right to repair
| by Austin Gamble
The Sino-German Auto Dealers Networking Event, held during the Automechanika Shanghai in December 2013, provided fascinating insights into the challenges
facing auto dealers in Germany and China. Last month we provided some insights into the Bavarian automotive industry. This month we take a look at a panel
discussion on how suppliers can work better with franchise dealers on the after sales side of their business.
A Win-Win-Win
Situation
What a fascinating discussion this turned out to be. Four high-powered executives in the automotive industry
discussed how suppliers can work towards cooperation with OEM franchised dealers on the after sales side of
the business, and in so doing achieve a win-win situation.
S
tefan Gaul, former
parts available to purchase
CEO of Hyundai
on the internet via eBay), so
in Germany and
why do the suppliers of these
managing director of
parts not open direct channels
mobile.de, the biggest
to franchise dealers, to allow
car internet marketplace
them to service all makes and
in Germany; Thomas
models? Wu Jun revealed that
Hajek, former CEO of
Bosch in China is looking at
Maserati in Europe and
a two tier strategy: firstly, to
current board member of
provide a specific level of parts
the Fiat Chrysler Group in
for older vehicles, outside of
Germany for Commercial
warranty, to the OEM franchise
Vehicles; Zhou Xuehong,
dealers; and secondly, to
UCI-FRAM Group China
provide brand specific parts,
sales director; and
diagnostic equipment, training
Dr Wu Jun, OE sales
and education to selected
director of Bosch
OEM franchise dealers, as if
➲ The panel, from left to right: Zhou Xuehong, UCI-FRAM Group China sales
Automotive Aftermarket
they were Bosch accredited
director; Dr Wu Jun, OE sales director of Bosch Automotive Aftermarket in
in China, looked at how
workshops. Revolutionary,
China; Stefan Gaul, former CEO of Hyundai in Germany and managing director of
franchise dealers can
yes, but with a crying need for
mobile.de, the biggest car internet marketplace in Germany; and Thomas Hajek,
be roped into the “right
superior service levels in China,
former CEO of Maserati in Europe and current board member of the
Fiat Chrysler Group in Germany for Commercial Vehicles
to repair” philosophy.
it could solve a major problem.
An intriguing concept,
The quid pro quo would be the
Currently the franchise dealers are
which effectively turns the current right
OEMs dropping their protectionist stance.
restricted to a smallish pool of captive
to repair campaign on its head, or more
Think of the consequences of this trade-off.
customers, whereas the independent
accurately, it is right to repair turbocharged!
Suddenly all qualifying workshops would
workshops are not able to service the latest
At first blush, this whole idea sounds
have access to all the parts and proprietary
models because of diagnostic barriers.
crazy. The OEMs and the independent
information that they need, without barriers,
Both of these scenarios have unfortunate
aftermarket have been going at it hammer
and the defining levels of competition
consequences for the franchise dealers
and tongs for years now, with the OEMs
would be customer service and technical
and the independent workshops, and even
trying to block the independent workshops’
competency. It would be a win-win-win
worse it is the consumer that gets caught
access to the OEMs’ proprietary
situation for franchise dealers, independent
between the protagonists.
information, while the independents
workshops, and most importantly, the
All the panellists agreed that this is an
desperately need access to this information
motorist.
illogical situation, particularly in the light
to allow them to service their clients’ motor
of the number of vehicles on the road,
vehicles. Market share is the name of the
and the need to keep these vehicles in a
game, and it’s a battle between two giants
roadworthy condition. Access to parts is
and two legal imperatives: intellectual
becoming easier and easier (Gaul points
property rights vs the customers’ right to
out that in Germany alone there are
choose a repairer. And this battle has many
currently in excess of 20 million automotive
casualties, and many implications.
| words in action
40
april 2014