drivers. Bridgestone wants to keep a grip of its core business but is moving more and more into the concept of fleet solutions.” When asked whether this is something that fleets in the region understand or want, Sanchini answers that there is demand, but the level of interest, understandably, can vary from market-to-market.

We strongly believe that the only way to understand is to be in the field”

MOVING BEYOND BEING A SUPPLIER The time of being merely a supplier is over. The integration between the tyre manufacturer, the local distributor and the customer is getting tighter and tighter, says Stefano Sanchini.

“This region is very big and there are some markets where it is difficult (to sell). But I have to say, that was my preconception at the beginning, but, when you go and start presenting the costs and our ideas, we get very positive feedback. There is a lot of interest in the region and we already have some fleets where we are applying this concept.” He explains this cadre of early adopters is already feeling the benefit of seeing the data from their trucks via Bridgestone’s online platform. “There has been a lot more interest than I initially expected from not just a technologically driven market like the UAE but also in Saudi and Oman. Even in Egypt, which is very much a driver/owner market, we have been able to start a pilot programme.” Given the current economic climate, how often is Sanchini being asked about the cost when he sits with customers? “It’s the first question people ask first and its often the last. We start off with costs and then we talk about service and solution. By the end of the discussion, they’ve forgotten about the cost and ask about that it again,” he laughs before making a more serious point. “The example I always make is: that when you go to Europe or other developed markets they have huge fleets but they are even more conscious about cost per kilometre. The fact that they are going in this direction shows there is a value side. They do it, not to be fancy, but because it is bringing in benefits to the bottom line of the fleet operation.” Bridgestone has started taking fleet owners over to Europe to meet their peers on the continent and understand what those operators believe the benefits are. “They can talk without us in the middle and it is helping us a lot in introducing the concept. There are big savings on minimising breakdowns and downtime. When you can properly measure your tyres, you can better predict any tyre-related breakdowns that may come. The advantage is massive, you maximise the running time of the vehicle. For instance, with the Tirematics Solution we have, we control the condition of each truck before it leaves the yard – and whether there could be a failure on the journey. We think the benefits could be as much as 30% in terms of tyre life.” Tirematics is part of a suite of solutions including other fleet management tools to support the fleet manager and the truck management. Proven in Europe and with bags of potential in the region, it would be easy to consolidate at this point, but meconstructionnews.com

INTERVIEW

MCB_Truck&Fleet_September(PROTECTED 1).pdf 1 8/25/2020 11:3

BIG MOVES Bridgestone made its biggest-ever non-tyre acquisition last year with the purchase of Tom-Tom and its telematics know-how for $1 billion.

Bridgestone wants to build on its Tom-Tom purchase and take the technology further. At the end of last year, it announced Smart Strain – a technology capable of estimating a wheel axle load and tyre wear condition by using sensors that measure the change in strain that occurs when a tyre makes contact with the road while in motion. Using the Internet-ofThings (IoT) this is at the cutting edge of tyre technology. Sanchini sees no reason that it can’t come to the region somewhere down the line. “In the region, we have been developing what has been used in Europe for some time but this technology makes it possible to estimate the wheel axle load and the tyre’s condition. The sensor measures the change in compression every time the tyre hits the road.

This is one of the most exciting moments for tyre manufacturers in 20 years”

This data is converted through an algorithm to predict any possible failure. To know in advance when you can start planning maintenance is a big advantage for the fleet operator as is being able to send a warning to the driver.” It is clear that the technology is easing the pathway for the electric mobility wave that is on the horizon for the industry – particularly when you consider the progress being made in semi-autonomous and (much farther down the line) fully autonomous heavy vehicles. The industry veteran is clearly inspired by how the automotive sector is changing. “I strongly believe for tyre manufacturers that this is one of the most exciting moments for 20 years. There is this big change coming in terms of connected, shared and autonomous vehicles that will bring a totally new challenge to the tyre manufacturer in terms of what product, which technology, you need. There will be this disruption that will give a chance to a high-tech company like Bridgestone and its competitors to really deliver a new solution to go with a totally new world.” Our discussion returns to the present and the disruption being caused by the ongoing Coronavirus emergency. Like his belief in technology, he is sure that the fleet industry will bounce back. “I remember I was in I was in New York on September 11th. Right after that moment it looked like that the world was going to end and I would never take flight again in my life. But I think I have taken a few hundred more since. You get used to everything and you adapt and carry on. It is what it is, and we have to be ready for when it rebounds.”

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THE FULL RANGE OF TYRES Bridgestone produces a complete range of tyres from passenger cars, to buses and the full range of truck sizes.

meconstructionnews.com

SEPTEMBER 2020

OPINION

COVID-19 AND THE RISE OF ECOMMERCE

Serkan Sarikaya, acting general manager, Mercedes-Benz Vans MENA on making the last mile count

he ongoing coronavirus pandemic has forced a rethink on a global scale of how we do business, how we order, send and receive goods and, significantly, how we not only manage but also view the transport and delivery networks that are so intrinsic to the smooth, daily operation of society as we know it. Social distancing and lockdown measures have had an overwhelming impact on the traditional retail landscape, with the temporary closures of stores and malls spurring a mass migration of customers to online platforms, both global and local, 22 SEPTEMBER 2020

in order to meet their daily needs. While the region’s malls were closed for a period of time, traffic, both virtual and on the roads, had received a significant boost. If there are any plus points to emerge from the past months of economic unease, they can be seen in the rise of ecommerce and, as a direct result, the unparalleled demand for delivery services across the region and around the clock. In a region where the mall remains king, the idea of online deliveries for most goods and items was previously viewed as almost a novelty of convenience, offered by companies to customers who were interested in the service.

Lockdown measures have had an overwhelming impact on traditional retail”

Nowadays, however, delivery staff have risen to the status of ‘key’ workers, individuals who are essential to our daily lives. Firms are increasingly hiring manpower to meet the demand for rapid and dependable delivery of goods of all shapes and sizes. This has presented a unique opportunity for Mercedes-Benz Vans in the region as delivery fleets grow in size to meet demand, firms are looking to add to their numbers with reliable and comfortable vehicle options that can move products safely and quickly. Our expansive range of vans, technical expertise, renowned leasing, maintenance and repair services plus our reputation meconstructionnews.com

OPINION

A NEED FOR EXTRA MANPOWER Firms are increasingly hiring manpower to meet the demand for rapid and dependable delivery of goods of all shapes and sizes.

FROM ORDER TO DELIVERY Ecommerce companies rely on ‘ease of use’ from start to finish in order to attract customers.

for producing vehicles of exceptional quality and reliability means MercedesBenz Vans Middle East and North Africa product portfolio is an appealing choice for delivery and ecommerce companies striving to outperform their rivals in what has now evolved to be a hugely competitive marketplace. Our Sprinter and Vito models offer variable load capacities as well as safety features such as Attention Assist that automatically detects signs of drowsiness or inattention in the driver who is advised to take a break. With more deliveries to make, drivers will spend more time on the road, therefore it is imperative that their meconstructionnews.com

Delivery staff have risen to the status of ‘key’ workers”

personal safety, the safety of other road users and the protection of the goods they are tasked with delivering, is maintained. These models and their variants are available with powerful and reliable diesel engines that produce the torque required to move heavy loads for long distances, on a daily and cost-effective basis. Ecommerce companies rely on ‘ease of use’ from start to finish in order to attract customers; they depend upon attractive and intuitive websites that are linked to a delivery chain that is consistently fast-paced and can be relied upon not to break down no matter the strains and pressures placed upon it.

In many cases, the timeframe of delivery is the deciding factor for a customer when making an online purchase. In the race to the top of the ecommerce food chain, the best performing companies have recognised the importance of meeting their ‘last mile’ commitments. This is where reputations are made or broken, customers left satisfied or disappointed, and where falling at the final hurdle is simply not an option. The most successful companies know the significance of making the last mile count and invest accordingly in the kind of equipment and essential on-the-road resources that can be relied upon to deliver the goods, every time, without fail. SEPTEMBER 2020 23

WORKSHOP

AVS THAT REDUCE MOTION SICKNESS / ADNOC DISTRIBUTION LAUNCHES HYBRID LUBRICANT / THE SEATS THAT CURE TRIP BLUES / THE CAR IN A BAG

WORKSHOP

JLR says its AV tech can ‘reduce’ motion sickness COMPANY TESTS TECHNOLOGY THAT TEACHES JAGUAR AND LAND ROVER VEHICLES TO HOW TO OPTIMISE THEIR DRIVING STYLE AUTONOMOUS VEHICLES Jaguar Land Rover (JLR) says it is developing software that will reduce motion sickness by adapting the driving style of future autonomous vehicles, “to continue to provide our customers with the most refined and comfortable ride possible.” The company is currently testing technology that teaches Jaguar and Land Rover vehicles to how to drive autonomously and optimise its driving style based on data gathered from every mile driven by its autonomous fleet across 20,000 real-world and

virtually-simulated test miles. Work on reducing motion sickness was initiated during the first phase of the project with a personalised ‘wellness score’ developed to target reducing the impact of motion sickness by up to 60%. Experts at Jaguar Land Rover’s specialist software engineering facility in Shannon have now implemented that score into selfdriving software, explained JLR. The intelligent software combines the test miles to calculate a set of parameters for driving dynamics to be rated against. According to

A LEARNING CURVE Solving the problem of motion sickness in driverless cars is the key to unlocking the huge potential of this technology for passengers, says Dr Steve Iley, Jaguar Land Rover’s chief medical officer.

JLR, advanced machine learning then ensures the car can optimise its driving style based on data gathered from every mile driven by the autonomous fleet. The system even maintains the individual characteristics of each model, “whether that’s the thoroughbred performance of a Jaguar or the legendary capability of a Land Rover. All helping Jaguar Land Rover’s continued development of the ultimate cabin experience in an autonomous, electric and connected future.” According to JLR, motion sickness, affects more than 70% of people. It is typically caused when the eyes observe information different from that sensed by the inner ear, skin or body – commonly when reading on long journeys in a vehicle. “Using the new system, acceleration, braking and lane positioning – all contributory factors to motion sickness – can be optimised to avoid inducing nausea in passengers,” said JLR. “As a result of the project, engineers are able to develop more advanced driver-assistance features.”

ADNOC REVEALS FIRST CERTIFIED LUBRICANT FOR HYBRIDS IN UAE LUBRICANTS

ADNOC Distribution says it is one of the first companies to launch a range of lubricants for hybrid vehicles to be certified by the world-leading American Petroleum Institute’s (API) newest standards. The UAE’s largest fuel and convenience store retailer says the new ADNOC VOYAGER range of lubricants “offer greater fuel efficiency for hybrid vehicles.” VOYAGER follows three new oil standards set by the International Lubricant Specification Advisory Committee (ILSAC) – ILSAC GF6A, GF-6B and API SP – which were introduced by the API on 1 May 2020. The range is one of the first globally to meet these new international standards.

INSIDE THIS MONTH’S WORKSHOP: WHAT’S GOING ON IN THE AFTERMARKET POST-COVID, FORD’S FOUR-LEGGED FRIEND, AND MORE!

24 SEPTEMBER 2020

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WORKSHOP

FORD CURING ‘TRIP BLUES’

SAMOTER TO BE HELD FROM 3-7 MARCH, 2021 EVENTS

Veronafiere, the organisers of the construction equipment industry trade shows SaMoTer and Asphaltica, has announced that the two shows will now take place from March 3-7, 2021 after the Covid-19 pandemic forced their postponement earlier this year. A statement from the organisers of the Italian event said it had decided the new dates of the 31st edition of SaMoTer and the ninth edition in Asphaltica in agreement with the steering committee. “Veronafiere’s two shows for the construction equipment and bitumen and road infrastructure value chains will meet exhibitors and operators next year, from Wednesday 3 to Sunday 7 March 2021. The decision was shared by the steering committee for the two events comprising manufacturers, stakeholders and industry associations alongside Veronafiere Unacea and Siteb after noting the persistent scenario of international uncertainty linked with Covid-19,” said the statement. The debut at SaMoTer by ICCX Southern Europe, the main prefabricated concrete event for southern Europe created in collaboration with ad-media GmbH, is also rescheduled for the new dates in 2021. Giovanni Mantovani, CEO of Veronafiere, said: “The new 2021 dates will mean that the two events will be the first to inaugurate the calendar of specific trade fairs for the world of construction in Europe. Rescheduling these events will ensure broader representativeness in terms of large international groups, thereby intercepting the recovery on the market in the wake of resumption by construction sites, not the least thanks to resources made available by the Recovery Fund.”

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INTERIORS Whether stuck in rush-hour traffic or cruising for hours on the open road on a summer road trip, commuting can be a real pain. Literally. Thankfully, one doctor has the prescription. Supervisor Mike Kolich – Ford’s Dr Comfort – and the Ford global seating and comfort team have introduced a sleek and stylish new front seat offering in the all-new 2020 Ford Explorer which “maintains the stringent Ford standard for shape and softness and does so with a less cumbersome design” that frees up space for second-row passengers. “Road trips can be largely defined by how comfortable people are – and when you get down to it, how comfortable our seats allow them to be,” said Kolich, whose Ph.D. in industrial and manufacturing systems engineering with an

END OF TRIAL AND ERROR Ford’s Mike Kolich says that seat design has got much smarter through the use of lab testing.

emphasis on seat comfort has earned him the moniker among Ford seating experts. “As engineers, we’re thrilled with this new seat, but really it’s what our customers say and think that matters.” That expectation, defined as the Ford comfort DNA, is measured largely by two factors – shape and softness. Kolich and team have maintained the comfort

standard in the new front-row seat debuting on the all-new Explorer while eliminating some of the bulk by reducing the thickness of the seat back and shoulder area. The first-for-Ford design is the seating team’s latest innovation. For the all-new Explorer, the team started with its award-winning seat architecture that represents the nexus of all Ford seats regardless of vehicle type or size.

WALKCAR: THE CAR YOU CAN CARRY IN A BAG TECHNOLOGY

Japan’s Cocoa motors. Inc. has started the worldwide sale of a vehicle users can carry with them in a bag. Dubbed the Walkcar, it is a small and light “car in a bag” weighing only 2.9 kg. According to the manufacturer, it can reach speeds of up to 16 km/hour along and includes safety features such as automatic stopping function. The company said that since its launch in 2016, the Walkcar

has enjoyed widespread media coverage and received a total of approximately 7,800 pre-orders from 13 countries around the world. “For about four years since the product announcement, there has been much research and development, as well as product improvements, and now, finally, it is officially released worldwide. Walkcar is a “portable car” invented in Japan. It is a car users can carry HANDSFREE CONTROL Four sensors inside the standing surface lets you control the basic manoeuvre based on you shifting your weight to accelerate, deaccelerate, and turn without using a handle or a remote controller.

around like a laptop PC, and it offers a new lifestyle that is not dependent on any transportation network. The time to choose “walking” or “ Walkcar “ anytime has come,” said the company in a statement. With a name that also harks back to Sony’s Walkman of the 1980s, the car is the same size as a 13-inch laptop PC. The compact gives it the portability to fit in a bag, and it is the best shape for safety. The vehicle height is just 74mm above the ground (about the width of a smartphone). The flat and square standing surface allows you to step off instantly in any direction safely. A special motor for the 2.9kg vehicle took five years to produce. The body is wholly integrated through welding that reduces the space for screws and maximised the coil space to the extreme. It drives at a speed of bicycles at 16km/h and can drive up slopes of up to 10 degrees. SEPTEMBER 2020 25

FEATURE

ADAPTING TO SURVIVE

Major international markets have adopted a variety of measures in the face of lockdown

igital showrooms, online customer service interaction and aggressive promotional activity are just some of the measures that have been implementing in the auto industry and aftermarket worldwide in reaction to the current COVID-19 pandemic, with greater emphasis placed on hygiene, safety and cost across major markets around the world. With the pandemic expected to reduce new vehicle sales by around 20 million globally this year, and the aftermarket set for an estimated 16% contraction in the Financial Year 2020, the industry is taking a series of measures to mitigate the decreased demand. This has seen Original Equipment Manufacturers (OEMs), component manufacturers, distributors and retailers diversifying their business models 26 SEPTEMBER 2020

in the top five auto markets in the world - the US, China, Germany, India and Japan. Speaking at a webinar organised by Messe Frankfurt Middle East for Automechanika Dubai, the largest international automotive aftermarket trade show in the Middle East, Vishal Sanghavi, senior manager Business Research and Advisory at global research and analytics firm Aranca, said: “We have seen the impact of the COVID-19 virus across the ecosystem in the last three to four months, and it is encouraging to see a number of dynamic measures being taken. “It is clear that players across the industry are not just sitting and watching the situation unfold. They are trying different measures to entice their customers and attempting to diversify and identify practical solutions that work with consumers.”

It is clear that players are not just sitting and watching the situation unfold”

Despite a number of factors impacting the auto industry and the aftermarket, including decreased footfall in showrooms, a reduction of miles travelled and lower disposable income, there is already evidence that the industry has taken steps to adapt and recover across the top five auto markets in the world. OEMs have seen a huge shift towards digital operations, with many exploring virtual showroom experiences and diversifying the platforms they sell on. Similarly, component manufacturers have capitalised on boosted online activity resulting in a 50% monthon-month increase in sales for the Japanese market and a 40% boost in April sales for e-commerce specialist US Auto Parts. While a number brands including Audi, BMW and GM already offered digital experiences to encourage potential meconstructionnews.com

FEATURE

sales pre-COVID-19, it is clear that the pandemic has catalysed brands into diversifying their e-commerce platforms and bolstering their digital presence. Change in focus

Component manufactures have had to change their focus to adapt to the current situation with many taking advantage of on increased demand for hygienic products by cornering the market on products such as air filters and paints. Other avenues being explored include private labelling, 3D printing and online product training. Efforts made by distributors and retailers include aggressive promotions, the offer of free warranty extensions and discounts on new and used cars. The digital space is also important in this sector with businesses exploring live streaming, and e-retailing coming into play with a demand for spare parts growing by 40% in the past three to four months. The customer service space is also increasingly looking at the digital realm as it evolves operations. While some workshops were deemed essential services, they still had to hone customer serving techniques by conducting live after-sales interactions through different platforms such as WeChat and Weibo. Workshops are also offering free pick-up and drop-off of vehicles, and then pushing these tactics as promotion techniques to regain customers. Sanghavi said: “Several factors will determine the recovery curve. On the macro level, although we have significant job losses in all markets, we have also seen the introduction of government stimulus packages in the range of 10-20% of GDP for most economies. “While a significant reduction in new vehicle sales has already been seen due to prolonged stay-at-home measures, a shift in preference towards used cars is anticipated and this will drive the need for higher spend on repair and maintenance overall. “Weaker consumer spending and reduced miles will have an impact, we will see an increase in preference for personal vehicles over public options, a behaviour which will drive maintenance and repair requirements and lead to increased ownership in the markets of India and China.”

We will see an increase in preference for personal vehicles over public options”

was planned to take its traditional annual slot in June earlier this year, but following the introduction of measures to control the spread of the Coronavirus in the UAE, it had been re-scheduled to take place in October. A representative for the organiser Messe Frankfurt Middle East said the decision to effectively hold back the 18th edition for 12 months was a logical decision that was in the “best interests” of both exhibitors and visitors to the event. Commenting on the move to 7-9 June 2021, Automechanika Dubai’s show director said Messe Frankfurt Middle East had done its “very best” to hold Automechanika Dubai in October, “however we now have our sights set on 2021, when the show will take place just a few months ahead of the Dubai Expo.” Automechanika Dubai remains a hugely influential event on the automotive calendar

ORGANISER’S VIEW: “A HOST OF VALUEADDED EVENTS”

Covid-19 hits event

Automechanika Dubai has once again been postponed and will now take place in June next year. The region’s largest trade fair for the automotive service industry meconstructionnews.com

in the UAE. The three-day show in 2019 featured 1,880 exhibitors from 63 countries, with 32,750 trade visitors from 146 countries dropping into the Dubai World Trade Centre, “We’ve been in regular contact with our customers, partners and supporting associations, and given the current situation, moving to June 2021 is the logical decision,” said show director Mahmut Gazi Bilikozen. In the absence of the physical show, Automechanika Dubai is hosting a series of free-to-attend webinars. According to Messe Frankfurt Middle East the six events have brought in more than 2,200 attendees online “While they cannot not replace the benefits of meeting face-to-face that a physical event provides, our webinars allow us to offer some means of business networking and knowledge sharing.”

AUTOMECHANIKA DUBAI DELAY While Automechanika Dubai will not now return until 2021, a series of webinars have offered an insightful overview of the current aftermarket.

Automechanika Dubai covers the six major product sections of Parts & Components and Electronics & Systems; Accessories & Customizing; Tyres & Batteries; Repair & Maintenance; and Car Wash, Care & Reconditioning. Next year’s event will showcase a number of exciting elements such as the Automechanika Academy, the Modern Workshop, and the Innovation Zone, which will keep the many thousands of trade buyers and industry professionals in tune with new market developments. The Innovation Zone is a dedicated area at the centre of the show floor featuring presentations and product showcases from exhibitors that are steering the course for the regional and global automotive aftermarket. Other features include the Truck, Agriculture, and Motorcycle Competence initiatives, dedicated to the entire value chain in the truck, motorbike, and agriculture sectors, from parts and accessories, to workshop equipment, body repair and care.

SEPTEMBER 2020 27

FEATURE

SAUDI ARABIA:

LOOKING BEYOND 2020

Vishal Pandey, director, Glasgow Consulting Group, looks at the trends shaping the GCCâ&#x20AC;&#x2122;s largest auto-market 28

SEPTEMBER 2020

meconstructionnews.com

FEATURE

hichever way you look at it, the Saudi Arabian automotive market remains the biggest in the GCC but it is also one that is undergoing enormous change. As ever, the Saudi government will dictate the direction it will take but, even as we scramble to understand the ramifications of the Covid-19 pandemic, it is clear that the market holds a lot of promise for consumers, fleets and manufacturers alike. Vishal Pandey, Director, Glasgow Consulting Group recently used Automechanika Dubai’s series of webinars to de-mystify the occasionally confusing country and explore the trends that will shape it for years to come. He started by giving a short overview of where it stands in terms of production and sales. “Saudi Arabia is the biggest in the GCC for auto parts and passenger car market sales – 60% of the total market in the GCC is Saudi Arabia,” he began. “A large part of this business works on imports and as we all know, there is very limited manufacturing in Saudi despite it trying to create an automotive-specific cluster. It has been able to attract Commercial Vehicle assembly lines, there are at least three in Saudi Arabia currently, but there is no passenger car assembly. That means there is a large automotive aftermarket. “These automotive economic clusters do want to attract anything automotive into the country. While that is a nice thing how do you actually translate those things will be seen over time. We have seen over the last one and a half years women come into the into the driving space. This is good news because that means there are more licenses issued; which which means there are more driving schools; as a result, there are more cars on the road; and that leads to higher aftermarket purchases.” According to Pandey, the Coronavirus has unfortunately come at a time when the effective opening up of the market to half the population was at odds with the government removing subsidies on vehicle purchases. This was already forcing a large shift in buying habits in the Kingdom even before pandemic struck. “Over the last two years, new car sales were dropping from 550,000 units in 2016 to around 240,000. Coming into 2020, meconstructionnews.com

we were looking for a slight recovery and then we were hit. Based on our analysis and research, we see a dip because we have basically lost three months of car sales window across the board - and with several other factors such as people postponing their buying decisions - we believe the drop in overall sales is going to be 40 percent.” Pandey says the current outlook couldn’t be more different from the one which played out in the middle of the last decade. “In 2015-16, the ratio of new cars sold in Saudi Arabia was; for every four new cars bought: there were three old cars which were transacted. Now fast-forward three years to 2019, this basically stands at four new cars for eight used cars being transacted. That is a huge shift. The government has taken away certain allowances (which leads to) pressure on your job and your cost of living expenses is going up, etc. “There is there is an increased willingness of people trying to use old cars. The pie remains the same but there are reduced new car sales.” For those in the aftermarket, he argues, this could be a boost – albeit in the long term: “Aftermarket component and sales continue to grow so that is an interesting observation moving ahead.” The consultant added that there has been a double hit on the market. With low oil prices dogging the Saudi economy, the government surprised some industry observers when it chose to raise VAT in July. “When we heard that the VAT rate was increasing from 5 to 15%, it came as a shock to many but there were certain reasons which were given by the ministry and I think that’s the way it’s going to be. So starting first of July we see that going up to 15%, the pressure from oil prices continues and that has a direct link to the government’s budgets and spending.” “I think that decision was a very abrupt decision taken but there were reasons which were justified. I think a lot of people had done their maths and argued that we were lagging (other GCC countries) behind and that there’s a deficit to cover up. From a market reaction point of view, it came as a surprise. It was announced during the covid times. But I think this is not government policy – whether it’s right or wrong, that’s for a pure economist to answer but I think 5% was good. It will be interesting to see how it pans out.” The increase in VAT will at least SEPTEMBER 2020

FEATURE

ease government fiscal concerns and Pandey welcomed Saudi’s announced stimulus package of around $31 billion as a positive gesture. “A lot of countries across the region announced various initiatives and this was part of the same. The government also announced that they’re going to support by paying the private sector employees about 60 percent of their salary, again a positive gesture,” he explained. Digging through the retail data, Pandey says the easing of restrictions by June and the partial re-opening of showrooms followed a

three-month period where footfall was down by 80% and new car sales were down by 60%. He remarked: “Due to what is happening in the landscape, there is a hit on the consumer segment. So your decision to buy a new car has been either it’s been stopped; curtailed; or postponed. Obviously, the curbs around movement has had an impact on shared mobility; servicing and your periodic maintenance comes down and your spare parts sales are also down as a result. “I’m driving less; your whole life has come to a standstill; and you’re trying to reboot your life. You go out only to do your

When we heard that the VAT rate was increasing from 5% to 15%, it came as a shock”

BIG HIT TO SALES, STRONG RECOVERY Sales and car use saw dramatic drops at the peak of the COVID-19 lockdown but could soon back bounce in 2021 to levels seen in 2019.

GROWING ECOMMERCE LIGHTS THE WAY Saudi Arabia is the world’s third fastest growing ecommerce market. This is already having a profound effect on the automotive sector.

SEPTEMBER 2020

essentials, right? So your overall use of the car comes down and thus, your need for spare parts decreases. We see a 24% dip now, but we will see a recovery happening in 2021 to go back to the same 2019 levels.” Expanding on his analysis of what happens as the peak of Covid outbreak passes, he believes that Saudi residents will re-shape their lives to fit with the new normal. This in turn has a number of ramifications for the auto industry. “Your travel will be viewed differently. Your holidays will be viewed differently. So we think mobile services and on demand services will see a huge surge post-covid. We will obviously see more emphasis on hygiene, If I was to take a Rent-A-Car, there will be well laid out processes by which you can rent a car and all the hygiene factors will come into play. Contactless services will obviously find more emphasis and more importance. He continued: “Ecommerce as we have already seen in Saudi Arabia already has one of the highest penetration – the third highest – in the world. We have seen over the last three to four years that there is this new trend even in the automotive space. There are some new brands with different aftermarket service offerings, ranging from your tyre change to oil change to on call service. “New business models will emerge as a result. You will find more and more companies trying new things to more penetrate into the e-commerce space.” While he believes that the Saudi Arabia auto sector and the related will be held back by a muted consumer sentiment for the remaining Q3 and Q4 and 2020, he believes that Chinese brands could emerge at the forefront of a recovery in 2021. “Saudi families want two to three to four cars. So, one of the emerging trends will see more Chinese Brands grow into prominence. Families will want to take their third and fourth car as a Chinese brand because it’s literally half the price.” He suggests that Chinese firms should begin to prepare for this rise in interest. “If there is a Chinese brand which has not been able to deliver good aftersales service now is the time for them to get their act together. This will depend on the local dealerships and working together in ensuring that you are able to give a good customer journey; a good experience to the customer.” meconstructionnews.com

FEATURE

Glasgow Consulting Group conducted a study early in the year to understand the Saudi consumer. “The Saudi customer is just like any customer. It’s like all of us in the GCC – or globally – your expectations are high. You want a good level of client engagement service. You want to be treated with a fair pricing. Everyone is looking for a good offer. You are enticed by discounting. “There will be various promotions you will see coming going forward from the principal side, the OEM side, and the distributor with more and more strategies applied that offer better service deliveries because this is what the consumer is looking at.” Pandey believes that concerns of safety and hygiene will accelerate demand for cashless transactions. “Generally, Saudis travel long distances. You travel from Jeddah to Riyadh on the road. Those travels will come back slowly over time; people will have to get their confidence back. Right? These trends (safety and hygiene) will slowly change modes of payment. We were a very cash driven country but now that is transitioning to a much more contact-less economy. Whoever takes that plunge or whoever acts fast and gives those various tools and platforms is going to succeed in the market. We will obviously see a lot of apps coming it. There are many clients we are working with currently that are trying to experiment on delivering various (contactless) automotive after service platforms.” “Post-Covid, how you communicate with your customer and how you provide the right messaging for your great product becomes very relevant. I think, at the end of the day, any brand product or service which emerges as the winner will be somebody who can champion this whole customer experience thing.” “Service delivery is going to be key going forward as will how you engage and talk to your customer.”

A RAPIDLY CHANGING MARKET Pandey says the Saudi Arabian market will be shaped by changing consumer habits.

60%

of the total auto part and passenger car market in the GCC is Saudi buyers

Returning to his earlier point, the automotive industry as a whole needs to be consider its e-commerce and digital strategy for the market. “Its here to stay,” he enthused. “We heard a few weeks back, Audi announce in the Middle East that they want car sales, even in Saudi Arabia, to all online. The full customer journey.” This he adds that this trend presents a challenge for the auto-industry. “Any stakeholder in the whole equation needs to think what can I do to engage and create interest with my with my target

audience? One of the problems with the Amazons of the world is fixed costs. So, how do I, as an online player, give confidence to my end customer that whatever we are selling is checked, is ratified and that we have a particular mechanism in place that avoids any fake items being sold. That’s the one of the challenges which we come across in the online channel. “And then you have the dealerships coming up with more offers more discounts. They are running car clinics. They are taking about the hygiene factors. They are talking about the new surfaces you want to put inside the car (because the current surface, if you were to leave certain hand marks, it stays on). With Covid everything within the car comes under scrutiny. You have to look at in a very pragmatic way. How do I change it? How do I make it better? How do I make it safer?” One source of inspiration he suggests should be how the auto-industry is recovering in Asia, particularly in China. “The recovery of these countries have been faster. These are certain private players from Gill in China to the South Korean Brands (that are worth looking at) What are they doing? How are local dealerships a helping to build customer confidence.” Coming to a close, Pandey suggested that the changing Saudi market will mean everybody will have to reinvent their business model. “I think the consumer expectations needs and wants, and how you shortlist, how you shop… all of that has changed now across both the B2C and the B2B space. I think businesses need to make adjustments.” He ends on a note of optimism: “On the more positive side, the UAE and Saudi government have been very proactive. So, a lot of good positive measures have been announced and I think that these are very resilient countries. I definitely think the recovery period timeline in comparison to certain other parts of the world will be much better.”

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SEPTEMBER 2020

PARTING SHOT

A ROBOT RECRUIT Ford says its new four-legged robot friend is speeding up manufacturing

hese four-legged dog-like robots can sit, shake hands and roll over. They also can perform 360-degree camera scans, handle 30-degree grades and climb stairs for hours at a time. That’s because these pooches are actually 70-pound quadruped robots with distinctly dog-like mobility. They’re part of a Ford manufacturing pilot programme designed to save time, reduce cost and increase efficiency. Fluffy, the name given by the robot’s handler Paula Wiebelhaus, is one of the two models Ford is leasing from Boston Dynamics, known for creating sophisticated mobile robots. (The other Ford robot is named Spot after the original robot’s name.) The robots, which Ford is piloting at its Van Dyke Transmission Plant, are bright yellow and easily recognisable. Equipped with five

built-in cameras to visualise their surroundings, the robots can travel up to 5 km/h on a battery lasting nearly two hours and will be used to scan the plant floor and assist engineers in updating the original Computer Aided Design. “We design and build the plant. After that, over the years, changes are made that rarely get documented,” says Mark Goderis, Ford’s digital engineering manager. “By having the robots scan our facility, we can see what it actually looks like now and build a new engineering model.” Without Fluffy, the update would be far more tedious. “We used to use a tripod, and we would walk around the facility stopping at different locations, each time standing around for five minutes waiting for the laser to scan,” Goderis recalls. “Scanning one plant could take two weeks. With Fluffy’s help, we are able to do it in half the time.”

The old way also was expensive – it cost nearly $300,000 to scan one facility. If this pilot works, Ford’s manufacturing team could scan all its plants for a fraction of the cost. These cutting-edge technologies help save the company money and retool facilities faster, ultimately helping bring new vehicles to market sooner. In time, Goderis says, the intent is to be able to operate the robots remotely, programming them for plant missions and receiving reports immediately from anywhere in the country. For now, the robots can be programmed to follow a specific path and can be operated from up to 50 metres away with the out-of-the-box tablet application. “Fluffy is an amazing manufacturing tool,” said Weibelhaus. “He can do so much more than dance and roll over. We want to push him to the limits in the manufacturing plant and see what value he has for the company.”

NEXT ISSUE: A HEAVY INDUSTRY GETS LIGHTER, TRAILER TECHNOLOGY, THE HUMAN FACTOR IN RENTAL AND MUCH MORE!

32 SEPTEMBER 2020

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Truck&Fleet ME September 2020

Articles inside

KSA: BEYOND 2020

AUDI S8 IMPRESSES

CATCHING THE BUG

BRIDGESTONE BUILDS

ADAPTING TO CHANGE

V-CLASS REVAMP

NEWS FROM THE MONTH