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September 19, 2024 16 mins

In this episode, Lou Haddad, Sales Director for Customer Solutions at Navistar, joins us to discuss the new S13 Integrated Comprehensive Ownership Solution. Lou explains how bundled solutions and proactive service strategies can help fleet owners avoid costly repairs, boost vehicle performance, and improve overall fleet efficiency.

We cover extended warranties and service contracts for key components like the engine, transmission/clutch/PTO, and aftertreatment. Lou also outlines how service intervals are determined, available terms and mileage, and the benefits of planned maintenance, including improved resale value. Tune in now. 

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Episode Transcript

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Speaker 1 (00:20):
Hello and welcome to another episode of the
Transportation Exchange podcastpresented by Rush Truck Centers
of Canada.
I'm your host, Jason Cuddy, andon today we welcome back Lou
Haddad, who is the SalesDirector for Customer Solutions
with Navistar Lou, welcome backto the podcast.

Speaker 2 (00:34):
Well, thanks, jason.
Thanks for having me back, andI always look forward to
spending time with the RushGroup there in Canada.

Speaker 1 (00:41):
Yeah.
So we had you on, I think,beginning of this year to talk
about service contracts,extended warranties kind of as a
whole, and different programsthat were available at that time
.
And now here we are, just kindof past the halfway mark of the
year and I guess the newestthing on everyone's radar is the
S13 integrated powertrain andthere's a lot of excitement
about it.

(01:01):
We've had that team on a coupleepisodes ago to speak about the
product itself.
But as we had met in truckworld earlier this year, you
guys behind the scenes have beenworking pretty hard at putting
together some service contractsand even some plan maintenance
programs that we're going todive into.
So maybe kind of guess up tospeed.
As far as with regards to theS13, what can customers expect

(01:23):
from the service contract side?

Speaker 2 (01:25):
Sure, so you know for nearly three years that I've
been with the company.
Right around the time I started, the phrase bundles came to the
table, planning a lot ofdifferent teams working together
, working in orchestra rightthere to develop bundled

(01:48):
solutions.
And bundled solutions are agreat way to not only protect
the customer but allow thecustomer to bring the vehicle
back to who knows, to the expertright, who knows the truck, who
knows that international truckthe best.
And that's our dealer networkout there.
Our dealers across NorthAmerica continually send their

(02:11):
people for continuous educationand training on all of our
whether it's S13 and Cumminspowered units, anything out
there.
Our dealers spend a lot of timeand a lot of effort getting
their people in the servicedrive, in the service department
, in the whole fixed operations,I should say with top training

(02:33):
there.
So who knows the truck betterthan your dealer?
There's no one out there.
They know it the best.
So you bring it back to thedealer and have all its planned
maintenance and I like to usethe word planned versus just
preventative, because plannedmeans man, I better get that
beautiful S13, I better get thatbeautiful unit back to my

(02:53):
dealer of record and have the,you know, have the maintenance
done right there and have allthe planned services done so to
keep the vehicle, you knowefficient services done so to
keep the vehicle.
You know efficient, efficiency,reliability and performance
right there.
That is three key elements, forI call it total wellness of the
vehicle right there.

(03:13):
You know, I refer to it justlike healthcare and in the
medical world, that it's totalwellness, it's total healthcare
to keep that vehicle running atits top capacity there.
And that's what a lot of youknow, the majority of our
customers, that's what they askfor.
They want efficiency,reliability and performance.
So what better way to be ableto do that and to track it and

(03:36):
to make sure that everything'sdone is with S13 bundles.
So S13 bundles is the firstgo-to market on these bundled
offerings and they're made up ofplanned maintenance with
extended warranty, or extendedservice contract, as we like to
call it extended warranty,rolled up into one stop shop

(03:57):
right there.
So when the purchase is beingdone, instead of having to look
at several different products,just as being done, instead of
having to look at severaldifferent products, it's rolled
up into one option or two, maybetwo options right there and
they're broke out in a couple ofvariances.
One is the advanced powertrainwith planned maintenance.

(04:17):
So that is all of your engineafter treatment DEF system,
transmission and clutch, all ofthe planned maintenance that's
involved there, and then the Icall it our complete bundle or
our most comprehensive.
That is all of your plannedmaintenance, your advanced
powertrain coverage that I justmentioned there, plus your
chassis systems, or as we liketo call it at Navistar EVC,

(04:39):
extended vehicle coverage, orbetter known as chassis out
there.
So when you roll that uptogether, that is a pretty
comprehensive, pretty complexpackage there to protect the
customer from one, you know, anycatastrophic failure that
occurred during that time ofownership.
Two, it allows that customer tobe inflation proof, so to speak

(05:03):
.
It's an inflation proofpurchase, meaning the cost of
parts and labor continuing torise, the cost of services
continue to rise.
So it's in a fixed cost rightthere, a one-time deal.
And now the customer now theunit and the customer are
protected and they have totalwellness on the vehicle.
It is and how it works isthrough our on-command

(05:27):
connection, or better known asOCC.
Occ is a telematic systemthat's out there and how that
occurs is and how thesemaintenance intervals arise is
at our headquarters in LyleIllinois.
We have what they call anuptime advocate I like to call
them concierge and every dealersuch as what they call an uptime
advocate, I like to call themconcierge.
And every dealer such as Rushhas a uptime advocate.

(05:49):
So those two work together veryclosely and they're able to
look and they get notifiedthrough the on-command
connection that this certainunit is coming due for its
services or its plannedmaintenance, and what they do is
then reach out to the fleetmanager or the decision maker of
that unit to schedule anappointment.
First of all, it's thecustomer's convenience of what

(06:13):
works best for them where theunit's going to be, all those
things there.
Once that is sort of set, theuptime advocates work then in
orchestra with the servicedepartment and the parts
department.
So on the day of the event theparts department is ready with
all the filters and fluids andall the things for that event.
The service department is ready, the technician is ready, the

(06:36):
bay is currently ready andeverything just flows very
smoothly and it reduces thedowntime dramatically right
there.
So it gets that vehicle time ismoney in this business so it
gets that vehicle back on theroad and gets that driver back
on the road to continue to goabout its business.
Whether it's a single pointowner, operator or a fleet, it

(06:58):
does the same thing.
So that's really the neat part,or the new way of doing
business is it's done throughon-command connection and it's
sort of a concierge serviceright there to get the customers
scheduled, so everyone'sprepared right there.

Speaker 1 (07:18):
Gotcha, and to your point, what you just said, it's
something very new for us.
Obviously, we've always hadextended service contracts or
extended warranties.
Said it's something very newfor us.
Obviously we've always hadextended service contracts or
extended warranties.
Traditionally, um, you know,engine and after treatment's
kind of been the go-to, butobviously with it being an
integrated powertrain, uh, youknow, all through navistar we
can support, you know, all threeitems, uh, together and in one

(07:38):
package, versus having to have acouple different packages,
which you've done in the past.
And then on top of that, theplanned maintenance now is, you
know, a brand new offering which, with the technology you can do
right on command, allows,allows that interaction between
the vehicle, you know, theheadquarters and into the
customer seamlessly, which isnice.
And then it's all bundled, asyou say, into one package, which

(08:00):
which is pretty exciting.
That's something we reallyhaven't had in the past.
So it's kind of neat to seethat come around with a new
product emerging.

Speaker 2 (08:07):
Yeah, and the current terms on the new offering is
five years or 800,000 kilometersright there.
Or, as we say in the US, fiveyears and 500,000 miles, but
800,000 kilometers right therefor our Canadian friends there,
and when you think about thosetypes of miles or kilometers

(08:28):
right there, that is an enormousamount of time.
That can go on.
And so what could happen?
Well, a lot of things couldhappen.
Trucks are still man-made.
They have electronics, theyhave components, things like
that.
So it is great to be able to getthe planned maintenance in
there, so that unit gets put infront of the physician or in

(08:51):
front of the mechanic there inplenty of time to be able to see
anything that might be comingon the horizon right there as
far as an event and that we canget in front of it.
So it's always better, ofcourse, to be proactive than
having to be reactive.
So this is sort of a proactiveapproach of being able to

(09:12):
understand the truck's behavior,understand the owner operator's
behavior right there with theunit and be able to work in
orchestra with them to get thevehicle back for its total
wellness or total health care orplanned maintenance events
right there.
It has been successful.
We have started to really gainsome traction on it.

(09:34):
A lot of folks are asking aboutit.
Let's face it maintenance canbecome a huge expense for a
company or for an owner operator.
So for any size of the businessright there, it can become a
huge expense.
For a company or for an owneroperator.
So for any size of the businessright there, it can become a
huge expense.
So it's a lot easier to be ableto plan for this up front and
pay for this up front and nothave to worry about what it

(09:58):
could cost down the road.

Speaker 1 (10:01):
Yeah, no, well said, and it's you know.
I know in our world we play withfull service lease as well,
which is, you know, this onsteroids, for lack of better
words, but it's from a personwho likes to have an ownership
position in the vehicle.
This does allow them to sort offlatline their operating costs
to a certain extent at least,from the planned services to
your point they take care of asthey need to.

(10:23):
But hopefully, with the plannedintervals you'll catch a few
things before it becomes acatastrophic and a failure on
the road.
And I think the other big partof this too is with it being
planned and being tracked andmaking sure the vehicle does
come in for its serviceintervals.
On the back end, when thisvehicle then is going up for
sale, whether it's still in acontract period or, you know,

(10:45):
outside of the contract period,you know there's got to be some
great, you know, residual valueheld to a vehicle that has, you
know, planned service intervalsits whole life, that you can
document and show the next user.
Hey, this thing's been wellmaintained, correct.

Speaker 2 (10:59):
Correct.
I mean, if you talk to any usedtruck director in any group
right there, they would tell youthat when they're looking at a
fleet of units whether it's oneor it could be a hundred to
trade or swap for new ones, itmakes them a whole lot more
comfortable to be able to go inand see that all the planned
maintenance and all the visitswere done to know that that unit
is in its superior conditionfor its time and miles being on

(11:24):
the road.

Speaker 1 (11:25):
Yeah, and you talked about with the uptime advocate
too.
Obviously, and it helps alittle bit from you know, if
it's a smaller fleet that maybedoesn't have a dedicated fleet
person, they're going to get thenotifications when this
vehicle's due for service, basedon its its obviously mileage or
time right.
So it's being tracked in thebackend, which will help ensure
that things are done properlyversus.
You know, sometimes you canlapse on mileage or if you're

(11:46):
not running a proper mileage youknow interval maybe you're
missing the time window.
So at least, again, this doeshelp ensure the vehicle is being
touched when it's required, asper you know, as per Navistar
new day at Navistar.

Speaker 2 (12:07):
It's a new way of doing business.
It's an exciting time.
We have an exciting productthere with the integrated
powertrain, with the S13 and theT14, which has been getting off
the record, blowingexpectations away, customers'
expectations away, to say theleast.
And you and I were at theCanadian Truck Show in April.
There I listened to whatclients say that's what I talk

(12:30):
to a lot every day and I wasoverwhelmed by the number of
customers that drove the unitand were blown away by its
sophistication right there.
So, as I say, it's a new day atNavistar.
It's a new way of doingbusiness.
Our customer solutions team arecontinuing to expand our

(12:50):
portfolio.
So what's next?
You know bundles aren't just forS13 powered units.
We are working on buildingbundles for all makes across the
international brand.
When I say all makes, meaningyou know our medium duty
business.
Of course.

(13:10):
We already have it for LTRH andHX S13.
You know.
So there's there's in a veryshort period we're going to have
a bundled offering availablefor every segment across our
portfolio there.
Recently we just introduced theplanned maintenance and bundled

(13:32):
solutions offerings for our useprogram as well at Navistar.
So, whether it's a medium dutyor heavy, severe with those
pre-owned units, 2017 and newer.
They have an opportunity to notonly take part in the extended
service contract, or extendedwarranty part of it, but also
some planned maintenanceofferings available there as

(13:54):
well.
So it is as I say it's not justsomething we're thinking about
and we're going to give it ashot.
It's here to stay, so it is agreat way to.
Again, extended warranty alwaysprotects the customer right
there from catastrophic failures, so this is another backstop to
help protect that customerright there as well and to help

(14:17):
them understand the importanceof how plan maintenance works
today.

Speaker 1 (14:22):
No, that's huge.
That's good to know.
It's coming to the otherproduct lines.
I mean, obviously S13 isgetting all the attention and
rightfully so this year with itbeing launched and on the market
and performing well.
But the other product lines arethe backbone of a lot of
industries and usually smallerfleets traditionally right,
you're talking a lot ofowner-operators, say, on the
vocational side or smaller oneto five truck fleets on the

(14:45):
medium duty fleet size.
So those are the ones thattraditionally a program like
this warranty is great.
But the plan part, I think,takes some ease of mind for them
.
As far as owning the vehicle,take some pressure off knowing
that it's going to be on theroad, it's backed by the
warranty and they'll keep us inthe loop when it needs to get
its services done and outside ofyour usual you know kind of

(15:08):
non-included items, your wearitems, any damages, you know
you've got all your major kindof work needed while things on
the road kind of covered andplanned for right, I call it a
whole new customer experience.

Speaker 2 (15:20):
So it's a whole new customer experience, uh, for
that owner operator or thatmedium-sized fleet.
To come back to your dealer,have all of the, the, the
services of the services,addressed any warranty repairs
that need to be done and to keepagain that unit in tip-top
running at its tip-top shape andperformance?

Speaker 1 (15:39):
yep, that's huge.
And having on use side too isalso peace of mind for, you know
, for someone trying to get in.
You know, especially in thelast couple years we haven't
been able to get vehicles asquick as people would like, you
know.
So sometimes you're into a usedmarket situation.
But you can tell the peace ofmind almost of of the new
vehicle experience as far aseverything being covered and
kind of pre-planned and prepaidfor, which is great.

(16:00):
Yes, well, that's excellent.
There's lots to look forward to.
Obviously, you know customersreach out to us to to get
information.
As far as you know all theeligibility requirements and
costing, but at least it wasgood to have you on to address
and let people know.
Here's what's available on theS13 outside of just its.
You know great fuel performanceand what it can do on the road

(16:20):
for you.
It's also backed extremely welland well supported on the back
end to keep you up and going butalso help keep costs down and
keep your uptime up and running.
So it's great that you couldshare all that with us.

Speaker 2 (16:31):
Yeah, thank you.
Thanks for having me.

Speaker 1 (16:33):
Well, excellent, Well , thanks for being on Again.
We thank Lou for joining us andto catch past episodes, please
visittransportationexchangepodcastca.
And until next time, thanks forlistening.
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