Despite the weakened economy, are there any current product lines for Continental that are performing well?
Continental's Aftermarket Group is well positioned to face the challenges an economic downturn presents. We have a product portfolio that is comprised of "hard parts" that are mostly non-discretionary in nature. This aids us not only in weathering storms, but also allows us to capitalize on opportunities. Our ATE Brake Products, VDO HVAC and Engine Cooling Fan Motors and Cooling Fan Assemblies, Power Window Motors, Regulators, Motor/Regulator Assemblies and Door Lock Actuators, Engine Management Components and TPMS Replacement Parts are OE-engineered, premium quality parts. And while they may fall into a "necessary replacement" category, they are preferred by both technicians and consumers because they are the right parts and get the job done the first time. In these challenging economic times, this is a big benefit for everyone. Even with a required repair, you want to know that you are getting the best quality and performance at a fair price.
I do not believe that just supplying parts is enough in a weakened economy. It is very important to provide the entire package – quality products, great value and superior service and programs. Every aftermarket product we provide is made to the same quality standards as the products we supply to carmakers. I think that our customers are looking for companies that understand the current demands and the future expectations of the aftermarket . They clearly have been looking to companies like Continental Aftermarket because we have real OE experience and aftermarket savvy and offer the best in class and first to market products that fit right and work right – the first time, every time. This same OE intelligence and aftermarket smarts means we are anticipating the market's requirements as well. We have also put a tremendous effort on maintaining and expanding the high level of application coverage for import nameplate vehicles, a market which has grown substantially faster than the overall vehicle population. It is an essential part of our business strategy and allows us to enjoy higher than average growth rates in our business.
This combination of an excellent product portfolio, consisting of non-discretionary hard parts, new product introductions and category expansions and superior sales, marketing and service infrastructure has allowed us to not only navigate challenging economic times, but find more opportunities for growth.
Do any of your products benefit driver safety? In what ways?
Yes, and I have two primary examples – ATE brake products and VDO TPMS.
1. Brakes are probably the single most important safety related system on a vehicle and with our ATE brake system approach, only one product line is required. With ATE, we believe in offering the "optimum" brake system solution. For vehicle manufacturers, technicians and consumers, the true measurement for brake performance comes down to pad life, rotor run-out and DTV (disc thickness variation), brake fade, a reduction in NVH (noise, vibration, harshness) and stopping distance. Continental engineers developed the ATE PremiumOne brake system to deliver optimum performance in all of these metrics. The patented groove design in ATE rotors, which also provides a visual wear indicator of the rotor, is precisely machined at complimentary angles based on the specific vehicle application. Each rotor is manufactured to tighter tolerances and exceeds the minimum micron requirements by OE standards in order to reduce run-out and DTV. When installed together, ATE PremiumOne rotors and pads ensure peak braking performance. It is also important to note that brake noise is a leading reason for consumer comebacks. One of its primary causes is the build up of heat and gases. The ATE PremiumOne rotors groove design helps dissipate heat and gases to reduce that noise.
2. A more recent addition to our portfolio that benefits driver safety is our VDO TPMS replacement parts program. The program consists of TPMS (tire pressure monitoring system) sensor assemblies (valve type and valveless), services kits and stainless steel wheel bands. As a leading OE manufacturer of these components, we are able to quickly launch new products to market including many 2010 model year applications. This ensures that OE quality replacement parts are available, from the original manufacturer, for a very important vehicle safety system.
What future changes do you see with tire pressure monitoring systems that will affect the aftermarket?
In the future, TPM systems will have advanced functions and greater influence on other vehicle systems. The mounting position of the TPMS sensor is planned to transition from the wheel or rim to the tire itself. Considerable engineering work has already been completed in relocating the sensor to the backside (inside) of the tire tread area. This relocation allows the sensor to acquire much more accurate tire tread and road condition information than ever before achieved with a wheel-mounted sensor. Tire sensor information can then broaden to include tire pressure, tire temperature, unique tire ID, speed index, load index, tire type (winter/summer), footprint info, sidewall stiffness, tire uniformity, DOT number, etc. At present, a TPM system typically focuses on monitoring tire pressure, tire temperature, improving gas mileage and improving tire life. But, with advanced TPMS, the vehicle and occupants will benefit from the enhancements of upgraded vehicle handling, improved braking distance and vehicle control, in addition to helping the community with tire traceability and recyclability.
How will the Continental Aftermarket group handle those issues?
We will expand our VDO Tire Pressure Monitoring System Replacement Parts Program to cater to the new TPMS technologies, while still offering service parts for those vehicle owners with previous versions of TPMS.
Continental Aftermarket will continue to provide full installation instructions and relearn procedures for servicing/replacing this next generation of TPMS sensors and service parts. In addition, we will continue to be proactive in educating our customers with our "train the trainers" on-site education program, and by working with the Tire Industry Association (TIA) and associated programs/events.
These future generations of tire sensors will provide an even greater benefit to the driver with valued safety, comfort and performance features. So, the importance of properly maintaining the TPMS will only continue to grow in the years to come! In turn, this will also create more opportunities to the service shop owner.
