The automotive industry is at a turning point, driven by Electric Vehicles (EVs), AI advancements, and economic pressures reshaping the transport sector. Karima Haji, Managing Director at Scania Financial Services joins the latest Auto Futurecast podcast to share how Scania FS navigates these challenges while keeping customer needs front and center.

Key Takeaways

AI: A Tool, Not a Replacement

• Streamlining operations: AI is transforming credit and risk management and simplifying documentation.
• Retaining the human touch: Scania ensures personalised customer support remains central to building trust and maintaining relationships.

Driving EV Adoption: The Role of Policy

• Cost barriers: Commercial EV adoption can be expensive, making government subsidies vital.
• Policy support: Initiatives like the Zero Emission Vehicle (ZEV) mandate give businesses confidence to invest in EV infrastructure.
• Clear guidance: Scania FS highlights the importance of stable policies to accelerate EV adoption.

Supporting Customers Through Economic Uncertainty

• Tailored solutions: Scania FS offers flexible financial and operational support, recognising every customer's unique journey towards electrification.
• Overcoming barriers: Helping operators navigate challenges and focus on sustainable growth.

Innovation Meets Stability

• Balancing technology and expertise: Scania combines cutting-edge tools with a commitment to strong customer relationships.
• Sustainable success: A clear roadmap driven by innovation and financial stability ensures long-term industry growth.

Redefining Transport for a Sustainable Future

With a focus on innovation, policy support, and customer-centric solutions, Scania FS is setting a new standard for a greener, more efficient transport industry.

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In our latest episode, we spoke with Nikki Rimmington, a strategy expert from battery cell start-up Volklec, about UK gigafactory developments.

With experience at Jaguar Land Rover and Aston Martin, Nikki shared insights into the UK's electrification journey. We discussed challenges and opportunities in battery production, localised supply chains, and how start-ups like Volklec compete in this industry.

What is Volklec?

Volklec is a UK start-up aiming to become the country's only independent battery cell manufacturer. While larger projects like Agratas and AESC target high-volume production, Volklec focuses on specialised markets beyond automotive.

Who Does Volklec Serve?

Volklec caters to niche markets that struggle to attract large-scale suppliers:

• High-performance, low-volume automotive
• Aerospace (drone batteries)
• Defence (land and aerospace vehicles)
• Off-highway vehicles
• Rail, marine, medical technology, and robotics

A "Start Small, Think Big" Approach

Volklec builds capabilities and customer relationships gradually, learning from challenges faced by other European battery projects. This reduces risks associated with large-scale ventures.

Key Partnerships

Partnerships are central to Volklec's strategy:

• UK Battery Industrialisation Centre (UKBIC): Volklec uses UKBIC's Coventry facility to produce cells without upfront factory capital.
• Far East Battery (FEB): Partnering with this Chinese battery company provides proven technology and reduces customer risk.

Gigafactory Challenges

Location Factors

• Skilled Workforce: Proximity to manufacturing hubs like the Midlands provides advantages
• Energy Infrastructure: Gigafactories require robust power and renewable energy plans
• Community Engagement: Poor local relations can cause delays, as seen with Tesla's Berlin factory

Operational Hurdles

• Investment: Securing funding requires clear plans and proven demand
• Product Focus: Factories must align with specific chemistries and formats
• Valley of Death: Bridging the gap between ideas and market-ready products

The Battery Ecosystem

Recycling Challenges

EU regulations require increased recycled content, but batteries are lasting longer than expected, creating supply shortfalls for recycling. Innovations like replacing individual cells instead of entire modules could extend lifespans further.

Government Support

The UK government supports batteries through investment zones and funding bodies like the Advanced Propulsion Centre. However, demand remains the biggest barrier—the UK's smaller market needs critical mass to drive investment and strengthen supply chains.

Looking to 2030

For the UK battery sector to thrive, Nikki envisions:

• Stronger demand across industries
• Renewed investor confidence
• Robust ecosystem from raw materials to recycling

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After years of setbacks and overhyped promises, self-driving car revolution is quietly becoming a reality.

The latest episode of Auto Futurecast dives into this transformation, Chris and co-host Natalie Sauber, Global Ecosystems Development Director for Arcadis, were joined by Martyn Briggs, Director at Bank of America. Together, they unpack the journey of autonomous vehicles (AVs) from ambitious beginnings to their growing presence on our streets.

As Martyn puts it, “This used to be a moonshot. Now it’s a soon shot.” With technology, infrastructure, and market conditions finally aligning, widespread AV adoption is no longer a distant goal—it’s happening now.

Autonomous Vehicles Are Already Here
AVs are no longer an experiment. In several cities, you can already hail a self-driving car, just like you would with Uber or Lyft. Companies like Waymo operate fleets of over 1,500 vehicles in the U.S., with plans to expand to 3,500 by the end of the year.

The market potential is massive. As Martyn notes, “We’re looking at a $1.2 trillion total addressable market for the tech alone, with the broader impact reaching $10 to $20 trillion or more when you consider the entire task economy.”

What’s Driving the AV Revolution?
Three key breakthroughs have made AVs commercially viable:

1. AI and Machine Learning:
   Modern AVs use advanced AI to process sensor data in real-time, making quick decisions that rival human drivers. These systems continuously improve with every mile driven, creating a feedback loop that boosts safety and efficiency.
2. Virtual Simulation:
   Developers use advanced simulation tools to test millions of scenarios virtually, speeding up development. Scenarios too dangerous to test on the road can be safely recreated, and generative AI helps explain how these systems make decisions—critical for gaining public trust.
3. Lower Hardware Costs:
   Sensors like LiDAR, once prohibitively expensive, are now produced at a fraction of their original cost. This affordability makes large-scale deployment economically feasible.

Collaboration is Key
Natalie Sauber emphasises the importance of collaboration: “It’s an ecosystem thing. No single entity can do it alone, it requires tech providers, OEMs, governments, and urban planners working together.”

Sustainability Fuels Adoption
Beyond convenience, AVs promise significant environmental benefits. By optimizing ride-sharing and fleet usage, they can reduce the total number of cars on the road. Autonomous systems also encourage efficient driving patterns, minimizing aggressive acceleration, optimizing routes, and smoothing traffic flow, all of which reduce emissions and energy consumption.

Building Social Acceptance
Technological advancements are only half the battle; societal acceptance is just as crucial. Gradual integration is key. As Martyn explains, early examples like robotic delivery services in residential areas initially drew curiosity but quickly became commonplace. This shows that when benefits are clear, people adapt quickly to new technology.

The Future of Transportation
After years of uncertainty, the autonomous vehicle industry is entering its next chapter. The technology is ready, the business models are maturing, and the ecosystem is coming together. While challenges remain, the question is no longer if AVs will transform transportation, it’s when.

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