A lot is going on at Scania’s coach and bus business as it prepares for the future. A revised leadership team and a wide range of products are increasingly complemented by a ‘whole package’ sales approach
Things are busy at Scania. Its sales leadership team has been restructured, its retail coach range will soon become even more extensive, and in the longer term, it sees how it does business continuing a move towards a ‘whole package’ approach.
Martin West took up the new position of Sales Director, New Bus and Coach, in mid-2017. Lee Wale become Retail Sales Manager – while retaining his Central England and North Wales territory – and Steve Lambert remains General Manager, Used Bus and Coach.
All three have a role to play in developing Scania’s retail business further. Sales are centred on Worksop, and used vehicles form as much of a part of what it does there as new.
That’s because of Scania’s diverse funding landscape. Contract hire and operating lease are increasingly popular, and vehicles supplied on either basis are often remarketed at the dealership in later life.
Further value-added products are on the horizon, including Uptime Guarantee as part of Fleet Care.
“The last few months have been about strengthening the team where required,” says Martin. Other personnel changes will follow. General Manager (Customer Support) Bob Nevitt retires in April, and to continue that role, John Rogerson will join from elsewhere within Scania.
“There have also been developments in Sweden. We have a new Area Manager and a new Sales Director there, so relationships must be built to provide us with the right products in the long-term.”
The hot potato
Scania’s overall retail coach range will remain consistent, albeit with an extension to the current line-up when an 11m Interlink joins the existing 12.2m, 12.4m and 12.8m two-axle and 14.1m tri-axle variants. Modular construction means that the Lahden factory can finish Interlinks at 10cm increments, but for parts holding purposes the UK two-axle line-up will be capped at four lengths when the 11m model arrives.
“For stock, we order two-axle Interlinks at 12.8m and with 53 seats and a centre toilet, although we’re looking at a straight 57-seater at the same length,” says Lee. Other two-axle variants are built to order; the tri-axle is also taken as stock.
The Interlink is a complete Scania vehicle, but it is not ordered as one. Chassis configuration is frozen sooner than the body specification. That gives scope to change the latter closer to delivery, allowing more variety of internal configurations.
Lee adds that flexibility is one of the Interlink’s strengths. Its modular nature extends to the location of the centre door; to maximise luggage space it can sit behind the rear axle, and when within the wheelbase, it is positioned to give even offside legroom.
On the 11m Interlink, the continental door is likely to be behind the axle as standard, giving over 9m3 of luggage space. With no toilet, up to 43 seats will be possible.
Interlink volumes in 2017 were on a par with Irizar-bodied Scanias, and significantly higher than those recorded by its predecessor, the OmniExpress, in 2016. Flexibility and a high basic specification are seen as the reason for that.
S to be standard?
An addition to Scania’s 2018 line-up is the Irizar i6S. It complements the established i6 and brings enhancements that include i6 Plus seats, multiplex wiring and an upgraded dash. The i6S accounts for 95% of orders placed for the i6 range with Scania for this year. “That surprised us,” says Lee. “But i6 customers tend to upgrade the seats and add extras, taking the price up to that of a comparable i6S.”
Martin adds: “There is a price premium for the i6S, but buyers get more for their money. Some operators compare an i6S to an i8 and there is not a huge amount between them. As a result, the i8 is a low-volume product that is positioned for sports team applications and similar.”
The third member of the Scania Irizar line-up is the low-height i4. On two axles it is not available with 3+2 seating at the moment, but on three axles at 13.6m it is, and a capacity of 80 is catching the eyes of some buyers.
“It’s a specialist vehicle for which a small but consistent demand will always be there; in 2+2 layout a maximum of 63 seats is possible on three axles,” says Lee.
A recent customer for the i4, at 12.9m and seating 57, is Woodstones Coaches of Kidderminster. On Scania’s ‘to do’ list is exploring whether an i4 with 3+2 seating on two axles is possible.
Other changes
The Touring continues largely as is, although on both the 12.1m two-axle and 13.7m tri-axle there is now potential to install an additional pair of seats on the nearside, taking maximum capacity with a centre toilet to 51 and 59 respectively.
That upgrade is not as simple as just adding extra seats after arrival from China. Scania specifies sidewall USB power sockets as standard on the Touring, and hence coaches must be built to the correct configuration from the get-go.
An addition to the Touring line-up is currently being investigated, but Lee, Martin and Steve believe that Scania’s retail coach offering is already among the widest in the market.
With Irizar, it offers a bespoke-built product that extends from school coaches to team specification and anything in between, and the Interlink covers mid-range bases extensively while giving as many as 63 seats. The stock-built Touring brings a cost-effective model that still comes with all of Scania’s added-value propositions.
“Having that depth to our portfolio allows customers to select the coach that suits their application,” says Lee. “Traditionally they may have taken three of the same type; now they can take one of each model, because they each fit into their respective applications.”
“Attain Travel of Birmingham is a prime example of that. Year-on-year, it took Scania Irizar, but we have now also placed Interlink and Touring because each suits a particular work stream.”
What of the future?
Scania is devoting lots of time to the coach market of tomorrow. That includes further refining its funding offerings through Scania Finance, and it is at the early stages of bringing Uptime Guarantee to the passenger market as part of the Fleet Care product.
“Uptime Guarantee is a step up from repair and maintenance (R&M),” says Martin. “The customer will tell us how many vehicles and what percentage uptime it requires and we deliver that. They pay per month for uptime, not R&M.”
Uptime Guarantee customers have a dedicated fleet manager, and if the agreed uptime is not delivered, they receive a rebate. Additionally, if driver performance as measured via Scania’s telematics is above a defined level, a discount applies.
The wider way in which a fleet is sourced will also come under scrutiny, and Scania aspires to move away from the current year-by-year method of procurement.
“The next step has to be us discussing with operators where they are going in the long term. Do they want to grow? Where will they be in five years? The other thing to consider is alternative fuels and that, in time, diesel may no longer be permitted in some cities,” he continues.
“Today, the best thing that an operator can buy is a Euro 6 coach. In the future, it may not be. With that in mind, our ultimate goal is to explain to an operator the total cost of ownership of a variety of coaches and fuel types and find the best product for them.”
It’s a two-pronged approach from Scania to its retail coach customers. The short game is to offer a range that meets all requirements, with funding, maintenance and fleet management packages to suit. In the long term, an all-round view of fleet composition is on the cards. Interesting times await.
