13 minute read
THE AIMS OF MAY
AIMS OF MAY
If Michael May ever departs corporate life, he should perhaps pursue politics. The latest in a long line of managing directors at Iveco Australia, the astute former head of Mercedes-Benz truck operations in Australia has that prudent propensity for saying plenty without actually revealing much at all. Even so, and whatever his ultimate agenda, he may be just the cool-headed leader who delivers stability, direction and energy to an embattled brand. Steve Brooks writes
ALITTLE OVER A YEAR AGO, Michael May was the head of Daimler Australia’s Mercedes-Benz truck and bus operations. A brand on the boil, kicking goals and much like the shrewd, mild-mannered May, secure in success.
From the outside looking in, it appeared a productive, comfortable, satisfying existence continuing to evolve on the back of a modern, efficient and increasingly popular line of trucks far removed from problems of earlier generations. And as director of Mercedes-Benz Truck & Bus, supported by capable people above and below on the corporate ladder, May’s engineering background and steady hand had played a major role in ensuring the new Benz models were tested and tailored to Australia’s unique demands.
Sure, there was no resting on laurels but nonetheless, after the hard groundwork it was time to enjoy the bounty of a rejuvenated Benz business. Or so it seemed. Word was though, Daimler Australia Pacific’s leading lights were about to consign May’s considerable experience and abilities to corporate brother Fuso, where innovative new leadership was deemed an imperative.
Even so, it was a tad surprising to see May at the upmarket launch of Freightliner’s new Cascadia in late 2019, and he appeared similarly surprised when asked when he might be taking the reins of Fuso. Apparently, the impending appointment was supposed to be secret, but typically, perhaps, the genial May just shrugged, smiled and said something benign like: “You never know, Steve.”
Indeed you don’t, because just a few weeks later came an announcement that shocked the socks off many people, not least his closest colleagues inside Daimler’s Mulgrave (Victoria) corridors. The erudite, savvy, calmly confident and carefully considered executive was casting aside the relative security and considerable success of a 20-year career with Daimler Australia Pacific to jump ship and become the latest in a long line of managing directors at Iveco Trucks Australia.
The big question was: ‘Why?’
After all, even on first impressions, May is a smart, highly professional man who, according to those who have worked closely with him, critically weighs all factors before coming to a conclusion.
But, Iveco? Let’s face it, when it comes to the ‘fling factor’ of executive appointments, the revolving door at Iveco Trucks Australia HQ in Dandenong (Victoria) has at times appeared to spin like a merry-go-round on methanol. A slight exaggeration of course, but it is no stretch of the
imagination to suggest that over the past few decades, more senior management with good intentions and high hopes have walked through those doors only to be whisked out some time later (in very short time on occasions), than any other trucking brand in the country. Perhaps the world!
Mayday call
For industry commentators in particular, keeping track of who’s actually calling the shots at Iveco Trucks Australia has become something akin to reporting on the weather; constant change and never entirely sure what’s coming next.
For instance, May’s immediate predecessor in the managing director’s chair was the rarely heard and largely unseen Bruce Healy, whose tenure was barely two years before it was announced late last year that he was returning to Iveco parent, Case New Holland (CNH), and specifically, its New Holland Agriculture division.
In the same statement came official news his replacement was May, scheduled to take up the managing director’s role in early 2020. February, in fact.
The timing wasn’t great, of course. There were reports of a severe epidemic on the rise in China and elsewhere, and before long the world would drop into economic and social shock as a global pandemic was declared.
‘Welcome to first grade’ could’ve easily been an appropriate epithet for May’s move to the managing director class, but with what was probably typical composure, he quickly took the reins, reduced production to three days a week, and resigned himself and the company to a constantly evolving business dynamic.
Yet, back on his thinking for the move to Iveco, it is an adamant May who says Iveco approached him, not the other way around. As for the reasons he took the job, it’s perhaps reasonable to suggest he would not have made the leap without an extremely attractive safety net written into the remuneration package. After all, Iveco’s reputation for management movements and executive exodus is second to none.
Still, there had to be much more to it than that. At 47 years of age and with a strong record of achievement, May is at the top of his executive game, but to be blunt, he’d maybe gone as far as opportunity allowed within the Daimler Australia fold.
Even from the outside looking in, it’s likely the only way to move up would come from moving out.
Question Time
So again, why Iveco, given the security of Daimler and Iveco’s ‘revolving door’ history of executive appointments?
“A fair question,” he says thoughtfully. “I felt I’d achieved good things at Daimler but I like that our industry continues to evolve and change. Iveco has new management right at the top and a new entrepreneurial outlook.
“It’s also a slightly smaller company than I’m used to. It’s not the biggest player but it can move at a different pace.
“At this point [Iveco is] looking to spin off from CNH and I was approached directly to consider the opportunity and I think it really is that: an opportunity. There’s a lot of potential here and that’s what I’m really interested in. Across my career I’ve gone into places that haven’t been necessarily performing, transforming them and turning them around.”
Above: Daily deliveries. The lightduty Daily continues to enjoy strong support
Below: Iveco X-Way is highly appointed but struggles for sales in a highly competitive market
It’s a role, he agrees, which also has plenty of professional challenges.
“I think that was the driving force to really take it on,” he says.
“The thing for me, it’s not a quick journey. I want to make sure we do what is right and sometimes that takes time and I think it particularly helps the company to have someone local who has understanding of the market.”
Asked if he has a set contract period, a candid May quipped: “As long as I keep it together. The last mob I worked for was 20 years, so I don’t know how long this will be [but] it’s an exciting time and the company has an opportunity to have a crack.
Above: Production was reduced to three days a week at Iveco’s Dandenong facility during the pandemic
Top left: Gone! International ProStar was a better truck than slim sales suggested
“I’m still young and at this point in my career, and with what I can bring with experience and the organisation’s potential both here and internationally, it’s pretty exciting.”
The challenges, however, are considerable. Iveco’s influence in the heavy-duty sector, for instance, has waned significantly over the past decade or so, with cab-over product such as the well-equipped X-Way and notably the iconic ACCO continuing to struggle for prominence under the intense pressure of modern competition.
What’s more, the company no longer offers a conventional model since the earlier demise of Iveco’s Powerstar and International’s recent announcement that it will not be developing a right-hand drive version of an upcoming replacement for the long-serving ProStar.
“The loss of ProStar was certainly a disappointment, but I understand International’s decision. Economically, it’s hard to justify investment in a right-hand drive product if the volumes aren’t there,” May explains.
“Still, we were starting to do better with ProStar.”
In other areas, May suggests some rationalisation will be required to make the most of opportunities with trucks such as EuroCargo in the two- and three-axle rigid market. Battling the Japanese is never easy but it’s an upbeat May who believes the best is yet to come for EuroCargo.
In light-duty classes though, products such as the versatile Iveco Daily continue to do well. In fact, with fewer people opting for overseas holiday travel during the COVID crisis, demand for motorhome chassis such as Daily has spiked considerably, along with consistently strong support in parcel van and courier applications.
Daily, in effect, has been one of very few growth areas for Iveco over a number of years and it’s no secret an updated Daily will debut here in the first few months of 2021.
All these factors, however, give weight to the assertion that perhaps May’s ultimate task is to wind down manufacturing and assembly at the historic Dandenong factory, cash in on the sprawling facility’s massive land value, and become a full importer.
The conversation stalled for a few seconds before he cautiously but somewhat optimistically comments:
“I originally came into the industry as an engineer, so I’m excited by our potential to engineer and manufacture locally because I think Australians have the capacity to do that.
“We have opportunities to evolve provided we can bring adaptability and flexibility to the market and what it requires,” he says earnestly.
So, is that ‘yes’ or ‘no’ Michael?
This time, a short chuckle. “The door’s open for a number of possibilities but all things will be pragmatically assessed and evaluated. It will take time.”
Yet, perhaps the most important factor of all in any question on Iveco Australia’s future direction does indeed hinge on the door. Specifically, allowing the man at the top to do the job without worrying about ‘the fling factor’.
After all, for the first time in a long time, there’s a man at the helm with the experience and smarts to actually see the opportunities far clearer than the obstacles.
tech briefs
Lights on for Volvo’s North American electric trucks
VOLVO TRUCKS NORTH AMERICA (VTNA) will start building battery electric vehicle (BEV) prime movers this year in the form of the Volvo VNR Electric model.
The Class 8 trucks, the heaviest class in the US, are now commercially available in North America and aimed primarily at local and regional distribution tasks
They are available as a 4x2 heavy rigid, 6x2 and 6x4 configurations.
According to VTNA, the 264kWh lithium-ion batteries – charging at up to 80 per cent within 70 minutes through a 150kW charge rate with a CCS1 or CCS2 connection – have an operating range of up to 240km based on the truck’s configuration.
Power is put at 340kW (455hp), with 5,492Nm (4,051ft-lb) peak output torque, with a two-speed automated I-Shift transmission and a top speed of 105km/h.
Between 5 and 15 per cent of brake energy is regenerated back into energy storage system, depending on cycle.
“In launching the VNR Electric, we’re answering a very real need from fleet customers across North America – to not just deliver a road-tested, battery-electric truck, but to provide them with solutions for the entire life-cycle of the vehicle,” VTNA president Peter Voorhoeve says.
“Before making the VNR Electric truck available to our customers, we thought through every aspect of electrification so they didn’t have to.
“We have worked alongside our fleet customers to plan beyond the vehicle and have developed an entire support system, ensuring this vehicle meets their needs day-in and day-out.”
The move in a progression from the Volvo LIGHTS (Low Impact Green Heavy Transport Solutions) project, its collaboration with California’s South Coast Air Quality Management District (South Coast AQMD), the US Environmental Protection Agency’s (EPA) Targeted Air Shed Grant Program (TASGP) and 12 other organisations to develop a blueprint to introduce batteryelectric trucks and equipment into the market at scale.
“By collaborating with 14 other organisations in the Volvo LIGHTS project in southern California, we
A Volvo VNR electric 6x2
gained crucial experience as we worked together to demonstrate the real-world viability of the VNR Electric truck and its supporting ecosystem,” Voorhoeve says.
“We fully understand the steps needed to successfully deploy and operate electric trucks and can confidently offer the Volvo VNR Electric to our customers across North America.”
Victorian trial for Fuso eCanter electric light truck
DAIMLER advises that Fuso’s allelectric eCanter local light truck has been driven “around the clock” on Victorian roads as part of a sixmonth test ahead of its launch here early this year.
For the local test program, three drivers have been taking turns during each 24-hour period, running the eCanter on designated loops before returning and charging the truck for the next driver.
It has been run empty as well at its maximum gross vehicle mass (GVM) of 7.5 tonnes in all-weather types.
This is in addition to a global testing program and the real-world experience of operators in the US, Europe and Japan since the eCanter’s introduction in 2017.
Daimler Truck and Bus Australia Pacific president and CEO Daniel Whitehead says the eCanter was developed using Daimler’s R&D resources and offers Australian customers a fully-integrated original equipment manufacturer (OEM) allelectric truck.
“The eCanter test program is one small part of the testing and development program for this ground-breaking all-electric vehicle, but it is very important,” Whitehead says.
“Our customers need to know that they are buying a product from a manufacturer that has done the hard work to ensure its vehicle has been properly developed and tested.”
Whitehead says there has been a lot of interest in eCanter from large Australian fleets.
“These customers are especially attracted by the fact the eCanter is a fully-integrated manufacturer developed and tested electric truck, rather than something put together by a third-party using a donor truck and electric components from another source,” he adds.
Fuso presented an eCanter at the 2019 Brisbane Truck Show and select Australian fleets subsequently briefly trialled the vehicle.
Like all Canter 4x2 models, the eCanter is equipped with safety features including advanced emergency braking, lane departure warning, electronic stability control, hill start assist, reversing camera and driver and passenger airbags.
Royan Group expands with two new outlets
TRUCK REPAIRER Royan Group announced its second acquisition in quick succession, this time in Victoria, adding Shepparton Motor Panels (SMP) to its ranks.
SMP is a commercial vehicle accident repair specialist and becomes Royans’ fourth branch in Victoria, alongside its Wodonga, Bayswater North and Dandenong sites.
Established in 1954, SMP says it repairs more than 450 trucks per year and offers 24/7 accident assistance.
The Royans purchase spree rolls on, having announced it had acquired Truck Bake in north Queensland earlier that same week.
“We are very pleased to have businesses with the reputation of SMP join the Royans family and we look forward to working with the entire SMP team as we transition the business,” Royan Group notes.
“Our continued growth allows us to merge the knowledge and experience from businesses like SMP, with Royans’ unparalleled network of locations along with our investment in systems, skills and more than 75 years of transport repair experience.”
Its network now consists of 12 branches across both Australia and New Zealand and a team of over 300 staff.
