An oil baron in an interview

An oil baron in an interview

Automotive Industry: Mr. Prost, what has happened at Liqui Moly since the sale to Würth?
Ernst Prost: As expected, nothing. The sale to Würth was a measure to ensure the continued existence of Liqui Moly even after me. What should have happened? Liqui Moly is a very healthy company and highly profitable. We have good products, a great team with the right attitude and are broadly positioned in the market. You're never perfect, but we're close. Würth would be stupid to mess with our business. Of course, if that changes, the owner will intervene.

Let's talk a little more generally about the oil business: At Automechanisa we saw again how many other players are involved in the lubricants business...
Do you mean player or “bloater”? (laughs) The trend shows that the very large corporations are withdrawing from the lubricants sector because it is far too small a business area for their global annual sales. Now these “bloaters” come and believe that they can get involved here. But you can't. The oil business is complex, especially when you have a global presence like Liqui Moly. Every country has different laws and different circumstances. It takes experience and the right team to be able to do all of this at a serious level. I don't even look at these "bloaters". (smiles)

Speaking of broad-based: Liqui Moly has its own sales team in this country, but the products are also available through parts dealers, hardware stores and online shops. Her opinion was always: the customer should decide. What do you say to your B2B customers when they are confronted with online offers for end customers?
This is indeed a sensitive topic. Because we don't have to kid ourselves: I didn't choose it, but online retail is here and won't disappear tomorrow. We appeal to all our business customers to maintain price loyalty. The law prohibits us from determining prices second hand, keyword antitrust law. In this respect, we try to use arguments and services to make it clear to our partners that you don't have to take part in every price and discount battle. And believe me: you can achieve a lot with enlightening conversations. Because in the end every businessman wants to earn something. So do our partners with our products.

Good keyword: products. Liqui Moly develops and sells additives on a large scale. Additives are often positioned as a source of income for workshops. How lucrative is the additives market currently?
It is an exciting, growing market with great potential. Additives are like medicine for engines. We must not forget that modern engines have to fulfill a lot: high performance and durability with low consumption and pollutant emissions. This pushes engine development to its limits, and this is exactly where additives can help, for example by minimizing wear and friction or solving contamination. This in turn allows engines to maintain their high efficiency and not gradually decrease due to increasing wear.

But additives are products that require a lot of explanation, right?
Yes, that's right. But this is exactly how a specialist workshop can differentiate itself with its technical know-how and convey competence. And earn a few extra euros. That's nice. (smiles)

Let's move forward the clock: Is Liqui Moly broad enough to survive in the age of electric cars?
We currently have around 4,000 products in our range. That's not a little. (laughs) Seriously: We and other analysts assume that electric cars will take up a certain share, but there will even be further growth in combustion engines worldwide in the next ten years. So I'm not too worried here.

How will this year's financial year end for Liqui Moly?
Due to the global situation with trade embargoes, currency collapse and political unrest, our growth is only two to three percent. The dramatic increase in the price of crude oil is largely responsible. But we have already taken measures to enable double-digit growth again. To this end, we are targeting the markets in the United States of America and Italy, among others. Globally, our lubricant share is one percent. So there is still a lot of room for improvement. (laughs)

Mr. Prost, let's talk briefly about entrepreneurship in general. Your employees are called “co-entrepreneurs”. How come?
It's very simple: no company in the world is in a good position because the founder or boss is so great. It is always the team that makes a company big and successful. This is also where our bonus payments for our fellow entrepreneurs come from: If we have a good year, everyone should benefit from it. And if we have a bad year, then there is nothing. This is not a gift from me, but rather an incentive to get involved. If you ask me about the recipe for success, the answer is simple: because we are the best. And that's not because of me, but because of the entire team.

You are considered an entrepreneur with great social commitment. What is currently going wrong?
First: Politics is not to blame for everything. There are not only politicians in a country who control it, there are also companies and individuals. I can only speak specifically about Germany, but we need to invest significantly more in education and training. We used to be better at that. And we have to pay fair wages. Example of nursing professions: It cannot be the case that nurses have so much responsibility, sometimes have to do unpleasant work and a lot of overtime, and only receive the minimum wage for it. We have to rethink that. Urgent.

Finally: What do you think of Austria's Chancellor Sebastian Kurz?
This is a young man with many new, courageous ideas. I would like to see more Kurz and Macrons in Europe. I just hope that everyday political life in Vienna doesn't scare Mr. Kurz away.

"Because we are the best. That's not because of me, but because of the entire team."ERNST PROST, LIQUI MOLY MANAGING DIRECTOR