Apollo Vredestein on course for growth

Apollo Vredestein on course for growth

Automotive Industry: Mr. Kilzer, you and Vredestein achieved third place at the VRÖ Awards. How important is this award?
Harald Kilzer:This award is extremely important to us because it is awarded by tire retailers. This is an excellent award, especially for the two years 2017 and 2018, because we have an extremely difficult time behind us. In this respect, this award is the one that has pleased me the most so far. Albert Samadian: It is actually an extremely important award and strengthens the brand.

Apollo Vredestein did not exhibit at AutoZum this year. Why not?
Harald Kilzer:An AutoZum that would be more tire-heavy would be extremely important for us, especially since the timing is perfect in mid-January. This is exactly the decision-making phase for specialist retailers.

More tire-heavy means: more tire manufacturers than exhibitors?
Harald Kilzer:Yes. And if there are fewer and fewer tire manufacturers present, the Reed trade fair has to think about whether it wants to become a pure accessories fair for workshops or whether it wants to have a broader position. The Reed Fair has to make this decision. In my opinion, it has not become clear in recent years that tire retailers and the industry have been encouraged.

Did the tire day, which always takes place on Fridays, go perfectly?
Harald Kilzer:I think it was more substantial this year than in previous years. Basically, the tire day – together with the forum – is a good platform to get in touch with colleagues in the industry.

“It is essential for us that we understand the perspective of the specialist retailer.”HARALD KILZER, CEO APOLLO VREDESTEIN

Would it be possible that Apollo Vredestein would be back at the next AutoZum, or was this a farewell forever?
Harald Kilzer:It should be reconsidered whether the prices for exhibitors are still in relation to the margins generated in the tire industry. If the conditions are right for us, we would be happy to take part again.

Mr. Samadian, you have been at Apollo Vredestein for nine months now. How did the beginning go for you after working at Alcar Heringrad for many years?
Albert Samadian:For me, the new field of activity is extremely exciting. The topic of “car dealership” has so far been non-existent at Apollo Vredestein. I started from scratch, so to speak, and the last nine months have gone very well. In any case, the potential is great.

Mr. Kilzer, you always emphasize that you want to have the “best team” on the market? What makes this special?
Harald Kilzer:At the moment it can be stated that tire manufacturers are trying to buy up the market. As a manufacturer, we do not have our own retail chains. That's why it's particularly important to us that we offer our independent partners a unique and optimal service. In this respect, it is important that the people, the people involved, are of the highest quality.

What is the philosophy behind it?
Harald Kilzer:That our customers feel that they are in the best hands with us. In any form. This includes service packages, assistance and problem solutions for the daily business of the tire retailer. We offer independent retailers tailor-made, individual solutions. From the warehouse worker to me, they have to be people who enjoy their work, who are willing to make sacrifices and who have adequate ideas for solving problems.

As of March 1, 2019, the former Weichberger authorized representative Martin Korn will take over the role of sales manager for cars and trucks for Austria, Slovenia and Croatia.
Harald Kilzer:It is essential for us that we understand the specialist retail perspective. Who better to implement this into our service package than Martin Korn? There is hardly anyone who knows the industry better or for longer. I really appreciate his consistency. If you have worked at Weichberger for 34 years, you have experienced all the ups and downs. Martin Korn has held and successfully completed every position, from apprentice to authorized representative. I'm really looking forward to working together. All five of our field sales representatives report directly to him.

How has the Apollo brand developed?
Harald Kilzer:Very good. Due to the fact that we now have the research and development department in Europe (until about five years ago it was based in India; editor's note), the quality of the Apollo tires has improved significantly. You can see this in numerous tire tests: Apollo is not a no-name product, but is now a serious quality product.

“The less headaches our customers have, the more they will work with us.”ALBERT SAMADIAN, RESPONSIBLE FOR CAR DEALER, FLEET, LEASE AT APOLLO VREDESTEIN

Don't you see the danger of cannibalization as Apollo gets better and better known?
Harald Kilzer:No. The brands cover different segments. Vredestein meets the requirements of a premium tire. Apollo is, so to speak, the tire for families. The passenger car segment is the only one that is relevant for both products. All other segments are split between Apollo or Vredestein. In the future, industrial tires or truck tires will only be available from Apollo. The agricultural, motorcycle and bicycle sectors, on the other hand, will remain exclusively at Vredestein.

Mr. Samadian, what challenges do you see this year?
Albert Samadian:The primary goal for me is to expand the market in my area of ​​car dealership, fleet and leasing, to acquire new customers and to build stable relationships. The biggest challenge, of course, is that all competitors are also highly active. We live in an extremely competitive market. We will be successful thanks to our quality personnel and our excellent products.

What potential do you see in terms of car dealerships?
Albert Samadian:I know which direction we want to go in 2019 and can also imagine where we want to go in 2020. I don't yet dare to give concrete figures. The fact is: the potential is huge in any case.

Mr. Kilzer, what are your goals for this year?
Harald Kilzer:It is important that we succeed in implementing the car dealership and fleet business in such a way that a symbiosis is created together with our specialist retail customers. The areas complement each other. We are not building the dealership business by taking customers away from our customers. We want to generate demand where we don't get in the way of our existing customers.

With your own car tire warehouse or replacement vehicles you have unique selling points.
Harald Kilzer:On the one hand: We have up to 40,000 car tires in our warehouse in Vienna. On the other hand: We offer our customers a whole new generation of courtesy cars. The handover will take place on June 1st as part of the Pannonia-Carnuntum Historic Rallye. Our 40 top customers receive a VW T-Roc including the option to upgrade the car.

How do you present yourself to the customer?
Albert Samadian:Our customers know: There is someone I can call and who will respond immediately. Personally, I try to make the customer's life as smooth as possible. The less headache he has, the more he will like working with us. We don't have any major formalities that need to be taken or decision-making processes that need to be waited for. We react quickly and flexibly. The customer has a fixed contact person, true to the motto “everything from a single source”. Harald Kilzer: At AutoZum I met a few dealers - customers of ours - that I hadn't known personally. Everyone told me that our sales force stands out from all others because they present solutions and act in a straightforward manner. Two even said: I'm happy to pay two euros more per tire because the package you deliver, including field service, is exactly what I want. This will be the crucial question in the future: Do I want to have the most aggressive price without support or do I want a fair price with optimal support?

Does the tire trade have a future?
Harald Kilzer:He has to have it. Because the same factors that count for us as suppliers also count for the tire retailer. If he can delight his customers – the end consumers – the way we have to delight our customers, then he will still have his customers. End consumers want to go to a specialist dealer who they like, who they trust and whose expertise they value. It will continue to be the task of tire retailers in the future to ensure that this feeling is not lost.

Getting started with the original equipment. What conclusion do you draw?
Harald Kilzer:The Vredestein brand is now better perceived on the market. The Seat Ibiza and the VW Polo were noticeable for us because many end consumers noticed this. We are particularly pleased that VW has decided to equip the Touareg with two 18-inch premium products from Vredestein. Both the Quatrac 5 all-season tire and the Ultrac Satin summer tire were selected as original equipment tires for VW's flagship SUV. This is another milestone within our brand's premium and ultra-high performance strategy.