During the Fiat Group Investor Presentation at Lingotto last week Iveco announced a key plank of its future strategy for the truck making division would be to leverage its array of niche vehicles, diversifying the mix further. Iveco's Roberto Cibrario introduced the presentation "Special Vehicles - Maintaining High Profitability and Diversifying Customer Portfolio".

Iveco see the development and commercialisation of products for ‘special applications’ as having high added value, targeting niche markets, applying advanced technology, integrating Iveco know-how, a logical extension of the Iveco product offer and having a positive impact on their brand image. Iveco will also focus on the public procurement sector.

Iveco are pushing their Defence Vehicle Division, which has a complementary range of proven vehicles. Based in Bolzano, Northern Italy, the Defence Vehicle Division (DVD) supports a dedicated team of engineers specialising in the design and development of automotive solutions for armoured combat vehicles and the design, manufacture and marketing of tactical military trucks and personnel carriers. At present more than 30,000 Iveco vehicles are estimated to be in military service.

The current order portfolio of 120 million euros will grow to 520 million euros over the next five years. Light Multirole Vehicles: current three year contracts execution (Italy-UK-Belgium-Norway) of 400 million euros with new export opportunities and five additional MoD contracts pending. DVD is also working on strategic technology development in the areas of safety systems, ballistic materials and electronics while new products on the way include amphibious vehicles and a new armoured cabs family.

The most important vehicle in the DVD range is the Light Multirole Vehicle (LMV). The development of the LMV illustrates Iveco DVD's outstanding ability to undertake rapid vehicle development programmes and to meet a range of threat levels.This completely new type of 4x4 on/off road tactical vehicle combines the roles of peacekeeping with peacemaking and follows the unique principles of “Dual Role” technology developed by Iveco. Under this concept vehicles are capable of operating with either varying levels of protection or in an unprotected state depending on the assessed threat. Protection is added without changing the external appearance of the vehicle, or affecting its automotive performance. From the outset, LMV was designed to incorporate high tactical mobility with high maximum road speed and optimal off-road and cross-country performance. It has high protection levels against anti tank and anti personnel mines with an emphasis on crew protection rather than vehicle integrity. The inherent stealthy design ensures low probability of detection from optical, thermal imaging or radar sensors.
 

The LMV has already been selected for front line duties by the British, Italian and Belgian forces and with a confirmed order book already in excess of 3,000 vehicles. Meanwhile the most recent addition to the vehicle range is the Medium Multirole Vehicle (MMV). This highly mobile off-road 4x4 truck combines a payload capability of up to six tonnes with the capability to provide ballistic protection for the complete cab using the same dual role technology principles as LMV. Available with three engine power ratings, three wheelbase lengths and with manual or automatic transmissions the versatile MMV can be tailored to meet a wide variety of military uses.

Another strong product area for DVD is in manufacturing Light Support Vehicles: Robust, durable and built for use in the roughest of terrain the 40.10WM series is a range of lightweight 4x4 off road trucks utilising COTS components from the class leading Iveco Daily range of light trucks. These highly versatile vehicles can be put to a wide range of uses including troop transport, command post, gun tractor and ambulance. A fully armour protected version is also available and is currently in service.

IvecoAstra produces a range of heavy duty off road trucks specifically designed to meet exacting military requirements. Utilising many COTS components from the standard Iveco range, these trucks combine a robust, durable design with excellent mobility and are capable of operating in the most severe climate and environmental conditions. The range is broad, from 4x4 cargo trucks to 8x8 DROPS and tank transporters. Low height models are also available for transport by C130 and other military aircraft. IvecoAstra trucks are in service in a wide range of uses with military users throughout the world, often in challenging environmental and operational conditions.

The company also produces a full range of COTS commercial vehicles from panel vans and light trucks through to transporters capable of moving loads in excess of 75t. Available as 4x2, 4x4, 6x4, 6x6, 8x4 and 8x8 these vehicles have been selected by many military forces for transport and logistic supply, from the rear echelon up to the forward areas. Eurocargo in either 4x2 or 4x4 are often operated as a very capable five / six tonne payload GS truck whilst Euro Trakker are used as DROPS trucks by several European military forces, including the German, Swiss, Irish and Spanish armies.

Meanwhile Iveco will also be focusing on growth in the heavy duty products range with additional products set to arrive in the heavy haulage, long haul (8x2) and urban narrow sectors, with CNG capability set to be rolled out across the range. Synergies will be explored with Iveco's 'Sales and Marketing' operation, while a quick time to market in product development and production flexibility will also be targeted. The third major area to be targeted by Iveco's niche expansion plans will be in the fire fighting vehicles sector where the firm has a major presence globally. The presentation cited as an example the "turn table ladder" vehicle market were Iveco has a 50 percent global market share (excluding the US) and a 25 percent share (including the US).

The Iveco Special Vehicles – Net Sales/Profitability plan for 2007 to 2010 calls for sales to grow by an ambitious 20 percent to 1.1 billion euros. During this period the aim of Special Vehicles Division will be to maintain its profitability leadership amongst Iveco's businesses while growing sales and profitability with the help of increased export and private sector revenues.