Opus Group Annual 2011 Report ENG

10
OPUS 2011
ENVIRONMENT
AND SAFETY
DRIVEN MARKET
In the U.S., focus is on environmental controls in the testing of the
vehicle. The safety aspect is handled through high safety requirements
at the introduction of new vehicle models and safety checks which are
carried out by the police at flying checkpoints along the road.
NORTH AMERICA
Focus on the environment in the U.S
In the U.S., focus is on environmental controls in the testing
of the vehicle. The safety aspect is handled through
high safety requirements at the introduction of new
vehicle models and safety checks which are carried out by
the police at flying checkpoints along the road. At the annual
periodic checks, normally only a visual inspection of
safety related systems and components is performed.
The environmental focus is driven by air pollution which
is a major problem, especially in large cities. California is at
the forefront, through which laws and regulations require
lower harmful emissions. Legislation on emissions are
tightened more and more, and the U.S. EPA has proposed
stricter requirements regarding smog which is measured
via tropospheric ozone (see adjacent maps). Environmental
inspections of vehicles are an effective way to improve air
quality at little cost why the market for vehicle inspection
can grow if the requirements are tightened.
Environmental tests are done locally at the county level,
in about 35 U.S. states, however, vehicle inspection is not
done in all counties, rather only where the air quality is
non-conforming. The authorities are responsible to ensure
that vehicle inspection takes place and procure services
from private players, normally contracted for long periods
of 5 - 7 years. Contracts are normally renewed without
negotiation for an additional 2 - 6 years. Thereafter, there
is a new procurement. There are around 3-4 new contracts
per year in the United States.
2.5 billion in annual market value
The size of the American vehicle inspection market is currently
estimated at around USD 350 million per year (about
SEK 2.5 billion). The value of individual contracts may amount
to between SEK 0.1 - 1 billion over a period of 5-10 years.
Decentralized market increases
Vehicle inspection occurs in several forms: decentralized
and centralized programs and ”Open Market” in some
states. A decentralized program means that the environmental
tests are performed at existing workshops, which
have certified equipment and sometimes personnel performing
the tests. For Opus, this type of contract includes
being responsible for IT systems, test equipment, training
of test personnel, audit of the workshop and in some
cases account for an appointment scheduling via the purchased
call center services. A centralised program means
that the environmental tests are performed at dedicated
vehicle inspection stations exclusively for this purpose.
This applies to a dozen states. The trend is towards more
decentralized programs, which provides greater availability
and lower cost for the car owner. ”Open Market” is
a market where the state or a private operator manages
the program, but where the vehicle inspection stations
are free to choose their supplier of test equipment. It is in
these markets (total of 8 states) ESP is the market leader
of certified equipment.
New technical solutions
New technology available for environmental testing of
the vehicle directly in the traffic. One of the leading new
technologies is , Systech’s ”Remote OBD” (OBD = On Board
Diagnostics), allowing for emission testing without the need
for the motorist to visit an inspection station.
”Remote OBD” means that the car is equipped with an
OBD reader (which reads the car’s trouble codes) that has
a transmitter that sends data (fault codes). So far, this is
optional extra equipment that is under test run in a few
states. Vehicles with a passing test result receive an exemption
notice and avoid the periodic inspection.