Navistar CEO Mathias Carlbaum talks about plans for the company in the coming years.NavistarWith America lagging behind China and Europe in vehicle electrification, a German commercial vehicle manufacturer that recently entered the North American market is planning to help revitalize its new market.

Mathias Carlbaum, Navistar President and CEO, said during a media roundtable on Friday that electrification for the company, which was acquired last year by Traton SE, Volkswagen’s heavy-duty truck division, as part of a $3.7 billion deal has been adopted has top priority.

“Coming here, I found the company a bit behind the curve at the beginning compared to other countries I’ve been to before, but I clearly see that the future (of electrification) will be fast,” said Carlbaum, who previously worked in sales and management positions at Scania, part of Traton, including serving as Executive Vice President Commercial Operations of Scania CV AB. “We’re seeing such acceptance, such investment on the automotive side. We see ESG targets from companies and we see consumer engagement with sustainability and the environment… It’s very positive for both the country and the country’s contribution to the global carbon footprint.”

Carlbaum, who was appointed chief executive officer and president of Navistar International Corporation on Sept. 1, said Volkswagen is investing heavily in battery factories and technology to achieve zero carbon emissions by 2040.

To achieve this, it is imperative that the risks and obligations are shared, and the company will work with its customers to test prototypes. And alongside Navistar, Carlbaum said other stakeholders need to get involved in infrastructure to drive electrification forward.

He said that more than 50% of the global group’s R&D resources have been invested in future technologies to enable the company to enter various product segments early on.

But that doesn’t include electrification for the long-distance class 8 for the time being.

“When it becomes relevant – the battery capacity, the charging infrastructure and the capacity of charging stations – we will have products here,” said Carlbaum. “Right now, I think we’re doing more testing and presentations … in other segments: the middle, the school bus, and the regional. But on long-haul routes, we don’t come too late when the moment comes. We don’t really see the need to try this technology until we really see there’s a use case for it.”

In the meantime, there is a use case for hydrogen, although it and internal combustion engines will be phased out over time as the industry shifts to using batteries, he said.

“Battery will prevail, but we see a use case there (for hydrogen) and we are working on partnerships to have our solutions in the market to cover the timeframe that we believe will be part of the protracted future . transportation market in the States.”

The company will continue to invest in research and development, with a strong focus on electrification, he said, as well as software development, particularly with regard to predictive maintenance development.

Carlbaum said the company will soon be releasing some components that would not have come to market so quickly if Traton hadn’t forged an alliance with Navistar over the past five years. The two entered into a sourcing joint venture and strategic technology and supply collaboration in 2016 that paved the way for the recent merger.

He declined to comment on what those components might be, but said the company is focusing on vehicle data through AI and sensors to enable predictive planning to mitigate stops and reduce downtime for repairs and maintenance.

“Data is everything — end-to-end,” he said.