Andrei Gagea, IVECO Romania: “2022 is a year in which increasing the visibility of the brand is important”

“In 2021 we saw an unprecedented increase in raw material prices and energy costs, which inevitably impacted production costs. We can talk about a 10 percent increase on average.

Production times have also increased because of global supply chain issues, but also, we have experienced a very high demand for vehicles. Although the dynamics of the delivery schedules is high, we are constantly striving to reduce the delivery interval for our customers.

However, even after the first quarter of this year, we maintain our leading position for the light vehicle range (3.5 – 7.49 tons) with a market share of 26.3 percent and all ranges (over 3.5 tons) we remain in 2nd position,” Andrei Gagea, General Manager of IVECO Romania, told Automotive Today.

What is your company’s business approach in the current economic context?

We have made some changes to the dealers’ network to better embrace the market needs. At present time, IVECO has 8 dealers in Romania, with 21 points of sale, and 24 service locations. IVECO supports the development of its dealers’ network to further improve its national presence.

We are focused on identifying service packages that bring value to our customers. Just to provide a few examples, our portfolio comprises of standard maintenance and repair, as well as service packages that can increase vehicle availability, by allowing remote diagnostics and therefore increasing the vehicle operating interval while decreasing its time spent in a service centre. We have also launched IVECO TOP CARE, a package for driver and truck which ensures a faster flow of intervention on the vehicle in case of incidents (yes, even the best vehicles can break down). With this package if, for example, the driver has health issues that prevent him from continuing the journey, first we will provide support with medical assistance and then, if needed, we will take care of the accommodation and meal services for him.

How would you describe your business development in Romania?

Last year was a good year for IVECO in Romania. We registered 2,607 new vehicles and sold 743 used vehicles through our Ok Trucks division. According to DRPCIV data, IVECO ranked 2nd in terms of overall market share (17.6 percent), and took the first place in the light range, with a market share of 25.6 percent.

IVECO delivered more vehicles in 2021 than in 2020 (about a 40 percent increase) and IRO turnover was about 33 percent higher than in 2020.

Another important topic on the company’s agenda is the training of the sales and after-sales teams in conventional and gas, as well as in electric powered vehicles. This investment takes place according to a very well-defined timetable, to accommodate efficiently the many hours of training that ensure our technical know-how continues to develop.

The business in Romania is focused on people and we are very keen on investing in the continuous development of the team’s capabilities to achieve better performance. This development involves training and a high-performing leadership.

What are your main concerns for the foreseeable future?

The biggest concern for the near future is the unstable situation caused by the war in our region. There is a visible degree of caution from our customers caused by a general degree of uncertainty because of the current context we are experiencing, as this is an unprecedented scenario for us. The slow recovery after two years of pandemic, a war close to our border, as well as the rising costs in general, are the main challenges we are adapting to.

What are the challenges for Iveco Romania?

In 2021 we saw an unprecedented increase in raw material prices and energy costs, which inevitably impacted production costs. We can talk about a 10 percent increase on average.

Production times have also increased because of global supply chain issues, but also, we have experienced a very high demand for vehicles. Although the dynamics of the delivery schedules is high, we are constantly striving to reduce the delivery interval for our customers.

However, even after the first quarter of this year, we maintain our leading position for the light vehicle range (3.5 – 7.49 tons) with a market share of 26.3 percent and all ranges (over 3.5 tons) we remain in 2nd position.

What are the business objectives for your company in 2022?

Our objectives for 2022 are to improve the quality of service provided by the dealer network through constant monitoring of its performance. We track a number of metrics that provide us with information on how they relate to customer needs, response time to leads and other customer requests, as well as a customer satisfaction index. Based on these indicators, we take measures for improvement.

It is a year in which increasing the visibility of the brand is important, but this increase must be achieved through dialogue with customers or potential customers, their opinion is very important to us. We are already deploying several initiatives that involve constant improvement feedback from and to our partners.

What to expect from your industry in 2022 in terms of development, how much room is for improvement?

Iveco has always been a promoter of carbon dioxide emissions reduction, so the emission measurement and comparison standards brought by VECTO only certify our efforts in this direction. The pressure is not necessarily on a particular powertrain solution, but rather on adapting solutions to the customers’ needs. Moreover, VECTO brings an even higher level of accountability to our manufacturers concerning environmental commitments.

2021 has been steady in terms of gas vehicle sales compared to 2020. For the moment, IVECO does not have electric vehicles in its current line-up available for sale, but Nikola is in trials with various customers in Europe and the US. We are confident that in the next few years we will see the first IVECO electric vehicles in Romania as well.