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EDITORIAL Arnd Franz, General Manager MAHLE Aftermarket. Dear readers After a short breathing space in the 90s, the dynamic in the Eastern European markets that could be observed for some years, has now developed into sustained growth in vehicle production and vehicle imports as well as in the vehicle population. In the meantime, many manufacturers anticipate sustained demand in Eastern Europe and are investing widely in manufacturing capacities in the region. MAHLE Aftermarket is dedicated to supplying these markets efficiently with spare parts from the MAHLE range. This has made us aware of a gradual shift in the structure of the vehicle population. For example, after the fall of the Iron Curtain in Russia, American and later German products were imported swiftly and the dominance of Russian products was weakened. In the meantime, more and more vehicles from Japanese and Korean manufacturers can be noticed. In 2005, Hyundai has taken the position of market leader among foreign manufacturers – with a share of 17 % of the total passenger car sales in Russia. They are followed by Toyota, Ford and Daewoo. In August of this year, MAHLE will show its spare part range for the sixth time in succession at the Autosalon in Moscow. In addition to the comprehensive range of components for vehicles of Asian manufacturers, the focus will be on the extensive MAHLE valve range. Like in the rest of Eastern Europe, MAHLE products are very popular in Poland. This increasing demand – but also the demand from neighbouring countries – has now been addressed by MAHLE with the construction of a distribution centre in Krotoszyn. From this centre, engine components as well as filters will be available for distribution to customers in Poland, the Ukraine, Latvia, Lithuania and Estonia. In addition to the many products manufactured for MAHLE Aftermarket at the site in Krotoszyn, there will be AFTERMARKET n e w s 2 an efficient distribution centre available from the second half of this year that can handle the larger sales volume. Under our heading “On location”, we report from extraordinary places, where MAHLE products are used. For the current issue, we have travelled to Saudi Arabia, where engines for commercial vehicles are made fit again to face the extreme conditions in the desert. The technical support and further training of repair personnel is especially important in those regions and MAHLE makes important contributions in this area. Back in the home market of MAHLE: changes can be noticed in the workshop market of EU countries. As an example, we show how German workshops deal with implementing the block exemption regulation. Individual workshops get fit for the competition by extending their range of services, for instance, by boosting their orientation towards service, multi-branding or by the decision for a supporting workshop system. We hope you will enjoy reading our new MAHLE Aftermarket news! Arnd Franz
MORE BRANDS, MORE BUSINESS WORKSHOPS IN THE FOURTH YEAR OF THE BLOCK EXEMPTION REGULATION – A MID-TERM REVIEW The block exemption regulation came into force on 1st October 2002. In this Europe-wide regulation, the distribution and service of motor vehicles has been defined. At the same time, the car manufacturers have reorganised their distribution networks. All this has initiated a radical process of restructuring. What are the implications for garages and workshops and where can you find new sales opportunities? Change as opportunity: automobile business Gruben, Ford dealer, operates an additional multi-brand workshop in conjunction with a petrol station. An essential issue in the block exemption regulation is the discontinuing of single brand outlets: the block exemption regulation allows dealers to sell several vehicle brands in the same showroom. At the same time, the contracts between manufacturers and their dealers have been renegotiated – with the outcome that several businesses have suddenly found themselves a new status: from franchised dealer to independent dealer – with all the pros and cons. Like the family business Gruben in Velden, Lower Saxony/Germany, founded in 1938 – and for almost as long a Ford franchise dealer. In addition to the car dealership, a petrol station was opened, which made it a multi-brand business from early on. The owner Alvin Gruben extended the already existing contacts to his independent suppliers of motor vehicle components. Alvin Gruben regards this development as positive: “The multi-brand repair business is by its nature – due to the older age of vehicles – characterised by trade in service parts. A good counterpart to costly contract repairs with their large share of comebacks and time-consuming troubleshooting.” In order to ensure access to the constant information flow in respect of troubleshooting, parts identification and pricing, he joined a workshop concept. Examples for such concepts are Meisterhaft (ATR), Coparts Plus System (Coparts), AutoCrew (ZF Trading), Garage AD (Autodistribution), Mon Garage (Partners), Precisium Garage (Starexcel), Proximeca (Agra), Top Garage (GAU France) and others. The automobile business Gruben has found its right mix of car sales, petrol station, spare part business and the combination of independent and branded workshop. However, also the automotive industry offers new perspectives for workshops. Some European vehicle manufacturers have launched their own brands of service parts such as Motorcraft (Ford), Motrio (Renault) or Eurorepar (Citroën) – and offer these to former authorised dealers as well as to previously independent motor vehicle businesses. Workshops can benefit from the activities of Asian importers by accepting their active offers and open up an additional source of income with another brand. Whether integrated into a workshop system or tied to a car manufacturer (or both) – in order to succeed in the changing repair and maintenance market, the workshops need the help of the part suppliers. This includes vehicle identification, the appropriate diagnosis software and work description inclusive of time figures, information regarding the availability and use of maintenance and repair plans as well as active instant help during repairs via hotlines for instance. On the other hand, it is important to be even more customer oriented, to be open to additional sales opportunities – and to be oriented towards demand and service at the same time. The reluctance of motorists to carry out regular servicing can be addressed with targeted appeals and information – for example, by explaining that a filter change that has been postponed for too long can result in unpleasant and expensive consequential damage to the engine. And that it is always more economical to use original equipment quality – as this ultimately saves more than it costs, thanks to higher reliability and longer service life. Changes in the workshop – from branded operation to service provider with multi-brand expertise. INDUSTRY NEWS AFTERMARKET n e w s 3
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