Issuu

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I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

INSIGHTS FROM THE AFTERMARKET WORLD AND BEYOND

EDITORIAL NOTE  WELCOME FROM THE CEO  INSIGHTS FROM NEXUS COMMUNITY  ABOUT NEXUS

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SUMMARY  CLIENTS, PRICES, REVIEWS

ALEXANDER GRUZDEV

 PRICE AND PROFITABILITY OF TYRE REPLACEMENT SERVICE

 'BACK TO BASICS' BY 2022

24 YVONNE RUBIO

ALFRED FRANKE

 THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET

40 PHILIPPE COLPRON

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 THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET

PAOLO CATALDI EMEA SALES DIRECTORS

 FOR VALEO, THE FUTURE OF AFTERMARKET LIES IN ELECTRIFICATION AND DIGITALISATION

 THEY SAY REVOLUTIONS HAPPENS ONE EVERY 100 YEARS

52 ERIC SCHULER MICHEL FORISSIER

EYAL ZBEDA

 THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES

56 BO MARCUSSON

VOLUME 7 | INSIDE 24 | JULY 2021 NEXUS IN!SIDE MAGAZINE is published by NEXUS Automotive International, Geneva, Switzerland.

NEXUS Automotive International SA Chemin du Château-Bloch 11 1219 Le Lignon | Geneva | Switzerland T +41 22 306 49 50 www.nexusautomotiveinternational.eu

SUMMARY EDITORIAL NOTE Emmanuel Voguet, NEXUS WELCOME FROM THE CEO Gael Escribe, NEXUS

06 08 12

INSIGHTS FROM THE AFTERMARKET WORLD AND BEYOND • Clients, prices, reviews. Alexander Gruzdev, CEO • Price and profitability of tyre replacement service. Alfred Franke, President • Stay Tuned. Jos Veldhuisen, Editor in Chief • Three advices from Mobilion. Idan Katz, Partners and CTO • 'Back to basics' by 2022. • Yvonne Rubio, Director Three advices from Marketparts.com. Arnaud Flechet, COO

INSIGHT FROM NEXUS COMMUNITY • Successfully mastering challenges in the aftermarket. Clement de Valon, Executive Vice President Independent Aftermarket (IAM) • Three advices to the automotive aftermarket business to face 2022 challenges. Bo Marcusson, International trading group manager • Three advices to the automotive aftermarket business to face 2022 challenges. Kai Guio Mueller, Director International Trading Groups • HELLA is the right partner for the requirements and mega trends of the future. Dirk-Alexander Bäppler, Vice President European

Key Accounts & Sales Middle-/Eastern Europe IAM at HELLA • Three advices to the automotive aftermarket business to face 2022 challenges. Philippe Colpron, Head of ZF Aftermarket. • Three advices to the automotive aftermarket business to face 2022 challenges. Paolo Cataldi, EMEA Sales Director. • They say revolutions happens one every 100 years. Eyal Zbeda, Zbeda • For Valeo, the future of Aftermarket lies in electrification and digitalisation. Eric Schuler, President Michel Forissier, Chief Engineering and Marketing Officer. • Three advices to the automotive aftermarket business to face 2022 challenges. Bo Marcusson, International trading group • Three advices to the automotive aftermarket business to face 2022 challenges – NEXUS Automotive International

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WE OWE YOU MORE THAN BUSINESS AS USUAL

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

Dear Reader, This edition of IN!SIDE marks both the end and the beginning of a period which brought to NEXUS and to the automotive aftermarket in general, plenty of changes.

We have changed our daily life, adapting our routine to new way of living and so, we had to re-think our way of doing business. More connected and digital, more challenging and stimulating, it gave us the boost to accelerate projects, strategies and initiatives.

This 26th edition of IN!SIDE gives the voice to progressive entrepreneurs and companies, to share with the automotive aftermarket community their knowledge and vision to better face the new year. We hope you will enjoy reading IN!SIDE nr. 26, hopefully together with some restful winter holidays.

Even, creating new opportunities and new roles, as you will have the chance to read through these pages.

We wish you all a wonderful, happy and healthy 2022!

NEXUS became bigger and stronger, thanks to its leadership and community, always ready to embrace new ideas.

Kind regards,

Emmanuel Voguet NEXUS Corporate Communication & Sustainability Director

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WELCOME WE OWE YOU MORE THAN BUSINESS AS USUAL PROSPECTIVE VISION

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

Dear Friends, We end 2021 with a renewed wish for the world to recover from the pandemic, which has affected every corner of the globe, impacting on lives and livelihoods.

With resilience and inspiration, the world has responded, adapting to the changing circumstances. Like other sectors of the economy, the automotive aftermarket has been challenged. But it has not been stopped. By drawing on the expertise and talent that exists within it, the N! Community has continued to achieve notable successes, some examples of which can be seen on these pages. Of course, challenges remain, such as the transition towards electrification and attracting the young talents that will be the industry’s future. But there are also great opportunities. Digitization of the industry has gathered pace, the new mobility is opening the door for entrepreneurial startups, and there is the transition from products only to a products-and-services model.

Nexus is taking a strong position in all of these. As a progressive global organisation, we recognise that the status quo is not acceptable. That’s why, to our valuable members and suppliers, we have made this promise: ‘We owe you more than business-as-usual’. We look forward to fulfilling that pledge in 2022, with new and enhanced services and support. And to continuing the wonderful partnership that has made our community the most influential aftermarket alliance on the planet!

Warm regards, Gaël Escribe NEXUS CEO

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CLIENTS, PRICES, REVIEWS.

ALEXANDER GRUZDEV CEO, Gruzdev-Analyze

What are the three main tips you can give for 2022 for the automotive aftermarket? Firstly, there is a high probability that the problems with the shortage of both materials, spare parts, and cars will end in 2022. It won't happen right away in January, but the deficit will start to decrease. Problems with the supply of other materials are still possible, but the most probable scenario is a return to a more normal market like it was in 2019. Regarding this, the key advice is to remember

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

your customer needs. 2020-2021 for companies in automotive aftersales were the year with only one problem - how to get enough product to sell. Fewer problems with supply, the better our sales and market share. The sales forces were like - give me at least something to sell. There is a high probability that in 2022 many parts manufacturers will return to normal, which means that the market will be competitive again. Get prepared to know your new client's new needs. Plan your marketing budget accordingly. Secondly, the prices. The main topic of the changes will be pricing. In 2020 and 2021, prices changed reactively, i.e., logistics prices changed - manufacturers changed prices, suppliers price changed - manufacturers changed prices accordingly. 2022, due to the return to a more conventional and competitive market, will require companies to take a more active approach to work with prices. Inflation, different amounts of money to spend both at the wholesale and end-user level, changes in logistics costs, margin, all that changed like a rollercoaster during the past two years. Now prices will require much more attention. Competitive price analysis can provide good advantages in the fight for market share. Thirdly, the two years of the pandemic have seriously advanced e-commerce, and automotive parts are not an exception. Many, including the largest e-commerce companies, such as Amazon, grew by double digits in automotive parts sales. In some countries, this has led to an increase in DIY share, and for some products, it has even set new sales standards, when the decisive reason for choosing a particular brand is the YouTube fitting instructions. Online reputation management, social media, and reviews management are now not only one more thing; it is already vital work. Of

course, it will be possible to live by inertia for some time. The aftermarket allows being slow and reactive. However, you surely save the way out of the market without a solid online presence. 

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PRICE AND PROFITABILITY OF TYRE REPLACEMENT SERVICE

ALFRED FRANK President, Motofocus Group What do workshops do when they think about changing the price of their services? When the tire replacement service becomes profitable? In which countries car workshops most often raise prices for their services? Why, despite rising costs, not all workshops decide to increase prices? In which countries is it easiest to sell quality workshop equipment? Answers to these and other questions can by founded in a survey conducted by the MotoFocus.pl on the markets of Central and Eastern Europe. Almost 1000 workshop representatives from Poland, Czech Republic, Lithuania, Slovakia, Romania, Bulgaria, Hungary and Croatia participated in this survey. For comparison, the survey was also conducted in the UK.

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Is tire replacement service a good business idea? Percentage of responses confirming business viability but conditional on various parameters

Great Britain

76%

Romania

Poland

91%

89%

Bulgaria

Lithuania

94%

87%

Czech Republic

Hungary

95%

92%

Slovakia

Croatia

90%

92%

Is it worth to run a tire replacement service in your workshop? Most of the workshops that participated in the survey think that the tire replacement service is a profitable business. However, 58% of respondents say this is only possible if it is a secondary activity – e.g., in addition to standard mechanical repairs.

Is tire replacement service a good business idea? Determinants of profitability: 10%

It's not a good business

58%

Yes, but only as an additional service

16%

Yes, but you have to have more than one workstation

16%

Yes, it only takes one workstation to make a business profitable

CEE

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Until a while ago, raising the price of tire replacement services was a difficult decision, mainly due to the high market competition. Today, due to increased costs of materials, workshops no longer have as much trouble to increase their prices as they had before.

Is tire replacement service a good business idea? Determinants of profitability - breakdown by country

It's not a good business

Yes, but only as an additional service Yes, but you have to have more than one workstation Yes, it only takes one workstation to make a business profitable

The results are given as a percentage

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The costs of running a workshop include expenses for workshop equipment, servicing and maintenance. More than 63% of representatives say it is worth investing in high quality tire changing equipment.

Are the workshops planning to increase their service prices?

Service prices – breakdown by country I don't know No

CEE Yes

Yes

I don't know The results are given as a percentage

Are the workshops planning to increase their service prices? Determinants of the price increase for tyre replacement services

12,3%

No, mainly because of the high competition between workshops

11,9%

No, because of low prices in the underground economy

9,1%

No, because the price has been raised recently

12,6%

Yes, only if other workshops raise their price

19,9%

Yes, but not in this season

29,9%

Yes, we will raise the prices without a doubt

4,3%

We don't know

CEE

SIDE Almost one in five respondents believes that investment in equipment is not cost-effective, as customers mainly expect a low price for the service. At the same time, 14% of respondents emphasize that the investment takes too long to pay off.  In your opinion, is it worth investing in high-end tire service equipment?

Investments in equipment – breakdown by country

Yes

CEE Yes

No The results are given as a percentage

In your opinion, is it worth investing in high-end tire service equipment? Czy warto inwestować w wysokiej in klasy wyposażenie serwisu oponiarskiego? Investments equipment – opinions CEE 51%

Yes, due the quality of work and reliability of the equipment

Yes, due to customer interest

Yes, for other reasons

17%

No – the price is most important to customers

14%

No, because such an investment takes too long to pay off

No, for other reasons

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

TECHNOLOGY FOR TODAY AND TOMORROW THE DIVERSITY OF NGK SPARK PLUG What started off in Japan as a technical ceramics company has become the world’s leading ignition and sensor specialist. NGK SPARK PLUG operates on all continents with 60 group companies, 35 production plants, five Technical Centres and three Venture Labs. Today, the company’s automotive business covers ignition as well as sensor technology. Technical ceramics is divided into cutting tools and industrial ceramics. And then there is Venture Labs, a division dedicated to developing new business areas. This forum for creative cooperation with established businesses and exciting start-ups focuses on systems and solutions that solve society’s pain points in an agile manner. The company’s passion for innovation and precision extends to motorsports. It actively supports teams and athletes on national and international levels in everything from log sawing competitions to Formula 1 racing. Always looking for ways to do things better, the company has now established new business pillars which are based on the UN’s 17 ‘Sustainable Development Goals’. These pillars, ‘Environment & Energy’, ‘Mobility’, ‘Medical’ and ‘Communication’, show the company’s focus in moving forward.

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The modern engine empowers people to do what they want. The diversity of NGK SPARK PLUG is all about those possibilities. And about the ideas and visions that will shape tomorrow’s world.

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STAY TUNED

JOS VELDHUISEN Editor in chief Aftersales Magazine

In 2022-2023 we will see a lot of changes in our automotive aftermarket. Changes that will influence and even re-direct the business model of our customers; the garages and their workshops. The electrification of the car – battery and hydrogen – will on the longer term have an effect on the maintenance component of the aftersales. But on the short term already it will need investment in knowledge and skills. At the same time, these have to be certified to tackle cyber security risks. That is why Europe will

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introduce SERMI, the Association created to further develop, own, operate and maintain a scheme and process initially proposed by the EU Forum on Access to Vehicle RMI (Repair and Maintenance Information) to approve and authorise independent operators (IO’s) working in the European automotive aftermarket industry sector, to enable them to access security-related RMI. An important change for the workshop owner and the individual mechanics.

Connectivity and digital solutions will enable to get full access to the customers needs and requirements. Connected car means connected customer. We will see a rapid development of over the air updates and upgrades. First of all used by car manufacturers and their franchised dealer networks. The independant channel must counter this with ówn services’. Companies and their team have to be ready for this. A lot of changes, integrated with each other will influence, even change the business model of workshops, wholesalers and (parts) manufacturers. It looks a revolution, but it is more of an evolution so you have time to adapt to the changes. But act now, do not wait for a better moment. The moment to change is NOW. The competition will be fierce, your company must be fit and have the right partners. So, invest in your ecosystem, in partnerships that will help you and to equally strenghten individual and total business.

My main advice is STAY TUNED. Be aware of the changes and do not wait for others to act. If you do that you will be surpassed by your competitiors. Do not be afraid for the bumpy road ahead of you. Prepare your self for the drive to a succesfull aftermarket and aftersales future. 

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THREE PIECES OF ADVICE

IDAN KATZ Partner & CTO Mobilion

Three pieces of advice for automotive aftermarket businesses to face the challenges of 2022. 1. THINKING ABOUT EV. After Elon Musk was named Time magazine’s ‘Person of the Year’ for 2021, this showed the massive significance that the EV industry is having on the global automotive ecosystem. A NASDAQ study indicated that consumers want to drive EVs, with 60% of today’s prospective car I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

buyers wanting to buy an EV. Lawmakers want you to drive an EV too, as more than 200 cities across the world have “100% clean energy” targets for 2030 and 2040.

TIP Electrification revolution has begun. Embrace the trend and leverage your position by fast adoption

2. THE AUTOMOTIVE AFTERMARKET IN A COVID-19 WORLD. Dealerships were already under threat in recent years; however, it could be said that the pandemic was the catalyst that spurred consumers to switch to digital purchases. Before the pandemic, less than 2% of vehicles were purchased digitally. Last year, nearly 30% of U.S. new car sales were completed online. People are now ordering car parts, servicing, and other aftermarket services through the internet, rather than going to garages and dealerships, indicating the importance of workshop digitalization for the start of 2022. Amidst the wave of Omicron, the beginning of 2022 is uncertain. Supply-chain issues, such as issues with logistics and transportation may continue, including labour shortages due to domestic lockdowns. This happened in the UK in 2021, where a shortage of fuel at gas stations became an issue that swept the nation, due to a lack of (HGV) drivers, which was attributed to the pandemic. Businesses should remain cautious towards the start of 2022, as the prolongation of the pandemic could lead to further shortages in the supply-chain.

TIP Parts shortage directly affects the business bottom line. Become more digital and analytical in predicting and better planning of your on-going business

3. THE DRIVER EXPERIENCE AND DIGITAL SERVICES. We see 2022 as an opportunity for aftermarket businesses to think of new ways to improve the overall experience of your customer. Introducing new Digital Services may introduce higher customer retention and a unique opportunity to increase customer lifetime value. Dedicated digital services, such as updates on charging statuses for EVs, route optimization in real-time, and daily usage statistics, as well as driver profiling for insurance companies and enhanced infotainment systems would enable a more enjoyable and seamless driver experience. This could be a big main competitive advantage for players in the automotive aftermarket industry.

TIP Disruption in an industry is not technological only. Adding value to your customers via digital services is important and will become a unique way for customer retention even more in the future.

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BACK TO BASICS

YVONNE RUBIO Director, MYRT

2021 is ending. An irregular, complex year that (despite the improvement compared to the tremendous 2020) has meant continuing to maintain a firm pulse in the face of the challenges that the change of economic cycle that the automotive aftermarket is experiencing. Well known concepts such as Digitization, Sustainability and theCenvironment, Consolidations, Propulsion technology changes (among many other aspects), are joining problems such as the Lack of raw materials, Increase in prices of products and costs, Transport logistics revolution... And of course, the persistent COVID-19 pandemic whose new waves continue to be an impediment to recovering full normality.

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Everything still assumes that businesses must continue with the red alerts activated, reviewing the strategies to be followed, and outlining projects and interactions with suppliers and customers. A change of exercise is, in a way, a restart. But this does not mean (hopefully!) That these questions raised will disappear; they will remain with us, unfortunately. And for this reason, and so that the journey of the year 2022 has props on which to lean, when facing these challenges, we propose three tips: • The first would be to maintain a calm attitude: The informative inputs are so many and sometimes so disparate that they shake the perspective. It is so negative to sit idly by doing the usual, such as starting fully reactive activities, without prior solvent evaluations. You have to be proactive, yes, but without rushing into a myriad of inconsistent movements; You have to follow a strategy with clear, defined and planned objectives. With determination, but calm. • The second would be to have solvent partners: It is clear that the dynamics of a business model change, which is what we are witnessing, has many ramifications. And the forces, with good traveling companions, became multiplied. We must analyze with whom we walk on that journey, since good allies may see and achieve beyond what each of the businesses achieves from their perspective. Let's listen to those good allies and stay close to them. It is not by chance that popular language has coined the expression "unity is strength." • The third and last would be to make a selection of clients: Wanting to reach everyone, even when it could be done, involves investing unpro-

fitable resources. The Pareto Principle (The wellknown 80/20 Rule) must be in the minds of entrepreneurs. At a time when it is necessary to optimize resources, it is very smart to determine those customers who are most loyal so that they have to feel our full support, and select those who have the best chance of increasing loyalty rather than wasting energy on those who do not value what we are offering. They may seem unoriginal advices. Perhaps they are, but it is also true that, despite being simple and well-known, they are sometimes forgotten. It must be remembered that a slight deviation from a traced route is not important if it is punctual and is corrected. But it is dramatic, it is maintained and not corrected because, no matter how minimal, after a while it will have made us very far from the goal set. Let's review the fundamental points, let's go back to the basics. Large and complex strategies are supported by good foundations. 

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THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET BUSINESS

ARNAUD FLECHET COO of Marketparts.com

Two years sharp after its public launch, Marketparts core mission is more than ever up-to-date: making sourcing and selling easier for spare parts professionals worldwide. It turns out to be an essential tool to address the current challenges. On the edge of 2022, the whole industry is balanced between hope and strong concerns about shortages and huge price increases. From this perspective, our advice for automotive aftermarket professionals to face 2022 challenges, are quite simple and come with very practical solutions. I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

1. BUY NOW First, it is of the utmost importance to anticipate your sourcing as much as possible. On a daily basis, aftermarket distributors experience service rate issues from major parts manufacturers who face significant difficulties in providing important key references, leading to worldwide shortages. Besides, aftermarket professionals should be able to move fast to anticipate significant price increases due to a large global price inflation on raw material. So start buying now. Our main concern when developing Marketparts was for parts distributors to access the largest online catalog and eliminate sourcing obstacles. We are proud today to have on the platform more than 20 million offers available worldwide accessible to our 10 000 users. In order to have more storage capacity, finding opportunities for your unneeded overstock seems to be an important thing to deal with. To address this situation, we at Marketparts have designed a dedicated solution with a full service package, from analyzing the potential of the overstock to managing the delivery to the customer. Having a strong presence in more than 150 countries gives us as many options to find potential customers in emerging markets. It has never been easier to sell your overstock! 2. EXTEND YOUR SUPPLY CHANNELS Distributors should no longer hesitate to buy outside of their traditional direct network. Having many sourcing options have become more than ever crucial to maintain business when distribution channels and the supply chain are threatened. Enhanced by the recent difficulties to maintain traditional forms of business, distributors and manufacturers have naturally turned to virtual options, offered by the many possibilities given by

the internet. More than ever, they have become a natural purchasing option and with a good dose of human factor can adapt specific needs. Through Marketparts, not only you’ll be able to find new business partners, but also as an example, we personally handle your request through our distributors network whenever it happens to be that no seller is providing the parts you’re looking for, with a call for tender system integrated to the sourcing feature. There are always more opportunities out there than we imagine.

3. BROADEN YOUR BRANDS RANGE For all professionals, service rate is key to preserving business. Offering a bigger choice to your customers with a broader range of brands is the better option to guarantee a good availability level. At Marketparts, we help you by providing the largest offer, relying on a unique cross-references database. We collect manufacturers information in order to have a large and strong database for cross-references. Thereby, when there is a shortage on a certain brand, distributors are able to immediately find quantities of available offers for equivalent brands, most of the time at a better price than the initial reference. Service and availability are the key factors that will help you make the difference. 

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Safe, clean, steadfast That’s what winners look like! ATE shines with its ATE Ceramic brake pads in the current ADAC brake test. The brake specialist clearly came out on top against five brake systems, impressing in the categories of safety and durability. ATE Ceramic brake pads came away as the clear winner with an overall grade of 1.7 (good). In the renowned brake test of ADAC, Europe’s largest motoring association, the ATE Ceramic comfort brake pads came out on top against five other competitors. ATE is a brand of technology corporation and automotive supplier Continental. The ADAC testers took a close look at six brake systems, consisting of brake pads and brake discs. The test candidates included one OEM product, various branded and sports brakes, and a budget brake – all of which are brake systems intended for the aftermarket.

Less abrasion for more environmental protection and greater comfort “ATE Ceramic brake pads offer both: high safety, as shown by the results in the brake test, but also durability,” says Maik Spengel, the responsible product manager at Continental. “We are particularly pleased that ten years after winning the Innovation Award at the Essen Tire Fair, ADAC has now also independently confirmed the outstanding properties of ATE Ceramic brake pads,” adds Peter Wagner, who heads the OE & Aftermarket Services business unit at Continental.

Top score in the brake cycle test Eventually, it was a total and complete victory: in the test, ATE Ceramic brake pads, combined with ATE original brake discs, were convincing in terms of wear, where they prevailed over all other competitors by a clear margin. During the testing process, the brake systems had to prove themselves under realistic and highly stressed braking cycles. ATE Ceramic brake pads secured an overall grade of 1.0. And not just that: the second-placed test candidate was more than a whole grade behind the winner. In terms of braking distance, the ATE Ceramic brake pads achieved the second-best grade (1.5), demonstrating their good friction properties.

Continental_redAZ_ATE-Ceramic_A4.indd 1

20.10.21 13:58

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SUCCESSFULLY MASTERING CHALLENGES

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

CLEMENT DE VALON Executive Vice President Independent Aftermarket (IAM), TMD Friction

SUCCESSFULLY MASTERING CHALLENGES IN THE AFTERMARKET The mega-trend towards sustainability has reached the aftermarket with full force. Added to this are the supply chain issues and the increasing level of complex vehicles, as a result of the rapid change-over to e-mobility. The high growth figures show the strength of this development. In the first half of 2021 alone, this segment in Germany, fuelled by subsidies, increased by 235 percent. We ask Clement de Valon how TMD Friction is supporting the trade and workshops to master the change. So far, we saw the drive component manufacturers as the main ones affected. How does this change in technology affect you as a brake expert? E-vehicles place different demands on the brakes due to being much quieter than their predecessors, and the high braking effect of the generator, means in some cases completely new friction material mixtures are having to be developed. As a series supplier, we benefit from being involved in the development processes from the very start. In this way, we have been able to build up an extensive spare parts programme in parallel to series development and today already cover more than

99 percent of the European vehicle fleet of e-vehicles and hybrids. It is particularly important for us to use friction materials that set new standards in dust emissions and that are copper free. We also act sustainably in the manufacturing of our products. For example, we recycle more than 8,000 tonnes of friction material abrasion worldwide into the production process every year in a resource-saving manner, and that trend is rising. What other success factors do you think are crucial to meeting the current challenges? The aftermarket is well advised to open up to these new types of vehicles. Our high market coverage

SIDE helps here. However, this would only be a theoretical value if availability and delivery reliability were not in place. To ensure they are, we produce at various locations in Europe. This not only guarantees high-quality manufacturing to strict environmental standards but also leads to a shorter, faster and thus environmentally friendly supply chain.

SUCCESSFULLY MASTERING CHALLENGES

What is more for us, anticipatory stockholding is not a cost driver but a success factor. We actually increased our stock levels at the height of the Coronavirus pandemic – unlike many competitors. This strategy has been a complete success. We also deliberately chose the location of our central warehouse in Leverkusen, from where all European markets can be reached as quickly as possible. But even the best warehouse is of no use without optimised processes. Success stands and falls with the people behind it – despite or because of all the digitalisation. So here, as in many other areas, digitalisation is the solution? Yes and no. In the competition for the best employees, our industry competes with other sectors that are considered more attractive and lucrative, and here I see a strategic bottleneck. We are rarely in the spotlight when it comes to recruiting highly qualified staff – wrongly so. It is up to us to show how attractive the aftermarket is and that we are an important player in the transformation to Industry 4.0. To counteract the skills shortage, we therefore support the Nexus initiative “Talents4IAM”. Because only with the right minds will we be able to supply the global independent aftermarket with first-class products and solutions today and in the future, and to master the ongoing challenges of the market with and for our customers. 

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

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INVESTING IN KNOW-HOW

I N S I D E E D I T I O N 2 6 • J A N UA RY 2 0 2 2

KAI GUIO MUELLER Director International Trading Groups Schaeffler

The automotive aftermarket is in a period of turbulences. Global megatrends such as the technological shift from combustion engines to e-motors, new demands from distributors and garages, and the increasing digitalization of services and sales channels mean enormous upheavals in the direction of innovation, agility, and data-drivenness. "We at Schaeffler Automotive Aftermarket are well prepared for the change and the challenges of the future," says Kai Guijo Mueller, Director International Trading Groups at Schaeffler Automotive Aftermarket, looking ahead to the challenges of the new year.

We must continue to support classic technologies and keep an eye on the future For the aftermarket, the change in drivetrain technology from combustion engines to e-cars means a gradual adjustment of the product portfolio, unlike for OEMs. In view of the wear rates of today's products, we can expect customer demand to continue to focus predominantly on spare parts for combustion vehicles over the next six to eight years. However, the shift towards e-mo-

bility is in full swing and will arrive in the spare parts market with a certain delay. We at Schaeffler Automotive Aftermarket are already prepared for this change: We are oriented towards the market and the needs of our customers - whether related to the combustion engine, hybrid or electric drives. Hybrid vehicles in particular, will be our focus over the next ten years. This is because this type of drive will represent the

SIDE next generation of vehicles with electrified drivetrain systems in need of repair, ahead of pure e-vehicles. Driving digitalization forward - also in sales Shaped by increasing customer consolidation and the growing number of online channels, our customers' expectations have changed significantly in recent years. For us, this advancing digitalization also means finding additional opportunities to traditional sales channels. In doing so, we are strongly oriented toward the needs of our customers. Distributors and garages are increasingly using online platforms where they can see the price, the portfolio and the associated availability of individual items at a glance.

INVESTING IN KNOW-HOW

By expanding our eCommerce activities and further developing digital sales channels, our aim is to remain a reliable and preferred partner for garages and distributors in the future. Investing in know-how The COVID-19 pandemic presented us with numerous challenges. One of them was to remain in contact and close exchange with our customers. Where personal contact was no longer possible, we had to rely on communicating with the distributors and garages via digital channels. But we soon realized that our customers not only missed personal contact, but also the opportunity to receive further training. By expanding our digital training program, we were able to continue to share our expertise with our customers. As a survey of independent garages conducted at Automechanika 2021 showed, online trainings are becoming increasingly popular. We will therefore continue to expand our digital training offerings such as webinars, web-based trainings, and e-learnings also next year. 

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The new mega macs X by Hella Gutmann

Highly flexible all-in-one car translator with X advantages.

The communication with the increasingly intelligent vehicles is changing quickly. Hella Gutmann concludes that diagnostic solutions for the future should therefore be as flexible as possible. That’s why the diagnostic and data world has been completely rethought and the mega macs X has been created. The “X“ in mega macs X stands as a variable for the different possibilities that arise for workshops of all sizes and specializations thanks to individual function and data configurations – because a workshop should be able to decide individually which function modules and data types it needs for multi-brand diagnostics and which operating hardware it would like to use for this. With the new mega macs X, workshops easily get these possibilities, just as a driver can configure his new car in almost any way. In contrast to previous diagnostic solutions from Hella Gutmann, the mega macs X has a cable with an illuminated CARB connector for the vehicle’s OBD interface, but neither display nor keypad. The impact-protected housing houses the entire intelligence, i.e. the processor, the diagnostic software and the integrated diagnostic protocols - including CAN FD and DoIP for new vehicle models such as Skoda Octavia, Volvo XC 90 and Golf 8 from Volkswagen.

For the operation and display of the diagnostics, the mega macs X needs to be paired with a separate device. This can be a tablet, a notebook or a PC with one of the standard operating systems (Windows, Android, Apple IOS, Linux). No need to carry a heavy diagnostic device around - and no great effort if the display has been damaged in the tough workshop environment. It can be easily replaced by another tablet. A specially adapted, impact protected Hella Gutmann tablet is also available. In terms of content, the mega macs X masters exactly those functions that the user has defined through his individual configuration. After purchasing the hardware and desired SDI software X1 to X5, he still needs the appropriate license module* X1 to X5 to unlock the use of the data and functions. This already includes the future regular software updates. The possibilities range all the way to a top-quality diagnostic solution with guided measurements, new functions and data types for ADAS and lighting systems as well as e-mobility. Later upgrades from basic functions to X2 to X5 are possible at any time and allow the mega macs X to grow with the dynamic needs of the workshop. An integrated bracket allows the mega macs X to be positioned on the side window of the vehicle, thus ensuring a stable Wifi connection to the display/control unit at all times, even on vehicles with chrome-plated windshields. The Hella Gutmann mega macs X: Your flexible partner for new freedom in device handling!

* Name and scope of the license packages may vary from country to country

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MEGA TRENDS OF THE FUTURE

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DIRK-ALEXANDER BÄPPLER Vice President European Key Accounts & Sales Middle-/Eastern Europe IAM at HELLA

HELLA IS THE RIGHT PARTNER FOR THE REQUIREMENTS AND MEGA TRENDS OF THE FUTURE Climate protection is the key issue of the day, and the electrification of the vehicle fleet is a done deal. Technological developments such as energy storage systems with higher energy density, electric motors without the use of rare earths and highly intelligent management systems are having a positive effect, even if there is still a question mark behind the energy sources. "In any case, strong automotive suppliers like HELLA are actively contributing to this change with their core competencies and a great deal of effort in research and development - in close partnership with the car manufacturers, of course," emphasizes Dirk-Alexander Bäppler, Vice President European Key Accounts & Sales Middle-/Eastern Europe IAM at HELLA. "In addition to these enormous efforts to transform mobility, we at HELLA are keeping a close eye on the reality in the independent aftermarket,

because future vehicle generations will of course also require maintenance and repairs," says DirkAlexander Bäppler. Initial studies predict that the demand for this will merely shift thematically but will remain consistently high. There is no question that independent workshops will bear greater responsibility in the future in view of new high-voltage systems and autonomous driving functions. But Dirk-Alexander Bäppler is sure: "Together, we can do it". We at HELLA, Hella Gutmann and Hella Pagid are naturally loyal to independent workshops and the independent aftermarket providing the right solutions for the requirements and mega trends of the future like electrification, digitalization and autonomous driving. With high-quality parts, uncomplicated processes, efficient diagnostic tools, product data and practical technical trainings. 

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AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES

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PHILIPPE COLPRON Head of ZF Aftermarket

THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES 1. Securing the supply chain through anticipation The pandemic has led to postponing new car purchases in many cases, the ongoing chip shortage is slowing down the global supply of newly produced cars even more. This leads to a higher demand for spare parts as cars are being in use longer. The sudden increase of demand can of course cause a strain for parts suppliers. Rising logistic costs and material shortage add further challenges to the equation. Securing extra capacities early on ensures demanded outputs to customers, which in turn helps to win more business. Early anticipation of the overall demanding situation is key for successful business with other market participants when strong volatility is expected of the market.

2. Mastering CASES in the evolving Aftermarket arena The future mobility market is: Connected, Autonomous, Shared, Electric and Sustainable (CASES). These technologies have the power to revolutionize our entire industry because they offer a compelling alternative to our current vehicle-centric landscape – while conserving resources and reducing emissions. Digital services will take a larger precedence, allowing to cater to customers’ needs in a more dynamic and intuitive manner. In addition, the amount of new onboard technologies within vehicles is growing very fast while increasingly connected and autonomous functionalities are gaining more and more traction. Disruptive new mobility concepts are requiring shifts in busi-

SIDE ness models across many industries, while new opportunities that arise must be pursued with all possible strength and speed. Furthermore, it is essential to harmonize the mobility needs of our mobility society with the requirements of a healthy ecosystem. All market players must put the topic of sustainability at the top of their agenda in order to meet the requirements of a sustainable aftermarket. Companies which are actively shaping the future of mobility can help navigate their partners through this multi-faceted transformation in the Aftermarket.

AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES

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3. Collaboration as key to success We operate in a complex eco-system, and with the complexity heading our way, we should continuously explore new type of partnerships. Overarching goals such as a more sustainable economy, dissolving digital silos or even the design of Next Generation Mobility in the aftermarket require the efforts of many. We are entering into a new era where collaboration will be key to success. Being open to all co-operations that do not close their minds to innovations and transformations but want to enable an attractive and sustainable mobility experience for everyone, will have a very positive impact on future businesses. 

MANN+HUMMEL introduces Carbon Zero Strategy MANN+HUMMEL introduces Carbon Zero Strategy and presents new Corporate Responsibility Report – All production to be CO2 neutral by 2030

MANN-FILTER Luftfilter aus recyceltem Kunststoff

Green is not only the corporate color of MANN+HUMMEL, green is also the present and future of the filtration specialist: with its solutions, the Ludwigsburg-based company separates the useful from the harmful and thus provides a key technology for the path to a cleaner planet. In order to do this even more sustainably in the future and to minimize its own carbon footprint, MANN+HUMMEL has now published its Carbon Zero Strategy. The strategy envisages the use of renewable energies at all MANN+HUMMEL sites from next year. By 2030, all production is to be CO2 neutral, and by 2050, the entire value chain. „It is our mission to separate the useful from the harmful. This is the basis for our business and, at the same time, our responsibility. We take this responsibility seriously – not only by providing our customers with cutting edge technologies to help them being more sustainable. We

ourselves want to be more sustainable. Our own CO2 neutrality is an important step on this path,“ says Jean Gangloff, Vice President Quality & Health Safety Environment. The keys to achieving the goals include increasing the company‘s own energy efficiency and using renewable energies. In addition, MANN+HUMMEL will pay even closer attention to sustainability in its own supply chain and in the manufacturing process of its own products. MANN+HUMMEL has also published its new Corporate Responsibility Report. Since four years now, the Group has been presenting the full picture of its corporate responsibility in report form. Information on the Carbon Zero Strategy and the Corporate Responsibility Report can be found at www.mann-hummel.com/sustainability.

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THERE IS NO INNOVATION WITHOUT SUSTAINABILITY

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PAOLO CATALDI EMEA Sales Director Aftermarket Global Business Unit Brembo SpA

THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES Since its origins, the history of Brembo has seen innovation as the main tool for meeting the challenges that over the years have led the company to become an international group, that operates in 15 countries on 3 continents, with 29 production and business sites, and a pool of over 12,000 employees, about 10% of whom are engineers and product specialists active in R&D.

But there is no innovation without sustainability: both are integral elements of Brembo's development strategy. Brembo has the goal of becoming carbon neutral by 2040 and from 2015 to 2020 has reduced its emissions by almost 45%, thanks to energy efficiency projects and a steady increase in the use of renewable energy.

Brembo's concrete commitment to social and environmental issues is continuing with the goal of contributing to the achievement of the 17 Sustainable Development Goals defined in the UN 2030 Agenda.

But innovation also means anticipating the future.

SIDE The era of applying artificial intelligence has begun and data/digitalization is the fuel of this new era. The ability to analyse and manage data is more crucial than ever to enter this new era. At Brembo, we are aware of this and have started an intensive training program to install a data culture throughout the company. This will allow us to develop new intelligent products that meet new customer needs, but also to make our operations more efficient through smarter processes. The industry must play its part by developing innovative processes with less use of raw materials. The aim is to have products that are more durable, less impactful, easier to reuse, repair and recycle. 

THERE IS NO INNOVATION WITHOUT SUSTAINABILITY

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E L PA R T S

Workshop light set LED Shine Exchange Multi-functional solution for lighting at the workplace With our LED Shine Exchange hand lamp, we offer a practical solution for workplace lighting. The outstanding feature of the light is the interchangeable light attachments, which can be replaced without tools via a click-in system. This results in enormous flexibility to create the optimal lighting conditions for any situation in everyday workshop operations. The following three light attachments are included: a torch with a five Watt LED / 300 lumens an inspection light with flexible swan neck and one Watt LED / 80 lumens a workshop light with a six Watt LED / 600 lumens Both the torch and workshop light attachment can be tilted 180 degrees and rotated 360 degrees. Furthermore, we offer a UV and another LED attachment, which can be ordered additionally and can also be installed via the tool-free click-in system. The UV attachment enables the detection of fluorescent effects. This is particularly relevant when searching for leaks on the vehicle. The UV light can be used to identify the points where contrast medium is leaking and where there is a leak. In addition to the six-watt COB LED main light, this attachment also has an integrated UV LED with a wavelength of UV light of 395 nm.

herthundbuss.com

The LED attachment convinces with its six-watt COB LED main luminaire with a colour rendering index (CRI) of Ra>95 with a colour temperature of 4000 K. Depending on the respective light source, colours can be perceived differently. Accordingly, the LED attachment ensures true-to-life colour perception in everyday workshop work. This is particularly relevant for painters and polishers, because this light makes it easy to identify various damages such as dents or scratches. The various attachments enable large areas and difficult-to-access areas in the engine bay to be lit or are suitable for use in confined spaces. Spot illumination is also no problem. The lamp also offers other practical features such as a fold-out hook, a charge/battery status indicator and a magnet. What’s more, the lamp is supplied with a foam inlay so that it can be stored in a workshop trolley. For more information about the LED Shine Exchange and other hand lamps, see the following YouTube tutorial: Hand lamp LED Shine Exchange Article number: 99910164

UV lamp LED Shine Exchange Article number: 99910164002

Rechargeable Battery, hand lamp LED Shine Exchange Article number: 99910164001

Hand lamp LED Shine Exchange Article number: 99910164003

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REVOLUTIONS HAPPENS ONE EVERY 100 YEARS

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EYAL ZBEDA Zbeda Group

THEY SAY REVOLUTIONS HAPPENS ONE EVERY 100 YEARS. IT IS NOW THE REVOLUTION OF OUR DOMAIN, THE AUTOMOTIVE. Electric, Autonomous, Big Data, Connectivity, Car Sharing and more to come. It has already started, but we, as humans, tend to hold on to the past, romantic in a way, always thinking of how it was better when we where kids or how business was more profitable in the old days, just like our parents thought, and probably our children will think the same. Things stay the same till something happens, we all saw what happened with the Pandemic. BUT, a revolution creates opportunities to ones who anticipate and recognize the changes and do not resist them. "If you can't beat them join them" they say and this should be our focus for 2022. So here are my advices for the coming year(s) : Services is the future – our business will change, we will not only sell products, we will sell a services. Services could be related to parts directly such as selling online car service arts including the installation or related to the car, such as charging,

parking, saving fuel/electricity or any other service related to mobility. We are not used to sell services, but we all have great connections with Fleets, public transportation companies, workshops, the entire industry and to the vehicle owner, who will need more services. In order to sell services, you need a different DNA, find someone, in your organization or outside, who was involved in software or services selling(insurance, mobile phone or any other service orientated domain) to think with you, what could be done.

SIDE M&A – we can argue how long it will take till every market adopts to electric vehicle, but all agree that it will change parts consumption. Many garages will close down and many retailers and wholesalers will as well. The stronger will prevail. Make sure you are at the strong side, the market will shrink, but the stronger will get more pieces of the pie. Now, that some do not see a bright future, due to electric or simply since they do not have a next generation to continue, is the perfect timing for Merger and Acquisitions.(M&A). Do not think only of organic growth in sales, like we do every year in our forecasts, think big, size DOES matter. Start looking around in your market who could be a perfect target for you and act !

THERE IS NO INNOVATION WITHOUT SUSTAINABILITY

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"Time ﬂies pretty fast, if you do not stop to look around for a while, you'll miss it"(Feries Buller, a movie…) .we always tend to miss perceive time line, we always have a feeling that things happened much faster… and they do…do not say we have X amount of years till this happens in your market or that your market is different. Start acting now, do not wait for things to happen, just divert some of your activities / budget / energies / managementattentions towards innovation, start at some extent, even a little, but start. 

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ELECTRIFICATION AND DIGITALISATION

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ERIC SCHULER President of Valeo Service of Valeo

MICHEL FORISSIER Chief Engineering and Marketing Officer of Valeo

FOR VALEO, THE FUTURE OF AFTERMARKET LIES IN ELECTRIFICATION AND DIGITALISATION We have asked Eric Schuler, President of Valeo Service, and Michel Forissier, Chief Engineering and Marketing Officer of Valeo, to share their opinions on the future of the automotive aftermarket business. Here are their thoughts.

SIDE Eric Schuler: At Valeo, we see two major revolutions that will be having an outstanding impact on our aftermarket business: vehicle electrification and digitalisation. Indeed, today, automotive is experiencing a radical shift towards electric vehicles. With CAFE (Corporate Average Fuel Economy) regulations becoming more global, with an increasing number of cities and states banning diesel cars in the next few years, with China imposing quotas of 40% purely electric vehicles by 2030, and with car makers significantly developing their EV offer (there are already more than 200 electric models available in 2021), we are seeing a drastic shift in the vehicle sales mix going from less than 5% for EV worldwide in 2020 to an estimated 68% by 2030.

ELECTRIFICATION AND DIGITALISATION

Michel Forissier: At Valeo, we are already N°1 worldwide for electrical systems. One car out of three on the planet is equipped today with a Valeo solution. We are ramping up production of low and high voltage solutions for hybrid and electric, and we will equip 90 new vehicles in the next three years with our technology. Our portfolio is continuously growing with new solutions, we are looking beyond cars, and LCVs as new types of eMobility are emerging. Indeed, we are already delivering ePowertrains for e-bikes, e-scooters, e-robots, e-droids, light city e-cars and last-mile delivery e-trucks. Finally yet importantly, in 2022, we will be launching a new product line with our AC charging stations in order to help electrification expand. Eric Schuler: For our aftermarket customers, our value proposition is to fulfil the future repair and maintenance needs of hybrid and electric vehicles currently present in the car parc. We will offer the very best support in terms of product offer and

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services, growing our portfolio from 2,500 SKUs to more than 4,000 in 2022. We have opened new opportunities in 2021 with the 48V iBSG systems (Integrated Belt Starter Generator) and will continue to pursue these opportunities, from 2022 onward, with technical parts linked to the new cooling technologies in EVs as well as the new power transmission devices such as e-motors, on-board chargers and DC/DC converters, including all information about the software linked to these products. In order to further help workshops and distributors, we are also putting a lot of effort into the digitalisation of our services. For example, Valeo Tech@ssist has been developed to provide technicians with advanced online technical support. Tech@ssist is a digital module that offers three main functionalities: it is a very quick and intuitive search engine, which already covers more than 45,000 references. One can easily search products by VIN number, vehicle type or by product references and access all available information including technical characteristics, pictures, or automakers’ compatibility information. Tech@ssist also gives access to a complete library of more than 5,000 technical documents including technical service bulletins, security data sheets, tutorials, videos and fitting instructions. Finally, because we are aware of the increasing complexity of technical automotive maintenance, we have developed a complete training library of online webinars that can be followed live or on demand (more than 450 webinars already available). At Valeo, we are convinced that electrification will transform the car parc landscape forever and that digitalisation will turn into real business levers for

workshops and for distributors. As a leading company, we are paving the way and we'll do what it takes to help our partners smoothly follow the road! 

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GROW TOGETHER WITH A SPECIALIST

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BO MARCUSSON ITG Director NRF

THREE ADVICES TO THE AUTOMOTIVE AFTERMARKET BUSINESS TO FACE 2022 CHALLENGES

Availability is King! High service level was always a basic requirement to be successful in the IAM. We have experienced a second Covid year with a recovering economy but many issues in lead times and supply chain. Suppliers as my company, who have been able to offer a much better than average availability, have enjoyed fantastic record growth this year. For 2022 an absolute focus from the distributor’s side must be on planning and forecasting in tight partnership with the suppliers. In our company we believe in data integration in the supply chain, like a block chain, to reach the next step in planning. Investments in stock capacity together with continuously improved processes and logistics will for sure be rewarded with healthy business growth.

The added value of the ITG I believe that the ITGs have to readdress the question about how to add value in the industry. ITGs need to work closer with their most important suppliers in finding ways for deeper collaboration, and by that create more value for their members and shareholders. When we are coming out of the pandemic limitations and restrictions, it will be easier to launch joint projects and activities, for further growth in the business. As the industry has adapted to online meetings and events, also new actors have won more space and the ITGs might encounter a more competitive environment for their activities. I am convinced that distributors and suppliers need the ITGs to develop their relationships and create new opportunities for growth.

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GROW TOGETHER WITH A SPECIALIST

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Grow together with a Specialist To me it is clear that the lockdowns in the first pandemic year and the sharp growth in the second one will further push the consolidation of our industry. Both transnational distributors as well as the independent ones more than ever need strong business relationships with product range specialists to create sustainable and profitable growth. Companies who are both Aftermarket and Product Range Specialists can better offer the benefits of a range with full coverage, aftermarket adaptations (e.g. NRF Easy Fit) and localized technical support. As a Specialist we are also quicker in developing new ranges for electric and hybrid vehicles as well as more efficient logistic solutions through our complete range consolidation. The OES share on electrical vehicles is very high. The OES threat on the IAM through the connected vehicle might in practice be overtaken by a bigger threat: A full range of protected parts for EVs. As a specialist we in fact “crack the code” in the battle with the vehicle manufacturers for free and fair access to spare parts. The specialists need good distribution and the distribution definitely can benefit from our expertise. 

Your customers deserve the best quality. So when it’s time for a new battery, recommend VARTA Silver Dynamic AGM – THE ORIGINAL. For additional information on battery replacement and other VARTA Services to better support your customers join the VARTA Partner Portal. VARTA® PARTNER PORTAL www.varta-partner-portal.com

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Performance meets comfort FERODO® INTRODUCES AUTOMOTIVE BRAKE PADS TO BRIDGE GAP BETWEEN BRAKING PERFORMANCE AND COMFORT Revolutionary FERODO Fuse+ Technology Pads Offer TopTier Stopping Power, Longer Pad and Disc Life, Reduced Dusting and Certified OE Matching Quality FERODO®, a preferred original equipment (OE) brake products supplier for more than 100 years, has introduced innovative automotive brake pads to bridge the gap between outstanding braking performance and high-end comfort. The new FERODO Fuse+ Technology brake pads, engineered and manufactured exclusively in the brand’s class leading sites in Europe, feature a highly advanced new friction material that combines the trusted, high-performance braking power of low-steel formulations and the comfort-intensive characteristics of nonasbestos organic (NAO) materials.

FERODO Fuse+ Technology brake pads are the result of more than three years of intensive research and development at the FERODO Tech Centre, Chapel-en-le-Frith, U.K. Fuse+ Technology pads feature a unique combination of more than 20 precisely engineered components that work in concert to deliver unsurpassed braking performance, helping to lower the traditional drawbacks associated with conventional materials. These new pads also include FERODO’s exclusive zero-copper* Eco Friction Technology, which reduces dusting and cuts pad emissions by 60 percent. “Fuse+ Technology marks the beginning of an entirely new era of braking innovation on behalf of the professionals and consumers who rely on FERODO brake pads,” said David Coimbra, Braking

www.ferodo.com

Aftermarket Product Engineer, Tenneco DRiV EMEA Motorparts. “This exciting new technology eliminates the need to lose certain important braking characteristics to achieve others. Now, our customers can enjoy the best of both worlds.” Fuse+ Technology pads extend the FERODO brand’s 125-year history of game-changing innovation. FERODO in 1922 became the first manufacturer to supply OE friction linings for a mass production car. In 1956 the brand introduced the world’s first disc brake pad. Today FERODO product engineers continue to explore new material formulations, pad designs and other innovations to address needs among the world’s leading automakers and workshop professionals. The new technology also continues the brand’s heritage of bringing OE braking technologies, quality and performance to the aftermarket. In addition to being developed in the brand’s European OE R&D facility, Fuse+ Technology brake pads are manufactured to OE standards in Tenneco’s European production facilities. FERODO Fuse+ Technology brake pads are available immediately for almost 100 premium-level vehicle models from Europe’s premier automakers, including Audi, BMW, MercedesBenz and Volkswagen. Each set of pads is packaged complete with all required accessories to ensure fast, easy installation. To learn more about FERODO Fuse+ Technology brake pads, visit www.ferodo.com.

5,000 REASONS WHY WE HAVE 5,000 EXPERTS WORLDWIDE DEDICATED TO DESIGNING, MANUFACTURING AND TESTING SOME OF THE MOST ADVANCED BRAKING SOLUTIONS ON THE MARKET. Our expansive team of professionals, committed to delivering excellence, guarantees our position as one of the world’s leading brake friction manufacturers. This is one of the many reasons why Textar is trusted by vehicle manufacturers, distributors and workshops globally.

LEADING FRICTION ENGINEERING MANUFACTURING TESTING

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DIGITALIZATION, SUSTAINABILITY AND PEOPLE

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DIGITALIZATION, SUSTAINABILITY AND PEOPLE

THREE KEY ISSUES FOR 2022 During the past year the NEXUS team has worked to bring ‘more than business as usual’ to the N! Community and the automotive aftermarket industry. While accelerating the activities of manufacturers and distributors remains our core activity, our ambition is to provide even more insights, resources and tools to influence our industry’s growth and create new ways of doing business. Here, senior NEXUS directors discuss their expectations for 2022 and how the approach taken by NEXUS and its community can be effective in shaping the aftermarket for years to come.

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Florian Precigout N! Service and Concept Director

DIGITALIZATION – KEY FOR THE “SERVICE” OF THE FUTURE I started working at NEXUS a year ago with a clear mission to bring ‘digitalization’ to the N! Community. The challenge here is to understand the daily needs of manufacturers, distributors and workshops, and to translate these into real services that we can then offer them. The technology available nowadays allows us to upgrade the way we do training, customer service, car maintenance and repairs. The Nexus Academy project, for instance, is now a full digitalized training solution, from executive to technician level. Nexus is to maintain momentum in this area to help companies adapt to new digitalized business models, which includes making the procurement process more efficient.

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It is the same for the NEXUSAUTO and NEXUSTRUCK workshop concepts. Today, there are more digitalized, ready-to-install solutions. This will help NEXUS to maintain a uniform approach around the world and make it easier for manufacturers to access the workshops and for distributors to interact better with their workshops. And finally, we want to enable workshops to provide the best quality service to their customers. We already offer them the best quality products, thanks to the support of NEXUS suppliers, and our mission is to also guarantee to deal with daily management processes in a digital, sustainable way. 

Thierry Mugnier N! CFO

DIGITALIZATION AND MOBILITY – A NATURAL SYMBIOSISE The future of the aftermarket is also in new mobility solutions, from electric cars to new city regulations, the creation of new safety devices, the need for solutions at all levels of the chain. 2022 will see the growth of more and more innovative services which will require advanced technology expertise and digital knowledge. At NEXUS, we prepare our community for this new environment through our continuous support to start-ups and new ventures. We started by supporting Mobilion, a smart mobility venture fund that focuses on aftermarket innovation, to Marketparts.com, the largest wholesale marketplace for spare parts, to the creation of a real automotive aftermarket innovation center soon to be opened in Lyon. We cannot separate digitalization and mobility when we talk about trends and market development as much as we cannot disconnect our activity

from the global directions taken by the automotive industry in general. Our support to the NEXUS Community is outstanding in that respect, and we will keep providing innovative services and support to each manufacturer and distributor willing to embrace the future of our industry. 

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Emmanuel Voguet N! Corporate Communication & Sustainability Director

SUSTAINABILITY We first started to talk about sustainability in 2019. We are ambitious because we believe that we can really make a difference. Having a community composed of more than 170 companies leading the automotive aftermarket, we can all work together towards a more green and sustainable way of doing business. There’s a real emergency and it’s time to act to solve a real global issue. We are proud to see many manufacturers and members joining our initiatives and supporting NEXUS in the fight for our climate and we hope to see more and more companies involved in 2022. This new year will be challenging but we are committed and devoted to this topic, so much that we proposed and we are working on an annual automotive aftermarket Climate Day, to take place in

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September 2022, bringing key players together to share their visions, strategies and ideas. 

Bas Donders N! Customer Experience Director

PEOPLE One of the NEXUS pillars is “Community” and over the years we have put our focus on both N! Members and Suppliers to guarantee the best support for their businesses but also to let them feel part of a real global network. We have achieved that through the regional presence of our NEXUS Business Developers, with the regional structures and our Connecting Days events, at local and global level. 2022 will be different because we want to get even closer to our community, listening to their needs and proactively supporting them in their daily activity, to grow their business wherever they are in the world. With the pandemic we all re-evaluated the importance of being connected, even if at distance, and to feel that also when talking about business we

need more than just an email or a Zoom call to feel part of an organization that is really making the difference. In my new role, I will focus on bringing our suppliers and members to the forefront of our activities. Together with my activity, NEXUS is also focusing on new talents, trying to find ways to attract young talented entrants into our industry. My recommendation for our industry is to put people first, at any level of the organization, to grow, support and make a real difference in the market. 