Diversification

With the majority of the Spanish coachbuilding industry suffering heavily and the home Spanish market on its knees, Irizar continues to perform well, assisted by its global presence. In addition to the five daughter manufacturing companies, the company has pursued a policy of diversification that has seen it gradually acquiring technology companies that are strong in their future potential and also have expertise that may prove useful in helping to achieve Irizar’s future ambitions.

Apart from the Hispacold air conditioning concern and the Masats door technology company, other businesses acquired include the 2009 acquisition of Jema and the subsequent creation of Jema Electronics, a company specialising in multiplex automotive systems and intelligent electricity grids. 2011 saw the purchase of Datik, which produces ITS solutions for managing and increasing safety in transportation, while this year Alconza has joined the group, specialising in electric engines and generators.

Formed in 2012 was Creatio, the Irizar group’s new applied research and development centre which opened as part of the long term commitment to technology and innovation. The key areas in which it is currently focused are: propulsion; electromobility; systems, energy generation and storage and vehicle loading systems and finally Intelligent Transport Systems. This is another part of the business based within the newly expanded head office facility at Ormaiztegi.

Gotzon Gomez told me that he believed other companies would be acquired but only if they brought something to the group; they were not interested in speculating.

Electric bus

A project Irizar is heavily involved with is a fully electric urban bus with which Irizar eventually hopes to be able to compete in the urban bus market. Codenamed Etorgai ETB it began in 2011 and involves all of the businesses acquired as part of the diversification programme.

The first 12m prototype will be ready for testing next year and will be equipped with an active security system designed to achieve safer driving by detecting obstacles and traffic signs, with a storage system capable of efficiently identifying and managing energy flows and peaks. It will go in to service with D-Bus of San Sebastian in the summer. A further two will go to Barcelona. To reduce weight it has a lightweight aluminium body.

Gotzon Gomez was realistic about the long term nature of the work being undertaken. He commented, ‘we feel in Southern Europe that the crisis has affected operators. The city bus market in Spain has disappeared and manufacturers are struggling through the lack of orders. If operators have no money there is no demand, but we are not crazy (developing an electric bus). We need to demonstrate that the system works for three years, and it will probably be five years minimum before it goes in to production.’

‘Once we prove cost wise that it is competitive and operationally it can be profitable, the next step will be to introduce it.’

He confirmed that the target range for the bus was 250-300km per charge but this was always affected by heating and air conditioning systems.

USA

In export markets, Irizar has plans to tackle the United States and intends to set up its own distribution channel to do so next year. It was previously involved in the market, having offered a high floor version of the Century on an American made Spartan chassis. This time it will be using its integral range and to begin with production will be undertaken at Ormaiztegi. Extensive research has been undertaken with operators to determine their preferences and expectations. The product will be 2.6m wide and offered in two lengths, 42 feet and 45 feet, both as tri-axles. It will be equipped with a Cummins 13-litre EPA13 engine together with an Allison B500 automatic transmission.

Last word

It really does not seem like 20 years ago that I first visited Irizar and I could not have predicted on that first visit just how important an alliance I was witnessing the birth of, nor how strong it would still be two decades further on. From a struggling coachbuilder Irizar has become a world player with plants in South Africa, Brazil, Mexico, Morocco and India as well as the original much enlarged Spanish facility.

2012 was a record year for the Irizar Group with a turnover of more than €550m. In the UK 2012 was the best year for the combined brands’ coach sales since 2004 with the 112 coaches sold representing a market share of 18%, Irizar topping the 20% mark with integral sales also taken into account. This year it has already sold 130 Scania based units and expects this to top 150 by the year end giving it a market share of over 20% in a coach market thought likely to be up 10% to around 740 units. Martin said that there had been some Euro5 pull through, but not much.

Operators on the hugely enjoyable trip remained convinced of the merits of the brand and with the sad news of problems for others bodying Scania for the UK filtering through while we were away, it continues to look a good long term bet in a market that is constantly evolving.

By Stuart Jones