THE CRISIS IS ALSO IN AFRICA: THE AUTOMOTIVE COMPONENTS MARKET HAS CAVED IN, REPAIR REVENUES ARE REDUCED DRASTICALLY—SERVICING BUSINESS LIKE IN EUROPE AND THE NEIGHBOURING COUNTRIES DOES NOT EXIST THERE ANYWAY. HOW DOES A COMPANY, WHICH HAS BEEN CONCENTRATING ON EXPORTS TO AFRICA FOR DECADES, DEAL WITH THESE CHANGED CIRCUMSTANCES? THESE ARE QUESTIONS THAT MAHLE AFTERMARKET NEWS WAS ASKING STEFFEN GROSE, AUTOMOTIVE SALES MANAGER OF THE RENOWNED COMPANY C. WOERMANN GMBH IN HAMBURG.
| Steffen Grose, Automotive Sales Manager of the Import and Export company C.Woermann in Hamburg |
The company is an exporter of engine components and filters to the African continent with one of the longest traditions. All export and financial business is controlled from the headquarters in Hamburg, while import and sales are directly managed from the subsidiaries in Nigeria, Ghana and Angola. Since its foundation in 1837, the trading firm has had a long, varied history—and sees a special opportunity to emerge stronger from the current market situation at the end.
MAHLE Aftermarket news: Mr. Grose, you know the African market better than most other people. Can you give us some idea, how it looks there on the roads?
Steffen Grose: In the passenger car population you find largely vehicles that are maintenance and repair friendly without much electronics. In Angola people drive mainly new models, in Nigeria older ones. The commercial vehicles in Angola are on average 5 years old when imported, in Ghana 8—and in Nigeria 15 years old. This means that a model that is almost regarded a classic car in Europe, is a current model in Nigeria. Currently, 70% of spare parts for commercial vehicles are used in 1980 models or older. On the whole, there will be a high spare part and repair requirement for our markets also in the medium term.
MAHLE Aftermarket news: And how are automotive component sales developing at the moment—in view of the crisis?
Steffen Grose: Sales have declined strongly. Repairs are only carried out when nothing else is possible. After all, the local currencies have dramatically lost in purchasing power due to the strong drop in oil prices. On the other hand, the vehicle population in the metropolitan areas is as high as never before, the numbers in the conurbations are immense—and the repair potential is correspondingly high.
MAHLE Aftermarket news: And how is your company responding to the current market situation?
Steffen Grose: We keep importing as always—and just put the goods into storage. When the demand is picking up again, we will have the products available instantly. And while others are now cutting back in their sales and marketing activities, we show presence in the market. This goes as far as our opening of 4 shops that deal purely in MAHLE products. When the economy has recovered we will be there—while others have been forgotten long since.
MAHLE Aftermarket news: What are you doing to counter the reduced readiness of motorists for repairs.
Steffen Grose: We communicate the necessity of quality engine components, especially in the repair or general overhaul of engines. At the same time, we offer a wide product programme that is matched to the current demands. MAHLE Original is here our undisputed premium brand—and we intend to establish
MAHLE Filter even stronger.
MAHLE Aftermarket news: This kind of strategy requires courage and perseverance.
Steffen Grose: Well, a company with our history knows and accepts market cycles. C. Woermann has been in Africa since the middle of the 19th century. The company has lost everything during the first World War and rebuilt itself—and the same happened during the second World War.Such a long and varied history makes steadfast—and provides not only perseverance but also patience to give the market the time that is needed for recovery.
MAHLE Aftermarket news: What importance has MAHLE in your market strategy?
Steffen Grose: Since we have been working together with MAHLE—from the 80s of the last century—we could widen our range in engine components continuously. As provider of the full range, we offer products for conventional European passenger cars and commercial vehicles as well as for agricultural machinery, marine and heavy duty applications. With a local availability of 90%, we can offer our customers a stable range of products despite an instable market situation.
MAHLE Aftermarket news: How do you see the development of the African market?
Steffen Grose: Whether in Africa or somewhere else: In a world that grows together more and more, trade on its own is not a basis for business. Of course, we will continue to import and provide products—but we will extend our range of services, for instance, with technical training of our customers such as automotive components dealers, workshops and fleet owners.
MAHLE Aftermarket news: C.Woermann GmbH is a family company. Does this have an influence on the manner that you do business?
Steffen Grose: Definitely! You see, we treat our customers the same way as our founder Carl Woermann did just under 170 years ago—with respect and farsightedness, according to the motto: “Do not focus on the first, but on the second order”. This has provided us with a solid base of regular customers,because the foundation for long lasting business relationships is: trust. This is true for Africa – and everywhere in the world.
MAHLE Aftermarket news: These are fitting closing words. Mr. Grose, we thank you for the conversation.
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While other companies stop investing and withdraw from the market, C.Woermann moves ahead—and opens the fourth MAHLE shop in Ghana. |