KYB is Japan’s leading manufacturer of hydraulic products, and had its 80th anniversary in March 2015. KYB is best known as one of the world’s largest suppliers of original equipment shock absorbers to vehicle manufacturers, with around 20% of cars and light commercial vehicles leaving production lines worldwide fitted with KYB as standard. KYB’s range of OE hydraulic products includes shock absorbers and electric power steering for cars and light commercial vehicles; motor cycle front forks and rear cushion units; semi active suspension for Japan’s bullet trains; brakes and actuators for aircraft; vibration control systems for buildings; and control valves, swing motors and hydraulic cylinders for construction machinery. For a short overview of all the products manufactured by KYB click here. KYB Corporation currently operates from 89 locations in 25 countries globally, including 39 production sites, 6 R&D facilities and 38 sales operations, including automotive aftermarket. KYB Corporation has its global headquarters in the World Trade Centre in Tokyo, Japan. In Europe, KYB headquarters for automotive OE and aftermarket is located in Krefeld near Dusseldorf, Germany, and in North America the headquarters is located near Indianapolis, Indiana. KYB’s General Manager and head of global aftermarket is Hajime Sato, who is based at KYB Corporations head office in Tokyo, Japan. He manages KYB’s global aftermarket network which includes product management, marketing, sales and distribution organisations in all regions of the world, with sales in excess of $500m. He worked for KYB Europe aftermarket on two occasions, latterly as President until 2010, and from the mid nineties he played a leading role in the development of KYB aftermarket business in Europe, Russia, Middle East and Africa. The current President of KYB Europe aftermarket is Mike Howarth, who joined KYB nineteen years ago. His initial role was to establish KYB UK and to support KYB aftermarket development in Western Europe, followed by five years as Vice President for aftermarket in North America. After returning to Europe he spent four years as Vice President of KYB Europe’s holding company, working mainly for OE sales, purchasing and HR, before becoming President of KYB Europe aftermarket in August 2014. KYB Europe aftermarket comprises 160 employees across five Branches and three Representative Offices, and is supplied from seven KYB production sites which all produce for OE and aftermarket, four of which are in Europe (Spain and Czech). For KYB North America aftermarket the Vice President is Mike Fiorito, who joined from Brake Parts Inc. in 2006. He is responsible for KYB aftermarket business in USA, Canada and Puerto Rico, with a separate KYB aftermarket company and organisation in Mexico. KYB’s production site near Indianapolis, Indiana, supplies an ever increasing share of aftermarket volume, as well as substantial OE business, with KYB Japan also being a key aftermarket supplier to North America. In addition, a new KYB production site in Mexico will also become a key supplier for the North American aftermarket. The product ranges are slightly different in Europe and North America. Both regions sell Excel-G , a twin tube gas shock absorber which is the OE replacement for around 70% of vehicles. Both regions also offer Gas-a-Just which is a monotube gas shock used on the majority of the remaining 30% of vehicles. In Europe, there is also a twin tube oil shock absorber called Premium, which is mainly used on older vehicles. Also available is the Ultra SR, which is a range of shorter shocks that have a harder damping force and serve as an upgrade for more sporty vehicles. In North America there is a range called MonoMax, which is a montube performance upgrade for SUVs, vans and trucks. In addition, KYB Mounting and Protection Kits are an increasingly important part of the product offer in both regions, and in Europe, KYB manufactured K-Flex Coil Springs have quickly grown to over 20% market share. Mike Fiorito, Vice President KYB North America Mike Howarth, President KYB Europe Aftermarket
Transcript
KYB is Japan’s leading manufacturer of hydraulic products, and had its 80th anniversary in March 2015. KYB is best known as one of the world’s largest suppliers of original equipment shock absorbers to vehicle manufacturers, with around 20% of cars and light commercial vehicles leaving production lines worldwide fitted with KYB as standard. KYB’s range of OE hydraulic products includes shock absorbers and electric power steering for cars and light commercial vehicles; motor cycle front forks and rear cushion units; semi active suspension for Japan’s bullet trains; brakes and actuators for aircraft; vibration control systems for buildings; and control valves, swing motors and hydraulic cylinders for construction machinery. For a short overview of all the products manufactured by KYB click here. KYB Corporation currently operates from 89 locations in 25 countries globally, including 39 production sites, 6 R&D facilities and 38 sales operations, including automotive aftermarket.
KYB Corporation has its global headquarters in the World Trade Centre in Tokyo, Japan. In Europe, KYB headquarters for automotive OE and aftermarket is located in Krefeld near Dusseldorf, Germany, and in North America the headquarters is located near Indianapolis, Indiana.
KYB’s General Manager and head of global aftermarket is Hajime Sato, who is based at KYB Corporations head office in Tokyo, Japan. He manages KYB’s global aftermarket network which includes product management, marketing, sales and distribution organisations in all regions of the world, with sales in excess of $500m. He worked for KYB Europe aftermarket on two occasions, latterly as President until
2010, and from the mid nineties he played a leading role in the development of KYB aftermarket business in Europe, Russia, Middle East and Africa.
The current President of KYB Europe aftermarket is Mike Howarth, who joined KYB nineteen years ago. His initial role was to establish KYB UK and to support KYB aftermarket development in Western Europe, followed by five years as Vice President for aftermarket in North America. After returning to Europe he spent four years as Vice President of KYB Europe’s holding company, working mainly for OE sales, purchasing and HR, before becoming President of KYB Europe aftermarket in August 2014. KYB Europe aftermarket comprises 160 employees across five Branches and three Representative Offices,
and is supplied from seven KYB production sites which all produce for OE and aftermarket, four of which are in Europe (Spain and Czech).
For KYB North America aftermarket the Vice President is Mike Fiorito, who joined from Brake Parts Inc. in 2006. He is responsible for KYB aftermarket business in USA, Canada and Puerto Rico, with a separate KYB aftermarket company and organisation in Mexico. KYB’s production site near Indianapolis, Indiana, supplies an ever increasing share of aftermarket volume, as well as substantial OE business, with KYB Japan also being a key aftermarket supplier to North America. In addition, a new KYB production site in Mexico will also become a key supplier for the North American aftermarket.
The product ranges are slightly different in Europe and North America. Both regions sell Excel-G , a twin tube gas shock absorber which is the OE replacement for around 70% of vehicles. Both regions also offer Gas-a-Just which is a monotube gas shock used on the majority of the remaining 30% of vehicles. In Europe, there is also a twin tube oil shock absorber called Premium, which is mainly used on older vehicles. Also available is the Ultra SR, which is a range of shorter shocks that have a harder damping force and serve as an upgrade for more sporty vehicles. In North America there is a range called MonoMax, which is a montube performance upgrade for SUVs, vans and trucks. In addition, KYB Mounting and Protection Kits are an increasingly important part of the product offer in both regions, and in Europe, KYB manufactured K-Flex Coil Springs have quickly grown to over 20% market share.
Mike Fiorito, Vice President KYB North America
Mike Howarth, President KYB Europe Aftermarket
What is your OE expertise in the US / in Europe ?
KYB has been supplying OE vehicle manufacturers in Europe since 1987, and started in 1989 for North American OE producers, and has built strong partnerships provid-ing suspension solutions as well as steering systems on a variety of passenger and light commercial vehicles. Improved and new technologies have been key to KYB’s global success in OE, such as the latest generation of electric shock absorbers, active anti-rolling systems, and steering by wire which was the first of its type worldwide. KYB’s OE customers include not only the major Japanese car manufacturers, with whom there is a long and successful partnership, but also leading European and North American based vehicle manufacturers who are often supplied on a global basis, including in regions such as South America and China where KYB has produc-tion sites for OE and aftermarket shock absorbers.
How does it affect your AM offer – both in the US / Europe ?
KYB manufactures its shock absorbers in the same factories as OE all over the world. That is why KYB is able to offer high qual-ity and performance suspension parts for the aftermarket. Thanks to our experienced engineers and product management team’s we are also very fast to develop and introduce new part numbers for the aftermarket, providing the widest range from in house production.
How different / equal are the US and European markets in terms of:
market approach: With more than 46 different countries in Europe, often with a very different vehicle parc in terms of mod-els and average age, as well as consumer requirements, the demands for the best quality, product range, coverage, order fill and logistics are a considerable challenge, but one which allows KYB to prove its value. North America offers similar challeng-es, where the diversity of markets and requirements from the motorist are equally as demanding as in Europe, if not more so.
Compare and explain your brand strategies in the US and Europe.
In very simple terms, the KYB objective in the global aftermarket is for our products (Shock Absorbers, Coil Springs, Mounting and Protection Kits) to be the brand of choice for automotive distributors, workshops and of course the motorist. For KYB this means that we must consistently provide very high product quality and performance, we must be a reliable and trustworthy supplier, and we must also provide excellent value for money for the motorist who is the final customer. If we can continually achieve this objective we will succeed.
Headquarters, USA
Does your company take specific actions to support the traditional distribution channel and the independ-ent repairer ? Are they any different on both sides of the ocean ?
Our approach in each market does vary, but our objectives are the same. KYB focuses on supporting the daily operations for customers. Consequently, with our electronic catalogue, product photos and advanced EDI function, KYB helps to speed up and secure the part number identification, selection and order, as well as offering installation and training to help service pro-viders worldwide be more effective. Our North American Marketing Director, Mac McGovern, owned and operated workshops in the Chicago area for almost three decades, and since joining KYB in 2005 has brought us an often unique insight into the needs and expectations of the distributor, workshop and motorist. This insight has enabled us to tailor our marketing and sales activities more effectively in North America, with this direction also being followed in Europe.
Catalogue date is important: What efforts does your company take to provide correct and extensive profes-sional data to the aftermarket in Europe and the US ?
In Europe, KYB is A-Certified TecDoc supplier and has always been an active member for future development. KYB Europe aftermarket is often referred to by TecDoc as being their most accurate supplier of data. In North America, KYB works with OptiCat, a TecDoc affiliated organization, and works closely with all the e-catalog providers and offers on-line & mobile cata-loging. KYB data quality is often use as a benchmark, and we are proud to support our customers with very high accuracy of data, reducing the risk of losing sales and ordering the wrong part.
How do you support your customers with technical know-how ?
Some years ago we introduced “KYB Suspension Solutions” in Europe, featuring:• Diagnosis tools• QR code on our product packaging to give access to fitting tips, technical information and advice.• Fitting videos (that will reach over 1 million views in 2015!) to help technicians to fit our product on new or complicated
parts replacements
In North America, we offer comprehensive training and marketing programs to support our service provider customers. We have developed the Circle of Technology to help educate audiences about Crash Avoidance Systems. Our newly updated Crash Avoidance Systems Training “CAST” provides auto repair shops with the knowledge regarding the impact of the ad-vanced technology on late model vehicles and an effective way to communicate with their consumers. We also have a strong Certified Ride Control Center program that offers point-of-sale materials and access to technical support tools.
What do you expect of this collaboration on the mid- and long term?
We expect the reach of 1Parts to expand into other regions of the world, enabling Global Strategic Suppliers and 1Parts mem-bers to further develop their business in a planned and structured way.
What opportunities do you see in terms of global footprint ?
KYB already has a strong aftermarket presence in many regions around the world, which means significant sales volume (mar-ket leader in many regions), a strong brand name (often related also to OE), and a positive image from distributors, workshops and the motorist alike. With continued strong economic growth forecast for Brazil, Russia, India, China and Africa, and others, consumer demand will increase and the respective aftermarkets will grow. KYB must continue to improve and to compete on a global basis, delivering to all levels of customer’s high product quality and value for money.
What is your general appreciation of the 1Parts initiative?
We consider the 1Parts initiative to be a further step in the globalization of the automotive aftermarket. As such, KYB believes that the collaboration (initially) between Auto Distribution International, Pronto and Federated, provides a framework for leading distributors and selected manufacturers to improve and speed up the implementation of their respective strategies.
