Characteristics of the CV industry

Question 1

Key characteristics

Answer 1

1. CV are investment goods (TCO focus)
2. Strict regulation (Emission & safety)
3. specific requirements from customers and country -> complexity
4. sales highly cyclical - after sales major profit driver

Question 2

Difference between CV industry and PV

Answer 2

• 10 x lifetime
• 15 x runtime
• fuel consumption highly important
• 1/25 unit volume of PV
• 2 x product lifecycle

Question 3

TCO breakdown

Answer 3

1. Fuel
2. Driver
3. Maintenance
4. Vehicle
5. Admin and Services

Question 4

what are the key value drivers according to TCO of a CV

Answer 4

• Purchase price
• operational cost
• residual value

Question 5

regulatory environments impact on truck design

Answer 5

• powertrain technology
• weight and size
• cabin space and crash performance
• location of production site

Question 6

different markets and requirement for CV

Answer 6

America: high comfort and safety
Brazil: high safety
Europe: cabover style, strict regulation and customer needs
China: regulation, infrastructure and professionalization
Russia: powerful, 4WD

Question 7

Importance of After Sales

Answer 7

20 percent of revenue but 50 percent of profit