NEW STRALIS X-WAY

IVECO has introduced the new Stralis X-WAY at the 10th Ready-Mixed Concrete, Cement, Aggregate, Construction Technologies and Equipment Fair (Beton İzmir 2018). Aside from the Stralis X-WAY, the company took its place at the fair with its tipper off-road truck ASTRA that can overcome even the most difficult missions and its TRAKKER model equipped with a 12-cubicmeter mixer.

We've listened to Iveco's authorities for all the details of the new Stralis X-WAY that has only recently left the assembly line and introduced to the sector for the first time at the Beton Fair. Here are our exclusive interviews with IVECO Turkey CEO Roberto Camatta, IVECO Off-Road Business Development Manager Korhan Yeşil and IVECO Medium and Heavy-Duty Product Manager Tarkan Özyönüm...

"MAIN DIFFERENCE IS NOT THE PRICE BUT THE PRODUCT ITSELF"

Roberto Camatta: "Our Goal Is to Reduce the Total Cost of Ownership of The Customers"

IVECO Turkey CEO Roberto Camatta has indicated that with the addition of the X-Way into the family, IVECO now offers a very extensive product line-up that ranges from the light off-road to heavy off-road in the off-road heavy-duty vehicle segment. He said: "We're launching the X-Way simultaneously with Europe. IVECO has always developed its products considering the needs of its customers. X-Way is the product of such an approach. Our goal is to reduce the total cost of ownership of our customers. Especially our earth moving customers preferred tractor trucks; however, these vehicles had problems when they entered the loading and unloading sites. Now, thanks to its steel bumpers and thick chassis, the X-Way tractor truck is as durable as an off-road vehicle and as comfortable as an on-road vehicle in long-distance."

"We Have a Single Vehicle for Both Purposes"

You're here at the 10th Beton fair in İzmir with a completely new product, the X-WAY. Actually, this vehicle is a much more economic vehicle.  However, it requires a separate investment... And you need to inform the customers about it. Will they make the right choice buying this vehicle?

The first purchasing price of the vehicle is not important; the important thing is to have a low total cost of ownership as well as operating expenses. How do you offer that to the customer with the New Stralis X-WAY? Customers either purchased a fully off-road or an on-road vehicle from us. Earthmoving companies purchased the on-road Stralis to use it on sometimes on-road and sometimes off-road conditions. When you drive an on-road vehicle on off-road conditions, the first damage it will receive is a broken bumper. As the X-WAY is for earthmoving companies, it is compatible with both off-road and on-road use. Its most important feature for off-road use is its thick chassis of 7.7 millimetres. It has a three-piece, non-plastic metal bumper and it has a higher clearance. However, the bumper of the on-road vehicle had a lower clearance, fewer parts and a non-metal structure. This vehicle also provides the comfort of an on-road vehicle in long-distances. We offer the X-WAY with both high and low cabins with an optional double bed. When a user says: "I damage my on-road vehicle when I use it for earthmoving, so I should use the TRAKKER", they have to compromise on their comforts over long-distances. But now, we have a single vehicle for both purposes.

Of course, we don't sell the X-WAY as a 4x4 tractor truck; however, thanks to an optional feature called Hi-Traction, the vehicle can switch to 4x4 when it skids. In addition, we also have a 6x4 heavy-duty tractor truck, 6x4 rigid truck and 8x4 rigid vehicle. If required, we also have super lightweight concrete mixers that weigh 8845 kg when empty. Therefore, the X-WAY has a much more extensive product line-up inside itself. In terms of the price, the important issue is the total cost of ownership for the customer. Vehicle's first purchase price is just one portion of the vehicle's total cost of ownership. However, we don't have any negative surprise-level prices at this point. We can say that the price of this vehicle is about the same as our previous price level. Main difference is not the price but the product itself.

"Internal Competition Is Inevitable but We Have Solved It"

What are the alternative products? We should talk about those as well. You're actually competing against your own product. As an investor or businessman that conducts this business, which of your products should I choose?

X-WAY will cause competition among our own product line-up. But, I can say that once the Stralis X-WAY tractor truck arrives, we will solely offer this product for earth moving-type off-road missions. We won't be offering the other and even if we do, the customers will choose the new one. Of course, the X-WAY will never replace the heavy-duty operation of the Trakker or Astra. Astra is already performing in an extra-heavy-duty segment. It has been designed for mines and quarries. It has a very high technical load capacity. X-WAY does not feature that. X-WAY may compete with TRAKKER. However, if you want a concrete mixer with a higher capacity, you will still choose the TRAKKER. For lower capacity and lightweight concrete mixers, X-WAY will be the way to go. Trakker and Astra are the right products for tipper missions. Of course, internal competition is inevitable but we can manage that and have already solved it.

"Our Goal Is to Reach a Total of Two Hundred Units"

In the current Turkish market, what would be the share of this product, what are your estimates?

We've only began the numbers for the X-WAY. Currently we're in May and this is the first product manufactured. Our goal for X-WAY is to reached a total of two hundred units per year.

"I Will Give a Chance to Stralis X-WAY"

Which of your products in your line-up do you estimate to become the best performer?

I see the potential for success in each of them. However, if we must choose one from each segment, I believe that Daily 7-ton will continue to display good performance. Eurocargo's success will also continue in the 15-16-ton market. I will give a chance to the new Stralis X-WAY in the heavy-duty vehicle segment.

"First, We Train Our Own Dealership Sales Department"

More exclusive, more comfortable and stronger vehicles are manufactured all around the world for the needs of the customers. Considering your product line-up, X-WAY is exactly a product that meets such demand. In that sense, customers can choose anything they want from this line-up. How do you explain that to the customers?

As Iveco, we also focus on niche products. Therefore, we need to reach the customers of this segment as well. Training is our top priority. First, we train our own sales department. In fact, two to three weeks ago, we've provided a detailed training for all our dealerships. Of course, our heavy-duty segment also splits in itself. We have a light heavy-duty vehicle segment and an extra-heavy-duty segment for quarry operations. We have also specialized on this aspect in our sales organization. The dealership that sells Stralis is different from one that sells off-road heavy-duty vehicles. That's why we become experts before reaching the customers. We provide trainings for the own segments of the heavy-duty vehicle segment itself. Then, it becomes easier for these dealerships to reach the target audience.

"We Don't Expect the Early Elections to Have a Negative Impact on The Construction Sector"

Turkey has rapid political dynamics and they've decided to hold an early election. As Turkey, we're realizing huge projects. Will the elections impact the state's large projects? What would you say about the end of this year?

I've been living in Turkey for the last 7 years. I've seen many elections before. There is an uncertainty before each election. Sometimes there are small turbulences even after the elections; however, then comes the recovery and the market reaches its old performance. Therefore, we're in a similar expectation this year. Looking at the 3,5 tons and higher total pick-up and truck market, 60 thousand units from 2016 and 2017 seems like a natural trend for the market. Perhaps there might be a turbulence in this trend; however, we expect to reach these figures by the end of 2018.

Considering the construction sector, we expect last year's 11 thousand units in the off-road segment will be at a similar level this year. Whether there are elections or not, there are on-going projects. These must be completed. We don't expect, at least the early elections, to have a negative impact on the construction sector. We think that sales numbers will be similar to the last year.

"2018's First Three Months Has Been Good for The Market"

When you look at the first three months of 2018, things are going well for the market. Numbers from the three and a half tons and higher total market are higher than the first three months of 2017. When compared with 2016, these numbers also exceed those from 2016.

There is a base effect for the positive state of the market in the first three months of 2018. Because the first three months of 2017 had the worst market performance since 2009-2010. It was right after the referendum and there was an uncertainty brought along with it. Of course, compared to the low base level of 2018, we can see that things are going well in 2018; however, we can still say that the first three months of 2018 has been good for the market.

What do you think about organization of the fair in İzmir?

When we're considering this fair, we shouldn't just consider İzmir but its entire hinterland. We need to think about cities like Manisa, Aydın, Denizli and Muğla. There must be some kind of potential as this fair has been organized in İzmir and so many people are attending it.

"WE ARE A BRAND THAT CAN MEET EVERY SEGMENT"

Korhan Yeşil: "Our New X-WAY Model Will Achieve Significant Level of Shares"

IVECO Off-road Business Development Manager Korhan Yeşil has indicated that they've carried out the pre-launch of the New Stralis X-WAY at the fair and stated that, as IVECO; this is their first time attending this organisation of the Turkish Ready Mixed Concrete Association. Yeşil has underlined that the fair is a great opportunity for IVECO and emphasized that their brand has the potential to meet every customer segment.

What is the audience and performance goals of the New Stralis X-WAY in the Turkish market? What have been conducted this year for the other products? How would you assess the general state of the market?

At Iveco, we have a full range of product line-up that is rich with our light, medium and heavy-duty segment vehicles. We have models in not just the off-road segment but also in every segment from the lightest construction group vehicles to the heaviest-duty construction group models. We've made the pre-launch of our X-WAY model at this fair.  We have all our off-road vehicles displayed at our stand, including our X-WAY, TRAKKER and ASTRA models. For the last 2.5 years, we've been operating under IVECO with our ASTRA model. Even though the first three months has been slow in the construction group due to weather conditions, this year has made a fast start into the construction group just as last year. During the first three-month period, the end users of all companies make investment plans so that the second and third quarters become the fastest terms of the market. Current state is not so different from last year; however, due to the recent sudden fluctuations in the currencies as well as due to the early elections, we began to see the current stagnation and postponing state.

"Those Projects Bear a Potential That Nobody Has Thought of Yet"

There are projects that began and still continue despite the political changes in Turkey. So accordingly, if we were to compare with last year, what are you estimates for this year?

Looking at the last two to three years, you can see that in the previous years it was 70 percent for the 4x2 tractor trucks and about 30 percent for the construction group. However, things have completely turned upside down. Currently, 70 percent goes to the construction group and 30 percent goes to the 4x2 tractor truck product group, allowing the continuity of the market. General estimates suggest that this year's significant loss in tractor trucks will be closed a bit more next year. We can't consider Turkey as a country that completed its infrastructure investments. There are still huge projects like Çanakkale Bridge Crossing and Canal Istanbul that are currently on-hold. If these were put into the investment program, these projects already bear a great potential. Compared to last year, I don't think that there will be a big difference in the construction group, in a negative sense. I think that it will continue in parallel with it. Of course, we need to re-evaluate this after the elections.

"I Think That Turkey Will Gain Significant Benefit"

The countries surrounding Turkey also have a large potential. Despite the current adverse conditions, what can you say about the future?

Both strategically and logistically, we're located right in the heart of Middle East. We are inside a very large hinterland that stretches to Central Asia and North African Republics. We've seen its effect, particularly when Libya was in a good state and during the times when Turkish companies were operating there. In the end, there is always a potential after a war. Therefore, I think that the structuring operations of those regions will be definitely fulfilled by Turkey again. I mean, I think that supply and infrastructure-wise, it is definitely going to be carried out through this region. I also believe that when the structure of that region is more stable and when it gains acceleration, Turkey will gain significant benefit from it.

"This Fair Is a Great Opportunity for Us"

Your product line-up includes products for various needs. Your X-WAY model is a more specific product. In that sense, can you make the necessary promotion for the Turkish customers?

As Iveco, this is the first time we've attended Turkish Ready Mixed Concrete Association's organization. This fair is a great opportunity for us. Our brand has the potential to meet all kinds of customer segments. As the new X-WAY shines out with its lightweight in not just Turkey but all around the world and that's where it will achieve significant level of shares. Our TRAKKER group, which is just a segment above, has already been in the Turkish market for many years. Our ASTRA product group takes the lead for closed-circuit mining businesses and aggregate quarries that host the most difficult conditions where slopes, loads and road surfaces are the most important aspects.

Our biggest mission and responsibility is to understand customer demands and recommend the best product. For us, the X-WAY and ASTRA models are the new products of our off-road product line. In a sense, they are like our babies; X-WAY is just a new born and ASTRA has only just began walking. We've found many reference customers with the ASTRA. Therefore, we think that we've made a significant advancement.

"The Group That Shines Out with Its Durability and Higher Load Capacity"

Recently, the government began certain incentives. Incentives especially for the energy, construction and private sector. Considering your product variety, you have a product for every segment. In light of these incentives, which product became your most successful product in the recent term?

In our very recent history, we've shown a bit more focus on the Astra. Especially the TRAKKER group already had a past reputation but the ASTRA was a completely new product group for us. With the launch of our demo truck and feedbacks from our customers, we can say that finally we have been able to focus on the Astra group. Of course, we shouldn't forget about TRAKKER at this point. TRAKKER always shines out with its durability and higher load capacity, wherever it operates and whichever mining business it conquers. You wouldn't hear anything about a broken Trakker chassis from any customer.

"Difficulties of Distributor Brands Are Obvious"

When you look at Turkey in such times, you can see a lot of domestic competition. Sustainability is key at this point. After all, we're not the cheapest brand. You need to look at the total cost of ownership rather than the first purchasing price. Even the fuel they consume at this point...I'm talking particularly about the mining group. Miners don't pay attention to fuel. They pay attention to constant operation and workforce of their vehicles at three shifts a day. We have a product range that doesn't require an EGR system and active regeneration for Euro 6. All of our trucks are only equipped with the SCR system. SCR makes great contribution to particularly the off-road group; we've seen it live. IVECOs equipped with the SCR system can operate 24 hours without stopping.

Infrastructure projects won't stop in Turkey. Construction group won't stop. In that sense, it is a very dynamic country. Construction market won't dim its star; not this year nor in the future terms.

"WE HAVE A FACTORY THAT CAN MAKE TAILORED PRODUCTION"

Tarkan Özyönüm: "We Will Fill the Gap with the New Stralis X-WAY Product Family"

In his statement about the new Stralis X-WAY that was launched for the first time at the fair, IVECO Medium and Heavy-Duty Vehicle Product Manager Tarkan Özyönüm said: "Our brand had the most extensive product range and addressed every segment of the sector; however, we had a gap. And we will fill that gap with the new Stralis X-WAY product family. A large family is about to enter the market." and underlined that the entire family will be complete by the end of the year.

You have already proven yourself in the sector with special vehicles that meet the needs of the sector and made important deliveries. In addition to all these, you're taking your place at the fair with a brand-new vehicle. First of all, can you introduce us to this vehicle?

We've come to the fair with a brand-new vehicle. It is a brand-new vehicle for us as well as Iveco, all around the globe. It has actually just left the assembly line and entered Turkey. This is our first time with this vehicle as well. The new product family also has a name now: "X-WAY" As you know, we had product line-ups in the heavy-duty vehicle segment as; off-road and on-road.  The name of our off-road product line-up is TRAKKER and the name of our on-road product line-up is STRALIS. We also had our ASTRA product line-up for those who conduct off-road operations under harsher conditions. We felt like we had a gap between the on-road and off-road. Some of our customers use their vehicles on-road due to their tasks. They use the roads but load/unload their cargo off-road. For customers with such tasks; if you give them on-road vehicles, they will be weak and require force while if you give them off-road vehicles, they will consume more because they will spend 90% of their lifetimes on-road. It will also cause loss of comfort for long-distances. In addition, you will be giving them a heavy product.

Our brand had the most extensive product range and addressed every segment of the sector; however, we had a gap. And we will fill that gap with the new Stralis X-WAY product family. A large family is entering the sector. It is a very large family with 4x2, 6x4, 8x2 tractor trucks and 8x4 rigid trucks. Its most important model for the Turkish market is the 4x2 tractor truck that can be used for tippers, trailers or mixers. X-WAY will cover this product as well.  These products will be equipped to be 95 percent on-road and 5 percent off-road.

"ASTRA Is a One of a Kind Product in Its Class with Its Unique and Unbeatable Features"

We don't just have the X-WAY at the fair. We're here to say that we have a strong presence in the off-road market. Our products are much stronger in off-road. We've placed emphasis upon being at this fair to make more and better introductions. We also have the TRAKKER and ASTRA alongside the X-WAY. ASTRA is a one of a kind product in its class with its unique and unbeatable features. Its competition's products are at a much different level. It has the air of a construction machine but it is actually a truck. It is unique with a lot of technical features. We have various products for concrete pumps and concrete mixers and we've presented them all at the fair. 

"A Record-Breaking Product in The Sector, There Won't Be Anything Lighter"

We don't see it too much but there is actually a light mixer market in Europe. It is a time of inspections in Turkey as well; so, demand has increased for us as well. We always ask: "how much does your vehicle weight?", because it is always lighter.  You only realize the lightweight afterwards. However, looking at the capacities of our vehicles, their technical capacities are higher than those legal capacities. However, you're limited by 26 tons for 6x4 models and 32 tons for the 8x4 models. Actually, the lighter is the vehicle, the more concrete you can carry. And the record for that has been broken by the X-WAY model.

Even though we don't have it at the fair yet; one of the products of the line-up that will be launched very soon, will be a lightweight mixer. It is a record-breaking product in the sector, there won't be anything lighter. That product will be lightweight but have" a large carrying capacity.

"The Entire Family Will Be Completed by The End of The Year"

Will there be an equivalent vehicle in the sector?

There are already many light mixers. We also had one as well. With more inspections, the demand increases for this product. There was TRAKKER but it had a heavy DNA. X-WAY, on the other hand, is a Stralis-based product. It means, an on-road vehicle manufactured using the infrastructure and equipment of an off-roader. As the 8x4 light mixer is also a Stralis-based product, you begin much lighter. You reinforce it to create a product that suits that task. So now, we have the advantage in terms of lightweight because we will have such a product.

This product is also a 6x4 heavy-duty transportation tractor truck. At that point, a customer that takes their construction machines off-road, into a difficult path, then take that construction machine onto a long-distance highway. So, there comes the X-WAY.

6x2 will take its place in the service of municipalities where we're particularly strong. Our X-WAY products will also take their places at that point. Our factory began to one-by-one put these products onto the assembly line. It looks like the entire family will be completed by the end of the year.

"There Are Three Different Options for The Needs of Each Customer"

We can say that this product can not only adapt to off-road conditions but also offer the easy, comfortable and economic aspects of an on-road service. What are the technical improvements? What are the details you can share with us?

We have a few technical differences and improvements. Our bumper is a brand-new bumper for the Stralis product line-up. It is for metal use. Its infrastructure has a stronger chassis compared to our normal tractor trucks and our long-distance tractor trucks. We have a 7.7-milimeters thick chassis. Our normal long-distance tractor trucks are 6.7 millimetres thick. That 1 millimetre difference makes it both off-road and on-road. Our suspension can resist when it goes off-road.

There are three different options for the needs of each customers: The On-road set-up features contain all the on-road characteristics of the Stralis. It ensures best visibility and cabin accessibility. In addition, it has multiple axle versions as well. The high manoeuvrability of the off-road set-up is fully compatible with the off-road homologations. On+, one the other hand, offers a combination of the most attractive off-road on-road features.

"Everybody Knows Iveco's Durability"

On behalf of the customers, we must ask: why should I buy this vehicle? Will costs provide an advantage for the customers? Accordingly, where would you put the price of this vehicle?

As Iveco, we're trying so hard to make sure that our customers do not focus on the first purchase prices. Lately, our dealerships have been trying to explain this. The important thing is to offer efficiency to the customer through your total cost of ownership. Our engines are economic engines; we're one of the world's first four engine manufacturers. The most recent engines feature the patented technology, 100 percent SCR and they are very successful. These engines consume less without requiring any regeneration. They not only don't cause troubles like regeneration but also consume very low. Therefore, Iveco has no problems at this point; everybody knows its durability. When we add the need for such low consumption as an addition and show the customer that 5-year total cost of ownership rather than the purchasing cost, the customers are convinced that they should get this vehicle. 

"We Have a Factory That Can Make Tailored Production"

You're launching and important product. Would you like to add anything about the product? What would you say to your customers and your target audience?

Our primary message is that we offer efficiency through the total cost of ownership. We have a very diverse product range. Customers can't image a product they don't know or seen. Therefore, they don't have demand for that product. They haven't seen it in the market but we have it. We're trying to explain this through our dealerships. We have a factory that can make tailored production. We're trying to explain that we can do a whole lot more in accordance with our mission. We're explaining that we may offer products that the customers have perhaps never thought about, but may gain benefit.