INDUSTRY 04 Resilience of IAM amidst COVID-19 16 INSIDE ATR ATR World Delivery and digitalization Information | Facts | Figures priorities for LKQ Europe TRENDS 35 MaaS and its impact on ATR and Caruso pave the way transportation for connected aftermarket Alongside some of the world’s largest OEMs, the companies look to access telematic data ISSUE 2 – JULY 2020 JULY – 2 ISSUE 02 EDITORIAL ATR World JULY 2020 CONTENT 03 Dear readers 35 09 e hope that you liked the new layout of ATR World as much as we do. From 16 Wthis issue onwards, we also have a new chapter called “New Mobility” in which we want to regularly provide information on topics related to new mobility in general, telematics, trainings in this area or parts that have been developed by our 33 IPAS suppliers. In this issue, Caruso reports on the current state of affairs of their platform and about the market for telematic data. Kindly navigate to pages 36 and 37 for more information. 04 The Covid-19 pandemic is still on everyone’s lips. Both our Shareholders’ Meeting 26 25 and the Automechanika had to be postponed due to the pandemic as the health of all those involved had top priority. We have, therefore, dedicated the Industry chapter to this topic. The pandemic has a profound impact on our physical and 22 Benefit from smart consolidation withDENSO mental well-being including the fear of the worst global recession since the Great INDUSTRY Lambda Sensors Depression, while also affecting the business world. The crisis has changed the way 04 The resilience of the Automotive Independent 23 Monroe ® launches new support- and product- Aftermarket (IAM) amidst Covid-19 the automotive industry operates but some experts think that the IAM will suffer focused website less than the OEMs. Our article is rounded off with a statement by our Supervisory 24 Three new hose ranges from Gates add more revenue Board. Please see pages 4 and 5 to read the article. When reading through this INSIDE ATR opportunities issue, you will notice that some shareholders have also addressed this topic and 06 Inter Cars: #helptohelp – Reaction from the 25 Hella Pagid: Strong brand meets DTM legend report on different measures taken to mitigate the risk of automotive industry in Poland to Covid-19 26 KYB gives insight into Intelligent Damping Control 07 DAVASA/CGA Group: Donations during the 27 Lesjöfor: Availability and range are crucial when it infection or donation campaigns. Covid-19 crisis comes to spring replacement 08 Thermal scanning and well-stocked shelves 28 MAHLE: Aftermarket of the future In the Trends section on page 35 you can find an interest- at KGK’s logistics centre 29 Mann+Hummel: Sustainable products from ing article about Mobility-as-a-Service (MaaS) and the role 09 KAHA’s outlook on the summer travel season MANN-FILTER of car/ride sharing in connected living. 10 DPK: The challenges of the BioSmart world after 30 NGK SPARK PLUG: Increasing brand recognition the Covid-19 pandemic 31 NTN-SNR – your manufacturer and partner for the 12 Tokić is looking forward optimistically automotive aftermarket I hope you enjoy reading this issue! Stay healthy! 14 Martaş Automotive is now on the European side 32 OSRAM today and tomorrow: tradition meets of Istanbul! innovation Stephan Bens 16 Ability to deliver and digitalization have top priority 33 SKF: Speaking of contributions to the automotive at LKQ Europe industry… 34 ZF Aftermarket expands its range of electronically- controlled dampers significantly SUPPLIERS 18 New Brembo Brake Caliper Repair Kits for professional-standard maintenance TRENDS 19 Clarios: The VARTA® application database now covers 35 Mobility-as-a-Service (MaaS) is a simple concept that 38,000 car models has tremendous impact on transportation 20 Continental: Swedish Pop: New kits for Volvo models from MY 2013 NEW MOBILITY 21 Continental/ATE: Always brake safely – even in 36 ATR & Caruso: Access to multi-brand OE telematic data icy cold conditions 04 INDUSTRY ATR World JULY 2020 INDUSTRY 05 The resilience of the Automotive Independent Aftermarket (IAM) amidst Covid-19 IAM emerges as “white swan” in automotive industry despite significant impacts. ovid-19 has sent shockwaves chains have been disrupted, stay-at- With this scenario, vehicle production throughout the world and global home orders put in place, inventory sell- is expected to see a 20-25% decline in Ceconomies. Millions of people offs have occurred, and a decline in con- 2020, compared with a more resilient have become infected with the disease sumer confidence/spending has been 5-10% decline for the Aftermarket and/or lost their jobs and livelihoods, seen. In the mid- to long-term, Covid-19 gross value added. This scenario also economies are seeing severe declines in is expected to delay product cycles, in- points to stabilisation in global trade, projected growth for 2020, and major vestments, and cause financial pressure including the automotive supply chain, global corporations have had to make on automotive manufacturers. In good in Q4 2020.4 In Germany, however, unprecedented moves in order to stay news, hypotheses from experts regard- garage business was expected to afloat.1 On an individual level, people ing the IAM indicate that the industry will increase by 24% in April 2020 com- around the world have lost the ability to suffer less than the automotive industry pared to March 2020, with tyre conduct routine activities in their day- as a whole.3 changes being the main driver for this.5 to-day lives, borders were closed, and public life came to a standstill. However, Relevant resilience factors Structural change: in Europe, significant as bleak as Covid-19 has been, there for the IAM: opportunities for ongoing structural could be an important outlier, or “white changes of the IAM may become acceler- swan”, in the automotive industry – the Performance resilience: though an ini- ated, particularly for vigilant and Automotive Independent Aftermarket. tial short-term demand shock will hit the financially-strong industry players. More Can the IAM emerge resiliently from this industry, history indicates that the older structural changes can mean more mar- inevitable. Further, after a peak in automotive industry as a whole operate, by embracing new technologies, moved crisis? Some experts think so.2 car parc IAM will be impacted less than ket share and new “rules”. merger and acquisition (M&A) deals in it is important for industry players to the shareholder meeting to an electronic new car sales, for example. • According to pre-Covid IAM trends and 2016-17, it is expected that another look at all aspects of their operations to format and postponed all non-essential In 2020, the automotive industry in • Despite negative growth, the IAM is projections of the impact of current spike could occur in 2021-22 as a re- find synergies, strengths, and opportuni- expenses, while continuing to focus on Europe is expected to experience signif- expected to stay relatively resilient. If developments, increasing consolida- sult of the Covid-19 crisis.6 ties in order to emerge stronger than the essential business to ensure we are icant changes based on three main fac- you take the U-shaped (delayed cure) tion and integration (vertical and hori- before. prepared for the coming rebound in tors: supply, demand, and innovation. economic growth scenario as an exam- zontal) is thought to accelerate in Supply chain reset: a ‘glocal’ (global and demand. We also have seen that our Over the last few months, some OEMs ple, the IAM could see a full ramp-up in Europe. Additionally, companies with local) paradigm shift may become the ATR’s Supervisory Board has market segment is much more crisis- have cut production, global supply Q4 2020 with recovery in FY 2021. a stronger financial backbone will new ‘global’ as agile order fulfillment provided their point of view on resistant than, for example, the sale of emerge successful post crisis, though may shift to a more locally-based supply the current situation: new vehicles.” short-term impacts on cashflow are chain and logistics network. • Pre-crisis, global supply chains, pro- “The Covid-19 crisis hit us quickly, sur- KEY FACTS duction networks, and delivery foot- prisingly and with huge impact. The prints were the norm. Thinking ahead, management of companies in all indus- Experts are predicting the those global networks may become tries was severely challenged. However, IAM to emerge resiliently from more ‘glocal’ in nature as those global positive insights can also be gained for the Covid-19 crisis thanks ways of working turn local in nature in the future. At ATR, we recognise that our to opportunities in industry 7 order to sustain operations. shareholders have been impacted by the performance, structural crisis and are proactively reducing our changes, and a dynamic While the Covid-19 crisis has and will cost structure to be more efficient. We supply chain network. continue to change the way the IAM and have reduced our travel and other costs 1 Covid-19: Implications for business. McKinsey & Company. https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business#; 2 Covid19 – The Automo- tive Independent Aftermarket (IAM) opportunity, European perspective. Roland Berger. 6 April 2020; 3 Ibid; 4 Ibid; 5 The Impact of the Covid-19 Crisis on the Autoservice Market in Germany. Monthly View, April 2020. wolk after sales experts GmbH; 6 Covid19 – The Automotive Independent Aftermarket (IAM) opportunity, European perspective. Roland Berger. 6 April 2020; 7 Ibid 06 INSIDE ATR ATR World JULY 2020 INSIDE ATR 07 #helptohelp Reaction from the automotive industry in Poland to Covid-19 The program includes safety packs, free-of-charge webinars, and ready-to-use marketing support.