Featured in The Wall Street Transcripts Best CEO Interviews of 2015
Jacques Esculier, Chairman & CEO of WABCO Holdings Inc. (WBC) interviewed with TWST this year, and he discussed the company’s North American expansion strategy.
One of the characteristics of our space is what I call a reservoir for organic growth, and it results from the fact that, contrary to the automotive world, where the level of technology used in a car built or assembled in China versus Europe or America is very similar, it’s exactly the opposite in the world of commercial vehicles. If you look at a truck in Europe, there is about $3,000 of addressable market for our products and systems. If you look at the U.S. market, it goes down to about $1,000 per vehicle, and if you look at emerging markets like India and China, it goes down to $300 per vehicle of potential revenues of our technologies, and our technologies are obviously advanced technologies.
He said growth in the U.S. can come from technology, especially as commercial drivers are becoming more scarce.
For example, we are increasingly selling our automated manual transmission technology, which optimizes and automates the shifting of gear. Traditionally, you shift gear by hand in a truck. With this AMT technology — which has been, by the way, a standard in Europe for years — it’s automated and optimized. It makes driving a truck much easier, meaning that the drivers that customers hire don’t have to be incredibly experienced, and that’s very valuable in a world like it is today with a shortage of experienced drivers.
He added, WBC‘s products can help achieve cost containment for clients.
You can save 3% to 5% fuel. That technology in the last three years has been adopted and growing in the U.S. Today, about 17% of heavy-duty trucks are equipped with this technology. And it signifies growth opportunities because that percentage will grow significantly beyond where it is today. When you look at year over year, the market for AMT in the U.S. has basically doubled.
WABCO Holdings Inc. (WBC) Well-Positioned to Take Advantage of Safety Systems Trend
April 28, 2015
WABCO Holdings Inc. (WBC) Building $17 Million Facility in South Carolina
June 25, 2015
David Glendon, President and CEO, has Big Plans for Expansion of Sprague Resources (NYSE:SRLP) Significant Competitive Advantage
February 20, 2018
Economic Expansion and M&A Create Opportunities Among Latin American Airlines
February 22, 2011
North American Shale Drilling Benefits Services Companies
June 27, 2011
