Mobile Climate Control develops, manufactures and sells complete climate control systems for commercial vehicles and is an industry leader in North America and Europe. Climate control systems (HVAC systems) include heating, ventilation, air conditioning and controls.
Customised climate systems
Mobile Climate Control is active in the market for climate control systems for buses, off-road, utility and defence vehicles. The division is focused on customised solutions in small to medium-sized series. Its solutions include heating, ventilation, air conditioning, and controls, as well as a wide range of associated components.
The division’s largest market is North America, with about 80 per cent of sales, while the European market accounts for about 16 per cent of sales. The remaining 4% of sales are mainly in China, South Africa and Brazil.
Mobile Climate Control’s four main market segments are manufacturers of buses, such as transit, coach, school and shuttle buses; manufacturers of off-road vehicles for construction, agriculture, forestry, mining and materials handling; utility vehicles such as delivery vans, refuse collection trucks, ambulances and fire trucks; and defence vehicles for troop transports.
The market for climate control systems has an annual turnover of almost SEK 4.5 billion in North America and about SEK 5 billion in Europe. It is influenced by macro trends such as urbanisation and greater environmental consideration in response to rising carbon emissions, among other factors. Demand is also expected to increase for higher quality climate control systems that improve comfort, and this is expected to have a positive impact on the division’s operations.
Interview with Clas Gunneberg
"Connected products give us greater insight"
Division Manager at Mobile Climate Control
You started operations in places like Brazil in 2017 – can you tell us what’s happened so far?
In Brazil, we recruited a few key employees and established ourselves in suitable premises. In 2018, we’re starting installation of climate control systems that will be sold to customers in both the bus and off-road segments.
Mobile Climate Control has received an order for climate control systems for public transportation in Los Angeles. The deal has been referred to as a breakthrough order – in what way?
The Los Angeles County Metropolitan Transportation Authority, which is responsible for public transportation in Los Angeles, previously had one of our competitors as their supplier, and it was difficult for us to make our way in. Thanks to a deal with the US bus manufacturer Eldorado National, to whom we will deliver climate control systems for some 600 CNG-powered buses, we got our foot in the door. The fact that the climate control systems are electric, and are built on technology that will be the standard in the future, makes this deal even more important for us.
What do you think of connected products?
This is an incredibly important area for us. Some of the many benefits of connected products are that it gives us greater insight into how the product works for the customer, and it creates greater possibilities for improving our business model with more attractive offerings – long-term service contracts, for example.
One important issue you’re highlighting ahead of 2018 is the investment in climate control systems for buses in Europe. Why did this not happen earlier?
Quite simply, it wasn’t of immediate interest to us, the market wasn’t attractive. But thanks to the electrification under way in the industry, and the fact that we have now brought in the right kind of competence, we see the time is right to fully engage this segment and do so with credibility.