Issue 03/09 The Johnson Controls Power Solutions Europe customer magazine
Dear readers, it gives me great pleasure to introduce the third issue of PowerNews.
ONLY THE MOST INNOVATIVE BRANDS ARE TRULY STRONG Dirk Pantle, Marketing Director at Johnson Controls Power Solutions Europe, talks to PowerNews about the value a strong brand can offer the trade. Mr Pantle, 2009 has been a turbulent year. Looking back, what did the VARTA brand do to stay afloat? Naturally, we too felt the effects of the economic downturn. We’ve invested lots of time and energy into developing innovative systems, such as those in hybrid vehicles, and we couldn’t have done it without our collaboration with nearly all the leading vehicle manufacturers. We’re also extremely well equipped to provide the right battery for any new drive system introduced onto the market. In this segment, VARTA has a leading edge over all its competitors.
Together with the retail industry, we have developed long-term strategies for sustainable market success. We focus our efforts not only on customised solutions, but also on our marketing. What technological innovations have you used to support your business partners in the aftermarket business? This year has been characterised by innovations that set us apart from generic products. For example, our PowerFrame technology provides a significantly longer service life and even greater cold start performance. Such practical technologies increase VARTA brand value and make a difference every day, providing drivers with significantly more reliability and power, especially in cold conditions. Furthermore, our AGM
batteries provide peak performance, even for newer vehicles with greater energy requirements, thanks to our experience in supplying the leading car manufacturers. In the commercial vehicles industry, we set a whole new benchmark with the introduction of the Promotive Trio in June of this year. With a complete range of maintenance-free batteries, which boast a longer service life than standard batteries, customers stand to make significant savings. We are the only battery manufacturer to feature calciumsilver technology and the Labyrinth lid for even greater safety in our commercial vehicle products.
This issue is all about what sets brand-name products apart from their generic counterparts. Only major brands are truly innovative and have the means to collaborate with the car industry in developing tomorrow’s solutions. Some of these solutions were presented at this year’s Frankfurt Motor Show: Johnson Controls is actively working with numerous manufacturers to develop innovative hybrid vehicles. The new vehicles presented at the show are equipped with AGM batteries provided by Johnson Controls. This new vehicle segment offers a great deal of potential that will benefit the whole industry. It goes without saying that we also wholeheartedly support our wholesalers and retailers. Together with you, we provide expert knowledge, training and effective promotions to successfully showcase the VARTA brand time and time again. I wish you every success over the coming months and look forward to receiving your feedback at
[email protected] How are these measures marketed? That’s a good question. All technical innovations have to be communica ted to our business partners >>
Jean-François Bouveyron Vice President Independent Aftermarket Johnson Controls Power Solutions Europe
so that they understand the
Various measures were used to
How does this benefit the VARTA
able partner over the long term.
benefits of the VARTA brand.
consistently communicate the
wholesaler and retailer?
With cutting-edge products that
That’s why we support our trade
core message: leaflets, the online
customers with strong brand
and offline savings calculators,
When a trade customer opts for
applications today to the energy
campaigns which communicate
and - just being released - our
VARTA batteries, they choose to
requirements of tomorrow, we
VARTA’s excellent reputation and
product training film. In this way,
place their trust in a successful
think our customers are already
emphasise the brand’s techno-
we’ve tried to make it simple for
brand. Unlike generic brands,
well aware of the benefits, ena-
logical leadership.
our trade partners to understand
VARTA represents innovation,
bling them to win over customers
the benefits of new technologies
quality and a striking corporate
with the power and quality of
In addition to the “V is for
so that they can then present
identity. The success of this
VARTA batteries.
VARTA” campaign, we’ve made
these to customers effectively.
strategy is reflected in VARTA’s
the Promotive Trio and the
We are currently preparing a
excellent positioning in the Best
Mr Pantle, thank you for taking
potential savings it provides the
campaign for motorcycle batter-
Brand 2009 survey, for instance.
the time to talk to us.
focus of the campaign for the
ies which focuses on the brand’s
Our trade customers can rest
commercial vehicles segment.
true value.
assured that VARTA will be a reli-
already provide solutions for all
Innovative and informative
product film to support the recent launch of the Promotive Trio
n ow
online
The successful launch of the
Trio: applications, technology
maintenance-free batteries do not
VARTA Promotive Trio, the
and cost-efficiency. The following
incur service costs, unlike stand-
innovative solution for commer-
topics were highlighted: With the
ard batteries, giving them a clear
cial vehicles, was accompanied
Promotive Trio, VARTA provides
advantage. A fleet of 60 vehicles,
by various marketing measures.
the right battery for all applica-
each equipped with two standard
In addition to advertising media,
tions. And in terms of technology,
batteries requiring maintenance
Johnson Controls also developed
VARTA batteries for commercial
twice a year, can result in annual
a state-of-the-art product film.
vehicles feature the Labyrinth
servicing costs of over €7,000.
lid and are the only commercial The VARTA Promotive Trio sets
vehicle batteries in Europe to fea-
Talk to your Johnson Controls
high standards in terms of reli-
ture calcium-silver technology.
sales representative about the film or go to
ability, service life and efficiency. So it was important for the
The topic of cost-efficiency is
www.varta-automotive.com
product film to be innovative and
illustrated with a conclusive
Our clients can also obtain the
communicate the most impor-
sample case study which empha-
film for use at customer events,
tant benefits of the Promotive
sises the fact that Promotive Trio
on websites, etc.
VARTA − a top-quality brand Recently the Auto Motor Sport magazine, one of Europe’s leading car magazines, conducted its annual survey to identify the best automotive brands. VARTA was awarded second place in the car battery category. For the VARTA brand, this is a testament to the company’s success and confirms the strategy it has implemented over the last few years: a clear brand message and innovative products of the very highest quality. With such a comprehensive range of communication materials, we believe our trade customers are well-equipped to emphasise the strength of the brand and recommend the best-possible products to their customers. The survey confirmed that customers are aware of the quality of VARTA batteries, and this is reflected in its excellent brand positioning and high level of demand.
MICRO-HYBRID CAR MARKET MOVES TOWARDS THE MAINSTREAM One of the clearest motoring trends to emerge from September’s Frankfurt Motor Show is the growth of Start-Stop technology. Of the 20 plus new cars at the show fitted with our batteries, nearly a quarter of them featured a Johnson Controls AGM battery to support this energy-saving technology. The technology enables the conservation of energy by shutting off the engine whenever the car stops, such as at a traffic light. The resulting decrease in fuel consumption offers the driver savings of up to 12 per cent, and lower CO2 emissions.
Driven by EU targets to reduce CO2, the micro-hybrid market is accelerating. Since the adoption of Start-Stop technology in the BMW1 Series, more than a million micro-hybrid cars with Johnson Controls AGM battery power have been sold in Europe. An estimated 2.5 million microhybrid vehicles will be manufactured by 2010, and this is expected to rise to 10 million by 2015. The AGM (Absorbent Glass Mat) battery is an integrated component within the micro-hybrid battery management system, also supporting more advanced features such as regenerative braking, intelligent
voltage control and passive boost in some models. Before bringing the product to market, Johnson Controls had been working closely with the vehicle manufacturers to overcome the problem of generating sufficient power to restart the engine. In urban driving conventional car batteries were often found to provide insufficient charge. To resolve this, the vast majority of cars, especially those with more advanced Start-Stop technology, rely on an AGM battery. AGM batteries provide far greater cyclic durability and recharge acceptance than conventional lead acid batteries. The technology was originally developed to cope with the dramatic increase in electrical consumers in modern cars, leading to the launch of our VARTA ULTRA dynamic AGM car battery for the aftermarket. Johnson Controls are also working with the Vehicle Manufacturers to supply the critical data which is incorporated within the battery management system’s software, and so expect to be able to offer the aftermarket a complete solution in terms of product and technical support for workshops. “With many micro-hybrid models from manufacturers like Audi, BMW, Mercedes, Volvo and VW reaching the aftermarket, there will inevitably be pressure on the battery trade to stock a
Johnson Controls is prepared for the future: vehicle manufacturers showcased the following models featuring AGM micro hybrid technology (stop-start functionality) at this year’s Frankfurt Motor Show. Johnson Controls Power Solutions Europe developed the new technologies in collaboration with vehicle manufacturers.
Audi A5 Sportback, micro hybrid
vehicle manufacturer
model
start of production
Audi
A5 Sportback
Apr 09
BMW
5 Series GT (2010)
Aug 09
BMW
X1 (2010)
Sep 09
Hyundai
iX35 (2010)
Apr 10
Mercedes-Benz
E-Class Convertible (2009)
Oct 09
Mercedes-Benz
E-Class T Model (2009)
Oct 09
Mercedes-Benz
SLS AMG
Dec 09
Mini
Colorado (2010)
Sep 10
Volvo
S60 (2011)
May 10
complete range of AGM batteries to meet replacement demand,” says Tony Miller, European Automotive Product Manager for Johnson Controls Power Solutions. “As the dominant supplier of AGM batteries in Europe, with
over 80 per cent of the OE market, we have the expertise and the product to support the aftermarket,” he adds, “and with micro-hybrids set to become a mainstream player, the enhanced business opportunities for the European motor trade will be substantial.”
Dear Customer,
It seems that the roller coaster of rising and falling commodity prices is picking up speed again, with extraordinary movements in the price of lead on the London Metal Exchange during August and September. Whereas in the past, lead would not move by more than 100 points over an entire year, now we are seeing swings of $US 500 per month, making it extremely difficult to predict and control new battery pricing, where such a high proportion of the cost depends on this simple raw material.
UK consumer buying trends spell opportunities for VARTA UK trade customer Some evidence suggests that more cash-strapped drivers plan to keep their cars on the road for longer rather than take advantage of the scrappage scheme in the current economic climate, so now is a good time to promote our VARTA branded Black dynamic battery to independent workshops and repairers. The Black dynamic battery forms part of our Trio range of aftermarket car batteries, and is designed specifically to meet the power requirements of cars over seven years old. More than 40 per cent of all vehicles in the UK car parc fall into this category, giving independent workshops a market in excess of six million cars to service and repair. Recent polling has shown that the credit crunch is causing more drivers to think about maintaining their existing cars than buy new – a view supported by the slow impact of the Government’s scrappage scheme on new car sales. A new survey by GIPA UK of buying intentions in 2009 suggests that 82 per cent of drivers will be keeping their current car. Cars over seven years old have traditionally been the domain of the independent service sector, but many mid-range and all
prestige models manufactured between 1995 – 2002 will still need a relatively sophisticated battery specification to meet the demands of higher-tech engines and numerous electric consumers such as ABS, traction control and air conditioning. The trend to keep cars on the road longer represents an opportunity for the VARTA trade customer to cater for the older car market with Black dynamic. The GIPA UK Drivers Survey 2009 shows that the four most important criteria for consumers when buying a new car battery are price, advice from sales staff, effectiveness of the product and trust in brand. With the VARTA Black dynamic, owners of older cars using independent workshops will be reassured by a trusted brand from the world-leading battery manufacturer, and by a battery of the same specification as the original at a competitive price.
The research also shows that counter staff are key influencers in the consumers’ battery choice and so should ensure they sell up where appropriate. Although the specification of this replacement battery is typically compatible with OE batteries fitted by European car manufacturers in the mid1990’s, it does incorporate our patented PowerFrame grid technology to provide longer service life, improved performance and greater corrosion resistance. Owners of somewhat newer cars and older models retrofitted with accessories such as satellite navigation and DVD players should be encouraged to opt for the VARTA Blue dynamic product, which offers a more advanced specification, while the VARTA Silver dynamic is a heavy duty battery designed for top end models.
The recent increases in lead values have been attributed to the closure of a huge proportion of Chinese lead smelting capacity, following the exposure of a major contamination scare. Sadly, these events are relatively common in China, and highlight the hidden costs of lax environmental controls, together with the uncontrolled economic development that seems to encapsulate some areas of business growth in the Far East. It is probably worth asking whether the consumer in this country would actually knowingly pay for a product made with materials that have poisoned many hundreds of people during their manufacture. It also highlights one reason why high quality OE-accredited brands and products have a higher price than so called bargain basement products. At JCI, with the environmental controls already in place and all European plants certified to ISO 14001, we ensure that our products have the minimum effect on the environment. Simply put, that costs a lot of money to implement and maintain, but we believe the total price, human and commercial is worth paying.
Paul Matarewicz Managing Director UK and Ireland
WORTHING WINNER IN EUROPEAN BATTERY PRIZE DRAW A motorcycle rider who picked up a “Give me a VARTA-V” competition entry form at a local motorcycle parts wholesalers has won a brand new Gilera Runner 50 SP scooter in a panEuropean competition. David Tremino entered the competition after visiting Beks Wholesale, our Sussex- based motorcycle battery distributors. He had to upload a photo of himself on his stationary motorcycle displaying the familiar VARTA Victory-V sign and submit it to their website for a free prize draw run in Britain and eight other European countries.
David’s sister Veronica was presented with the scooter at Beks Wholesale at the end of July by VARTA Marketing Manager Angie Mavar together with Roger Keys, the proprietor of Beks Wholesale and manager to Grand Prix biker Scott Redding. Another British winner, Calum Smith of Carlisle in Cumbria, has won one of 20 TomTom Rider motorcycle navigation systems also on offer. The competition supported the launch of our new VARTA Funstart motorcycle battery range in Spring this year.
The new FunStart range launched earlier this year.
Veronica Tremino (centre) pictured with Roger Keys of Bek Wholesale and Angie Mavar, Marketing Manager for the VARTA batteries in the UK.
TAKE THE VARTA MESSAGE TO THE END USER THIS WINTER
FREE BATTERY CHECK
New look exterior signage for the 2009 battery season
There’s no better time than now to review how you are communicating the VARTA brand to the end user. To this end, we have re-vamped our exterior display material for this season. Our tried and tested, popular “free battery check”sign and our exterior stockist sign are now available in our distinctive new corporate style, and should be displayed this winter to full effect. Please ensure you have our only up-todate exterior material on display in a prominent position, as this will not only look more professional (in communicating only one consistent style and brand message) but make it easier for
the consumer to associate your business easily with batteries, so that your name is the first called to mind in the event of battery failure. And when it comes to internal display, we have on offer a full suite of material, from offthe-shelf items such as posters, leaflets and countermats, right through to high value items such as our new-look battery stands and dummy BLUE dynamic batteries. Please note that due to the high cost of the items in question, articles such as battery stands and dummy batteries are chargeable. Please contact your main VARTA distributor for more information.
POWERFUL VARTA BATTERIES AS GOOD AS THE ORIGINAL Every year, car manufacturers bring out new models, most of them equipped with lots of electronic equipment. These require high-quality batteries that can be relied upon unconditionally –
today and tomorrow. When replacing the battery, it’s important to fit one that’s as good as the original, as this is the only way to make sure that the vehicle’s power requirements continue to
Model
be met. Johnson Controls Power Solutions Europe is prepared for such situations, with batteries to fit even the newest cars. This overview lists the latest models and the VARTA batteries for them
available from
ENGINE
as recommended by Johnson Controls. As a high-end product for vehicles which demand high performance, we particularly recommend the VARTA Silver dynamic range.
Ultra AGM
A8
Nov 09
Petrol/diesel
595 901 085
5 Series GT
Aug 09
Petrol/diesel
570 901 076 595 901 085
X1
Sep 09
Petrol/diesel
570 901 076 595 901 085
XJ
Feb 10
Petrol/diesel
595 901 085
E Class Convertible
Oct 09
Petrol/diesel
570 901 076 595 901 085
E Class T Model
Oct 09
Petrol/diesel
570 901 076 595 901 085
SLS AMG
Dec 09
Petrol
595 901 085
Rolls Royce
Ghost
July 09
Petrol
595 901 085
Skoda
Superb Estate
Okt 09
Benzin/Diesel
570 901 076
Audi
Silver
Blue
600 402 083 610 402 092
595 402 080
600 402 083
595 402 080
577 400 078 563 400 061
574 012 068 560 408 054
Absorbent Glass Mat Technology
BMW
Jaguar
Mercedes
New information will be included in the next edition of the VARTA car application guide, which is based on the latest European data. Please note not all countries stock the entire European range. The battery search at www.varta-automotive.com is constantly updated.