European Automotive Aftermarket

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European Automotive - Aftermarket between Regulat
ion and Entrepreneurship in a dynamic Market
Josef Frank Director Aftermarket
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European Umbrella Membership Association for the
Automotive Supply Industry

• Represents more than 3,000 companies, employing
  more than three million
• people with roughly 300 Billion Euros turnover
  and covering all products and
• services within the automotive supply chain.
• Established in 1959 to represent and support the
  interest of european
• automotive suppliers.

www.clepa.com
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National Trade- and sectoral Associations

• ACMA (India)
• ACS (Slovenia)
• AFIA (Portugal)
• AGORIA (Belgium)
• ANFIA (Italy)
• AUTIG (Denmark)
• FIEV (France)
• ILEA (Luxembourg)

• MAJOSZ (Hungary)
• RAI (The Nederlands)
• SAS (Sweden)
• SERNAUTO (Spain)
• SINDIPECAS (Brazil)
• SMMT (United Kingdom)
• TAYSAD (Turkey)
• VDA (Germany)

• EUROBAT
• EUROFORGE
• EUWA
• EWFA
• SUPPLYON
• TecCom

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Corporate Members

• DOREL
• EBERSPÄCHER
• EMITEC
• FAURECIA
• FEDERAL-MOGUL
• FEV MOTORENTECHNIK
• FRAUNHOFER
• GATES
• GE LIGHTING
• GKN
• HALDEX
• HAYES-LEMMERZ
• HELLA
• HONEYWELL
• HONSEL
• HUF
• JTEKT Europe
• KARMANN

• THYSSENKRUPP
• TOKAI RIKA
• TMD
• TRW
• VALEO
• VDI / VDE IT
• VISTEON
• WABCO
• WEBASTO
• ZF
• ZF-TRADING

• ADVANCED LABELS
• TECHNOLOGIES
• AISIN
• AKEBONO BRAKES
• AUTOLIV
• AUTOMOTIVE LIGHTING
• AVL LIST
• BEHR
• BEKAERT
• BOS
• BOSAL
• BOSCH
• BPW
• BREMBO
• BRITAX
• BROSE FAHRZEUGTEILE
• CARDONE
• CIE AUTOMOTIVE
• CONTINENTAL

• LUK
• MAFLOW
• MAGNETI MARELLI
• MAHLE
• MANN HUMMEL
• MARK IV - DAYCO
• MIRA
• MITSUBISHI ELECTRIC
• 3 M
• NGK SPARK PLUG EUROPE
• OSRAM
• PHILIPS AUTOMOTIVE
• LIGHTING
• PILKINGTON
• PROLIANCE
• REFLEXITE
• SAINT-GOBAIN SEKURIT
• SENSATA
• SKF INDUSTRIE

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CLEPA represents members interests and
facilitates constructive dialogue with

• The European Institutions Commission,
  Parliament and Council
• The United Nations (UN/ECE WP 29)
• Other fellow associations and stakeholders of
  the automotive
• industry (ACEA, JAMA, KAMA MEMA, JAPIA,
  OESA)
• Stakeholders for Trade and Workshops (FIGIEFA,
  CECRA)

Enhances relationships between VM Suppliers in
both sectors

• Original Equipment
• Aftermarket

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CLEPA - Working Groups cover all relevant topics

• Aftermarket Policy
• Human Resources Development
• International Relations
• Legal Advisory Group
• Quality
• Research and Technology Development
• SMEs
• Technical Regulations
• Trade
• Warranty

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Facts about the automotive supplier-industry

• 50 of the R and D spending comes from
  suppliers
• 75 of the Car-value comes from suppliers
• A large number of patents are from suppliers
• Main contribution for CO2 reduction comes from
  suppliers

Some examples

• ABS, ESP/ESC, Airbags
• Driver Assistance
• High pressure injection systems
• Navigation systems
• Night Vision
• Start Stop Systems

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European Aftermarket Volume
60 Billion Average growth-rate 2 p.a.
Estimation CLEPA 2006 for Europe (level
parts-suppliers)
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European Aftermarket Participants
OES (Original Equipment Sales) 50
IAM (Independent Aftermarket) 50
60 Billion
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Technological Trends
Passenger Safety Systems (Airbags etc.)
Dynamic Navigation, Telematic systems
Modern lighting technology
Adaptive Cruise Control
The car has become a computer on wheels
Steer-By-Wire
Car managementSystem Cartronic
Brake-By-Wire
Cockpit modules and instrument clusters
High-pressure Diesel Injection Systems
ABS/ASR ESP
Gasoline Direct Injection (DI Motronic)
Alternative energy supplies (H2, Fuel Cell)
? Increasing share of electronics of production
costs 22 in 2000 35 in 2010
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European Aftermarket Strategies 1. Competition
between IAM and OES
IAM
OES
60 Billion
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European Aftermarket Strategies 2. Framework in
the EC
IAM
OES
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European Aftermarket Strategies 2. Framework in
the EC 2.1. Focus
IAM
OES

•  Consumers benefit from competition between
  repairers through lower labour charges and
  cheaper spare parts 
• (Neelie Kroes, Commissioner DG COMPETITION)
• Increasing Safety on European roads
• (extract from Cars 21)
• Regulatory simplification and internationally
  recognized rules
• (extract from Cars 21)

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European Aftermarket Strategies 2. Framework in
the EC 2.2. Rules, Regulations, Directives

• 1. European Commission Treaty Rules, Article
  81-85
• Common rules on competition, taxation and
  approximation of laws
• 2. BER (EC 1400/2002)
• OE Parts and Repair information are for IAM
  and OES
• Repair during Warranty period also in IAM
  possible
• Free choice where to buy (no binding)
• 3. Euro 5/6 (EC 715/2007)
• Access to information for inspection, diagnosis,
  servicing or repair
• for new car models compulsory (from 2009)
• Necessary Information required for the
  manufacture of
• diagnostic-tools

IAM
OES
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European Aftermarket Strategies 2. Framework in
the EC 2.2. Rules, Regulations, Directives
IAM
OES

• 4. Standardization of Repair information
• Mandate from DG Enterprise to CEN for all repair
  information
• for all vehicles
• 5. Recast-Directive (EC 46/2007), Article 31
• Protection for safety and environmental
  related products
• 6. UN/ECE regulations (WP 29)
• e.g. R90 brakes

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European Aftermarket Strategies 2. Framework in
the EC 2.3. Update activities to regulations
IAM
OES

• TO 1. No activities
• TO 2. BER (EC 1400/2002) Expires in May
  2010
• Clepa demands
• Supplier branded OE parts in IAM OES
• Repair information equally in IAM OES for
  whole car park
• incl. Heavy Duty (see wording Euro 5)
• No abuse of tooling rights, IPR and Branding
  from the OEM

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European Aftermarket Strategies 2. Framework in
the EC 2.3. Update activities to regulations

• TO 3. Euro5/6 (EC 715/2007)
• Clepa demands
• Repair information in IAM OES also for Heavy
  Duty Vehicles
• ( Euro VI )
• TO 4. Standardization of Repair information
• Clepa will support initiative and cooperate with
  Commission
• Clepa demands
• Set up repair information in worldwide
  ISO-Standard

IAM
OES
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European Aftermarket Strategies 2. Framework in
the EC 2.3. Update activities to regulations
IAM
OES

• TO 5. Recast-Directive (EC 46/2007), Article 31
• Clepa demands
• Stop uncontrolled chip-tuning
• Consider rules for remanufacturing
• TO 6. UN/ECE regulations
• Clepa demands
• Within GRRF same rules regulations -already
  adopted for brake
• pads linings (R90)-, also for brake drums,
  disks calipers

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European Aftermarket Strategies 3. Original
Equipment Sales (OES)

• Defensive/Partitioning-Strategy
• Limited access to diagnostics (IPR)
• Original Parts
• Design Right
• Tooling Rights

IAM
OES

• Offensive-Strategy
• For motor-vehicles
• All inclusive offers
• Extended Warranty
• For Service
• All makes and IAM-WS-networks
• Second Quality
• Parts- and Service Offers for IAM
• Cooperation with IAM Wholesalers

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European Aftermarket Strategies 3. Original
Equipment Sales (OES)
IAM
OES
60 Billion
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European Aftermarket Strategies 4. Independent
Aftermarket (IAM)

• Make use of Assets / Strengths
• Multi-branding know-how
• Tight Network (WS round the corner)
• Reasonable Pricing for parts and labour cost
• Efficient Distributor-Network
• Aging Car Park
• Fight Weaknesses
• Inconsistent technical Competence
• Inconsistent or no Certification
• Weaker Lobbying
• Take Opportunities
• Aftermarket specifications
• Stronger, consistent Networks and Certification
• Improve technical competence
• Lobbying Right to Repair

IAM
OES
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European Aftermarket Strategies 4. Independent
Aftermarket (IAM)
IAM
OES
60 Billion
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Conclusion

• The welfare of the car-owner must drive all
  thoughts and actions
• Modern Vehicle Systems are complex but manageable
  with the right package need of continuous
  investments in hardware, software, training
• Increasing age of vehicles, therefore declining
  purchasing power new technologies require
  different approaches over the life time of a
  car(New, Exchange or Repair)
• European Institutions care for consumers
• IAM and OES build up efficient strategies in a
  dynamic market
• CLEPA supports the interests of the
  parts-suppliers with the European
• Institutions and the UN to assure the
  right framework for fair competition

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Conclusion Open Market

• The car owner decides where to go
• By mind ? distance ? quality ? cost
• By feeling ? convenience ? trust ? relationship
• .......up to you.......

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To turn CHALLENGES
Into OPPORTUNITIES
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• Thank you