IVOTY Report
NEXT GAME CHANGER FINDING THE
Electrification, hydrogen and Euro 7 dominate the discussion as George Barrow speaks with Renault LCV chief, Heinz-Jurgen Löw
DEALER OR NO DEALER
Electrification might be one of the most talked about topics in the sector at the moment but there’s another theme bubbling away in the background. Agency sales have become a serious bone of contention in recent months, not least because Mercedes-Benz has announced it would adopt the model for its LCVs. New challenger brands in passenger cars like Tesla and Polestar have been able to implement the agency structure from inception, but if legacy manufacturers wish to do the same it will require a great deal more thought and investment.
While talking to Heinz Jurgen Löw about this, it struck me how divergent the act of purchasing vans has become. Last month, I helped a friend buy a new van, directing them to articles I had written and the online manufacturer brochure. If I could have text a link to buy it I’m sure they would have. But touching and feeling a product, seeing the physical size and having a reassuring face to guide you through the process is vital for many. Löw seems to agree. “I don’t think that we can do better than our dealers,” he says, but admits there’s a need for a “digital customer journey” as well as a physical one. Far from a new phenomenon, he let slip that he has considered it in the past, explaining that in his previous sales and marketing role at Volkswagen Commercial Vehicles he evaluated the case for it in the UK with the ID Buzz. It never happened and he says he remains unconvinced – and for what it’s worth, despite my friend’s experience, so do I.
George Barrow is the UK jury member for the International Van of the Year Award.
12 WhatVan?September 2023 Heinz-Jürgen Löw, senior vice-president of light commercial vehicles, Renault, remains critical of Euro 7 regulations
uro 7 is a “scandal” according to the boss of Renault LCVs. The exact specification of the regulation is still to be confirmed by the European Commission and the narrowing time frame before the blanket ban of ICE engines in 2030 is causing concern around development of new vehicles and the payback window manufacturers will have to claw back what is likely to be significant expenditure. According to the European Commission, Euro 7 standards will be the “first worldwide emission standards to move beyond regulating exhaust pipe emissions and set additional limits for particulate emissions from brakes and rules on microplastic emissions from tyres”. The standard will also see a doubling of the time period in which vehicles are expected to maintain their compliance – “cars and vans will be checked until these vehicles reach 200,000km and 10 years of age” – an increase from 100,000km and five years for the existing Euro 6 rules. “The way they’re treating us and the customers by doing this is just a
E
scandal,” says Heinz-Jürgen Löw. The senior vice-president of light commercial vehicles at Renault spoke to What Van? at the unveiling of the Renault Grand Kangoo E-Tech – a seven-seat passenger variant of the Kangoo that will also be launched in the UK as a long-wheelbase van with both diesel and electric powertrains.
Löw criticised the constantly changing timings for the introduction. He believes the money could be better spent, saying: “For such little improvement on a very particular scope, spending again so much money, I think you can spend a bit more wisely on really carbon neutral solutions.” Renault CEO Luca de Meo has this year taken on the position of president of the European Automobile Manufacturers’ Association (ACEA) and has been, according to Löw, collecting support for more clarity, striking the balance between what is right for the environment but also for the economy. The concern is that excessive investment in ICE technologies in order to meet Euro 7 standards will take funds and resources away from zero-emission improvements. Euro 7 investment is
also likely to have a significant impact on costs for consumers, with the prices of vehicles already increasing due to enhanced safety requirements and technology advances.
“Euro 6 was a massive increase in
cost, so I’m sure mobility will become more expensive. But you have different countries, different regulations and different energy costs, so for high horsepower you may pay a fortune [in tax] but that will mean for the same price you can have an expensive electric car.” Mindful that subsidies for electric vehicles won’t last forever, Löw points to other incentives like emissions zone access as reasons for preferring continued investment in EVs over diesel. Looking holistically at the total cost of usage (including parking and emissions zones rather than simply the TCO of the vehicle) will give customers added reason to adopt zero-emission vehicles, although a parity with diesel pricing may not come about before sales of ICE vehicles are stopped.
“I think combustion engine vehicles will become more and more expensive. We have seen this with Euro 3, 4, 5
www.whatvan.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53
