Busworld Kortrijk (Courtrai) 2013
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BUSWORLD KORTRIJK (COURTRAI) 2013 Lorenzo Sistino speech Iveco Brand President Kortrijk 17 October 2013 Ladies and Gentlemen, good afternoon and welcome to the IVECO BUS stand. Today we present our all-new line-up – the result of a huge investment aimed at best answering the requirements of collective transport operators and customers. Saving fuel has never been so simple: this is our main message and the claim of this event. In fact, our all-new Euro VI bus line-up improves fuel efficiency by 5 to 10% while providing more performance than even before. A result that we have achieved with important innovations in engines and vehicle architecture. As we announced in Geneva in the occasion of the launch of the new Urbanway, we have adopted a new name, structure and organization in order to best focus on our mission. By giving the bus division its own Brand name, Iveco confirms its strategic commitment to the bus sector. The creation of Iveco Bus is instrumental to our worldwide growth strategy: it reinforces the identity of this business, not only in Europe, but also in Latin America and China, where we have an important consolidated Brand presence. Iveco Bus is international by birth and global by attitude. It inherits and continues the experience gained in over a century by some of the most important European bus and coach manufacturers: in Italy Fiat, OM, Orlandi, in France Besset, Renault, Chausson and Saviem, in the Czech Republic Karosa and in Germany Magirus-Deutz. As for Iveco, it was established in 1976, and today we have the pleasure to have here with us Mr Franco Fusignani, the new Iveco Chief Operating Officer – that many years ago put in place the foundation of the Iveco Bus Division. 2 As a consequence of its heritage, Iveco Bus manufacturing plants are located in 4 countries across Europe: minibuses are built in Suzzara in Italy and Valladolid in Spain, citybuses and coaches in Annonay, France, and intercity buses at Vysoké Mýto, Czech Republic. But Iveco Bus is also present in China where it produces minibuses and in Latin America – where it manufactures minibuses and chassis. On top of this, just a few days ago we announced a new joint-venture in South Africa with LARIMAR Group, a most important local public transport operator and bus manufacturer. A global Brand, with a multi-national footprint, integrated in the leading CNH INDUSTRIAL Group. CNH INDUSTRIAL is our new parent Company, born out of the merger between Fiat Industrial and CNH Global. The merging process, completed at the end of September, gave life to a new, truly global capital goods player. CNH INDUSTRIAL unites the assets and the 12 Brands of CNH, Iveco and FPT Industrial – all positioned among the world leaders in their respective sectors: agricultural machinery, construction equipment, vans, trucks, buses and special vehicles and powertrains for all applications. The CNH INDUSTRIAL Group ranks amongst the top tier of global capital goods manufacturers with total revenues of 25.8 billion Euro and a trading profit of 2.1 billion Euro in 2012. CNH INDUSTRIAL is present in 190 countries with 64 production plants, 49 R&D centers, 6,000 Dealers and a workforce of more than 68,000 people. It has an established leadership in Europe, North America and Latin America, and it is well positioned for growth in the emerging markets – particularly China, Russia and India. 3 As CNH INDUSTRIAL we are also highly committed in the environmental field. The Dow Jones Sustainability Indices annually track the financial performance of the leading sustainability-driven global Companies – and our Group ranks number 1 in the capital goods sector. In this context, Iveco Bus will give an important contribution to the growth of the Group by expanding on a global level while confirming its leading position in the European bus industry. Iveco Bus is one of the only full-liners in the industry, with an offer that ranges from minibuses to tourism coaches. It ranks number 2 among the European public transport vehicle manufacturers, with a continuously improving performance. Our year-to-date market share has reached 20% in September, marking a 0.8 growth versus last year. Today, one out of 5 buses sold in Europe is produced by Iveco Bus. To further improve our market position, we have taken the opportunity of the Euro VI launch to completely revise our bus range. We have made our vehicles… more sustainable in terms of emissions and fuel efficiency by adopting innovative technologies (such as HI-eSCR) that help us reduce the Total Cost of Ownership. All this while increasing the high value of our vehicles in terms of style and comfort. Cost saving is a key issue for all European public and private transport bodies – and so the Total Cost of Ownership has been the key driver of our development process. TCO elements include factors that we do not control – like insurance cost and driver salary – but we worked on all the others (that represent nearly half of the total, as you see in the chart). The result is outstanding: we have managed to reduce TCO making our buses lighter, more efficient, even more reliable and easier to service. Value for operators and passengers has been developed while maintaining our focus on the efficiency and profitability of the service. 4 The new eye-catching style has been developed as a result of “smart design” focussed on simplification and essentiality. This took us to an important component optimization that help reduce complexity and maintenance costs. The new Iveco Bus range is cost-effective by design. In order to reduce downtime and rationalize spare parts management, all components have been designed to be easily and quickly replaceable – and many can now be shared across the ranges. Component innovation also enabled us to extend maintenance intervals: as an example, the DPF filter now needs substitution every 4 years. An important contribution to cost reduction is represented by the new Iveco Bus kits for maintenance and standard repairs – that guarantee original spare parts at a special, competitive price, simplified process (single reference number and same delivery box) and, as a consequence, reduced vehicle downtime and TCO. Together with intrinsic value, we also improved Customers’ value perception – by providing… a relaxing environment in medium and long-range coaches, with a 50% reduction in the noise rate, and bright, ample spaces in citybuses allowing 10% more passengers on board. Fuel efficiency was obviously our first priority. In Iveco Bus new range, fuel consumption and CO2 emissions reduction can reach 10% – depending on model and mission type. A breakthrough made possible by the introduction of new powertrain and vehicle technologies – such as our exclusive, patented FPT Industrial HI-eSCR system. HI-eSCR is a strategic technology that has been developed leveraging our in-house innovation. Designed and produced by FPT Industrial, the system provides us with a fundamental competitive edge: HI-eSCR is by far the most efficient post-treatment technology on the market, the most suitable for rear bus applications and the essential “reason why” of our TCO reduction. 5 The new Iveco Bus range is the compendium of all this. Urbanway, equipped with the new longitudinally-mounted Tector 7 engine, is 800 kilograms lighter than the previous model and offers 10% more passenger capacity. Crossway is a real money maker, that guarantees high profitability to operators while improving travelling comfort to passengers. Absolute leader in the intercity category in Europe, it has been redesigned to optimize lengths, engine space and interior design. And finally Magelys – our high value coach, that has been further improved in value and features. In its high-end version is now the perfect answer to the ongoing liberalization of regional and national lines for international operators. This is a business that is expected to significantly grow in the years to come – since bus is the most economical way to travel and transport people. To futher reduce emission levels and fuel consumption, CNG and Hybrid versions are also available on the citybus range – a technological path that we have endorsed long ago. Iveco has been a forerunner in the use of alternative fuels and tractions for passenger transport. In total there are about 5,000 Iveco natural gas buses today in operation in public and private fleets. Iveco Bus is committed to exploit the potential of collective people transport to reduce the environmental impact of mobility. When we tackle the TCO issue,… we do not refer just to the cost in money, but also to the cost in terms of carbon footprint. And with the new Euro VI range we have reached an important target under this profile as well – with a CO2 reduction of up to 10%. But we look further.... 6 We look forward to a sustanable future where we further reduce the carbon footprint of public transport with the use of alternative tractions – such as electric plug-in. …And today you will have a preview of all this with the presentation of our new concept bus – that we will unveil in a short while. Ladies and Gentlemen, I thank you all and I leave the floor to Pierre Lahutte, Head of Iveco Bus, who will present our product innovation to you in further detail… 7 .