Transportation Exchange presented by Rush Truck Centres of Canada
If you’re in the transportation industry, the Transportation Exchange podcast is for you. Listen in for insightful conversations with industry leaders covering what keeps us moving, from equipment and maintenance for fleets to new and upcoming regulations and opinions on the industry as it stands today and the road ahead.
Transportation Exchange presented by Rush Truck Centres of Canada
S13 Integrated Comprehensive Ownership Solution with Lou Haddad
In this episode, Lou Haddad, Sales Director for Customer Solutions at Navistar, joins us to discuss the new S13 Integrated Comprehensive Ownership Solution. Lou explains how bundled solutions and proactive service strategies can help fleet owners avoid costly repairs, boost vehicle performance, and improve overall fleet efficiency.
We cover extended warranties and service contracts for key components like the engine, transmission/clutch/PTO, and aftertreatment. Lou also outlines how service intervals are determined, available terms and mileage, and the benefits of planned maintenance, including improved resale value. Tune in now.
Hello and welcome to another episode of the Transportation Exchange podcast presented by Rush Truck Centers of Canada. I'm your host, Jason Cuddy, and on today we welcome back Lou Haddad, who is the Sales Director for Customer Solutions with Navistar Lou, welcome back to the podcast.
Speaker 2:Well, thanks, jason. Thanks for having me back, and I always look forward to spending time with the Rush Group there in Canada.
Speaker 1:Yeah. So we had you on, I think, beginning of this year to talk about service contracts, extended warranties kind of as a whole, and different programs that were available at that time. And now here we are, just kind of past the halfway mark of the year and I guess the newest thing on everyone's radar is the S13 integrated powertrain and there's a lot of excitement about it. We've had that team on a couple episodes ago to speak about the product itself. But as we had met in truck world earlier this year, you guys behind the scenes have been working pretty hard at putting together some service contracts and even some plan maintenance programs that we're going to dive into. So maybe kind of guess up to speed. As far as with regards to the S13, what can customers expect from the service contract side?
Speaker 2:Sure, so you know for nearly three years that I've been with the company. Right around the time I started, the phrase bundles came to the table, planning a lot of different teams working together, working in orchestra right there to develop bundled solutions. And bundled solutions are a great way to not only protect the customer but allow the customer to bring the vehicle back to who knows, to the expert right, who knows the truck, who knows that international truck the best. And that's our dealer network out there. Our dealers across North America continually send their people for continuous education and training on all of our whether it's S13 and Cummins powered units, anything out there. Our dealers spend a lot of time and a lot of effort getting their people in the service drive, in the service department, in the whole fixed operations, I should say with top training there. So who knows the truck better than your dealer? There's no one out there. They know it the best. So you bring it back to the dealer and have all its planned maintenance and I like to use the word planned versus just preventative, because planned means man, I better get that beautiful S13, I better get that beautiful unit back to my dealer of record and have the, you know, have the maintenance done right there and have all the planned services done so to keep the vehicle, you know efficient services done so to keep the vehicle. You know efficient, efficiency, reliability and performance right there. That is three key elements, for I call it total wellness of the vehicle right there. You know, I refer to it just like healthcare and in the medical world, that it's total wellness, it's total healthcare to keep that vehicle running at its top capacity there. And that's what a lot of you know, the majority of our customers, that's what they ask for. They want efficiency, reliability and performance. So what better way to be able to do that and to track it and to make sure that everything's done is with S13 bundles.
Speaker 2:So S13 bundles is the first go-to market on these bundled offerings and they're made up of planned maintenance with extended warranty, or extended service contract, as we like to call it extended warranty, rolled up into one stop shop right there. So when the purchase is being done, instead of having to look at several different products, just as being done, instead of having to look at several different products, it's rolled up into one option or two, maybe two options right there and they're broke out in a couple of variances. One is the advanced powertrain with planned maintenance. So that is all of your engine after treatment DEF system, transmission and clutch, all of the planned maintenance that's involved there, and then the I call it our complete bundle or our most comprehensive. That is all of your planned maintenance, your advanced powertrain coverage that I just mentioned there, plus your chassis systems, or as we like to call it at Navistar EVC, extended vehicle coverage, or better known as chassis out there. So when you roll that up together, that is a pretty comprehensive, pretty complex package there to protect the customer from one, you know, any catastrophic failure that occurred during that time of ownership. Two, it allows that customer to be inflation proof, so to speak. It's an inflation proof purchase, meaning the cost of parts and labor continuing to rise, the cost of services continue to rise. So it's in a fixed cost right there, a one-time deal. And now the customer now the unit and the customer are protected and they have total wellness on the vehicle.
Speaker 2:It is and how it works is through our on-command connection, or better known as OCC. Occ is a telematic system that's out there and how that occurs is and how these maintenance intervals arise is at our headquarters in Lyle Illinois. We have what they call an uptime advocate I like to call them concierge and every dealer such as what they call an uptime advocate, I like to call them concierge. And every dealer such as Rush has a uptime advocate. So those two work together very closely and they're able to look and they get notified through the on-command connection that this certain unit is coming due for its services or its planned maintenance, and what they do is then reach out to the fleet manager or the decision maker of that unit to schedule an appointment. First of all, it's the customer's convenience of what works best for them where the unit's going to be, all those things there.
Speaker 2:Once that is sort of set, the uptime advocates work then in orchestra with the service department and the parts department. So on the day of the event the parts department is ready with all the filters and fluids and all the things for that event. The service department is ready, the technician is ready, the bay is currently ready and everything just flows very smoothly and it reduces the downtime dramatically right there. So it gets that vehicle time is money in this business so it gets that vehicle back on the road and gets that driver back on the road to continue to go about its business. Whether it's a single point owner, operator or a fleet, it does the same thing. So that's really the neat part, or the new way of doing business is it's done through on-command connection and it's sort of a concierge service right there to get the customers scheduled, so everyone's prepared right there.
Speaker 1:Gotcha, and to your point, what you just said, it's something very new for us. Obviously, we've always had extended service contracts or extended warranties. Said it's something very new for us. Obviously we've always had extended service contracts or extended warranties. Traditionally, um, you know, engine and after treatment's kind of been the go-to, but obviously with it being an integrated powertrain, uh, you know, all through navistar we can support, you know, all three items, uh, together and in one package, versus having to have a couple different packages, which you've done in the past. And then on top of that, the planned maintenance now is, you know, a brand new offering which, with the technology you can do right on command, allows, allows that interaction between the vehicle, you know, the headquarters and into the customer seamlessly, which is nice. And then it's all bundled, as you say, into one package, which which is pretty exciting. That's something we really haven't had in the past. So it's kind of neat to see that come around with a new product emerging.
Speaker 2:Yeah, and the current terms on the new offering is five years or 800,000 kilometers right there. Or, as we say in the US, five years and 500,000 miles, but 800,000 kilometers right there for our Canadian friends there, and when you think about those types of miles or kilometers right there, that is an enormous amount of time. That can go on. And so what could happen? Well, a lot of things could happen. Trucks are still man-made. They have electronics, they have components, things like that.
Speaker 2:So it is great to be able to get the planned maintenance in there, so that unit gets put in front of the physician or in front of the mechanic there in plenty of time to be able to see anything that might be coming on the horizon right there as far as an event and that we can get in front of it. So it's always better, of course, to be proactive than having to be reactive. So this is sort of a proactive approach of being able to understand the truck's behavior, understand the owner operator's behavior right there with the unit and be able to work in orchestra with them to get the vehicle back for its total wellness or total health care or planned maintenance events right there. It has been successful. We have started to really gain some traction on it.
Speaker 2:A lot of folks are asking about it. Let's face it maintenance can become a huge expense for a company or for an owner operator. So for any size of the business right there, it can become a huge expense. For a company or for an owner operator. So for any size of the business right there, it can become a huge expense. So it's a lot easier to be able to plan for this up front and pay for this up front and not have to worry about what it could cost down the road.
Speaker 1:Yeah, no, well said, and it's you know.
Speaker 1:I know in our world we play with full service lease as well, which is, you know, this on steroids, for lack of better words, but it's from a person who likes to have an ownership position in the vehicle. This does allow them to sort of flatline their operating costs to a certain extent at least, from the planned services to your point they take care of as they need to. But hopefully, with the planned intervals you'll catch a few things before it becomes a catastrophic and a failure on the road. And I think the other big part of this too is with it being planned and being tracked and making sure the vehicle does come in for its service intervals. On the back end, when this vehicle then is going up for sale, whether it's still in a contract period or, you know, outside of the contract period, you know there's got to be some great, you know, residual value held to a vehicle that has, you know, planned service intervals its whole life, that you can document and show the next user. Hey, this thing's been well maintained, correct.
Speaker 2:Correct. I mean, if you talk to any used truck director in any group right there, they would tell you that when they're looking at a fleet of units whether it's one or it could be a hundred to trade or swap for new ones, it makes them a whole lot more comfortable to be able to go in and see that all the planned maintenance and all the visits were done to know that that unit is in its superior condition for its time and miles being on the road.
Speaker 1:Yeah, and you talked about with the uptime advocate too. Obviously, and it helps a little bit from you know, if it's a smaller fleet that maybe doesn't have a dedicated fleet person, they're going to get the notifications when this vehicle's due for service, based on its its obviously mileage or time right. So it's being tracked in the backend, which will help ensure that things are done properly versus. You know, sometimes you can lapse on mileage or if you're not running a proper mileage you know interval maybe you're missing the time window. So at least, again, this does help ensure the vehicle is being touched when it's required, as per you know, as per Navistar new day at Navistar.
Speaker 2:It's a new way of doing business. It's an exciting time. We have an exciting product there with the integrated powertrain, with the S13 and the T14, which has been getting off the record, blowing expectations away, customers' expectations away, to say the least. And you and I were at the Canadian Truck Show in April. There I listened to what clients say that's what I talk to a lot every day and I was overwhelmed by the number of customers that drove the unit and were blown away by its sophistication right there. So, as I say, it's a new day at Navistar. It's a new way of doing business. Our customer solutions team are continuing to expand our portfolio. So what's next?
Speaker 2:You know bundles aren't just for S13 powered units. We are working on building bundles for all makes across the international brand. When I say all makes, meaning you know our medium duty business. Of course. We already have it for LTRH and HX S13. You know. So there's there's in a very short period we're going to have a bundled offering available for every segment across our portfolio there.
Speaker 2:Recently we just introduced the planned maintenance and bundled solutions offerings for our use program as well at Navistar. So, whether it's a medium duty or heavy, severe with those pre-owned units, 2017 and newer. They have an opportunity to not only take part in the extended service contract, or extended warranty part of it, but also some planned maintenance offerings available there as well. So it is as I say it's not just something we're thinking about and we're going to give it a shot. It's here to stay, so it is a great way to. Again, extended warranty always protects the customer right there from catastrophic failures, so this is another backstop to help protect that customer right there as well and to help them understand the importance of how plan maintenance works today.
Speaker 1:No, that's huge. That's good to know. It's coming to the other product lines. I mean, obviously S13 is getting all the attention and rightfully so this year with it being launched and on the market and performing well. But the other product lines are the backbone of a lot of industries and usually smaller fleets traditionally right, you're talking a lot of owner-operators, say, on the vocational side or smaller one to five truck fleets on the medium duty fleet size. So those are the ones that traditionally a program like this warranty is great. But the plan part, I think, takes some ease of mind for them. As far as owning the vehicle, take some pressure off knowing that it's going to be on the road, it's backed by the warranty and they'll keep us in the loop when it needs to get its services done and outside of your usual you know kind of non-included items, your wear items, any damages, you know you've got all your major kind of work needed while things on the road kind of covered and planned for right, I call it a whole new customer experience.
Speaker 2:So it's a whole new customer experience, uh, for that owner operator or that medium-sized fleet. To come back to your dealer, have all of the, the, the services of the services, addressed any warranty repairs that need to be done and to keep again that unit in tip-top running at its tip-top shape and performance?
Speaker 1:yep, that's huge. And having on use side too is also peace of mind for, you know, for someone trying to get in. You know, especially in the last couple years we haven't been able to get vehicles as quick as people would like, you know. So sometimes you're into a used market situation. But you can tell the peace of mind almost of of the new vehicle experience as far as everything being covered and kind of pre-planned and prepaid for, which is great. Yes, well, that's excellent. There's lots to look forward to.
Speaker 1:Obviously, you know customers reach out to us to to get information. As far as you know all the eligibility requirements and costing, but at least it was good to have you on to address and let people know. Here's what's available on the S13 outside of just its. You know great fuel performance and what it can do on the road for you. It's also backed extremely well and well supported on the back end to keep you up and going but also help keep costs down and keep your uptime up and running. So it's great that you could share all that with us.
Speaker 2:Yeah, thank you. Thanks for having me.
Speaker 1:Well, excellent, Well, thanks for being on Again. We thank Lou for joining us and to catch past episodes, please visit transportationexchangepodcastca. And until next time, thanks for listening.