Federal-Mogul’s Vehicle Components division was recently renamed Federal-Mogul Motorparts. This business manufactures vehicle braking, chassis, sealing and other service parts. Here, Matthew Beecham spoke to Daniel Ninivaggi, CEO, Federal-Mogul Motorparts.
What were your reasons behind changing the name of your Vehicle Components Solutions group?
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We segmented our business into two distinct organisations in mid-2012 so that each could better focus on the needs of its respective end markets. Our division’s new name, Federal-Mogul Motorparts, creates a distinct identity both within and outside of Federal-Mogul and emphasises our more than 100-year history of providing the aftermarket’s highest quality products.
Could you talk us through some other notable changes you have made to your aftermarket business since your appointment as CEO?
Our principal focus is on supporting our leading, premium branded products. We are launching a variety of new programmes and tools that will help us better connect with our end customers around the world to more clearly communicate the importance of relying on high-quality branded products. Additionally, we are expanding our distribution network and improving our inventory and order management systems to ensure better access to large markets and shorter lead times for all customers. We are also investing in an improved cost structure by optimising our manufacturing and engineering footprints and better leveraging our global supply base.
Not so long ago, it appeared to some that either Federal-Mogul’s OE or aftermarket business could have been sold. Speculation is one thing but what’s the reality for Federal-Mogul’s aftermarket business today?
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By GlobalDataI can’t speak to any previous speculation, but it has always been our objective to better position our divisions to address the unique requirements of their respective end markets. Segmenting the business in this manner allows us to do this, and that was our principal goal. I should also note that the Federal-Mogul Motorparts business extends into the original equipment and OE service markets as well. For example, our friction products are found on seven of the top ten vehicle models in Europe and the best-selling vehicle in North America. We also have a significant OE presence in the chassis and wipers categories.
What is your view on where the global aftermarket industry is right now?
The aftermarket is a highly dynamic industry that has earned the trust of millions of consumers who rely on us for products and services that deliver the safety, performance and durability they need and expect. Therefore, I believe it is incumbent on every participant in the aftermarket value chain – from manufacturer to service technician – to be worthy of the consumer’s trust. Over the past several years, the aftermarket has seen a significant increase in lower-quality, non-branded products in many categories. It is easy for consumers and even service technicians to be confused as to the quality of some of these products. At Federal-Mogul, we intend to more clearly communicate the safety, performance and durability characteristics of our premium branded products so that all customers can make a better-informed decision concerning the parts that are installed on their vehicles.
What are your priorities for growing Motorparts?
Our objective is to be a category leader in each of our core product lines in terms of quality,
innovation and coverage. I am confident that this commitment, combined with our renewed
focus on connecting with the end customer, will set the stage for strong, sustained growth. We will also continue to seek strategic acquisitions and launch new products that will enable us to better serve our customers. And finally, we’re making strategic investments in our order management capabilities, inventory and distribution infrastructure to ensure that our premium branded parts are available when and where our customers need them.
What will be the impact on your North American and European aftermarket share following your acquisition of Honeywell’s friction business?
The remainder of this interview is available on just-auto’s QUBE foundation brakes research service
