from Aftermarket Business
Frank Ordoñez has long been at the forefront of industry advancements. The president of Delphi Product & Service Solutions has espoused the vehicle technology revolution for years, even before being “green” was the popular thing to do.
Today’s consumer wants to be “safe, green and connected,” he says. The electronics revolution is here, and distributors and repair shops need to prepare as the more advanced vehicles start to reach their aftermarket “sweet spots,” Ordoñez adds.
Now is the time to prepare current and future technicians for the complex vehicle electronics systems that will be rolling into their bays in five years, says Ordoñez.
Having spent decades in the OE business, Ordoñez has a keen understanding of both sides of the automotive industry.
“I truly enjoy cars and being part of the business,” he says. “Early on, one of my most memorable experiences was being part of a brand new assembly start-up in northern Spain (Zaragoza), where we went from sheep to cars!”
Today’s consumer wants to be “safe, green and connected,” he says. The electronics revolution is here, and distributors and repair shops need to prepare as the more advanced vehicles start to reach their aftermarket “sweet spots,” Ordoñez adds.
Now is the time to prepare current and future technicians for the complex vehicle electronics systems that will be rolling into their bays in five years, says Ordoñez.
Having spent decades in the OE business, Ordoñez has a keen understanding of both sides of the automotive industry.
“I truly enjoy cars and being part of the business,” he says. “Early on, one of my most memorable experiences was being part of a brand new assembly start-up in northern Spain (Zaragoza), where we went from sheep to cars!”
But the biggest challenge of his career is now upon him. “We have never been faced with managing the business in such a rapidly declining economic climate.” Clearly there is room in the industry for talented people who hold automotive management degrees.
Ordoñez recently granted an exclusive interview with Aftermarket Business.
Q: Delphi has been on the forefront of the electronics revolution for some time. How do you see vehicle electronics changing over the next five years and what will this mean for the aftermarket? How about for independent repair shops?
A: Delphi has been proactive with the vehicle electronics revolution message because as an OE manufacturer we owe it to the aftermarket to look at the “big picture” and bring both our insight and foresight to the table. We have a responsibility to provide leading-edge parts and tools, and timely and effective training based on the technology developed.
This revolution – the change from mechanical parts to electronics – has arrived. And over the next five years, the pressure to enhance vehicle efficiency will rapidly increase, shifting the way the automotive industry operates at all levels – from design, to production, to service. That means every part of the value stream – manufacturers, WDs, jobbers/parts stores and technicians – will need to play an important role if our industry is going to meet the needs of the educated customer.
Q: Delphi has been on the forefront of the electronics revolution for some time. How do you see vehicle electronics changing over the next five years and what will this mean for the aftermarket? How about for independent repair shops?
A: Delphi has been proactive with the vehicle electronics revolution message because as an OE manufacturer we owe it to the aftermarket to look at the “big picture” and bring both our insight and foresight to the table. We have a responsibility to provide leading-edge parts and tools, and timely and effective training based on the technology developed.
This revolution – the change from mechanical parts to electronics – has arrived. And over the next five years, the pressure to enhance vehicle efficiency will rapidly increase, shifting the way the automotive industry operates at all levels – from design, to production, to service. That means every part of the value stream – manufacturers, WDs, jobbers/parts stores and technicians – will need to play an important role if our industry is going to meet the needs of the educated customer.
The industry at all levels – manufacturer through technician – must have a strong commitment to vehicle electronics training and education if we want to secure the future. The vehicle electronics revolution has created a shift in the required base training for technicians, so starting in the classrooms of high schools, tech schools and colleges and future technicians must learn the core, basic theories of vehicle electronics and how they work together. For example, in addition to knowing techniques for friction and cooling service, technicians will need to be literate in computers, electronics and fluid mechanics. Then we must complement that education with the hands-on knowledge and accessibility of diagnostic tools.
Additionally, WDs must accept that the vehicle electronics revolution is here. They must secure the right product mix, understand the evolution of the marketplace and work with the industry to promote, support and guide education for future technicians. WDs should also institute standardized, minimum levels of vehicle electronics training for stores and shops, and establish recognition programs for industry technician superstars. Lastly, WDs should collaborate with manufacturers and the industry on key initiatives.
Jobbers/parts stores – more than anyone – must have vehicle electronics product expertise inside and out. And technicians are counting on jobbers/parts stores to have the right product at the right time.
Finally, shops must provide a clean, friendly environment that meets customer expectations. They should involve customers in the repair process. Much like a good doctor, technicians and service writers need good customer interface skills. Investing in tools that not only help diagnose the symptom, but help “tell the story” in a way the customers will understand is important. Shops must also provide employees with easy access to expertise and training, sharpen time management skills and stay connected with peers throughout the aftermarket. In fact, the technician needs to demand this level of information and support from the shop owner, jobbers and warehouse distributors.
If we do not take responsibility for these roles, the vehicle electronics revolution will pass us by.
Q: You have been and continue to be a strong proponent of clean diesel technology. You recently mentioned some new diesel vehicles introduced in the U.S. this year. How will the breakthrough of diesel alter any of Delphi’s plans for product introduction?
A: In the short term, diesel technology can really help address both dependence on foreign oil and emissions, because they can deliver up to 40 percent better fuel economy than gasoline and can reduce emissions by about 20 percent – without sacrificing power and performance. When you consider how quickly Europe adapted diesel technology – more than 50 percent of sales in the six or seven years since common rail was introduced – you wonder why this can’t be duplicated in North America. Obviously, our perception of diesel technology coupled with the significant premiums historically placed on diesel fuel has made it hard for us to adapt that technology. The dichotomy is that diesel technology is extremely friendly for the North American market, from the proven reliability to the fact that it is well-suited to the North American-style of highway driving and high-torque loads. We just need to take advantage of it! As qualification for federal tax credits increases, new clean diesel vehicles make it onto the roads, and the gap in price per gallon compared to regular fuel continues to close, North American consumers will become more interested.
From an OE product introduction perspective, Delphi has a strong presence with diesel technology in the market, due to our experience with diesel in Europe. Delphi has the second largest share of common rail technology in Europe. We are prepared to follow the technology as it migrates around the world, and also introduce and serve the aftermarket as required.
The introduction of new diesel fuel injection technology – such as common rail – has also brought with it the need for a new approach to diesel diagnostics and test equipment. In North America, one of the biggest adjustments will need to be the development of and responsibility for what we call the “hub and spoke” concept for diagnosis and repair. In the future, some shops – the spokes – won’t have the capital or capacity to service every new technology, and the need for specialists – the hubs – will emerge. Specialists will need to make a significant investment in sophisticated diesel service equipment, while shops invest a smaller amount in diagnostic equipment and interact with customers.
Delphi has already met these challenges head on in Europe with a comprehensive, state-of-the-art test equipment range. It’s important that independent repairers establish and take ownership of building strong relationships with hub specialists, so that they can seamlessly leverage them while maintaining transparency to consumer. Customers want to trust that shops will be able get their vehicles fixed no matter what the problem is, because the dealers are ready to do it.
Q: Are there any other alternative technologies we should be on the lookout for in this industry?
A: Right now, green is top of mind, especially for the new administration in the U.S. Tighter regulations of carbon dioxide emissions and fuel-efficiency regulations are imminent, which is putting manufacturers under intense pressure to make green a reality on the showroom floor. And despite all of the recent achievements in powertrain technology, there is no “one size fits all” solution, which means we’ll be seeing a variety technologies showing up in the aftermarket.
Aside from diesel, certainly CNG (compressed natural gas) will gain popularity since it is a cheaper, cleaner-burning fuel than standard gasoline that can achieve up to 90 percent in emissions reduction and 40 percent less cost than gasoline vehicles. It is also available in U.S. The technology is not new, but the proper infrastructure is necessary to support its widespread use here. More than 70 percent of U.S. homes have access to natural gas, and with a simple compressor unit installed in the garage, drivers could refuel overnight.
And although North American consumers haven’t fully committed to hybrid electric vehicle technology, it’s clear that this technology is going to play a role in the near to mid-term future. It is expected that by 2015, hybrids will comprise 8 percent of the U.S. vehicle market. Hybrids have brought a new frontier for green automotive technology, offering a wide range of technologies with an equally wide range of fuel economy savings. Recent dips in gas prices may have recently dampened demand, but vehicle manufacturers are making the investment in this technology. In fact, the displays at the Detroit Auto Show last month prove that the era of “electrification” has fully arrived. Look for this technology to develop quickly in terms of efficiency, size, customer interface and infrastructure.
Also from a green perspective, with hybrids we will need to solve the “coal equation” for the electric power plants. To some extent, if we don’t have alternative energy sources for power plants, we are shifting fossil fuels from petroleum to gas!
Finally, we really cannot lose track of the gas engine. This technology has served us well for more than 100 years, and the continued development of gas engines is a huge part of the short-term equation. The new frontier in gas engines is GDI – gasoline direct injection – which is very similar to diesel common rail. Delphi is currently working on GDI programs in various regions of the world. Almost every manufacturer is developing or deploying this technology as we speak. And when you couple turbochargers with GDI you get even more efficiency.
From an aftermarket perspective, consider all the new green technology content we will be dealing with and the great new opportunities they present for us. Each and every one of these green technologies brings opportunities to the aftermarket for diagnosis and repair, if we are prepared. For example, Delphi’s “Introduction to Hybrid Electric Vehicles,” training class was developed as a collaboration between our OE engineers and our aftermarket service specialists. It prepares diagnosticians with information they must know before attempting maintenance or diagnostics on hybrid vehicles. The course also shows that not all hybrids are created equal and provides information on various systems – Parallel, Series Parallel, Belt Alternator Starter and Plug-In. We want independent shops to know that they can be competitive with service, diagnostics and repair of these high-tech vehicles.
Additionally, WDs must accept that the vehicle electronics revolution is here. They must secure the right product mix, understand the evolution of the marketplace and work with the industry to promote, support and guide education for future technicians. WDs should also institute standardized, minimum levels of vehicle electronics training for stores and shops, and establish recognition programs for industry technician superstars. Lastly, WDs should collaborate with manufacturers and the industry on key initiatives.
Jobbers/parts stores – more than anyone – must have vehicle electronics product expertise inside and out. And technicians are counting on jobbers/parts stores to have the right product at the right time.
Finally, shops must provide a clean, friendly environment that meets customer expectations. They should involve customers in the repair process. Much like a good doctor, technicians and service writers need good customer interface skills. Investing in tools that not only help diagnose the symptom, but help “tell the story” in a way the customers will understand is important. Shops must also provide employees with easy access to expertise and training, sharpen time management skills and stay connected with peers throughout the aftermarket. In fact, the technician needs to demand this level of information and support from the shop owner, jobbers and warehouse distributors.
If we do not take responsibility for these roles, the vehicle electronics revolution will pass us by.
Q: You have been and continue to be a strong proponent of clean diesel technology. You recently mentioned some new diesel vehicles introduced in the U.S. this year. How will the breakthrough of diesel alter any of Delphi’s plans for product introduction?
A: In the short term, diesel technology can really help address both dependence on foreign oil and emissions, because they can deliver up to 40 percent better fuel economy than gasoline and can reduce emissions by about 20 percent – without sacrificing power and performance. When you consider how quickly Europe adapted diesel technology – more than 50 percent of sales in the six or seven years since common rail was introduced – you wonder why this can’t be duplicated in North America. Obviously, our perception of diesel technology coupled with the significant premiums historically placed on diesel fuel has made it hard for us to adapt that technology. The dichotomy is that diesel technology is extremely friendly for the North American market, from the proven reliability to the fact that it is well-suited to the North American-style of highway driving and high-torque loads. We just need to take advantage of it! As qualification for federal tax credits increases, new clean diesel vehicles make it onto the roads, and the gap in price per gallon compared to regular fuel continues to close, North American consumers will become more interested.
From an OE product introduction perspective, Delphi has a strong presence with diesel technology in the market, due to our experience with diesel in Europe. Delphi has the second largest share of common rail technology in Europe. We are prepared to follow the technology as it migrates around the world, and also introduce and serve the aftermarket as required.
The introduction of new diesel fuel injection technology – such as common rail – has also brought with it the need for a new approach to diesel diagnostics and test equipment. In North America, one of the biggest adjustments will need to be the development of and responsibility for what we call the “hub and spoke” concept for diagnosis and repair. In the future, some shops – the spokes – won’t have the capital or capacity to service every new technology, and the need for specialists – the hubs – will emerge. Specialists will need to make a significant investment in sophisticated diesel service equipment, while shops invest a smaller amount in diagnostic equipment and interact with customers.
Delphi has already met these challenges head on in Europe with a comprehensive, state-of-the-art test equipment range. It’s important that independent repairers establish and take ownership of building strong relationships with hub specialists, so that they can seamlessly leverage them while maintaining transparency to consumer. Customers want to trust that shops will be able get their vehicles fixed no matter what the problem is, because the dealers are ready to do it.
Q: Are there any other alternative technologies we should be on the lookout for in this industry?
A: Right now, green is top of mind, especially for the new administration in the U.S. Tighter regulations of carbon dioxide emissions and fuel-efficiency regulations are imminent, which is putting manufacturers under intense pressure to make green a reality on the showroom floor. And despite all of the recent achievements in powertrain technology, there is no “one size fits all” solution, which means we’ll be seeing a variety technologies showing up in the aftermarket.
Aside from diesel, certainly CNG (compressed natural gas) will gain popularity since it is a cheaper, cleaner-burning fuel than standard gasoline that can achieve up to 90 percent in emissions reduction and 40 percent less cost than gasoline vehicles. It is also available in U.S. The technology is not new, but the proper infrastructure is necessary to support its widespread use here. More than 70 percent of U.S. homes have access to natural gas, and with a simple compressor unit installed in the garage, drivers could refuel overnight.
And although North American consumers haven’t fully committed to hybrid electric vehicle technology, it’s clear that this technology is going to play a role in the near to mid-term future. It is expected that by 2015, hybrids will comprise 8 percent of the U.S. vehicle market. Hybrids have brought a new frontier for green automotive technology, offering a wide range of technologies with an equally wide range of fuel economy savings. Recent dips in gas prices may have recently dampened demand, but vehicle manufacturers are making the investment in this technology. In fact, the displays at the Detroit Auto Show last month prove that the era of “electrification” has fully arrived. Look for this technology to develop quickly in terms of efficiency, size, customer interface and infrastructure.
Also from a green perspective, with hybrids we will need to solve the “coal equation” for the electric power plants. To some extent, if we don’t have alternative energy sources for power plants, we are shifting fossil fuels from petroleum to gas!
Finally, we really cannot lose track of the gas engine. This technology has served us well for more than 100 years, and the continued development of gas engines is a huge part of the short-term equation. The new frontier in gas engines is GDI – gasoline direct injection – which is very similar to diesel common rail. Delphi is currently working on GDI programs in various regions of the world. Almost every manufacturer is developing or deploying this technology as we speak. And when you couple turbochargers with GDI you get even more efficiency.
From an aftermarket perspective, consider all the new green technology content we will be dealing with and the great new opportunities they present for us. Each and every one of these green technologies brings opportunities to the aftermarket for diagnosis and repair, if we are prepared. For example, Delphi’s “Introduction to Hybrid Electric Vehicles,” training class was developed as a collaboration between our OE engineers and our aftermarket service specialists. It prepares diagnosticians with information they must know before attempting maintenance or diagnostics on hybrid vehicles. The course also shows that not all hybrids are created equal and provides information on various systems – Parallel, Series Parallel, Belt Alternator Starter and Plug-In. We want independent shops to know that they can be competitive with service, diagnostics and repair of these high-tech vehicles.
There is a good future in the automotive industry for individuals engaged in the pursuit of automotive degrees, including Bachelors degrees in automotive management.
Q: Counterfeiting has forced a number of companies to put even more resources into protecting their brands. How much effort does Delphi put into brand protection? Has counterfeiting become more or less of a problem than in years past?
A: Counterfeiting not only hurts the manufacturer’s reputation but also the reputation of the entire value chain. Therefore, Delphi has established a very active Global Anti-Counterfeiting Council that follows up on counterfeiting complaints, proactively pursues counterfeiters in show environments, and leverages existing alliances and industry committees to support the strengthening of anti-counterfeiting legislation. One of our greatest challenges is the length of time it takes to work through a counterfeiting case. However, we are proactively leveraging industry best practices in an effort to streamline the process as much as possible for more efficient results.
The aftermarket has put together a comprehensive report on telematics and some ideas already have been presented to secure business for the independent repairer in the face of telematics. What will it take, in your opinion, for the aftermarket to survive the telematics evolution?
Telematics is one of the most important issues facing the aftermarket today. Telematics plays a key role in data collection, analysis and service execution, which will be a competitive advantage—a “must have”—for the future success of our industry.
It may be surprising, but the biggest obstacle for telematics is not the technology. The hardware and software for telematics already exists! I see three big challenges with telematics.
First, “What is the business model going to be?” As an industry, we need to develop a robust plan that determines where to direct the signal. Currently, the signal goes to the dealership, so no matter where you are in the country, you will be directed to their network. The dealerships benefit from that because they have a coherent strategy.
Second, the business model must be comprehensive, offering a breadth of services with their telematics systems. For today’s educated consumers, diagnostics alone will simply not be enough. They are expecting an all-inclusive system, from diagnostics to entertainment to communications to concierge services.
Third, the system must be passive. Consumers today are pre-programmed to expect the product tell them what is wrong, just like their PCs at home.
In essence, the challenge with telematics is that it transcends the aftermarket industry and requires associations and agreements with other industries. It also requires a very high level of collaboration amongst the various service providers to make it compelling to the consumer. Telematics will be in the aftermarket. In fact, the subject is receiving a lot of attention at the industry level, such as with AAIA.
Q: Do you think that at some point the aftermarket will have to work with OEMs to better serve the telematics market? If not, what strategies will aftermarket manufacturers and repairers need to employ?
A: I think the potential exists for collaboration. If we accept the fact that 70 percent of vehicles are repaired in the aftermarket, it is in the ultimate best interest of the entire industry – both OE and IAM – to make sure our consumer is satisfied no matter what the age of the vehicle. From a consumer perspective, we could be doubling the content of the vehicle just to do telematics—once for OE and once for the aftermarket. Ultimately, the question is whether that is the most efficient use of the consumer’s dollar and good will.
Q: As an extension of the previous question, how do you see the relationship between OEMs and the aftermarket changing in upcoming years? Will they need to work together more? Or work together less?
A: Since the vehicle electronics content on an average vehicle will only continue to increase, ideally OEMs would work with the aftermarket as the “True Value” of the vehicle is judged not by the first two or three years but by 10 years or more. On one hand, some OEMs are actively engaged in working with suppliers and aftermarket companies to help minimize risks while maximizing the potential on servicing the “end customer” through telematics or sharing information. On the other hand, some OEMs will continue moving in their own direction, forcing the aftermarket to develop its own solutions for customers. But as stated above, neither the OEs nor the independent aftermarket can address 100 percent of the consumers, and this alone should start to bring us together.
With the state of the entire industry in turmoil, this is an excellent time to reach out to the OEs to better understand the value add of one another for the benefit of the consumer. Associations like AAIA, MEMA, AASA, OESA, NAM and others are good places to begin the dialogue with OEs.
Q: In your experience, and from speaking with customers, do you feel that independent technicians are getting the OEM repair information they require to be successful? Why or why not?
A: There are varying degrees of opinion on the subject of information sharing. We believe there is a lot of information sharing going on, but there is also dissatisfaction with the wide disparity of information shared and the cost of that information. Whether the issues are real or perceived doesn’t really matter. As we progress, this issue has to be brought to conclusion so we can focus on the underlying issue at hand, which is training.
We all must have a strong commitment to vehicle electronics training and education if we want to secure the future of the aftermarket. The vehicle electronics revolution has created a shift in the required base training for technicians. Starting in the classroom, future technicians must be able to understand the basic theories of vehicle electronics and how they work together. For example, in addition to knowing techniques for friction and cooling service, technicians will need to be literate in computers, electronics and fluid mechanics.
We can no longer say, “I’ll wait for it when it comes.” As an industry, we have to get ourselves prepared and bring the technology to our customers.
Q: How important is training to your employees and your customers? How does Delphi address technical and product training in the marketplace?
A: Delphi is committed to the training education of technicians and service writers, helping them learn how vehicle systems work, and how to effectively test and diagnose them.
We all must have a strong commitment to vehicle electronics training and education if we want to secure the future of the aftermarket. The vehicle electronics revolution has created a shift in the required base training for technicians. Starting in the classroom, future technicians must be able to understand the basic theories of vehicle electronics and how they work together. For example, in addition to knowing techniques for friction and cooling service, technicians will need to be literate in computers, electronics and fluid mechanics.
We can no longer say, “I’ll wait for it when it comes.” As an industry, we have to get ourselves prepared and bring the technology to our customers.
As a manufacturer, we are also committed to working closely with industry groups and WDs, to support training efforts for the aftermarket as a whole. While we can provide training content for technologies that we are developing with vehicle manufacturers, we know that WDs are closely tied to the promotion, support and guidance of education for stores, shops and future technicians. They can help secure the expertise necessary for the future success of our industry.
Our training portfolio features a variety of courses, including instructor-led, hands-on, self-study programs, CD-based, and online training, in order to give technicians flexibility when choosing their training.
It’s crucial that we offer technicians a wide breadth of current information, which is why this year Delphi is introducing more than a dozen new or updated courses that were developed in response to the demand for OE-level training. Many courses focus on new technology and advanced vehicle systems diagnostics, such as GDI.
A: Counterfeiting not only hurts the manufacturer’s reputation but also the reputation of the entire value chain. Therefore, Delphi has established a very active Global Anti-Counterfeiting Council that follows up on counterfeiting complaints, proactively pursues counterfeiters in show environments, and leverages existing alliances and industry committees to support the strengthening of anti-counterfeiting legislation. One of our greatest challenges is the length of time it takes to work through a counterfeiting case. However, we are proactively leveraging industry best practices in an effort to streamline the process as much as possible for more efficient results.
The aftermarket has put together a comprehensive report on telematics and some ideas already have been presented to secure business for the independent repairer in the face of telematics. What will it take, in your opinion, for the aftermarket to survive the telematics evolution?
Telematics is one of the most important issues facing the aftermarket today. Telematics plays a key role in data collection, analysis and service execution, which will be a competitive advantage—a “must have”—for the future success of our industry.
It may be surprising, but the biggest obstacle for telematics is not the technology. The hardware and software for telematics already exists! I see three big challenges with telematics.
First, “What is the business model going to be?” As an industry, we need to develop a robust plan that determines where to direct the signal. Currently, the signal goes to the dealership, so no matter where you are in the country, you will be directed to their network. The dealerships benefit from that because they have a coherent strategy.
Second, the business model must be comprehensive, offering a breadth of services with their telematics systems. For today’s educated consumers, diagnostics alone will simply not be enough. They are expecting an all-inclusive system, from diagnostics to entertainment to communications to concierge services.
Third, the system must be passive. Consumers today are pre-programmed to expect the product tell them what is wrong, just like their PCs at home.
In essence, the challenge with telematics is that it transcends the aftermarket industry and requires associations and agreements with other industries. It also requires a very high level of collaboration amongst the various service providers to make it compelling to the consumer. Telematics will be in the aftermarket. In fact, the subject is receiving a lot of attention at the industry level, such as with AAIA.
Q: Do you think that at some point the aftermarket will have to work with OEMs to better serve the telematics market? If not, what strategies will aftermarket manufacturers and repairers need to employ?
A: I think the potential exists for collaboration. If we accept the fact that 70 percent of vehicles are repaired in the aftermarket, it is in the ultimate best interest of the entire industry – both OE and IAM – to make sure our consumer is satisfied no matter what the age of the vehicle. From a consumer perspective, we could be doubling the content of the vehicle just to do telematics—once for OE and once for the aftermarket. Ultimately, the question is whether that is the most efficient use of the consumer’s dollar and good will.
Q: As an extension of the previous question, how do you see the relationship between OEMs and the aftermarket changing in upcoming years? Will they need to work together more? Or work together less?
A: Since the vehicle electronics content on an average vehicle will only continue to increase, ideally OEMs would work with the aftermarket as the “True Value” of the vehicle is judged not by the first two or three years but by 10 years or more. On one hand, some OEMs are actively engaged in working with suppliers and aftermarket companies to help minimize risks while maximizing the potential on servicing the “end customer” through telematics or sharing information. On the other hand, some OEMs will continue moving in their own direction, forcing the aftermarket to develop its own solutions for customers. But as stated above, neither the OEs nor the independent aftermarket can address 100 percent of the consumers, and this alone should start to bring us together.
With the state of the entire industry in turmoil, this is an excellent time to reach out to the OEs to better understand the value add of one another for the benefit of the consumer. Associations like AAIA, MEMA, AASA, OESA, NAM and others are good places to begin the dialogue with OEs.
Q: In your experience, and from speaking with customers, do you feel that independent technicians are getting the OEM repair information they require to be successful? Why or why not?
A: There are varying degrees of opinion on the subject of information sharing. We believe there is a lot of information sharing going on, but there is also dissatisfaction with the wide disparity of information shared and the cost of that information. Whether the issues are real or perceived doesn’t really matter. As we progress, this issue has to be brought to conclusion so we can focus on the underlying issue at hand, which is training.
We all must have a strong commitment to vehicle electronics training and education if we want to secure the future of the aftermarket. The vehicle electronics revolution has created a shift in the required base training for technicians. Starting in the classroom, future technicians must be able to understand the basic theories of vehicle electronics and how they work together. For example, in addition to knowing techniques for friction and cooling service, technicians will need to be literate in computers, electronics and fluid mechanics.
We can no longer say, “I’ll wait for it when it comes.” As an industry, we have to get ourselves prepared and bring the technology to our customers.
Q: How important is training to your employees and your customers? How does Delphi address technical and product training in the marketplace?
A: Delphi is committed to the training education of technicians and service writers, helping them learn how vehicle systems work, and how to effectively test and diagnose them.
We all must have a strong commitment to vehicle electronics training and education if we want to secure the future of the aftermarket. The vehicle electronics revolution has created a shift in the required base training for technicians. Starting in the classroom, future technicians must be able to understand the basic theories of vehicle electronics and how they work together. For example, in addition to knowing techniques for friction and cooling service, technicians will need to be literate in computers, electronics and fluid mechanics.
We can no longer say, “I’ll wait for it when it comes.” As an industry, we have to get ourselves prepared and bring the technology to our customers.
As a manufacturer, we are also committed to working closely with industry groups and WDs, to support training efforts for the aftermarket as a whole. While we can provide training content for technologies that we are developing with vehicle manufacturers, we know that WDs are closely tied to the promotion, support and guidance of education for stores, shops and future technicians. They can help secure the expertise necessary for the future success of our industry.
Our training portfolio features a variety of courses, including instructor-led, hands-on, self-study programs, CD-based, and online training, in order to give technicians flexibility when choosing their training.
It’s crucial that we offer technicians a wide breadth of current information, which is why this year Delphi is introducing more than a dozen new or updated courses that were developed in response to the demand for OE-level training. Many courses focus on new technology and advanced vehicle systems diagnostics, such as GDI.
Delphi’s “Introduction to Hybrid Electric Vehicles,” was developed as a collaboration between our OE engineers and our aftermarket service specialists. It prepares diagnosticians with information they must know before attempting maintenance or diagnostics on hybrid vehicles. The course also shows that not all hybrids are created equal and provides information on various systems – Parallel, Series Parallel, Belt Alternator Starter and Plug-In. We want independent shops to know that they can be competitive with service, diagnostics and repair of these high-tech vehicles.
Delphi is also introducing a new training course targeted to the new family of diesel vehicles equipped with Common Rail Direct Injection. Through this training portfolio, Delphi is helping to keep technicians current.
Q: How do you see the aftermarket changing over the next five years?
A: In the next five years, the market will be much more dynamic. The vehicle electronics revolution will be close to the sweet spot for the aftermarket, with the need for more specialization by technology. That is why there must be significant commitment to vehicle electronics training. Now is the time to prepare current and future technicians for the complex vehicle electronics systems that will be rolling into their bays in five years.
Challenges will become more transparent as you go from manufacturers to WDs to Jobbers or Parts Stores to Technicians, and information will need to be shared even faster through the value stream – both ways. Hopefully, industry associations will have helped guide us to a more coherent industry, in terms of standards, telematics, etc. And from a consumer perspective, demands on the aftermarket will be extraordinary, with a high level of understanding of the vehicle being necessary to diagnose and service telematics systems.
And our vision of OE and IAM collaboration will be important, as we continue to understand that there is room for both. The reality is that the market is segmented 70/30, and consumers will rely on both the OEs and the independent aftermarket to keep their vehicles on the road. We must keep our eye on the ultimate consumer and realize that the consumer belongs to both the dealers and the independent shops.
Another big change that we see coming in the next several years is the growth of the concept of collaboration in the aftermarket. As I mentioned before, the “hub and spoke” specialist concept is going to become increasingly important for independent shops and will require a higher degree of collaboration.
Q: How does Delphi maintain loyalty from its customers in the face of private labels and off-shore supplied parts?
A: Delphi understands the importance of developing and cultivating our relationship with our customers and consumers. We maintain loyalty from our customers by staying true to our value proposition, which is to provide OE quality parts and technology to the aftermarket. And when consumers get their vehicles repaired, they expect the highest quality OE parts in their vehicles. Delphi’s goal is to stay true to our promise to provide just that.
We don’t rest on our laurels, so we never take our customers for granted. For example, one way we are continuing to build customer loyalty is through our 2009 national technician promotion called Destination: Victory Lane. Through this promotion, technicians have the opportunity to win exclusive prizes, such as grand prize trips for their family to motorsports events like the Daytona 500, NHRA Finals, or Indy 500, weekly prizes and instant-win prizes. But it’s also much, much more than that.
Our new promotion Web site (www.delphi.com/victorylane) provides technicians with valuable information on Delphi’s products. The site is constantly being updated and gives technicians access to product information, repair tips, and some fun, behind-the-scenes motorsports extras. By providing technicians with information they can’t get anywhere else, we’re able to solidify our relationship with our customer base, and hopefully attract new customers, too.
Q: Our industry is struggling with collaboration on a number of fronts, most notably, data standards. What is Delphi’s present position with regard to data standards, and where do you think this effort will end up for the aftermarket?
A: Delphi is a strong supporter of the need for industry data standards. Industry standards improve channel operational efficiencies and provide trading partners with information to produce and stock the right product in the right place at the right time. Today Delphi provides data to our customers in the format they require for their internal E-catalog system. We recognize the need to communicate to our trading partners with up-to-date data, and one standard format would increase process speed and accuracy for manufacturers and distributors. Once all trading partners adopt the standards, part information will easily flow through all trading channels reducing errors in part information and delays in getting the part to the street. There is no question that if the industry were to collaborate to a level where one standard could be used, it would reduce costs for all channel partners.
Q: What new Delphi products (or types of products) can the industry expect on the horizon?
A: The vehicle electronics revolution has placed the industry at a crossroads. Obviously, what Delphi is bringing today – and what we will continue to bring in the future – are vehicle electronics related products. Consumer demands are shaping the next wave of automotive advancements, so our industry must be prepared to respond to consumers’ desires to be safe, green and connected.
For example, Delphi recently integrated the hybrid system controller, inverter converter (a key electronic device in the hybrid electric vehicle) and battery system into one module that typically fits behind the rear seat. This unique drop-in micro-hybrid start/stop system is a self-contained drive system that operates over a wide range of voltages and power levels.
And look for Delphi to be very active in the telematics arena. We already have telematics technology that provides wireless communication, route assistance, hands-free telephone, remote diagnostics, communication infrastructure for emergency assistance messaging, and remote asset tracking, monitoring and control. Consumers will be able to use telematics to have repairs done at the shop of their choice.
These new technologies will bring opportunity to the aftermarket in terms of diagnosis, service and repair. For example, hybrid vehicles incorporate an abundance of complex power electronics, controls and specialized subsystems. The components are robust, but like any system, there are nuances. High-voltage components can overheat, affecting drivability or disabling hybrid availability. Causes can be as simple as a vehicle owner inadvertently blocking the rear-intake vent for the battery, which may trigger a check engine light or diagnostic code. Diagnostic capability and the ability to update software in the controls will be a key success factor for future service professionals. Also, remanufacturing of components such as electric propulsion motors and other specialty sub-systems provide green and cost-effective service parts. Battery remanufacturing, refurbishing or reclamation will become a huge business as the vehicle parc ages.
And vehicle manufacturers are constantly updating software calibrations to improve vehicle performance, making it important for technicians to check for reflash opportunities – reprogramming functions that update software in the vehicle’s ECM/PCM. Delphi’s Universal Reflash Tool helps technicians and service writers provide reflashing capabilities to their customers so that their shops don’t miss a huge opportunity for revenue!
These complex systems are happening now, and the aftermarket can be a part of it! Servicing these technologies will require increased training in vehicle electronics and expert knowledge about how these systems are integrated into the vehicle. Delphi's combined, comprehensive suite of training and support, productivity tools, workshop solutions and parts helps shops identify needed services; helps technicians quickly locate current, accurate vehicle information; and helps shops stay connected to the latest OE vehicle advances for precise repairs.
Q: You've worked in many different facets of the automotive industry. What do you think has been your biggest challenge? How about your greatest accomplishment?
A: I have had the privilege of being in the OE equipment business for more than 30 years, beginning with my time at Cadillac. I truly enjoy cars and being part of the business. Early on, one of my most memorable experiences was being part of a brand new assembly start-up in northern Spain (Zaragoza), where we went from sheep to cars!
But I believe the biggest challenge in my career is the environment that our industry is facing right now. We have never been faced with managing the business in such a rapidly declining economic climate. This experience has definitely taught us more about the complete business model of the U.S. automotive industry and how it needs to work in order to continue to be viable.
Launching Delphi’s aftermarket division has been an incredible challenge, but also a significant accomplishment. It is never an easy task to create a new organization, especially in an organization that historically was not oriented to the aftermarket. Our goal was to make a difference in the aftermarket, and I believe we are doing just that with the vehicle electronics revolution message. As an OE supplier our engineers are developing OE technologies that will be launched by automakers in the future, while the aftermarket is focused on technology for vehicles that have reached maturity in the market. Our role is to help close that gap. Ultimately, vehicle owners are counting on the entire aftermarket – Manufacturers, WDs, Jobbers or Parts, Stores and Technicians – to bring all of the innovations of new vehicle electronics systems to the real world. I have personally seen this industry adapt to new changes, and this shift from mechanical to electronics is no different. I believe that as an industry we have the ability to not only succeed, but thrive, which would be an incredible accomplishment for the aftermarket overall.
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