Mercedes-Benz, BMW and Altmann strive to close gaps between ambition and reality

Reducing emissions in vehicle logistics depends on multiple paths for carmakers and logistics providers. Today, many manufacturers have made progress thanks to switching more road transport from diesel to biofuels, and through network changes that increase fleet utilisation and reduce transport distances. However, most OEMs and logistics providers agree that meeting ambitious long-term reduction targets over the coming decades will depend on increased use of rail transport and a wider rollout of zero emission, electric trucks (e-trucks).

However, the industry faces challenges on both fronts, including frequent service delays and cancellations for rail, notably in Germany. There are also questions over when e-trucks will become viable as a transport mode at scale for vehicle logistics, with the high cost of equipment and a lack of charging infrastructure hindering wider rollouts.

A panel of leaders from BMW, Mercedes-Benz and ARS Altmann, in a discussion moderated by Automotive Logistics, agreed that progress would depend on a combination of government investment in infrastructure, as well as proactive measures and partnership across carmakers and logistics providers.

Panellists called for government officials to recognise and invest in infrastructure challenges and burdensome regulations but also for greater transparency in production and distribution processes, more focus on digitalisation, as well as commitment and patience to reach shared targets.

Thomas Wiech, who has been head of transport planning and steering for vehicle distribution for the past four years at BMW Group, highlighted challenges in rail service and questions about the range and costs of e-trucks. However, he also stressed the pragmatism and flexibility of BMW’s vehicle logistics, and its ability to adapt to new technology quickly. “We continue to rethink logistics across our network, and the good news is that we are flexible, as we can adjust contracts and locations every few years, and integrate new technology accordingly,” he said. “That's why we have to take the transformation step by step”.

Anouck Arnaud, director of worldwide transport at Mercedes-Benz, also pointed to steady progress for the carmaker in decarbonising logistics, which includes building on existing technologies, such as biofuels, and shifting more transport to rail where it is feasible. “We are already applying various technologies in our transport, for instance e-trucks,” she said. “We see a long way to go before it becomes a mass transport mode, but we also see that it has an important future.”

Dr Maximilian Altmann, chief executive officer of ARS Altmann, said that logistics providers could play a proactive role in achieving greener logistics despite these challenges, notably through investment in assets and taking more direct control of operations. Speaking during the event in Wolnzach, north of Munich, in southern Germany, where the company has its headquarters and a vehicle compound, he highlighted how Altmann had made rail the “backbone” of its logistics operations and distribution over the past five decades. Over the past few years, the company has further expanded its network of rail wagons and vehicle compounds and is investing in rail traction operations.

Altmann has also been investing in a fleet of e-trucks, making a long-term bet in the technology. “We believe that at a certain point having this fleet will give us a tremendous competitive advantage,” he said.

Rail logistics: Backbone of emission reduction, slowed by infrastructure and service

The panel agreed that rail transport is among the most important levers for reducing emissions in vehicle logistics, especially for long distances. Mercedes-Benz’s Arnaud, who is responsible for inbound and vehicle logistics, called rail a “big lever” for meeting the carmaker’s interim targets of reducing logistics emissions by 60% by 2039 compared to 2021 levels. But Mercedes-Benz has faced delays and a lack of flexibility and reliability.

“Using rail for cross-border transport in Europe is also a challenge, where there is often a delay in switching drivers and teams. The process is not seamless,” Arnaud said. 

At BMW Group, rail will be essential for the carmaker to achieve targets to reduce emissions, according to BMW’s Wiech. He said that the carmaker’s factories in Europe depends on rail for 50-70% of the vehicles produced depending on location, with an even greater share targeted for its upcoming greenfield plant in Debrecen, Hungary, and its revamped plant in Munich, each of which will build Neue Klasse electric vehicles.

However, Wiech pointed to service gaps that challenge the carmaker’s performance metrics, including reduced lead times and on-time delivery to customers. He cited “no show rates” for trains at German plants that have caused problems for storage and planning. “The problems aren’t solved when we escalate it, nor by paying higher rates,” said Wiech. “Our partners are doing the best that they can, but the issue needs to be addressed by long-term government investment in infrastructure and digitalisation.”

Dr Maximilian Altmann also acknowledged the complexity of rail operations, including managing schedules and technical barriers across the network, as well as ongoing construction work. Nevertheless, ARS Altmann, which has run rail wagon services in Germany and Italy since the late 1980s and 1990s, respectively, has a clear strategy to invest more directly in rail traction and services across Europe.

“That is why we try to do more ourselves with our own locomotives, as well as the service, fleet and maintenance required to run the traction,” he said. The company expects to have licences for rail traction active by the end of this year in Germany, Italy and Austria.

Along with investing in locomotives, Altmann has expanded its wagon fleet, and developed larger vehicle compounds near major corridors, which enable consolidation of flows for rail and multimodal transport. These efforts aim to reduce downtime, improve reliability, and enable high-speed rail connections across borders, Altmann said.

Altmann also called on OEMs to work more closely with logistics providers to improve planning, including by sharing more volume and production information. Both Mercedes-Benz’s Arnaud and BMW’s Wiech highlighted efforts to improve exchange of information and forecasting in recent years but acknowledged challenges across the market and supply chain has often led to changing plans. Arnaud pointed to uncertainty following the implementation of tariffs in the US, for example, which had led to changes for which markets certain plants were prioritising production and distribution.

“These external factors make it challenging for us to have reliable forecasts for our providers,” she said.

Government priorities for rail investment

The panel also agreed that government support would be essential to overcome rail challenges. The German coalition government has announced an infrastructure spending bill that includes investment of more than €100 billion ($117.5 billion) in rail through 2029, including for infrastructure and modernisation. However, the panel highlighted other important areas that should be in focus.

“We need to ensure that key processes are digitalised and to ensure greater transparency across the rail network, which today we often lack,” said BMW’s Thomas Wiech, calling for improved transparency and process automation.

Anouck Arnaud also pointed out that some sections of the German and European rail network have yet to be electrified, with the use of diesel fuel harming the mode’s sustainable credentials. “It’s very important for Mercedes-Benz to have this access to sustainable energy for rail, and this should be a focus for the government,” she said.

Dr Maximilian Altmann also called on officials to continue the path of market liberalisation for the railway in Germany and Europe, pointing for example to system and safety requirements that were often redundant or reflective of older technology, such as the need for additional red lights on trains at certain hours. “The aim should be to cancel useless regulation,” he said. “Some requirements are based operations from 150 years ago.”

Electric trucks: The long and winding road ahead

The panel further agreed that electric trucks were a promising solution for reducing emissions in road logistics, but using this equipment beyond specific routes still appears to be years away. The experts highlighted range limitations, high costs, and inadequate charging infrastructure. In the short term, at least, higher savings in emissions for road transport would come from the use of alternative fuels and by maximising fleet utilisation, agreed Wiech and Arnaud.

However, each company already has pilot and use cases underway. BMW is running trial routes for vehicle logistics between operations in Munich and north of the city in Garching. In the UK, the carmaker is also running routes using alternative fuels. Wiech said that e-truck trials were revealing challenges around range, which were currently limited to between 100km-250k depending on load factor and operations. The carmaker was also seeing lower load factors as e-trucks could not carry as many vehicles. Overall, he estimated that the current cost of using e-trucks was around double that compared to using diesel trucks.

“But we’re doing this to gather experience, because we still believe e-trucks will play a very important role. I’m convinced that within the next five, maybe 10 years, it’s going to be more of a standard,” said Wiech.

Arnaud also pointed to “learning by doing” at Mercedes-Benz across inbound and vehicle logistics, including trials that test e-trucks across longer distances with intermediate stops. Mercedes-Benz has also encountered limits in range, which has made route planning more complex. Arnaud pointed further to gaps in public charging infrastructure. “For each thing that you do, you have to say, ‘Where will I charge?’ and ‘How do I manage to not pay a huge price for electricity?’” she said.

Altmann acknowledged similar limitations and predicted that it would probably take at least a decade for e-trucks to become competitive at scale, and that they may never be viable for long distance trucking of 1,000km – although with the right multimodal distribution network, he added, they may never need to run these distances. That is why ARS Altmann is making active investments in e-trucks as part of its annual fleet investment and renewal, along with developing charging stations and a network of vehicle compounds.

The company currently buys around ten e-trucks from a total of around 150 new vehicles per year, depending on financial performance. But although the equipment was not currently viable for many operations, Altmann said the company was gaining experience and developing its fleet for when the technology, cost and service would meet market needs.

In the meanwhile, Altmann has been partnering with other providers to build and finance charging stations at key terminals and vehicle compounds. The trends towards “mega hubs” for vehicle compounds, he added, would also support the use of e-trucks for first and final legs of transport.

“Our strategy is to build competency and credibility so that when the market shifts decisively towards electrification, we will be ready,” he said.

Looking ahead, all panellists called for patience and ongoing commitment to green targets from both companies and governments. Altmann stressed the need for governments to support industries with deregulation, whilst keeping a science-based approach to setting CO₂ targets and sustainability priorities.

“We must maintain a long-term focus, even as we are careful about short-term costs and operations. But it’s important that we keep at it,” said Arnaud.

“It’s important that we as leaders are personally committed and that we strive to reach these targets, so that we can keep fighting through this jungle,” said Wiech.

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