ADI Newsletter January 2017 (GB)

news w w w.a d - europ e.com

Responsible editor: Autodistribution International, Kortenberg, Belgium

Edition: 01/2017

Welcome AD Adria

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in this issue Editorial by Thomas Vollmar, ADI President

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AD goes AD ADRIA

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Figiefa Press Release on telematics

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Technical corner at www.eurecar.org

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1Parts Delegation in Europe

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AD Bulgaria: A company in action

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AD Buzz for Breakfast @ Automechanika

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AD Central Asia: Conference 2016

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Dear business partners, colleagues, and friends,

alone results in quick penetration. Now we know that vehicles in Europe are becoming older and that the average age is nearly 10 We want to kick off the suspenseful new year years. According to a study, the percentage 2017 with this newsletter and, for the first of electric vehicles among new registrations time, break with a long tradition by informing will increase slowly from less than 1% Thomas Vollmar - ADI President you of the current developments in our group today by 5% each year as of 2018 and will after the Christmas Season. However, even be greater than 50% in some countries by as I write these lines, I am aware that we cannot do justice to the 2025. However, since new registrations make up less than 7% of the dynamic changes in our market even with this action. We can either total number of vehicles on the road, internal combustion engines will sit back and complain about this or position ourselves as a group with still be the dominating drive technology on European roads in 2030. forward-looking orientation to use this change as a true opportunity. The same goes for the telematic developments involving E-Call and The basic conditions that could influence our business are associated S-Call, which, in the end will first have to be demanded and used by with an unusual number of question marks this year. We are informed car owners. Here we need to ensure that we do not become hysterical of all possible scenarios in the political landscape by the media and are and make decisions at the wrong time in the wrong direction. It is preparing for very difficult global political constellations in most cases. much more important for us to support the efforts of FIGIEFA at the How will the USA develop under Trump? Who will win the elections in political level to gain free access to an inter-operable, standardized France and Germany? Who will govern Italy? What will become of the and secure data platform, and establish, on that basis, the different Brexit? What is happening in the Netherlands? Will the EU break apart? business models for the individual interest groups. Here as well, one How long will Mr. Draghi’s monetary funds continue to flow? Each of currently gets the impression that speed is more important than these questions implies a very negative answer and at the bottom line thoroughness, which, given the existing complexity, can cost a great anxiety is increasing, resulting in a self-fulfilling prophecy. Now it is an deal of money. The fact is that ACEA and CLEPA have agreed on the old piece of wisdom, that an economy, whether European or national, so-called “Extended Vehicle” or the “Off Board Facility” model which can choke on its own fear. In this situation we would certainly do well means that all interest groups will have to obtain their data at costs to find the positive aspects to focus on. For in our branch as well, fears unknown today and to an unknown extent from servers provided are becoming widespread, because all kinds of so-called experts are by the vehicle manufacturers, which, naturally, does not represent a expounding outrageous prophecies denying any perspectives for competitively neutral situation – on the contrary! This would result in parts trade and workshops. Electromobility, car sharing, telematics, an intolerable dependency on the vehicle manufacturers, which must connected drive and full digitization may, at first glance, actually be be prevented by European legislation at all costs. The current situation new challenges, however they are only part of a process that will in Brussels is described precisely in this publication in contributions by unfold over a period of 10 to 15 years and can also certainly be positive Sylvia Gotzen and Neil Pattemore. with the right approach. Every development requires an infrastructure to succeed on the market. This infrastructure can be promoted by the Regardless of these attempts by the motor vehicle industry to government or the economic forces may be so strong that demand seal themselves off, it is essential for ADI to ensure that the sales

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structures remain stable and planable in the long term. This can be best accomplished by further expansion of the established services and strategically controlled growth in defined target markets. Decisive steps have already been made in this direction last year, showing that the continuing process of concentration can also be used as an opportunity. The takeover of Doyen by AD FRANCE is an important step for further coverage of the entire area, which will provide enormous synergistic effects in coordination with our partner PartsPoint/AD BENELUX and continue to strengthen ADI as a group. In Denmark we can also look back on very successful development in 2016. At our summit in Mechelen, we retroactively confirmed the entry of the T. Hansen Group on 1 January 2016, a company that by the end of 2016 has already reported takeover of the Danish Mekenomen locations. We congratulate you! We can also announce another addition to our group on 1 January 2017 – the CIAK Group joined ADI as AD ADRIA with locations in Croatia, Bosnia-Herzegovina, Serbia and Slovenia making it the 24th member of our group. We are very pleased to have found a strong partner for this region. Another heavy weight was also added to the ADI core suppliers. MAHLE is a powerful original equipment manufacturer, who will enrich our business in many regions.

aspects of IAM in Germany, France, Spain and Finland to the 1Parts delegation and share ideas. This exchange is becoming increasingly intensive and, in addition to regular telephone conferences, we are also having personal meetings, for example in Miami or at our next ADI Summit in 2017. And, by the way, this will again be held in the new, compact format on the 19th and 20th of April 2017 in the Hilton Hotel in Antwerp!

Things remain exciting and, seen under a positive sign, the current year will certainly provide us a great deal of pleasure. In this spirit I wish each and every one of you, dear business partners, colleagues and friends from the bottom of my heart a prosperous and successful year in 2017 as well as health and personal satisfaction.

Yours faithfully, Thomas Vollmar President of ADI

Together with our partners in North America and Mexico, we can also look back on very good development under the roof of our strong 1Parts in opening up the market and networking with strong brands.

After our 1Parts completed a growth agreement in 2015 with the industrial companies Gates, KYB, Mann, Philips, Schaeffler and TRW, the companies Denso, Remy, Exide and Valeo also joined our exclusive Atlantic alliance in 2016. Since 1 January 2017, ZF and Tenneco have also been added and we are presently negotiating with three other automotive suppliers, so that by the end of 2017, we can continue our global course of expansion with a total of 15 selected supplier partners. The last Automechanika Exhibition in Frankfurt was again a good platform for laying corner stones for individual negotiations.

Simultaneously, it was an opportunity for ADI to present the various

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AD goes ADRIA To most people, Croatia is a well known tourist destination with a beautiful seaside. But, from January 1st it is also known to spare parts professionals around the world, thanks to the entrance of the CIAK Group into ADI.

In 2015 CIAK went over 700 employees and 85 million EUR turnover, out of which 50 million EUR was made in the automotive segment while the rest is based in the „Ecology sector“, where CIAK plays a key role in management of hazardous waste. „A good foundation for future growth has been made in the last few years“, is a sentence well received, coming from the CIAK group owner Mr. Ivan Leko. „As a spare parts distributor, our goal is Croatia today has around 4.5 million inhabitants and a to offer the best possible service to all customer levels, car park of 1.45 million passenger cars aged in average operating both B2B and B2C, in all the countries where 12,8 years. AD Adria is represented in Croatia through we are natively present. And by joining the ADI family, the CIAK Group, with companies CIAK, CIAK Auto, CIAK we believe we can leverage on the know-how and inTruck and Grioss as new members of AD Adria. struments provided to us.“, reports Mr. Leko. „Tools and knowledge that the ADI family offers, including the AD CIAK Group was founded in 1994. and is headquartered Garage service concept, knowledge base, experience in Zagreb, Croatia. The group is currently present with from other successful distributors, etc., is something distribution of spare parts for passenger cars in Croatia that is vital for our future strong growth. We are glad to through an integrated network of 46 own shops, as well have found an organisation which is perfectly aligned as 9 own workshops. With innovative IT solutions, large fleet of owned vehicles which are always on the clock, a highly performing central warehouse and a large sales team, CIAK Auto is everywhere and growing fast. When it comes to the CV programme, the group is present in Croatia with 9 business units, in Bosnia and Herzegovina with 3 business units and in Slovenia with 1 business unit. Apart from spare parts distribution, the group is also present in Serbia, Slovenia and Bosnia and Herzegovina for over a decade through its companies CIAK Serbia, CIAK Slovenia and CIAK Sarajevo. Currently the main business line for those companies is wholesale of batteries, lubricants and car accessories, with developments in PC and CV parts distribution to come in the following years.

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Croatia (HR) Capital: Zagreb Country size (km²): 56.594 Inhabitants: 4.464.844 Pop /Km²: 78,89 Car Park (PC): 1.448.299 Pers / PC: 3,08 Bosnia & Herzegovina (BA) Capital: Sarajevo Country size (km²): 51.197 Inhabitants: 3.867.055 Pop /Km²: 75,53 Car Park (PC): 890.000 Pers / PC: 4,35 Serbia (RS) Capital: Belgrade Country size (km²): 77.474 Inhabitants: 7.176.794 Pop /Km²: 92,63 Car Park (PC): 1.770.000 Pers / PC: 4,05 with our way of doing business, and we have the ambition of becoming the first distributor of PC and CV parts that covers our whole region“.

Slovenia (SI) Capital: Ljubljana Country size (km²): 20.273 Inhabitants: 1.983.412 Pop /Km²: 97,84 Car Park (PC): 1.063.795 Pers / PC: 1,86 Eure!Car, innovative IT services and the introduction of the AD Garage service concept are some of the many tools that AD Adria plans to use to become spare parts distributor no1 in the region by 2020, and with the support of the ADI central office as well as the whole ADI family, we are confident that AD Adria will play a key role in the SE Europe.

Central Warehouse

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Insurance, dealers, automotive aftermarket, leasing and consumers coalition says:

ACEA/CLEPA position on access to vehicle data jeopardises competition, innovation and consumer choice A broad Industry coalition of Europe’s motor trade, vehicle servicing and repair, garage and test equipment manufacturing, parts distribution, repair data publishers, mobility clubs, leasing and rental as well as the insurance industry together with Motorist Consumer Organisations, reiterated their support for an ‘in-vehicle interoperable, standardised, secure and open-access platform’.

The stakeholder coalition refutes the latest ACEA-CLEPA proposal to essentially close direct connections to the vehicle, and to route all communication and data access in the future through the vehicle manufacturer’s external proprietary server.

Brussels, 9 December 2016. The undersigned are united in their concern that consumers’ interest are not being placed at the centre of discussions around the possible technical solutions to access in- vehicle data. In addition to undermining free consumer choice, the solution promoted by some stakeholders would also undermine competition, innovation and independent entrepreneurship.

European parts suppliers and vehicle manufacturers recently presented a common technical architecture to access in-vehicle data. This approach would channel all future communication and data access through the vehicle manufacturer’s proprietary server. Only part of the data generated would then be sent to a ‘neutral server’ and be accessible for independent operators. This solution – which would be based on the Extended Vehicle – would not allow direct communication with the vehicle and still grants vehicle manufacturers full control to de6

cide how, when and to whom (mainly aggregated) data access will be granted.

Our broad industry coalition believes this solution undermines vehicle owners’ right to decide who they share their data with and for what purposes. We also consider this to be a serious threat to competition, innovation and consumer choice in the digital era. Today, vehicle manufacturers and their partner suppliers now compete on the market for a wide range of vehicle-related services and products (e.g. financial, leasing, insurances, diagnostics, replacement parts etc.) that are increasingly reliant on real time in-vehicle data. In this new digital age, it is not sufficient to only have direct access to the in- vehicle data only through an interoperable physical interface - a digital communication lifeline is also needed.

Ensuring safety and security is crucial for the deployment of connected vehicles and we believe that an ‘in-vehicle interoperable, standardised, secure and openaccess platform’ is the right way forward. This solution would ensure the same high level of safety, security, liability and data protection as the vehicle manufacturers’ solution, whilst safeguarding competition, innovation and consumer choice. It could be based on the existing vehicle manufacturers’ telematics systems and use the highest possible security standards. Many manufacturers allow chosen partners to operate their own systems and applications in their vehicles today, thus showing

that safe and secure direct access is possible without interfering with the vehicle’s functions.

The undersigned call upon the European Institutions to create a robust regulatory framework for an interoperable, standardised, secure and safe digital in-vehicle telematics platform as intended by the eCall Mandate, to maintain true consumer choice, independent entrepreneurship, competition and innovation for all services “around the car”.

The undersigned Associations: ADPA (European Independent Data Publishers Association), Laurence Eeckhout, EU Affairs Manager, laurence.eeckhout@adpa.eu – tel: +32 2 761 95 16/ CECRA (European Council for Motor Trades and Repairs), Bernard Lycke, Director General, Bernard.lycke@cecra.eu , tel: +32 2 771 96 56 / EGEA(European Garage and Test Equipment Association), Eléonore van Haute, Secretary General, Eleonore.vanhaute@egea-association. eu, tel: +32 2 761 95 15 / FIA (Fédération Internationale de l’Automobile), Laurianne Krid, Policy Director, lkrid@fia.com , tel: +32 2 282 08 18 / FIGIEFA (Automotive Aftermarket Distributors), Sylvia Gotzen, Chief Executive, Sylvia.gotzen@figiefa.eu, tel: +32 2 761 95 10 / Insurance Europe (European insurance and reinsurance federation), Thomas Gelin, Policy Advisor, Tel: +32 2 894 30 48, Gelin@insuranceeurope.eu / Leaseurope (European Federation of Leasing Company Associations), Richard Knubben, Director, r.knubben@leaseurope.com , tel: +32 2 778 05 68.

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w w w . e u r e c a r . o r g : source for information

trainings

Providing technical support has been amongst the first priorities of AD International and its entire wholesale distributor’s network for nearly a decade. EureCar, ADI’s training program, contains more than 1500 trainings and trains annually more than 20 000 professional repairers in more than 10 countries.

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technical

Corner.

The English version of the website is operational and can be viewed under www.eurecar.org. Additional languages will be added in the next few months.

EureTechFlash (ADI’s technical bulletin) provides up-todate technical insight in automotive innovations and Details on EureCar, the participating countries, the train- technology to 10s of thousands of mechanics throughings and the supporting partners from the components out Europe in 15 languages.

The 4 editions for 2017 - lubricants, electric and hybrid industry, can be found on www.eurecar.org.

The overhauled EureCar website (www.eurecar.org) now technology, power transmission and engine downsizing presents a new feature called “Technical corner”. Under trends – will be an excellent motivator for mechanics to Technical Corner, mechanics will find reliable training keep pace with technology and invest in their technical content from different sources on the internet such as education. computer animated explanations of new technologies, mounting and dismounting guidelines, common failure lists (and solutions), etc. The ADI contract suppliers are one of the main sources for the content of the Technical

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1Parts delegation in Europe With the aim to have a good flavour of how ADI-Partners are functioning in the European parts distribution, a competent Pronto- and Federated delegation (both management and distributors) visited a number ADI Partner countries just before the Automechanika 2016.

Central Warehouse of Carat in Castrop-Rauxel

The tour started on Wednesday Sept. 7th in Germany with a visit to the CARAT Central warehouse in CastropRauxel in presence of ADI-President and CARAT General Manager Thomas Vollmar and Christian Gabler, who gave full presentations on CARAT and its role in the German aftermarket. A late evening flight brought the group to HELSINKI on that same day.

Finland: The delegation was hosted by Eero Broman

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In Helsinki the full American delegation was hosted by Eero Bromann and Antti Valtavaara and guided through the 33 000 m² BG warehouse in Hyvinkää after being presented the Finnish market approach. With the visits to AD Hessumobiili in Klaukkala, a Motonet outlet in Espoo and a number of repair shops, participants were able to fully picture AD Finland’s success. Another late evening flight moved the delegation from the North of Europe all the way South: destination Barcelona.

On Friday Sept. 9th the delegation was received at AD PARTS and AD Bosch (wholesale distributor, member of AD Parts), both in Gerona. It was time for AD Parts President Josep BOSCH and his team Juan Carlos Martin and Joan Reixach to present their market and organization, very different from what the delegation had been seeing so far, but nevertheless another successful and truly interesting business case. Also the meeting at AD Technical Centre (both sites, Figueres & Badalona) left the participants deeply impressed. Focus was laid here on how training and technical assistance is supporting the parts distribution and sales model.

During the weekend the overseas guests savoured the best of what both Barcelona and Paris have to offer in terms of culture, architecture and – of course - cuisine!

Before heading back to Frankfurt on Monday evening, the US team enjoyed the company of Stéphane Antiglio (President of Autodistribution France) and his team who

AD Hessumobiili in Klaukkala

Desrouffet, Commercial Director of Autodistribution France.

Well prepared by the information received during their European tour, the US-delegation was ready for some interesting conclusions and a few extra days of 1Parts supplier meetings - both with present suppliers and potential ones - at Automechanika, skilfully guided by the ADI-Team.

AD FRADIS in Goussainville

gave full insight in the AD France market approach.

The visit of the AD France headquarters in Arcueil was followed by some real “fieldwork�: a visit to AD MAP in Aubervilliers, AD FRADIS in Goussainville (both distributors) and some AD Garages, in the presence of Laurent

Visit of AD Bosch in Spain

GED headquarters in Figueres

GED headquarters in Figueres

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AD Bulgaria – a company in action!

AD Bulgaria was founded in 2010 by the two strong companies on the Bulgarian market Auto Hit and Auto 2000, sharing a common vision in aftermarket spare parts distribution and strategy for development on the Bulgarian market.

Since its foundation AD Bulgaria is a constantly growing ADI partner: its turnover increased from 14 to 22.4 million Euro.

Since the opening of 6 new branches in the last few years, AD Bulgaria now has 34 warehouses and stores that cover the demands of the whole country. The two main warehouses, one of which moved its premises to a new modern AD Bulgaria is proud to announce that as of the autumn of and significantly bigger facility, keep good availability and 2016 the company SFK TRUCK is an affiliated AD Bulgaria a wide range of spare parts. Due to the ADI partnership the partner. brand portfolio is continuously expanding.

SFK Truck is a large Bulgarian trading company specialized AD Bulgaria’s 230 employees, constantly trained in the in wholesale and retail of spare parts for trucks, trailers, technical, sales and marketing fields, meet the challenges semi-trailers and accessories for all European brands (DAF, of the independent distribution business and provide high MAN, SCANIA, MERCEDES, VOLVO, IVECO, and RENAULT). quality service to all customers. One of the main objectives The company has 20 years of experience in the field and of the company is also to develop a highly effective logistics is one of the market leaders and a trusted partner to more program. A well organized transport network consisting of than 6500 clients and over 150 premium suppliers. Lead by 110 service vehicles ensures fast, prompt and flexible distri- its motto “Stop, find and move forward” SFK Truck is a dybution to stores and clients even in the most remote des- namically developing company that serves customers in a tinations of the country. Thus AD Bulgaria has gained the professional manner, provides excellent aftersales and warranty service and keeps a qualified team of industry experts. respect and trust of many reliable supplier partners.

This partnership is a great way of gaining a major market AD Bulgaria is only at the beginning of the AD Garage con- share and a large step toward fulfilling AD Bulgaria’s miscept development on the Bulgarian market, with 33 AD sion for progress and sustainable growth.

Garages since 2012, but with ambitions to create a strong chain of professionals committed to the network as a basic component for future evolution and sustainable growth.

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Buzz for Breakfast at Automechanika Frankfurt.

Despite the early hour (7:00 !) more than 120 automotive professionals – from ADI contract suppliers and partners - showed up on Wednesday 14th of September in the Maritim Hotel Frankfurt.

And for a good reason: to start their working day at the Automechanika fair with a first-hand update on

A D I and 1Parts developments and of course - a tasty breakfast offered by AD International!

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AD Central Asia - Conference 2016 AD Central Asia (Kulan Oil) organized its conference for automotive distribution market participants - Autodistribution 2016 - in Kapchagay, Kazakhstan, in the Ramada Royal Village Resort&Spa Hotel.

The event’s main objective was to promote premium brands of car parts, fluids, car chemicals and batteries in Kazakhstan. During the conference customers had the opportunity to actually see and touch the products in real live and to get in touch with the representatives of the AD Partners in three countries (Kazahkstan, Turkmenistan, Azerbaijan).

During the Conference participants enjoyed various events and entertainment acts such as “drift shows� with professional racers, RK racing champions, taking participants for a wild drive. Bosch, Dayco and the Kulan Oil company gave prizes in a lottery. There were gifts for almost everybody! The music band on Friday was a pleasant surprise to all!

The event was attended by 156 key customers from Kazakhstan, 25 international brand representatives, members and candidates from AD Central Asia, representatives of the Kazakh mass media, as well as more than 150 visitors of the automotive business in general.

The Autodistribution-2016 Conference was supported by major suppliers, a.o. Bosch and Denso.

Amongst the official partner suppliers were Dayco, FRAM, Gates and Johnson Controls (Varta and Autopower).

Participants had the opportunity to be in touch with main distributors from the Central Asian auto parts market, to discuss the state of their businesses, their brand position, and ways to present and develop their brands.

Finally, there were technical seminars for improvement of qualification, and the fair was an excellent occasion for business negotiations with key customers, including representatives of AD Central Asia.

Video report from the event: https://www.youtube.com/watch?v=4Hmf89x9Qqw 14

Facts and figures about AD Central Asia: AD CA – Autodistribution Central Asia: • Founded March 21, 2012; • Headquarter – Almaty, Kazakhstan • Area of responsibility – 9 countries of Central Asia and the Caucasus: Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Kyrgyzstan, Mongolia, Azerbaijan, Georgia, Armenia; AD CA members: AD ARAZ MOTORS, AD RAHAT YOL, AD KULAN.

AZERBAIJAN: Main cities: Baku (capital), Ganja, Sumqayit Population: 9,7 M people Car park: 1,2 M passenger cars AD CA partner: AD ARAZ MOTORS • joined AD CA in 2013 • Staff: 28 people • Customer base: more than 800 retailers and workshops • 35 brands from Europe, Turkey and South Korea

TURKMENISTAN: Main cities: Asjchabad (capital) Population: 5,3 M people Car park: 560 000 passenger cars AD CA partner: AD RAHAT YOL • Joined AD CA in 2015 • Staff: 30 people • 25 brands from Europe • Customer base: more than 250 retailers and workshops

KAZAKHSTAN: Main cities: Astana (capital), Almaty, …

Population: 17,7 M people Car park: 3,5 M passenger cars AD CA partner: AD Kulan • 14 branches • Staff: 380 highly qualified specialists all over Kazakhstan • Over 30 partner warehouses in Kazakhstan and Russia • Future objective is to have 2 to 4 AD CA members in each city of Kazakhstan • Active development of HD & trucks direction

Visit http://ad-ca.kz for more info 15

24 partners 39 countries For more information on the ADI Partners, visit www.ad-europe.com

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