Interviews Archives - Sustainable Bus https://www.sustainable-bus.com Electric bus, alternative fueled bus and sustainable public transport systems Fri, 15 Dec 2023 10:52:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://www.sustainable-bus.com/wp-content/uploads/2021/04/cropped-favicon-32x32.jpg Interviews Archives - Sustainable Bus https://www.sustainable-bus.com 32 32 Yutong’s strategy in Europe: from e-coach business case to localization, and more. Our interview with CEO Europe Jack Li https://www.sustainable-bus.com/news/yutong-strategy-europe-interview-ceo-jack-li/ https://www.sustainable-bus.com/news/yutong-strategy-europe-interview-ceo-jack-li/#respond Mon, 04 Dec 2023 08:12:25 +0000 https://www.sustainable-bus.com/?p=28479 From Yutong’s evolving portfolio of e-coaches to the challenges and strategies associated with promoting electric coaches in Europe. From the sales model employed by Yutong in the European market the the group’s strategic approach to market expansion, with a primary focus on the Nordic regions, passing through a focus on the local content of Yutong […]

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From Yutong’s evolving portfolio of e-coaches to the challenges and strategies associated with promoting electric coaches in Europe. From the sales model employed by Yutong in the European market the the group’s strategic approach to market expansion, with a primary focus on the Nordic regions, passing through a focus on the local content of Yutong buses and the potential localization of production in Europe.

These and more topics were on the table of our interview with Jack Li, CEO Europe at Yutong, shedding light on Yutong’s vision and strategies in the rapidly evolving zero emission bus market of the old continent.

Our goal is to expand our market share, and we have devised a strategy focused on enhancing the local content of our buses. We are incorporating various European components, such as the Actia cockpit, ZF axles, Michelin tires, to name a few examples.

CATL is in the process of establishing a plant in Hungary with the objective of commencing production by the end of 2024. As a result, we are planning to procure battery modules from Europe in the future. To achieve this, we must secure robust sales to support our investment in localizing production. Timing of this strategy will depend on sales.

Jack Li, CEO Europe at Yutong
jack li ceo yutong europe

At Busworld, held in early October in Brussels, Yutong displayed four models, including some interesting innovations. In particular, Yutong has unveiled the articulated version of the U18. Secondly, time has come for the U11 double-decker, headed to the British market.

Closing the circle, an extra short (the seven-metre E7) and the three-axle battery-powered coach T15E, ready to preside over a segment, that of the zero-emission coach, which is still embryonic.

Jack Li, CEO Europe at Yutong, on the business case for e-coaches in Europe

Your range of e-coaches for Europe is today made of ICE12 and T15. Should we expect changes and/or addition?

I know our competitors haven’t launched electric coaches so far in the market. We have already launched the ICE12 a few years ago, headed to commuter services and coach applications. We have sold around 200 units in Europe.

The new model displayed at Busworld Europe 2023 belongs to the T series. The T15 can carry up to 61 passengers with a battery up to 630 kWh. It is addressed mainly at the Nordic region, where such length is widely adopted. 

jack li ceo yutong europe

Demand for electric coaches hasn’t already kicked off in Europe…

Electric coaches, being very honest, are expensive in terms of upfront cost. Subsidies are required. In Norway there are fundings that cover 40% of the gap between a diesel and an electric coach. This is a stimulus for us to develop and bring to the European market electric coaches. We see this market to grow in the next few years.

Which tools are you offering to make the purchase more affordable?

Coach operators are mainly small and medium companies, therefore we offer leasing options

The focus of Yutong on Europe

Which is the sales model you are using in Europe? Directly present or through dealers?

We use a multiple sales model. We prefer to establish close relations with end users. Having a dealer is one of the main ways to increase presence on a market, as local companies are more familiar with customers and local regulations, but we found that this model has its own drawbacks. Therefore we opt for a diversified sales mode: if the customer is an international bus operator, we prefer to establish direct relations instead of using dealers. If the customer is a medium-sized company, we don’t have enough resources to reach and look after the customer, therefore we collaborate with partners. 

In some markets we are not present due to barriers and protectionism, and also in those markets distributors can offer a precious help. 

jack li ceo yutong europe

Therefore you have established a network of partners?

In some markets we haven’t entered so far. The precondition for us to enter a market is to be sure that the business we can realize is a sustainable business. We are not interested in entering markets in a rush. We have to evaluate competitions and resources in any market before entering these.

How’s Yutong currently structured for the European market, then? Which are the countries you are targeting most?

At the moment we are focused on developing in the Nordic regions. Then we’ll go west, and finally towards the South region.

jack li ceo yutong europe

Any plans for localization of production in Europe?

Our goal is to expand our market share, and we have devised a strategy focused on enhancing the local content of our buses. We are incorporating various European components, such as the Actia cockpit, ZF axles, Michelin tires, to name a few examples.

CATL is in the process of establishing a plant in Hungary with the objective of commencing production by the end of 2024. As a result, we are planning to procure battery modules from Europe in the future. To achieve this, we must secure robust sales to support our investment in localizing production. Timing of this strategy will depend on sales.

Our aim is to ensure the satisfaction of all stakeholders, which includes not only Public Transport Operators (PTOs) but also Public Transport Authorities (PTAs), municipalities, and institutions. Therefore, we are actively working to enhance the local content of our products.

What about the Yutong U 12 bus model, introduced in 2019? Is it still on the rise?

jack li ceo yutong europe

E12 is our typical city bus model, we have already realized over 1,000 sales in Europe. It’s widely proven. But technology continues to develop: the U series adopt more intelligent functions as long as a lightweight construction that reduces weight significantly, benefitting energy consumption. 

The U series is already on the market and allows us to provide a wider offer to our customers. Yutong E12 and U12 will be offered in parallel for some time. They are both in series production as of now.

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Arriva Spain: challenges, energy transition and post pandemic shifts, according to MD Antonio Cendrero Querol https://www.sustainable-bus.com/news/arriva-spain-challenges-energy-transition-antonio-cendrero-querol/ https://www.sustainable-bus.com/news/arriva-spain-challenges-energy-transition-antonio-cendrero-querol/#respond Mon, 20 Nov 2023 11:24:57 +0000 https://www.sustainable-bus.com/?p=28245 Insights into Arriva Spain’s pivotal role in Madrid and Galicia, the post-pandemic shift in mobility patterns, financing challenges for zero-emission buses in Spain, adherence to EU quotas for zero-emission city buses by 2035, and Arriva Spain’s strategic focus on electrifying interurban services. These topics are at the center of our interview with Antonio Cendrero Querol, […]

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Insights into Arriva Spain’s pivotal role in Madrid and Galicia, the post-pandemic shift in mobility patterns, financing challenges for zero-emission buses in Spain, adherence to EU quotas for zero-emission city buses by 2035, and Arriva Spain’s strategic focus on electrifying interurban services.

These topics are at the center of our interview with Antonio Cendrero Querol, Managing Director at Arriva Spain, that we met during Global Mobility Call 2023 in Madrid. Arriva is in the process of being sold from Deutsche Bahn to an investment fund.

Antonio Cendrero Querol, Arriva Spain and the challenges of transit

Antonio Cendrero Querol, Managing Director at Arriva Spain, can you provide a picture of the company?

“Yes, Arriva Spain has revenue of roughly 90 million euros with a fleet of 350 buses. We operate mainly in Madrid and Galicia in the northwest of Spain. Our main operations are located here in Madrid, where we are part of the intercity lines operators, which are managed by private companies. The intercity segment is very important in Madrid, it has nearly the same size as the municipal bus sector (2,000 buses for city services, 2,000 for intercity services). Current contracts of intercity lines expire next year and will be tendered”.

arriva spain Antonio Cendrero Querol

The pandemic has changed mobility patterns globally. From the Arriva Spain perspective, have the changes generated by Covid-19 led to long-term changes in passengers’ behavior?

“Of course there was a huge drop in demand, but thanks to discounts applied by the national and regional governments, now we are seeing a significant rebound. 

In interurban transport we are already exceeding patronage compared to 2019. We expect to end 2023 with a level of patronage higher between 5 and 10 percent compared to 2019. We are seeing an increase in public transport use but in the meanwhile the use of private cars is not going down: after the pandemic many people moved further from cities and now need to commute”.

Which is the financing in place in Spain for the procurement of zero emission buses? Do you think the financing schemes currently in place are enough to kickstart the transition of public transport fleets or other financial tools should be allowed?

“Spain was awarded a consistent amount of money from the Next Generation EU. Part of this money was used to subsidize zero emission vehicles, but at the end it was decided to subsidize only half of the difference in price of zero emission buses. Of course it helps, but it’s not enough. In other countries, for instance Portugal, subsidies have been higher”.

Antonio Cendrero Querol

Are low/zero emission bus purchases mandatory in Spain concerning city buses?

“We are following the quota decided by the EU, with zero emission city bus sales at the moment expected from 2035. A big question is that some authorities in Spain are also bringing forward the date imposing stricter limits on emissions in the tenders”.

A quick ramp up of zero emission buses may raise some questions on production capacity…

“Yes, we have seen such problems already very common. Nowadays we need to plan very carefully the delivery times. And this applies also to rolling stocks in rail. We expect high demand for zero emission vehicles but we see European manufacturers catching up in terms of production capacity”. 

Where is Arriva Spain standing in terms of deployment of low and zero emission buses? 

“The business of Arriva Spain is focusing on interurban services. We started to electrify all our urban lines and all our interurban lines that, considering their commercial speed and characteristics, can be electrified. In this process, in Alcorcón (Madrid), we had to do the work of adapting services schedules and charging times so that they were compatible with night charging. We have done this without using opportunity charging with intermediate loads in the municipality that would have created more interference in the daily life of the municipality and to the users. Likewise, we have also acquired several interurban vehicles and we are beginning to work on interurban lines that are electrifiable so that the municipality also has a more sustainable and environmentally friendly connection on this type of journeys.

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Safra will unveil the HYCITY fuel cell bus at Busworld. Our interview with CCO Eric Baleviez https://www.sustainable-bus.com/fuel-cell-bus/safra-hycity-busworld-interview-eric-baleviez/ https://www.sustainable-bus.com/fuel-cell-bus/safra-hycity-busworld-interview-eric-baleviez/#respond Tue, 18 Jul 2023 12:19:19 +0000 https://www.sustainable-bus.com/?p=26295 Safra made a remarkable appearance at the Paris 2022 Euro Mobility Expo, where they officially announced the launch of their hydrogen-powered HYCITY bus (ten units are going to be delivered in Dunkirk). This innovative vehicle is set to replace their Businova model. In the meanwhile, at UITP Summit 2023 Safra showed a Intouro retrofitted with […]

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Safra made a remarkable appearance at the Paris 2022 Euro Mobility Expo, where they officially announced the launch of their hydrogen-powered HYCITY bus (ten units are going to be delivered in Dunkirk). This innovative vehicle is set to replace their Businova model. In the meanwhile, at UITP Summit 2023 Safra showed a Intouro retrofitted with an in-house developed fuel cell kit.

In this interview with Safra Chief Commercial Officer Eric Baleviez, who joined the French company in early 2022, we provide updates on the progress of HYCITY and share details about its upcoming public presentations at the Busworld trade show in Brussels and the RNTP trade show in Clermont-Ferrand. Additionally, we delve into the features of HYCITY and Safra’s commitment to zero-emission vehicles.

Safra, the HYCITY to be showed at Busworld

Safra was among the headliners at the Paris 2022 Euro Mobility Expo, announcing the launch of the hydrogen-powered HYCITY, which would replace the Businova. Here, where are we standing with this product? Is there any news?

We will display the HYCITY at the next Busworld trade show, in Brussels from October 6 to 12th. It is a great opportunity to do the first public presentation of our new generation hydrogen bus. Following on from this, the HYCITY will also on our stand at the French trade show RNTP, which this year takes place in Clermont-Ferrand from October 17 to 19th.

Since the announcement of this new product at the Paris 2022 Euro Mobility Expo our engineering teams worked hard to design our new hydrogen vehicle taking into account customers and market expectations in terms of performances, maintainability, road behaviour, customization capabilities. It takes time to do this properly, in a pragmatic step by step approach. We are now ready to deliver and with already a very nice order book.

In 2024, which will see less exhibitions, we intend to run a roadshow throughout France with the HYCITY, to interested cities for an onsite demonstration. This will allow our customers to directly test the vehicle on their lines, and to exchange about specific demands they may have.

The HYCITY has been presented as a 100 percent H2 bus that was created for Class I, but aims to ‘conquer’ Class II as well: in the portfolio it is available in a 12-meter 3-door version with a completely flat floor. Correct? Any other features you would be willing to share?

Thanks to 10 years’ experience with the Businova, we have gained a real-life experience of the electric powertrain and hydrogen energy. The HYCITY has been designed as a full hydrogen vehicle with an aim to facilitate operation and improve the vehicle’s TCO. It is also a more conventional vehicle with a standard size and shape (12 m long and integral flat floor) and with either 2 or 3 doors, this latter configuration becoming a must in the market which we couldn’t offer with the specific layout of Businova.

Enhanced passenger experience has been included in our design specifications and HYCITY features a bright and accessible passenger aerea. Operability, maintainability, ergonomical driver’s cab, integration of ADAS and on-board systems have also been taken care off in this new generation. Class 2 configuration is in our product roadmap and will target other European markets.

What about the 18-meter version planned? When will it be available?

The 18m HYCITY development has been launched, and we plan to present this new model in 2025, after testing phase planned late 2024. Meanwhile, our engineering team works on retrofitting existing ICE to ZE vehicles. This is the other major topic of Carbon-free Mobility and PTOs are more and more interested by this solution.

Safra strategies focus on hydrogen

As a company, you have announced a farewell to the hybrid technology, focusing all on zero emissions: can you explain the reasons for this choice and the results you are achieving / aim to achieve? Any figures concerning actual production volumes and targeted capacity?

First of all, we have chosen zero emission vehicles, putting aside all other options, because we are convinced that there is simply no other choice as we face always growing air pollution and carbon emissions.  

We launched the Businova program in 2011, with the aim ultimately of designing a zero-emission vehicle, with a focus on hydrogen, a technology we’d been following closely for several years. At the time, this technology was not yet mature enough to be marketed and it was just the first roll out of electric buses. So, we designed the first rechargeable electric version of the Businova, based on an architecture that would enable us to adapt the motorization to new energies in the future, and hydrogen was one of them. As a result, we were able to rapidly convert Businova to hydrogen, whereas other manufacturers had to go through a full redesign of their platforms to offer hydrogen versions. In 2018 we pioneered with the first hydrogen bus in France.

Thanks to this early start we learned a lot on safety, software management, hydrogen consumption, vibrations and noises optimization, performance modelling. Our customers now benefit from our gained experience and knowledge, and we are very confident to achieve the performance we announce with HYCITY.

This also explains why we are well positioned in the hydrogen retrofit market, because we are both fully knowledgeable with the technical constraints caused by hydrogen , and familiar with increasing vehicles’ life thanks to our long-standing refurbishment expertise.

Moreover, Safra aims to export on markets outside France: which countries have you put in your sights? 

We will first target continental Europe as launching a right-hand vehicle would deeply impact the chassis and homologation.

We are currently working on improving our after sales structure in France, because as you know, availability of vehicles, is directly linked to spare parts availability, ability to contract full maintenance, preventive maintenance, and this require a high level of organization and reactivity.

Then we will start to expand our maintenance network outside France.

Today our commercial team monitors the European market in order to understand its technical and performance requirements. More specifically, we pay a closer attention to the evolution of hydrogen mobility in Germany, Italy, Spain, Benelux, Scandinavia and we have already started planting seeds with potential partners to set up local customer service offers.

And retrofit is also part of the match

At the end of 2022 you announced a partnership with Plastic Omnium to support the development of the HYCITY hydrogen bus range and retrofit service for the conversion (from diesel to hydrogen) of coaches. Can you be more specific on this partnership?

Safra has entered a long-term industrial partnership with Plastic Omnium for 2 products of its range. For HYCITY, Plastic Omnium supplies us with the type IV high-pressure hydrogen vessels. For H2-PACK, our coach retrofit kit we will install on a first series of 15 coaches, Plastic Omnium supplies us with the fuel cell systems and with the hydrogen tanks. Plastic Omnium’s fuel cell can deliver 100 kW in peak power (71 kW average), which is mandatory to allow coach travels up to 100 km/h.

With the major investments made over the last 10 years, Plastic Omnium will also provide required high level technical assistance throughout Europe on these critical components. This partnership confirms the commitment of both companies to sustainable mobility and, more generally, a commitment to address environmental issues.

Among other things, Safra was awarded Europe’s largest bus retrofit contract to convert diesel buses to hydrogen. Repowering is indeed quite an interesting topic nowadays, but its potential role in the decarbonization process will depend on the financing that will be made available. May you outline where and how repowering of diesel buses into zero emission is financed as of today?

We all know that as of today hydrogen technology applied to mobility is more expensive than fossil fuels, but I think this is not anymore, the question. We need to change to more sustainable choices including for our public mobility, zero emission vehicles are the only viable option to improve air quality in our cities. EU and many European governments provide strong financial incentives to help this transition and to support complete hydrogen ecosystems, as in France with the ADEME’s AAPs.

Retrofit is today a viable option for vehicles registered for more than 5 years and which have still around 10 more years to run as it allows to cut their emissions while offering comparable performances and prevents to scrap vehicles which would be an ecological and economic absurdity. Our historical activity of extending vehicle life through midlife refurbishment has proved time and again that renovating and repairing these vehicles is a considerable cost-saver for Mobility Authorities.

Retrofitting also accelerates the decarbonization of mobility. The availability of new zero-emission vehicles is very limited or even non-existent for usages such as intercity coaches. By converting the existing fleet, we enable the local authorities to meet European regulations more rapidly and at a lower cost.

Today, an intercity coach retrofit costs around €300,000. With the massification of the hydrogen market, thanks to the increase in demand, which is already being experienced, availability and price of hydrogen components will rapidly improve. 

At UITP Summit your stand focused on the topic of retrofit…

Yes, we started the 2023 transport fairs season at the UITP in Barcelona exhibiting our hydrogen retrofit kit. We had on our stand a Mercedes Intouro bus from the Region Occitanie fitted with the H2-PACK kit to transform this diesel vehicle into hydrogen. We are currently working on the retrofit of 15 similar vehicles for this customer.

We made this choice because there is a strong demand for heavy vehicle retrofits and very few offers. This is a great opportunity to showcase our technical know-how in this type of conversion to the international community and at the same time to demonstrate our commitment to the energy transition.

Our focus or Busworld Brussels, will be the first public display of HYCITY. Where could there be a better place for this kind of event!

We are eager to show this vehicle to the public, and to find out how this new generation of hydrogen buses will be received at the event.

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New organization, challenges, strategies. Our interview with MAN Head of Bus Barbaros Oktay https://www.sustainable-bus.com/interview/interview-barbaros-oktay-man-head-bus/ https://www.sustainable-bus.com/interview/interview-barbaros-oktay-man-head-bus/#respond Mon, 10 Jul 2023 12:28:39 +0000 https://www.sustainable-bus.com/?p=26121 In March 2023 MAN bus business’ structure was heavily reorganized. Rudi Kuchta, until then Head of Business Unit Bus, left the position for a role as boss of truck and bus business in Austria, replaced by Robert Katzer. What is more, Barbaros Oktay was appointed in the newly created role of “Head of Bus” (HoB). “He will report […]

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In March 2023 MAN bus business’ structure was heavily reorganized. Rudi Kuchta, until then Head of Business Unit Bus, left the position for a role as boss of truck and bus business in Austria, replaced by Robert Katzer. What is more, Barbaros Oktay was appointed in the newly created role of “Head of Bus” (HoB). “He will report directly to MAN CEO Alexander Vlaskamp and will have direct organisational responsibility for managing the Bus Engineering, Production and Sales units”, it was then announced.

We had the opportunity to discuss with him present and future strategy of MAN bus business, along with key topics affecting the industry, at UITP Summit 2023 in Barcelona.

Barbaros Oktay‘s career in the automotive industry began at MAN Turkey, where since 2004 he held roles in production management and purchasing. He then joined MAN Truck & Bus SE as a Purchasing Vice President and later became the Head of Bus Engineering.

We have adopted a lean management approach to increase efficiency and drive profitability. This means making strategic decisions about our product portfolio, such as choosing not to invest in city and intercity segments with Euro 7 engines, in order to optimize our resources and to clearly focus on e-mobility. Lean management is a significant part of our overall strategy.

Barbaros Oktay, Head of Bus, MAN Truck & Bus
barbaros oktay man

Barbaros Oktay: the meaning of the ‘Head of Bus’ position

You have been appointed in the newly-created position of Head of Bus… may you be more specific about what such a new role means?

The bus business is distinct from the truck business in several ways. Customers have different needs and expectations, events in the industry vary, pricing structures are unique, and there are different approaches to reaching and engaging customers. These differences also give rise to various synergies that exist within the bus business.

In examining the history of successful companies, one key factor that sets them apart is their decision-making process. Recognizing the need for timely and accurate decision-making, it becomes crucial to detect when decisions are required. Within MAN, we recognized the need for a dedicated organization that could better cater to the evolving expectations of our customers. The bus industry has undergone significant changes, and customers now demand quicker decisions and faster responses than ever before. To meet these expectations effectively, we realized that a specialized bus organization operating from morning to evening was necessary.

In our Ankara plant in Turkey we are in the process of qualifying it for electromobility production. Over time, we plan to ramp up its competencies, enabling it to produce high-voltage products by the end of 2025. This strategic move will allow us to leverage the unique strengths of both plants and distribute production responsibilities effectively.

Barbaros Oktay, Head of Bus, MAN Truck & Bus

Under the new organization the bus business will be more autonomous, then?

Absolutely. With the new organization structure, we have consolidated all functions related to the bus business under one roof. This includes engineering, purchasing, production & logistics, sales, quality, human resources, customer service management and finance departments, all working together seamlessly.

Do you see more changes in the expectations of private or public customers, or both?

Both private and public customers are experiencing changes in their expectations. The advancement of technology has led to an increased pace of interactions and decision-making across industries.

barbaros oktay man

Barbaros Oktay, MAN, an evolving market

In March MAN stated that “Sales in the bus business had fallen from around 7,400 units in 2019 to around 4,600 units in 2021. The situation also remained tense in the past 2022 financial year. Although sales here increased by about 180 units to about 4,800 vehicles compared to 2021. But the recovery, especially in the coach market, which has been hit particularly hard by the Corona crisis, continues to be delayed”. How is 2023 progressing thus far? Are these considerations still valid? Do you think we should still pursue ‘recovery’ or rather a ‘navigation in a changed environment?

The situation has indeed been challenging for us, as the pandemic has significantly impacted the bus and coach market, resulting in a decrease in sales volume. However, it’s important to note that market conditions are constantly evolving, and we are now witnessing a gradual recovery in both the European market as a whole and the coach business specifically. While the recovery process has been delayed, we remain optimistic about the future.

Our commitment to the bus business is deeply ingrained in our company DNA, as indicated by our name. We have a strong belief in investing in this sector, recognizing that significant opportunities lie ahead, both in terms of technological advancements and changes in the business environment.

Electromobility is a key focus for us, and we have great confidence in its potential. Being part of a larger group enables us to leverage the expertise and technologies developed within the organization. This includes advancements in battery management systems and other relevant areas, which have a direct impact on our bus business.

Traditionally, the truck segment has played a significant role in providing components and technologies to the bus sector. However, with the emergence of electromobility, we find ourselves at the forefront of this transition. As the truck segment adopts new technologies, such as electric drivetrains, component systems, including batteries, will also transition from truck to bus applications. I see this change as a big chance for us. 

We collaborate with bodybuilder partners around the world, extending from Australia to Taiwan and Indonesia. These partnerships enable us to maintain a global presence and serve customers in various regions. For instance, in Africa, we have established production and development centers in South Africa. We are proud to manufacture certain products there, and we are excited to announce that e-buses will be introduced in that market this year

Barbaros Oktay, Head of Bus, MAN Truck & Bus

It was stated that your role “will be to consistently implement our comprehensive package of measures to improve earnings and to make the bus business sustainably profitable again”. May you be more specific on this?

In order to improve our earnings and ensure the long-term profitability of our bus business, we have implemented a comprehensive package of measures. One of the key factors in achieving this goal is the recovery of volumes in the market. However, the transformation towards electromobility is also a crucial aspect.

We have adopted a lean management approach to increase efficiency and drive profitability. This means making strategic decisions about our product portfolio, such as choosing not to invest in city and intercity segments with Euro 7 engines, in order to optimize our resources and to clearly focus on e-mobility. Lean management is a significant part of our overall strategy.

Furthermore, we have established a strong infrastructure in high-cost countries where we develop our concepts, strategies, and management. However, when it comes to product realization for our customers, we leverage the advantages of best-cost countries. We have already established production know-how for electromobility in Poland and Ankara, allowing us to effectively manage costs.

Additionally, as part of the TRATON group, we have a close relationship with Scania, which is highly experienced in the chassis business globally. They will continue to focus on chassis production while we engage in component and system-level collaborations. These investments, along with streamlining activities, optimizing platform combinations, adopting lean structures, and prioritizing customer needs, will naturally contribute to improved profitability.

We are committed to managing and implementing these measures in order to strengthen our position as a major player in the European market and as a European-oriented OEM. Our ultimate goal is to ensure sustainable profitability and maintain a strong presence in the evolving industrial organization of the European bus market.

MAN: now the focus is (also) on the global market

But also on the global market…

Indeed. Our focus is not limited to the European market alone; we also have a strong presence and ambitious plans in the global market. While we continue to prioritize the European complete vehicle market, we recognize the importance of expanding our reach globally.

In addition to our chassis business, we collaborate with bodybuilder partners around the world, extending from Australia to Taiwan and Indonesia. These partnerships enable us to maintain a global presence and serve customers in various regions. For instance, in Africa, we have established production and development centers in South Africa. We are proud to manufacture certain products there, and we are excited to announce that e-buses will be introduced in that market this year. I encourage you to keep an eye on Africa as perceptions are changing, and there is a growing demand for our offerings in the region.

barbaros oktay man

There’s less competition with cars, right?

Yes, when you will see e-bus registrations in Africa there you’ll be surprised. We have already developed a concept, a high floor commuter e-bus for Africa (the other global chassis is for Singapore, editor’s take). This year we are going to start with a few trials. We are bringing the African first e-bus built by a European company. 

How to win competition with Chinese brands in Africa, where cost-pressure should be even higher than in other regions?

Every challenge makes us better than yesterday. Increasing competition is motivating us.

As for our Ankara plant in Turkey, we are in the process of qualifying it for electromobility production. Over time, we plan to ramp up its competencies, enabling it to produce high-voltage products by the end of 2025. This strategic move will allow us to leverage the unique strengths of both plants and distribute production responsibilities effectively.

Barbaros Oktay, Head of Bus, MAN Truck & Bus

Intercity bus market: battery-electric is the way (according to MAN)

Let’s move to the intercity segment. While the path towards electric urban buses seems relatively clear and the imperative of energy transition is not immediate for coaches, there is a certain level of uncertainty when it comes to the Class II segment. Gas solutions are technologically mature, but national and European directives are aiming for decarbonization. How is MAN dealing with these trends?

Our strategic focus is on battery-electric vehicles, and there are several reasons that support this choice. Through extensive research and analysis, we have found that battery-electric vehicles offer the best TCO in the market. This has reinforced our belief in the viability and value of this technology for our customers. Additionally, being part of a large group provides us with accessibility to battery technology. We have the advantage of leveraging both NMC (Nickel Manganese Cobalt) and LFP (Lithium Iron Phosphate) battery technologies. Each technology has its own advantages and disadvantages, and we carefully evaluate their suitability for different applications.

By prioritizing battery-electric vehicles and leveraging our access to battery technology, we are confident in offering our customers efficient and cost-effective solutions that align with their profitability goals.

The Euro 7 regulations and the transition roadmap to electric vehicles are putting significant pressure on the budgets and strategies of manufacturers. What is your group’s strategy in response to these challenges?

As part of ACEA, we believe that the Euro 7 standard does not provide significant benefits. Instead of focusing solely on our perspective, we believe it is crucial for the European Union to listen to the true customers in this industry: the passengers. We propose conducting interviews in the streets to gauge public interest in taking a seat on a non-sustainable bus after 2030 in Europe. If we find that there is a demand for such buses, we will consider following that decision. However, based on our current assessment, we do not see any advantages of Euro 7 for our passengers, customers, or our commitment to sustainability.

Autonomous mobility, plants, organization

You recently announced a partnership with Mobileye in the field of autonomous driving, and  the goal of having a driverless bus in serial production by the end of the decade. This technology has the potential to revolutionize mobility, starting with urban transportation. What impacts do you foresee for public and collective transportation?

The autonomous driving technology that supports drivers will soon become highly effective. However, the adoption of fully driverless technology may not escalate as rapidly as digital technology or electric vehicles. Technological advancements are driven by needs, and the current need is a shortage of drivers. This means that drivers have the option to choose their workplaces, and a more comfortable and safe working environment becomes a driving force for transformation.

We are currently engaging with numerous customers, and we emphasize the importance of prioritizing driver satisfaction. Operators are now including driver evaluation criteria in their tenders, which marks a revolutionary shift. It has become a significant factor in tenders across Europe to earn favorable ratings from drivers.

In conclusion, the introduction of safety drivers controlling autonomous vehicles will happen in the near future.

man recycling batteries

You have two European plants, Starachowice and Ankara. How do you see the evolution of these two plants in the future concerning competences and strategies?

When it comes to the future evolution of our European plants in Starachowice, Poland, and Ankara, Turkey, we have distinct strategies and competencies in mind.

Our plant in Starachowice, Poland, has successfully completed its transformation and has become our electromobility competence center. We continue to invest in this plant to enhance its capabilities and meet the increasing demand for electromobility solutions.

As for our Ankara plant in Turkey, we are in the process of qualifying it for electromobility production. Over time, we plan to ramp up its competencies, enabling it to produce high-voltage products by the end of 2025. This strategic move will allow us to leverage the unique strengths of both plants and distribute production responsibilities effectively.

In Poland your group had to reduce production

We made a strategic decision to focus on the production of electric city buses in Poland, discontinuing the production of conventional city buses. Electric city buses have distinct demands and requirements compared to their conventional counterparts. As a result, we needed to adjust our production capacity accordingly.

However, it’s important to note that as the demand for electric city buses continues to rise, we anticipate a ramp-up in production. The dispersion and adoption of electric buses are expected to increase steadily, and in line with this growth, we will gradually raise our production capacities.

Ultimately, our goal is to align our production capabilities with the market’s transition towards electric city buses. Once the market reaches a point where 100% of city buses are electric, we anticipate completing the ramp-up of our production capacities to meet the demand effectively.

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Fleet charging according to a giant like ABB E-mobility. The interview https://www.sustainable-bus.com/interview/fleet-charging-according-to-a-giant-like-abb-e-mobility-the-interview/ https://www.sustainable-bus.com/interview/fleet-charging-according-to-a-giant-like-abb-e-mobility-the-interview/#respond Mon, 03 Jul 2023 15:23:27 +0000 https://www.sustainable-bus.com/?p=26043 Among the key players at the UITP Summit in Barcelona, in the galaxy of “components” that is the vital counterpart of the vehicle manufacturer industry, ABB stands out. And specifically the ABB E-mobility division, which chose the stage in Catalonia to unveil its new power system for mixed fleets to the industry. Services, products, news, […]

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Among the key players at the UITP Summit in Barcelona, in the galaxy of “components” that is the vital counterpart of the vehicle manufacturer industry, ABB stands out. And specifically the ABB E-mobility division, which chose the stage in Catalonia to unveil its new power system for mixed fleets to the industry. Services, products, news, current and future projects: speaks Mathijs Vaessen, Global Product Manager – Fast charging solutions for heavy commercial vehicles at ABB.

How is ABB E-mobility organized in terms of its public transport business and about the electric bus segment after the spin-off of the Hitachi Energy brand?

Let’s take a step back. At the end of 2018, ABB sold 80 percent of its Power Grid division to Hitachi, which specializes in power and automation service products and systems-essentially the power grid division. On the ABB E-mobility side, Hitachi has always been a separate part of the organization, now 80% owned by ABB and 20% by outside investors. Essentially, therefore, very little changes. From now on, we want to be more flexible, with the ability to move faster in the market, thanks to an expanded scope of maneuver and the ability to focus more on customer needs

What is the ABB E-Mobility solution portfolio for the electric bus sector?

We really have a lot of arrows in our bow! Starting with Terra DC Wallbox, a compactly designed, very small and cnnesso system that offers fast charging in a really compact footprint, which is also great for bus depots. So depot charging systems and connectors for electric buses and trucks, which can be roof-mounted as (HVC control unit) vilupplied specifically for elevated constructions such as roofs, canopies or lattice structures; or HVC depot charging boxes, which can be wall-mounted or pedestal-mounted and are specially designed to charge large fleets of electric vehicles in the best way, with the smallest possible footprint. Single CCS depot boxes provide charging power of 100 kW to 150 kW, with up to 3 charging columns for sequential charging, while sequential charging with up to 4 outlets (2 columns), in the dual outlet CCS version provides charging power from 107 kW to 160 kW, again for sequential charging.

Coming to the pantographs?

We obviously offer a roof-mounted pantograph solution to charge large fleets of electric buses overnight in a range of 50-150 kW per vehicle and during the day with 150 kW up to 600 kW for opportunity charging. In addition, the pantograph to charge fully automated electric buses according to the OppCharge protocol. With typical charging times of 3 to 6 minutes, the system a can be easily integrated into existing operations, providing service during the day without impacting normal route operation.

And we come to the novelty launched at UITP…

Yep, HVC360: this is fleet solution, which will be available in EC and North American markets at the end of September 2023. Each HVC360 power system allows up to four charging stations to be connected at a distance of 100 meters, while its compact and proven design allows installation back-to-back, side-to-side, or along a wall. Dynamic charging functionality allows the HVC360 to assign different power levels to each charging station, depending on the number of connected vehicles or their charging requirements, while the unit simultaneously supports all charging interfaces, from CCS to pantograph.

What trends do you see in the demand for charging solutions, in Europe and other regions of the world? Can you identify any specific trends in these markets? What developments do you foresee in the coming years?

Well, we can say that we notice a trend of standardization in technology, which is a good thing. But a standardization that has to adapt to the specific policies of the various markets and customer needs.

In 2022 ABB participated in the launch of the Brebemi Arena of the Future project in Italy, a circuit of about 1 km where electric vehicles can recharge their batteries while on the move, thanks to a wireless dynamic induction charging system integrated into the road. Iveco Bus was among the partners. How does wireless charging fit into ABB’s strategies for electric mobility in commercial vehicles? What market do you expect for this technology?

The point is basically one, simple but not trivial: electrification has arrived, but it will not be a fad: it has arrived to stay. Despite the long tail of other resources such as gas, other fuels, and hydrogen, electric is emerging-and we saw it strongly at the trade show in Barcelona-as the queen technology. And we, from the very beginning, have fearlessly embraced this challenge: in our DNA is precisely the tendency to look with particular enthusiasm at the latest technologies. And electric is particularly appealing. So we work in concert with all our divisions to bring the most functional solutions and products possible to the market.

What are the main projects ABB has done so far in the electric bus sector in Europe? Are there any case studies you would like to mention?

Definitely the case histories in Northern Europe, in Scandinavia to be exact, in Sweden – together with Scania, however truck side – and in Norway, in Bodo, with Volvo. There, 31 e-buses have been running since summer 2031 in the Arctic city of Bodo, precisely, powered by ABB charging solutions. These are the electric buses in service at the world’s northernmost latitude. Moving slightly south, in the Netherlands, we have supplied over 100 high-power chargers the Qbuzz fleet (controlled by Busitalia, ed.) for 99 buses. In Germany, on the other hand, we highlight the project in Hamburg, where the local public transport company Hochbahn is gradually electrifying its fleet: we supplied it with 44 high-power 150 kW chargers, useful for simultaneously recharging 44 buses in the fleet at the central depot, each with a range of up to 150 km under normal conditions.

Delivery vans and public transport buses. Do you see possible future opportunities for the integration of charging networks? And, in general, what integrations should we expect between the charging infrastructure of different types of vehicles?

This is a complex discussion because, yes, certainly the transportation of the future also goes through the integration between the worlds of freight and people transport, in this respect, but there is a “but.” For example, in the United States it is really (too) expensive to provide charging stations in multiple locations. Surely, however, it is this possible integration (even of CCS + pantograph) represents an important business opportunity.

What financing mechanisms do you think can effectively contribute to making the energy transition economically viable? Although project financing and public-private partnerships (PPPs) have been discussed, they have not yet been fully integrated into the regulatory framework of most public transportation systems…

On our side, as far as public-private partnerships are concerned, we are doing a lot of “shared” projects in the States-I would say we have reached an important critical mass. The same is slowly happening in Europe as well.

Today, electric mobility, especially when it comes to heavy vehicle fleets, is an urban mobility issue. Technology can enable the use of battery electric coaches over short to medium distances, but the infrastructure is lacking, resulting in a sort of “chicken and egg” situation. Do you have any plans related to the electrification of coach operations over long distances?

Something simmering in the pot is there, but at an embryonic level, to be honest, because the manufacturer industry, only in recent times has begun to work in depth on the possibility of bringing electric and/or fuel cell coaches to life. We expect that this technology can conquer the tourist industry as well. And we, rest assured, will be ready!

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Amos Haggiag, Optibus: “Public transport needs to adapt and embrace all forms of mobility”. Our interview https://www.sustainable-bus.com/news/amos-haggiag-optibus-interview-public-transport-future/ https://www.sustainable-bus.com/news/amos-haggiag-optibus-interview-public-transport-future/#respond Fri, 16 Jun 2023 11:54:37 +0000 https://www.sustainable-bus.com/?p=25616 As a software company with the goal of revolutionizing transportation networks, Optibus focuses on optimizing real-time operations and supporting the transition to electric and zero-emission buses through IT technology. Amos Haggiag, CEO and Co-Founder of Optibus, shares insights on their global expansion, future of mobility, company’s strategies and the importance of public transit. Public transit […]

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As a software company with the goal of revolutionizing transportation networks, Optibus focuses on optimizing real-time operations and supporting the transition to electric and zero-emission buses through IT technology.

Amos Haggiag, CEO and Co-Founder of Optibus, shares insights on their global expansion, future of mobility, company’s strategies and the importance of public transit.

Public transit needs to adapt and embrace all forms of mobility. The goal should be to create a comprehensive and interconnected transportation system that seamlessly incorporates trains, buses, micromobility, on-demand shuttles, and autonomous vehicles. By merging these modes of transportation, we can achieve a holistic system that caters to the diverse needs of commuters and optimizes efficiency in urban mobility.

Amos Haggiag, CEO and Co-Founder of Optibus

Amos Haggiag, Optibus enabling zero emission operation

May you provide us a picture of Optibus?

Optibus is a software company that provides a cloud-native platform for designing transportation networks, creating timetables, allocating vehicles and drivers, and ensuring efficient real-time operations.

When we first founded Optibus, our software was designed around scheduling drivers and allocating vehicles while planning the network. Over the years, we expanded the platform’s capabilities to address new challenges, such as the optimization of charging processes for electric and zero-emission buses. This involves determining when to charge, how long to charge, which type of charger to use, and prioritizing charging based on the vehicles’ and drivers’ schedules.

The transition to e-mobility is driving your product development, then?

Currently, many operators are rapidly transitioning to electric or zero-emission buses, and numerous cities plan to build 100% zero-emissions bus fleets within the next decade. Achieving this goal will be extremely challenging without the aid of technology, as it facilitates the management of the charging infrastructure, vehicles, and batteries. We have made substantial investments in developing AI-powered, digital tools that make it easier to manage electric vehicles and hybrid fleets.

Furthermore, we have also support real-time operations, which involve adjusting and optimizing operations in accordance with what is happening on the road at any given moment. This includes the real-time management of drivers and ensuring buses leave the depot on time, calculating costs, and addressing unpredictable issues such as traffic jams and vehicle breakdowns. By effectively managing these factors, we contribute to the real-time optimization of the network and ensure smooth operations.

You gather a lot of data for the backend side. Are there any future developments planned for a front desk app for passengers?

We do not have plans to develop an Optibus app specifically for passengers. Our focus is primarily on providing service information to passengers through various transport apps such as Google, Apple, and more. These apps utilize the data from Optibus’ platform, including routes and timetables. Last year, we acquired a company in the US that specializes in GTFS and passenger information systems to ensure that we can effectively provide accurate information about routes, timetables, and more to passengers through various apps and passenger information systems. Our intention is to collaborate with these app providers so that Optibus users can provide reliable service information to as many passengers as possible, ensuring a postive passenger experience.

Optibus, Africa is showing big opportunities

What are the figures for Optibus in terms of cities and regions?

In November 2022, usage of Optibus’ software hit 2,000 cities worldwide with our breakthrough into Vienna, Austria. That’s double the number of cities that were using Optibus just nine months prior, in February, we reached our 1,000th city milestone with Santiago, Chile. Our growth and reach is truly global, visible in more than 35 countries worldwide, including Italy, Spain, the United Kingdom (where 70% of all public buses are planned and scheduled using Optibus), Portugal (where our software optimizes 50% of the public buses in Lisbon), Spain, Germany, France, Turkey, as well as countries in North and South America, such as Brazil, the United States, and Canada, and Asia Pacific. Furthermore, we have are involved in helping to plan the first public bus network in Kampala, Uganda, which is going to have an amazing social and economic impact on people across the city and region.

Please explain…

Imagine a city that has no existing public transit, where only 5% of the population owns a car, and where millions of people primarily commute by walking or by using unsafe, unregulated forms of mobility. However, with the support of organizations like the World Bank and the advent of new technologies, substantial opportunities are emerging. By bringing public transit in these areas, many people will finally have a safe, reliable means to commute to work, attend school, and access healthcare facilities. This transformation will significantly improve their quality of life.

Did Optibus set any targets for this year?

In terms of growth, we are continuing to pursue our exponential goals and to establish our presence in newregions so we can expand globally. We believe that public transportation is essential worldwide, and it is crucial for us to have a presence in every city, in every country to create an impact. On the product side, you can anticipate numerous updates related to electric vehicles (EVs). Our customers are using Optibus’ EV scheduling software at various stages of their journey to establish zero-emissions fleets, be it rolling out their very first electric buses, to managing a fleet that is already 100% electric or that consists of hundreds or thousands of electric buses, as is the case with some of our clients in the United States and Chile, which has one of the largest electric bus fleets in the world. However, scaling up electric bus fleets presents new challenges. For instance, if numerous buses are charging simultaneously, there may not be sufficient electricity supply. We are focusing on citywide optimization of charging infrastructure and addressing associated issues.

Additionally, we see immense potential for innovation in the real-time operations space, and are actively exploring ways to introduce advancements and improvements. Public transportation has traditionally been managed manually worldwide. Decisions related to traffic jams, vehicle breakdowns, and other incidents that happen unexpectedly have been typically handled using manual interventions, such as phone calls to drivers. We want to make the process of reacting in the moment much smoother and more automated, so that operators can work smarter and passengers experience fewer service disruptions.

Autonomous driving, challenges and opportunities

What about autonomous driving?

Autonomous driving will be a major development for public transportation. However, it is difficult to determine the timing of how things will unfold, as even the most promising projects take more time than expected. However, the replacement of all drivers with autonomous technology seems unlikely, at least in our lifetime. It’s more realistic that the driver role will evolve, requiring more oversight and management of the vehicle in place of time behind the wheel.

However, as the cost of personal autonomous vehicles decreases, there is a risk that people may overly rely on them for travel, and the convenience may outweight the offer of public transportation. Personal AVs will not solve issues like pollution if the vehicles are not zero emissions, and they will not reduce traffic and congestion if every person still travels in their own vehicle. With the added convenience of personal AVs, public transportation will need to put up an even bigger fight against private cars.

That’s a crucial issue.

Yes. In a scenario where car ownership is increasingly convenient, it is likely that many individuals would opt for private transportation, leading to a proliferation of cars on the roads and severe congestion issues within cities. It is crucial to bring people together and implement appropriate regulations. Whether a car is autonomous, electric, or driven by a person, it still occupies physical space on the roads. Autonomous vehicles, although promising in terms of safety, are not a standalone solution to alleviate congestion.

Public transit plays a pivotal role in mitigating traffic congestion. However, with the advent of autonomous cars, there is a risk that ridership on public transit systems might suffer.

How to react?

To prevent this, public transit needs to adapt and embrace all forms of mobility. The goal should be to create a comprehensive and interconnected transportation system that seamlessly incorporates trains, buses, micromobility, on-demand shuttles, and autonomous vehicles. By merging these modes of transportation, we can achieve a holistic system that caters to the diverse needs of commuters and optimizes efficiency in urban mobility.

The mindset of a startup

Are you still considering your company a startup?

It depends on how you define a startup. I receive this question frequently, and I have contemplated it myself. Is Google considered a startup? Probably not. People often perceive startups as small companies, but Optibus currently has 400 employees worldwide. So, are we still a startup? In my opinion, a startup is a company that is in a phase of high growth and disruption, distinct from companies that have already saturated the market or focus on low growth. We are still relatively small compared to the overall opportunity, and our progress is rapid, leading to significant growth and developments every year. This necessitates different strategies and entry into new markets. Therefore, we are still operating with the mindset of a startup.

My definition of a startup is a company that is experiencing rapid growth, making substantial investments, and expecting substantial profits but has not yet achieved profitability.

Optibus’ current focus is on investing heavily in growth, product development, and market expansion. Building the best, most innovative platform possible and expanding rapidly to make it available to every city in the world is our priority. We still embody the startup spirit in that nature.

Is there a projected timeframe when you expect to shift your focus towards profitability?

I don’t believe there will be a specific moment when we suddenly switch our focus. Innovation is an ongoing process, and we will continue to innovate our software until we feel that we have a solution for every problem. However, there will always be new challenges to address. As we progress, our profits will naturally increase. We started the company with no revenues, and only expenses. Over time, our revenue grew, leading to profits. However, maintaining an innovative mindset will always be a core aspect of our company.

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Scania new bus strategy in Europe: “Market is changing, we need to focus”. Our interview with SVP Head of Bus & Coach Johanna Lind https://www.sustainable-bus.com/news/johanna-lind-scania-bus-strategy-europe/ https://www.sustainable-bus.com/news/johanna-lind-scania-bus-strategy-europe/#respond Thu, 15 Jun 2023 07:50:20 +0000 https://www.sustainable-bus.com/?p=25588 Scania has announced on the 30th of May 2023 a significant change in its business model and industrial strategy in Europe. It’ll cease body production for Scania bus chassis in Poland and will continue offering complete buses and coaches thanks to partnerships with bodybuilders. Production of Scania Citywide, Scania Interlink, and Low floor-chassis will be discontinued. Oddly enough, […]

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Scania has announced on the 30th of May 2023 a significant change in its business model and industrial strategy in Europe. It’ll cease body production for Scania bus chassis in Poland and will continue offering complete buses and coaches thanks to partnerships with bodybuilders. Production of Scania Citywide, Scania Interlink, and Low floor-chassis will be discontinued. Oddly enough, Scania bus range has just been updated, with new Interlink launched in January 2022.

A very similar decision was recently taken by the other Swedish brand Volvo Buses: in March the group announced plans to end production of complete buses and coaches in Europe (and also in this case a Polish plant, the one in Wroclaw, is affected).

Back to Scania, in 2022 a total of 1,142 buses were registered (fifth player on the European bus market above 8 tons), with a -28% compared to 2021 (and -35% than 2019)

In an interview we conducted during UITP Summit 2023, Scania Senior Vice President Head of Bus and Coach Johanna Salomonsson Lind (she took the position in February 2023 from Anna Carmo e Silva) discuss the reasons behind this strategic shift and the expected outcomes.

Scania made the difficult decision to discontinue the Scania Citywide, the Interlink, and the Low Floor models in order to focus and invest in areas where we are already strong. This strategic move allows us to continue investing in urban and intercity transportation solutions, working closely with our partners.

Johanna Salomonsson Lind, Senior Vice President Head of Bus and Coach, Scania Group

Scania, Johanna Salomonsson Lind and the new European bus strategy

The change in the business model announced by your group has been quite striking. May you be more specific about reasons and expected results?

Scania’s strengths lie in its modular concepts, which make our vehicles durable and reliable. We also have skilled technicians worldwide and extensive experience in running buses, ensuring timely service. Additionally, Scania’s strong partnerships enable us to offer solutions tailored to specific markets: if you look at 2022, 90% of our sales worldwide were done through partnerships. 

We see that in the past few years, the market has been changing rapidly, and the pandemic obviously hit the market strongly. Now the volumes are picking up, but in a slightly different shape, and we also see that the investments needed are increasing, also due to new legislation and technical development.

So, we started reviewing how we ensure that we maintain our competitiveness. We believe that for us to remain a key player in the market over time, we need to focus. This will also give us resources to be more adaptive and flexible to the needs and the markets, being more attentive to what’s happening.

sono motors scania llt

Therefore you made the decision to end three of Scania bus products…

Scania made the difficult decision to discontinue the Scania Citywide, the Interlink, and the Low Floor models in order to focus and invest in areas where we are already strong. This strategic move allows us to continue investing in urban and intercity transportation solutions, working closely with our partners.

If you look at 2022, 90% of our sales worldwide were done through partnerships. We see that in the past few years, the market has been changing rapidly, and the pandemic obviously hit the market strongly. Now the volumes are picking up, but in a slightly different shape, and we also see that the investments needed are increasing, also due to new legislation and technical development. So, we started reviewing how we ensure that we maintain our competitiveness. We believe that for us to remain a key player in the market over time, we need to focus. This will also give us resources to be more adaptive and flexible to the needs and the markets, being more attentive to what’s happening.

Johanna Salomonsson Lind, Senior Vice President Head of Bus and Coach, Scania Group
scania interlink new

Will Scania develop new platforms or utilize existing ones? 

Scania has a long history of platforms and will continue investing in those that have proven successful. There’s an aspect I’d like to stress…

Please…

We will continue offering what we call complete solutions, but we’ll do this in cooperation with our partners. Depending on the specific case, our level of integration can vary. In some instances, we are heavily involved in industrial integration, while in others, our focus will be more on the commercial integration. 

Scania electric bus range?

When can we expect to see Scania’s range of electric buses? 

Scania believes in offering a broad range of powertrain options to meet local requirements and ensure sustainable solutions. We are investing in various options such as hybrids. gas and electric drivelines. Scania sees the need for multiple alternatives, including electric, to adapt and lower emissions in different contexts.

We should also keep in mind that approximately 80% of CO2 emissions occur in suburban areas. To address this, we will continue our investments in various technologies.

Coach side: how will this be affected?

The products that will be discontinued have been announced. For the remaining products the strategy will not change.

How will the decision to discontinue certain products affect Scania’s business and workforce?

We really want to focus to remain a primary voice in sustainability. We needed to take this very tough decision. Concerning the production facility, we are currently producing chassis and bodyworks, and we’ll continue to be present with the first. 

What about the workforce?

The negotiations are still ongoing. The actual number of people will be defined. In local media it was reported that 847 people are concerned, however our best ambition is to reduce this number through other measures. We are investing in several supporting mechanisms right now for our employees.

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Challenge accepted. First Bus and the transition to zero-emission buses in UK. MD Janette Bell speaking https://www.sustainable-bus.com/news/interview-first-bus-janette-bell/ https://www.sustainable-bus.com/news/interview-first-bus-janette-bell/#respond Mon, 12 Jun 2023 10:29:00 +0000 https://www.sustainable-bus.com/?p=25188 First Bus is one of the top five bus companies in the United Kingdom, with operations from Aberdeen in the very north of Scotland down to Cornwall, thanks to about 4,500 buses and 14,000 employees. We interviewed the managing director Janette Bell.

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Below, an article published on May 2023 issue of Sustainable Bus magazine.

First Bus is one of the top five bus companies in the United Kingdom, with operations from Aberdeen in the very north of Scotland down to Cornwall, thanks to about 4,500 buses and 14,000 employees. We interviewed the managing director Janette Bell.

First Bus recently reported that at the conclusion of the ZEBRA projects, the company is expected to have over 600 zero-emission buses in its fleet. Could you sum up the deliveries to date, how many vehicles you do have on order today and which timeline you expect for further orders and deliveries?

«We have a very clear statement that we wish to fully decarbonize our fleet by 2035, and we’ve been making progress towards that goal. As of today, we actually have 229 zero-emission vehicles in operation, with the biggest area of operation being our Caledonia depot in Glasgow. We have 412 buses currently on order, and those are being delivered as we speak. We expect to take deliveries every month now through until March next year, and we will have a total of 622 zero-emission vehicles by then».

Many believe that innovative financing schemes are necessary to make the large-scale deployment of e-buses from an economic perspective. What is your opinion on this? Do you think the financing schemes currently in place in the UK are enough to kickstart the transition of public transport fleets?

«There are significant differences between the upfront costs of electric and diesel vehicles and their infrastructure. However, the government’s funding and support for partnerships with local authorities have enabled us to obtain the initial funding for these vehicles and infrastructure. I believe we are at the forefront of zero-emission vehicles, and there are various funding options available for companies to explore. The strength of a company’s balance sheet may determine which financing option they choose. Still, I expect more innovation in vehicles, infrastructure, and financing options, and I believe many are exploring these options now».

Janette Bell: First Bus, decarbonization, post Covid

The pandemic has changed mobility patterns globally. From First Bus’s perspective, have the changes generated by Covid-19 led to long-term changes in passengers’ behavior? How is your group addressing these changes?

«Absolutely. Covid-19 has accelerated trends that were already prevalent in the United Kingdom. Digital payments have been accelerated, and we have invested heavily in using the data from geolocation and other sources to improve the performance and punctuality of our services. We have also adjusted our fares and product structures to suit the changing habits of our customers, such as introducing three-day tickets in addition to weekly ones. We are looking at where we are relative to what people are doing now and what they may be doing in the future, rather than comparing our business to 2019. It is about adaptation, adjusting our services to what is happening now and in the future».

Can you tell us about your involvement in demand-responsive transport in the UK?

«We’ve been involved in a few projects. It’s a potentially useful solution which could run alongside core services, providing support and potentially feeding into the main network. 

I think it’s an area that probably could be further developed; however, I think one of the challenges that many operators face is making those services economically sustainable».

On the TCO of e-buses

One of the most debated topic is TCO: which is the comparison between e-buses and diesel buses today, according to the data you have collected so far?

«One of the challenges we face is that we do not have a zero-emission vehicle that has gone through an entire cycle of ownership, including battery replacements. Therefore, there are many theoretical pieces to consider. As we move forward, TCO for e-buses and diesel buses will mature and become more clear over time, and everyone in the industry will learn from these experiences».

Dealing with e-buses and energy transition implies changes in the structure of public transport companies. How is First Bus changing, in terms of organization and skills, to get ready for
the challenge?

«To prepare for this challenge, we’ve appointed a sustainability executive to oversee our decarbonization efforts. We’re also rethinking our operational processes, from upskilling our workforce to changing the way we handle buses in depots. This transformation touches every aspect of our business, so we’re building a blueprint model to guide us as we continue to deploy more EVs and learn from our experiences. Additionally, we’ve established an internal center of excellence and are providing training for our drivers, engineers, and support teams. These efforts are part of our comprehensive plan to transform our entire business».

With electrification, what is happening is that maintenance activities are quite often outsourced to manufacturers and service providers within full service contracts…

«No, that’s not the case at First Bus. We consider engineering to be a key competence, and we do not outsource our maintenance staff. Instead, we focus on upskilling and reskilling our engineers to adapt to the changes brought by electrification. While we recognize a change in the competencies required, we believe we can handle them internally while maintaining strong relationships with our suppliers and manufacturers».

With the transition to e-buses, public transport companies are often more looking for partners than just for suppliers. What requests do you feel to make at industry players at this stage?

«We’ve always prided ourselves at First Bus in how we partner with our suppliers. We are now working with more technology and digital suppliers in the zero emissions space and continuing to foster a spirit of innovation through collaboration. Our aim is to learn together with our suppliers and local authorities, which is essential as we embark on this journey towards sustainability».

The public transport market is changing…

What about the delivery time of vehicles? It’s another hot topic nowadays…

«At the moment, things are more drawn out. It’s very clear that with the disruption to the supply chain that has resulted from Covid and geopolitical issues, we have seen supply chains extend out. What is important is that we work very closely with our manufacturers to ensure that there’s maximum efficiency on manufacturing lines and that we’re all as efficient in that supply chain as possible».

What do you think of Brexit and its consequences on the evolution of the zero-emission bus market?

«It would be very difficult to isolate any impact of Brexit. Between Brexit, pandemic, and the geopolitical situation, there are multiple issues that have disrupted the supply chain».

The emergence of macro trends such as digitalization and energy transition are already, according to many, bringing towards a concentration of public transport services in the hands of larger companies. And Covid put much pressure on PTOs balance sheets. Do you think these circumstances will end up bringing a push towards large companies getting a larger share of the market? To what extent?

«The market in the UK is made up of five big operators and many small and medium-sized enterprises. As we come through Covid, we have seen some small parts of consolidation, and we’ve also seen some of our large competitors go into new ownership structures. How we make sure being able to decarbonize our fleet is one thing, but obviously, what we’re wanting to do is to play a larger role in the communities that we operate in. Certainly, we are working with third parties, some of those larger companies, but also some small SMEs to make sure that we can share infrastructure and partner with businesses in the community».

Autonomous driving. What is First Bus doing to stay ahead in this area?

«We’ve been involved in a multi-consortium in Oxford, which has delivered the UK’s first autonomous bus. This has been running around Milton Park Science and Technology Park since March. Our reason for piloting this project is to better understand the technology and gather feedbacks from safety drivers, stakeholders, and customers».

We haven’t so far mentioned the topic of hydrogen. First Bus is also running a pilot on fuel cell technology. Can you tell us more about that?

«We recognize that the potential range opportunities that hydrogen buses give you are particularly interesting for rural areas. However, the hydrogen infrastructure and vehicles themselves are currently more expensive. At First Bus, we want to make sure that we’re not just thinking ahead but also considering cost and sustainability. We’ve had hydrogen buses operating for over a year now, and they’ve been performing well».

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BorgWarner’s strategies for the e-bus market (now offering also LFP modules). Our interview with Andreas Vath https://www.sustainable-bus.com/news/borgwarner-strategies-electric-bus-market-andreas-vath/ https://www.sustainable-bus.com/news/borgwarner-strategies-electric-bus-market-andreas-vath/#respond Sun, 04 Jun 2023 12:59:35 +0000 https://www.sustainable-bus.com/?p=25373 BorgWarner has expanded its e-mobility business after acquiring the German battery systems manufacturer Akasol. Now the group’s portfolio includes battery systems, charging solutions, drivetrains, motors, inverters, and eFans. BorgWarner main emphasis in commercial vehicles is on battery systems. Offering both NMC and LFP solutions (with the latter being a real news, as the focus of […]

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BorgWarner has expanded its e-mobility business after acquiring the German battery systems manufacturer Akasol. Now the group’s portfolio includes battery systems, charging solutions, drivetrains, motors, inverters, and eFans. BorgWarner main emphasis in commercial vehicles is on battery systems. Offering both NMC and LFP solutions (with the latter being a real news, as the focus of Akasol had been since the beginning on NMC formula), they prioritize higher energy density and exclude LTO technology for now.

Battery facilities are located in Darmstadt and Detroit, with plans for a production line in Seneca (South Carolina), aiming for balanced production in Europe and North America. Their third-generation batteries (mounted on the eCitaro, for instance) is designed for second-life applications.

We interviewed Andreas Vath, Manager Advanced and Application Development, who outlines strategies, roadmap and goals of the group in the electric bus business.

In the field of LFP technology, there has been a significant increase in energy density, although it is still around 20% lower than NMC. However, it has now reached a level that is sufficient for many applications, and it is also cheaper on the cell level. As a result, we are now able to offer two solutions to our customers, even though the European commercial vehicle market is still primarily focused on NMC technology. For customers who require a higher energy density for longer routes, we can provide NMC technology. For those who do not require as much energy onboard, we can offer LFP technology

Andreas Vath, Manager Advanced and Application Development, BorgWarner
andreas vath borgwarner

BorgWarner, Akasol, batteries for public transport

How is BorgWarner organized in terms of activities for the public transport and electric bus segment, following the acquisition of the Akasol brand?

Following the acquisition of Akasol, we have integrated their activities into our e-mobility business. This includes their manufacturing facilities and engineering capabilities, which have helped us to expand our product portfolio and better serve the public transport and electric bus segment”.

Which is BorgWarner’s portfolio of solutions for the e-bus sector?

Our portfolio of solutions for the e-bus sector includes complete battery systems and charging solutions, as well as drivetrains, motors, and inverters. We also offer eFans for cooling of BEV Trucks”.

borgwarner battery
The BorgWarner 9 AKM ultra-high energy battery pack is designed for energy intensive electric drivetrain applications operating at up to 750V

Which are your main customers concerning drivetrains?

We are currently in the startup phase and don’t have huge drive train volumes in commercial vehicles yet. It’s completely different than passenger cars, where we’re a global player for such components. In commercial vehicles, our main product are battery systems at the moment”. 

Looking back at the past with quite stable raw material prices the battery prices decreased as a result of optimization in pack design, production, and economy of scale. The decrease in costs we achieved could not completely compensate for the current increase in raw materials costs. As a response, cell producers are now investing heavily in mining activities to secure their raw material supply. While raw material prices have started to decrease slightly, it is unlikely that we will reach the same level we had a few years ago

Andreas Vath, Manager Advanced and Application Development, BorgWarner

Lithium-ion battery pack prices “increased by 7% from 2021 to 2022, up to $151/kWh”, according to the latest Bloomberg battery price survey. Do you agree with this figure? How do you forecast the future evolution of prices?

Looking back at the past with quite stable raw material prices the battery prices decreased as a result of optimization in pack design, production, and economy of scale. The decrease in costs we achieved could not completely compensate for the current increase in raw materials costs. As a response, cell producers are now investing heavily in mining activities to secure their raw material supply. While raw material prices have started to decrease slightly, it is unlikely that we will reach the same level we had a few years ago”.

“By 2025, we expect that 80 per cent of all newly registered city buses in Europe will be electrified”, said Akasol founder Sven Schulz in an interview with Sustainable Bus in late 2019. Do you think this is still a plausible forecast?

We believe that the electrification of city buses in Europe will continue to accelerate in the coming years, as more cities and transit agencies set aggressive emissions reduction goals. If we do not reach the 80 per cent goal in 2025, then we will reach it a few years later. We are committed to helping our customers meet these goals by providing innovative and reliable e-mobility solutions”.

BorgWarner bets (also) on LFP technology

“LFP batteries have gained significant market share in the last three years”, reads the latest BloombergNEF report. The consultancy expects LFP to account for around 40% of global EV sales in 2022. Any insight about which trends are underway?

In the field of LFP technology, there has been a significant increase in energy density, although it is still around 20% lower than NMC. However, it has now reached a level that is sufficient for many applications, and it is also cheaper on the cell level. As a result, we are now able to offer two solutions to our customers, even though the European commercial vehicle market is still primarily focused on NMC technology. For customers who require a higher energy density for longer routes, we can provide NMC technology. For those who do not require as much energy onboard, we can offer LFP technology”.

This is quite a news, given that the initial focus on Akasol had been stated as being NMC. Are you going to offer also LTO?

Not at the moment. Our current focus is on achieving higher energy density, rather than higher power, so we are not currently planning to offer LTO technology.”

Battery re-use is a significant issue, and BorgWarner’s current generation of batteries, the third generation, was designed for second-life applications. What is important to mention is that reuse of batteries should be addressed starting with the design of the new product. If a battery is to be used in second-life applications, certain design requirements must be met. If the battery is to be used for 6-10 years in mobile applications, BorgWarner would take the entire battery pack out, test them, upgrade the software, and reduce power and C-rate limits before repurposing it for second-life applications

Andreas Vath, Manager Advanced and Application Development, BorgWarner

What trends do you see in demand for charging solutions?

Mixture is the best solution. Our batteries are typically used for depot charging, but if you have a particularly long route, maybe in the countryside, and in the end, there is a possibility for fast charging, then you can partially charge the battery in ten minutes.”

Isn’t this stressful for batteries?

If you charge according to the opportunity standard profile within a certain temperature and SOC range, this doesn’t stress NMC batteries so much.

Back on LFP technology, how are these dealing with high power charging?

We see there are new developments from LFP suppliers with applications that can charge from 10 to 80 per cent in 45 minutes. This is typically the time of mandatory break for commercial vehicle drivers in EU. Charging in 30 to 45 minutes is a requirement for our applications that will be marketed for truck and long haul applications”.

What about second-life of batteries?

What are BorgWarner’s strategies in North America?

BorgWarner has one facility in Darmstadt and one in Detroit, Michigan. There will be a further production line in Seneca, South Carolina. The company plans to have the same production volume in Europe and North America”.

What is BorgWarner’s approach to battery second-life and recyclability?

Battery re-use is a significant issue, and BorgWarner’s current generation of batteries, the third generation, was designed for second-life applications. What is important to mention is that reuse of batteries should be addressed starting with the design of the new product. If a battery is to be used in second-life applications, certain design requirements must be met. If the battery is to be used for 6-10 years in mobile applications, BorgWarner would take the entire battery pack out, test them, upgrade the software, and reduce power and C-rate limits before repurposing it for second-life applications”.

Could the second-life battery market become an interesting new business for your group?

The company is exploring the possibility of entering the second-life market with either a new business model or a partnership with an existing storage provider for stationary applications”.

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GUS Technology, Taiwan-made batteries with safety as a core focus https://www.sustainable-bus.com/components/gus-technology-interview-battery-safety-lto-taiwan-interview/ https://www.sustainable-bus.com/components/gus-technology-interview-battery-safety-lto-taiwan-interview/#respond Mon, 29 May 2023 08:52:26 +0000 https://www.sustainable-bus.com/?p=25307 GUS Technology is a key player in the battery industry and has recently launched Taiwan’s first battery gigafactory. With a focus on lithium titanate and NCM material systems, the company has invested NT$4 billion (121 million euros) in constructing the Jhongli gigafactory, which is expected to create over 250 job opportunities. Driven by a commitment […]

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GUS Technology is a key player in the battery industry and has recently launched Taiwan’s first battery gigafactory. With a focus on lithium titanate and NCM material systems, the company has invested NT$4 billion (121 million euros) in constructing the Jhongli gigafactory, which is expected to create over 250 job opportunities. Driven by a commitment to the “Made in Taiwan” concept, GUS Technology aims to secure a prominent position in the international energy market and showcase Taiwan’s battery R&D capabilities.

We run into the company at the exhibition 2035 E-Mobility Taiwan, held in mid-April in Taipei.

In this interview, we discussed with Prem Chandan, Assistant Manager of Research and Development (R&D) at GUS Technology.

GUS Technology, safety is top priority

Could you provide an overview of GUS Technology?

GUS Technology is a Taiwanese company that specializes in pouch cell production. Our products are made exclusively in Taiwan, with our main focus being on two types of pouch cells – NCA and LTO.

What are your future plans?

We are excited to announce that we just opened a new one-gigawatt factory plant in Taiwan, which is located just a 10-minute drive from the airport.  Production is set to start in the third quarter of 2023, and the production capacity will grow from 250MWh to more than 1GWh in the second quarter of 2024.

What is your top priority in battery manufacturing?

At GUS Technology, safety is our number one priority, especially given the concerns around battery explosions. We place a strong emphasis on ensuring that our LTO cells, which have a life cycle of over 10,000 cycles, are one of the safest cells on the market. They can also be charged in as little as 5 minutes, with no need for active cooling.

Storage systems beyond cells

What other products and services do you offer besides LTO cells?

In addition to LTO cells, we also design our own battery modules and create battery packs with backup and battery management systems. We also produce storage systems, such as a 15 kW household energy storage system and a portable 3 kW power bank, which can be used for camping or other portable activities. 

What can you tell us about the life cycle of LTO cells?

The life cycle of LTO cells is impressive, with the ability to be charged and discharged more than 10,000 times. This equates to approximately 20-25 years of daily use.

How does the energy density of LTO cells compare to other batteries?

While the energy density of LTO cells is slightly lower than other batteries, our Next Generation LTO cells have higher energy densities that are very close to LFP cells.

Can you explain your battery production process?

We produce LTO cells, which are then stacked to create battery modules. These modules are then used to make battery packs that include a BMS and modules that can be used directly in EVs. Additionally, we focus on storage systems, as already mentioned, including a 15-kilowatt household energy storage system and a 3-kilowatt portable power bank for camping or night markets.

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