Tansu Isik
Head of Fleet Solutions, EMEA, Continental Reifen
Optimizing costs with an integrated solution portfolio LODC and ContiLifeCycle
How does the new Conti Eco Gen 5 tire line fit into the solution portfolio for fleet customers?
Our holistic consulting approach focuses on the Lowest Overall Driving Costs, or LODC for short. We support our fleet customers in reducing their tire-related operating costs. The LODC incorporates all of our expertise in the areas of tires, tire service, digitalization, data analysis and process optimization. The new Conti Eco Gen 5 is a tire with balanced rolling resistance, extra traction and a long service life. This makes it an ideal addition to our tire range and exactly the right tire for our LODC approach.
How does the Conti Eco Gen 5 fit into the LODC advisory concept?
Compared to its predecessors, the new Conti Eco Gen 5 offers a significantly better CO2 balance. At the same time, it helps to further reduce tire-related operating costs. As a result, it fits perfectly into the LODC concept and strives for a balance between economic, ecological and safety-related aspects of fleet operation. When developing the Conti Eco Gen 5, our tire developers took both ecology and economy into account.
What are the most important levers in the LODC method?
The most important levers for LODC are optimal tire selection, introduction of lifecycle solutions, data-driven service management with tire checks at the right time, 24/7 breakdown service and digital services for maximizing uptime, increasing tire mileage and fuel efficiency, reducing repair and maintenance costs and the optimization of ordering, administration and billing processes. Basically, a complete lifecycle solution helps to fully exploit the potential of tires. For us, this includes tools and services such as digital solutions, carcass management and data transparency during tire use. During the usage phase, we are able to use digital solutions to monitor tire inflation pressure and optimize tire maintenance. Such solutions extends tire life, increases uptime and helps to save fuel.
How does the Conti Eco Gen 5 help fleet operators to reduce CO2 emissions?
When developing the Conti Eco Gen 5, we succeeded in harmonizing the interplay between low rolling resistance and high mileage. To achieve this, our development has focused on mileage-neutral measures to improve rolling resistance. To achieve this, new technologies were used in all tire components, for example in the carcass construction, in the tread area and in the development of the overall contour and tread design. After all, the greatest leverage in tire development to improve the CO2 balance of fleets is low rolling resistance and a long tire life.
How important is retreading in terms of LODC and fleet efficiency?
As part of the holistic LODC concept, we always consider the appropriate retreading solution that is best suited to the customer's application profile when selecting tires – hot retreaded ContiRe or cold retreaded ContiTread tires. Our engineering teams for new tires and retreads work hand in hand. This makes retreading an important factor for our LODC approach and for more sustainability for the entire fleet.
Is the new Conti Eco Gen 5 suitable for retreading?
With the Conti Eco Gen 5, it was important to us to improve criteria such as rolling resistance and durability without compromising on recyclability. This means that the Conti Eco Gen 5 and its carcass are fully retreadable. Retreading was taken into account during tire development.
What proportion of the total costs of a fleet do tire costs account for?
At first glance, tires only account for around 2 percent of the total operating costs of a truck. However, they also have a significant impact on fuel, maintenance and repair costs, administrative efforts, as well as tolls, which account for on average 50 percent of total costs. This makes tires an important cost-saving lever and the LODC concept a real success factor for our fleet customers.
How will the general market conditions for your fleet customers develop in the future?
Forecasts are always difficult, but cost pressures are likely to increase further. Fuel prices will remain high for the foreseeable future and this will be exacerbated by the European C02 tax on fossil fuels. Besides, overall inflation and shortage of labor will add additional burden on our customers. European and national regulations will push fleet operators to invest heavily on the domain of sustainability as well, such as zero-emission vehicles, or circular solutions. Through such investments, they can avoid tolls and restrictions and take advantage of incentives. So, there is strong economic pressure to reduce operating costs, at the same time improve sustainability by choosing the right tires and effective solutions beyond tires.
What are the advantages of retreading commercial vehicle tires?
Firstly, there is the aspect of sustainability: when retreading a tire, we can reuse around 70 percent of the original tire. This saves raw materials, water and energy. Then there is the cost aspect: retreaded tires are cheaper than new tires, with the same safety and service life. Our retreading solutions with well-maintained Continental casings can reduce a fleet operator's tire costs by 30 to 40 percent. A used tire that has been professionally retreaded offers the same performance as a new tire. Our motto is: "Looks like new, runs like new".
What role does the customer play at LODC?
Our approach is deliberately designed for collaboration, which means that we need trust and transparency on both sides. We tailor our offering precisely to the needs of our customers. For example, the fleet customer provides us with telemetry data and we use this data to make suggestions for reducing costs - which we then implement together in a targeted manner. We not only calculate the potential savings, but also take action with our network of service partners and achieve tangible results.
What type of fleet customers is your LODC consulting approach aimed at?
In general, it is applicable to fleets of all sizes, for all possible applications and configurations. We work with our retail partners to find an optimal solution for each customer based on their individual profile. ContiTrade, our tire sales and service subsidiary in the EMEA region, plays a key role in the continuous improvement of service quality and the further development of our tire management solutions. However, this does not mean that our independent partners are any less important. On the contrary - they are an important link to the end users of our products and will remain so in the future.
How important is the right choice of tires?
The potential of tires can be fully exploited with the help of a good lifecycle solution. This includes digital solutions, carcass management and transparency in tire usage.
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