IAA TRANSPORTATION 2024 x Friedrich Baumann, Vorstand Sales & Customer Solutions bei MAN Truck & ...

Yes, thank you for having me. I have been in the transport and logistics industry for almost three decades. I spent many years in North America, but now I am also active in the international network of the Traton Group and at MAN. What fascinates me is that many people are not aware of the importance of the transport industry for the overall development of our country and our continent. Everything you see in a room was once on a truck. We are truly the backbone of the entire economy of every country. That significance is not always clear to people, and that has always excited me about the industry.

I think it must also be emphasized that as a vehicle manufacturer, our problem is not the footprint we have to build the vehicles, because that accounts for only about 2% of the CO2 emissions we are responsible for. Instead, 98% of the CO2 emissions caused by MAN come from the vehicles that are moved worldwide. That means the focus must be on the fleet. We have intensively considered the question and decided, and this is clear and well-known in the industry, that 85% of what vehicles and trucks are used for today will eventually be replaced by battery-electric applications over time. At the same time, there will be 15% of applications where we need to consider other technologies suitable for those applications. That is why we are now producing a small series of a hydrogen combustion engine to see if we can cover those applications accordingly. To come back to the 98% I mentioned earlier: the CO2 emissions that MAN generates worldwide correspond to 0.3% of total global CO2 emissions, which is approximately the CO2 emissions of the Netherlands. That gives a good comparison. We assume that by 2030, half of the vehicles we build will be equipped with zero-emission technologies.

First of all, the obvious advantage is that we are CO2 neutral with these vehicles, and that is something we stand by and must stand by in our responsibility. But there are other topics that often do not come to the forefront of discussion. When you are in the industry and especially when you talk to drivers, if you drive a battery-electric truck, you have a completely different driving dynamics and a completely different noise level, because the vehicle is much quieter and accelerates much more continuously. When driving uphill, you no longer have power loss; the vehicle just pulls through because it can act completely differently in its power characteristics. I have spoken with drivers who have been in the transport industry for 30 years and now drive battery-electric vehicles. They say if they drive that vehicle, they don't want to drive any other because they see these advantages for themselves. We should not forget that. It also has effects for all citizens; when you are in the city and a battery-electric truck passes by, it is a completely different soundscape. I believe these are additional advantages we should not forget. It also has a lot to do with habituation effects, of course. People are used to noise and traffic volume in public spaces and on roads and highways. This also allows us to consider completely different models, especially in large cities, where there could be much more delivery during the night because the vehicles emit no exhaust fumes and are extremely quiet.

I think what is crucial is that if we switch 85% of our portfolio to battery-electric vehicles, battery technology will be a very significant aspect of this transformation. That is why we at MAN and in the Traton Group have clearly decided that we see a technology carrier in battery technology. That is why we are making investments. At MAN, we are expanding our traditional plant in Nuremberg into a battery technology center where we will build batteries for our modular concepts. At the same time, we should not forget that we cannot do everything ourselves. We will also focus on partnerships. But first, as the Traton Group, we will focus on our global footprint. That means we will exchange technologies across brands, whether it be Scania, International in the USA, or Volkswagen Caminhões e Ônibus in South America. That will be our first and most important step. Then we will look especially at partnerships, particularly in battery cell technology, where we are already working with partners today.

That is one of the critical points overall. It is also a lot of feedback I get from our customers who tell me they are already ready to invest in this new technology and drive the transformation. But can you, as MAN, guarantee that I can charge or refuel with hydrogen when I need to? That remains a major hurdle that we need to overcome as quickly as possible for the transformation to really get rolling. However, there are other examples. One of our major customers is already part of our exclusive early fleet that will go to market in 2024. They are already planning routes that cover over 800 km per day. So there is already proof that these ranges are possible, but you have to plan the routes accordingly, which we support with our consulting, so that they have the appropriate charging points along the way to charge and discharge the vehicle. That is all possible if the will is there. But we need significantly more investment in charging infrastructure, especially for commercial applications. A typical charging station for a passenger car is of little use to us. We need 700 or preferably 1 megawatt charging possibilities, as many as possible. We have also made investments together with Volvo and Daimler Truck to really get this going through Milence. I will be opening another public charging station in Belgium in the coming days, but that is just a drop in the bucket. In the end, if we assume that by 2030 we will put half of the vehicles we produce on the road as electrified vehicles, we need about 30,000 to 50,000 of these high-performance charging stations in Europe. With Milence, we are aiming for 1,700, but that gives you an idea of how big the gap actually is to ensure a truly viable infrastructure. Similar applies to hydrogen; we need somewhere between 900 and 1,000 hydrogen refueling stations in Europe to guarantee that. I believe it will always be a mix for the emission-free future to succeed: a mix of electromobility, hydrogen, and also technologies like bidirectional charging, depot charging, and other technologies that will hopefully emerge in the coming years to enable fast megawatt charging. We should also not forget that we will probably need intermediate storage to always have the energy available when the vehicle arrives at the charging station.

Well, that is the question of what we as an OEM can influence to make it economically viable. We cannot influence electricity prices, but we must influence that we provide enough infrastructure. There we are also called upon with our own service operations and our own plants to provide appropriate solutions for charging infrastructure. We see that clearly as our task. We have also developed tools, as I call them, for our sales force, with which we plan and calculate with our customers: for a specific route, you can do it with diesel or with battery-electric. Even today, with battery-electric technology, you can achieve a sensible breakeven point within 5 years. We are trying to lower this threshold for customers to enter the transformation.

First of all, it is a brilliant opportunity to familiarize oneself with the technology and the challenges. That always works better when you can see it physically and we can explain it accordingly, rather than doing it all through digital channels. That's just how it is—experiencing technology is something else. That is exactly what we want to offer the visitors of the IAA. At our booth, they will be able to experience the entire range of applications of battery-electric technology in our modular concept, including chassis and tractor units, as well as vehicles with the latest diesel technology—we are also investing in new drivetrains there. Then, naturally, the next level of the TGS, for which we just launched the new model year in Italy, will also be exhibited at the IAA. And if you have a driver's license, you will also have the opportunity to test drive vehicles on the outdoor grounds. I consider that a very exciting and interesting option we can offer our visitors.

Wow, that is a very broad question. I'll try to bring it to a simple point. I'll go 50 years ahead, that's enough for me. We will still be the backbone, road freight transport will still be the backbone of the economy because logistics is the be-all and end-all. We will not see driverless vehicles and transport solutions, but by that time we will be 100% CO2 neutral. And I believe we will see a much higher efficiency in the entire logistics concept. Through electrification and autonomous applications, you can achieve a much higher effectiveness and utilization of vehicles in that segment. And I think that will make all logistics much more efficient.

The emission-free future will come, and we will be a part of it.

Yes, thank you very much. It was fun for me too, and I hope we can welcome you all at the MAN booth at the IAA.