INDUSTRY 04 Delicate semiconductor supply chain facing global disruption 06 NEW MOBILITY ATR World How will car service stations Information | Facts | Figures reinvent for a changing industry? INSIDE ATR 11 KGK celebrates its 75th Leading Malaysian aftermarket anniversary spare parts wholesaler joins ATR Established in 1996 as a small shop, Rimbunan Kuasa ISSUE 2 – JULY 2021 JULY – 2 ISSUE Sdn Bhd has grown to become a regional leader 02 EDITORIAL ATR World JULY 2021 CONTENT 03 Dear readers 16 04 ello and welcome to this the second edition of ATR World in 2021. In this issue we are pleased to welcome our newest member from the 22 HAsia Pacific region, Rimbunan Kuasa Sdn Bhd. The Malaysian based Rimbunan Kuasa Sdn Bhd joins ATR with effect from 1 July 2021, further expanding the ATR presence in the Asia Pacific Region and is a direct result of the establishment of our APAC office in Singapore in 2020. 06 Founded in 1996, Rimbunan Kuasa Sdn Bhd is today a leading automotive aftermarket distributor in Malaysia supplying automotive spare parts to over 4,000 indi­ vidual customers and workshops, focusing primarily on European automotive brands. 39 27 We are excited to welcome them into the ATR family and look forward to a fruitful collabo­ ration in the future. Please refer to pages 8 and 9 for further information. Denso: Previous winners reveal why you should enter the INDUSTRY 23 From the new to the older, I would like to draw your attention to one of our long­standing 2021 ‘League of True Mechanics’ shareholders, KGK in Sweden who is celebrating their 75th anniversary this year in 2021. 04 Semiconductors: a contentious supply chain shortage and the ripple effect on the automotive industry 24 Exide workshop app: Test and sell batteries in 5 minutes Read more about the KGK journey on page 11. 25 GKN AUTOMOTIVE: Put your trust in the original 26 HELLA brings latest 77GHz radar technology for passen- The shareholders of ATR International AG traditionally meet once a year to hold the Annual NEW MOBILITY ger cars into series production General Meeting at which the Annual Financial Statements are reviewed, new shareholders 06 Threat or opportunity? How car service stations can master the radical transformation 27 KYB: In conversation with Swedish Rallycross driver, are introduced, and market trends and strategies are discussed. Unfortunately, due to Mats Öhman COVID and the related restrictions imposed on travel throughout the world the meeting had to again be held without physical presence of all shareholders and took place recently on DIGITISATION 28 MAHLE: Your best choice 13 July. A summary of the event can be found on page 10. 07 Repdate – The future-oriented online booking system 29 MANN-FILTER: Scoring a technical knockout for independent workshops 30 Magneti Marelli: Oiltek motor oil In the Industry section you can find an article about semiconductor shortages. We conclude 31 Metelli Group: Timing belt kit with water pump this issue with the subject of commuter habits in post pandemic times. INSIDE ATR 32 NGK SPARK PLUG: The aftermarket is changing 08 Rimbunan Kuasa Sdn Bhd: Leading automotive spare 33 Stay cool with Nissens in the busy AC season Finally, we would like to draw your attention to several virtual networking and collaboration parts wholesaler in Malaysia joins the ATR family 34 How it’s made – NRF aftermarket compressors opportunities that are being scheduled in the various regions. With the postponement of 10 A successful online reunion for the 31st Annual General 35 NTN-SNR readies new generation wheel bearing with Automechanika these virtual events may assist with maintaining a close contact with your Meeting compact CV joint key partner suppliers. Read more about these events on page 10. 11 KGK turns 75 this year 36 OSRAM: Your 1st choice in a changing automotive world 12 Martaş Automotive joins Ford’s authorized spare parts dealer distribution network 37 Saleri sees global growth with production sites and OE 14 New CARZONE: Tmall AutoCare: Building the ‘Future supplies Workshop’ of world 38 Schaeffler: Sustainability in the aftermarket 16 LKQ Europe is driving its sustainability commitment 39 Valeo’s innovative iBSG 48V solution to reduce CO2 forward emissions is now available on the aftermarket 18 DPK: A collaborative and transformative training plat- 40 ZF: Resource-saving and inexpensive repair option for form for the sector the Electric Park Brake Warren Espinoza CEO, ATR International AG SUPPLIERS TRENDS 20 Clarios sets standards for greater sustainability 41 Commuter habits in a post-pandemic world 21 Continental: getting there first 22 Delphi Technologies: Six seconds … now that’s fast IMPRINT 04 INDUSTRY ATR World JULY 2021 INDUSTRY 05 bags and doors.9 It is a multi-layered issue such challenges could bring opportunities KEY FACTS but, with the automotive industry heavily to those willing to invest and think reliant on externally-produced semicon- differently. The COVID-19 pandemic has ductors for their innovative development, To combat such challenges in the future, exposed a fragmented it is essential that the supply chain works. automotive OEMs may want to explore a semiconductor supply chain. As of now, there is no over-night fix for a more diversified, independent approach The time is now for the system that has reached its limit, leaving for semiconductor manufacturing capabil- automotive industry to take the automotive industry in an incredibly ities to avoid placing such heavy reliance control. precarious situation. on global, yet regionally-dependent, sup- ply chains. What does this mean for automotive suppliers? As the COVID-19 pandemic progressed through 2020, automakers fortunately saw sales volumes that didn’t decline nearly as much as people feared, rebound- ing close to pre-pandemic levels as deal- erships were able to open up under specif- ic parameters. However, as automakers began to accrue orders again, it was clear that procuring vital technological compo- Semiconductors: a contentious supply nents (i.e. semiconductors) was going to present serious challenges.10 Many of the biggest automotive parts suppliers are chain shortage and the ripple effect on closely monitoring the situation and have even set up task forces to monitor and minimise impact, providing customers the automotive industry with regular updates on production and delivery schedules.11 Additionally, suppli- The COVID-19 pandemic, geopolitical tensions, and a raw material short- ers including Continental, for example, are looking at alternative sourcing and age, among other things, have resulted in a global semiconductor supply production options to maintain a certain chain shortage causing automotive OEMs to take drastic measures. level of semiconductor output from manufacturers.12 The way forward may look ecent automotive innovation has A combination of factors has resulted in and Toyota are all reviewing production different largely been possible thanks, in the worldwide shortages. Fluctuations in targets.5 General Motors extended factory It is clear that car buyers are interested in Rpart, to the rise of semiconductors. automotive industry purchasing power of shutdowns into March, while Ford said the latest connectivity features, though In fact, semiconductors have enabled semiconductors in 2020 (as a result of production in Q1 of 2021 would fall by 10- particularly important in certain countries many recent innovations in automotive COVID-19) and high demand from other 20% from their original plan.6 Global man- over others. 62% of Chinese buyers have technology to take shape, including vi- industries have, in part, led to capacity ufacturers were said to produce 672,000 stated they are willing to shift to a brand- sion-based, enhanced graphics process- constraints at semiconductor manufac- fewer light vehicles in Q1,7 and Germany’s new vehicle in order to obtain the latest ing units (GPUs) in addition to application turers.3 Additionally, the shortage of raw Daimler and Volkswagen have put thou- features, while 37% of American and processors, sensors, and DRAM and material (silicon) and geopolitical tensions sands of employees on short-time work as 25% of German buyers had the same NAND flash.1 Many semiconductor com- between China and the United States a direct result of the bottlenecks.8 mentality.13 panies have pursued automotive oppor- could put European manufacturers in dan- And while automotive companies make There is no doubt that innovation is vi- tunities, forming partnerships throughout ger of being reliant on Asian production.4 up a fraction of worldwide semiconductor tal to the automotive industry as a whole; the value chain, as demand for automo- So, what does this mean for an industry sales – just 3% of Taiwan Semiconductor this, inherently, adds pressure to an al- tive semiconductors has continuously in- that is already faced with challenges to Manufacturing Company’s Q4 2020 reve- ready-complex and competitive industry. creased.2 However, the automotive indus- recuperate COVID-related losses? nue, for example – the shortage has result- Meeting customer needs while remaining try has now been hit with semiconductor ed in a diminishing supply of microcontrol- ambitious is always top of mind. With the supply chain shortages, causing some The current situation ler units (MCUs) that are used in electronic multi-layered issues at play, the automo- OEMs to shut down production lines and All major OEMs are affected by the short- control units (ECUs) throughout vehicles, tive industry has rarely experienced so cut targets. age. Japanese carmakers Honda, Nissan, from the engine and transmission to air- many disruptions simultaneously,14 but 1 Mobility trends: What’s ahead for automotive semiconductors. McKinsey & Company. Stefan Burghardt, Seunghyuk Choi, and Florian Weig. April 2017. 2 Ibid. 3 Semiconductor shortage will hit auto 9 Why the automotive supply chain is in a semiconductor jam. Matt Leonard. Supply Chain Dive. 23 February 2021. 10Ibid.