Strong voice for free repair

Strong voice for free repair

What are the current biggest challenges for the independent parts trade in Austria?

I think the independent parts trade is like many others who are active in the mobility sector, because it is in a transformation phase. We have to prepare for a greater coexistence of different drive concepts. At the same time, vehicles are increasingly developing into rolling, networked data centers, regardless of the drive concept, which means that the topics of data and digitalization are becoming increasingly important. The mobility market of the future holds numerous opportunities for the independent repair market, but also risks - above all the increasingly noticeable trend of vehicle manufacturers towards market isolation. Countering this trend is the biggest challenge.

How can the Association of Independent Parts Dealers support its members?

The VFT was founded more than 30 years ago as an association of independent automotive parts dealers and has since gradually opened up to members from other market segments. Our members today also include producers of aftermarket vehicle parts, independent workshops and independent automotive IT and data providers. The typical company sizes range from locally operating small businesses to medium-sized companies operating nationally or across borders. From this you can already see: The independent repair market is highly fragmented and creates a high degree of competition in the market for vehicle repairs. However, if you compare the independent repair sector with its counterpart, i.e. the networks of the well-organized, globally active automobile companies, the fragmentation of the independent repair sector also turns out to be a weak point. This is where the VFT starts its work. As an interest group for the independent repair sector, we are committed to fair conditions in competition in the automotive aftermarket. That's why our actions and actions have one central goal: creating a level playing field, i.e. equal starting conditions, for manufacturer networks and independent companies.

What I mean by that: If I want to be successful with my company, I have to do something better than my competitors - be it in the quality of service, customer service or costs or price. Effective competition is therefore incredibly important from the consumer’s perspective. However, competition can only work if I, as an independent company, have the same general conditions as one that is dependent on its vehicle manufacturer. A good example is the Motor Vehicle Block Exemption Regulation, which has been in force for more than ten years and which we have campaigned for its introduction together with our European partner associations. It is one of the essential cornerstones that is intended to ensure fair competition between the offers of vehicle manufacturers and those of the independent repair sector. The Motor Vehicle GVO is just as important for the many independent companies with their thousands of employees as it is for their tens of millions of customers. Against this background, the extension of the motor vehicle BER by five years until 2028 announced by the EU Commission is fundamentally positive. However, as VFT, we are committed to adapting the accompanying regulations to the current state of technology (keyword: data availability), as well as to certain developments on the market that run counter to the idea of ​​the Motor Vehicle GMO (keyword: monopoly parts that are only sold by vehicle manufacturers via their own networks). In addition, in our opinion, it is also necessary to tighten up the regulations on the validity of the manufacturer's warranty for maintenance and service in accordance with the manufacturer's specifications.

What goals have you formulated for yourself as chairman of the VFT?

Success is important to me. I am successful for the VFT when, together with my colleagues on the board, our members, partners and their customers, I manage to give a voice that is heard. A voice for the independent repair market that says: We are important players on the market and there are many of us. We pay taxes with our work and we create and maintain jobs. We also don’t shy away from new challenges. But what we want are fair framework conditions. Over the past four years, as chairman, Walter Birner has provided important impetus for the independent repair sector, including opening up the VFT to new market segments, and has successfully set a lot of things in motion that I can now build on with my colleagues. From the association's perspective, I want to put the VFT on an even broader footing together with my board team - these are Walter Birner, Thomas Hermanky, Klaus Hölbling, Jörg Neimcke, Georg Ringseis and Roland Zacha - and our general secretary - Wilfried Stöckl - and convince even more companies of the importance of this project. With every new partner and every member who is personally and substantively committed, we become stronger - and with it our voice louder.

What is the current situation with the supply chains - in which segments are there still problems with reordering?

Very different. In many segments, the supply chains function completely smoothly. But there are also individual areas where this is not yet completely the case. The great advantage of independent parts trading and independent workshops has always been their flexibility and resilience. We also benefit from the good cooperation with the parts producers.

To what extent is access to the manufacturer data required for repair and service work currently restricted for independent companies?

Electronically upgraded vehicles are also becoming more and more important for the independent repair market. After all, every second car over the age of four is serviced, maintained and repaired in the independent repair market. This means that uncomplicated, quick and solid vehicle diagnostics and complete availability and access to repair and maintenance data - as well as spare parts - are becoming increasingly important in order to be able to run a business efficiently and economically. In practice, independent workshops, independent parts dealers, automotive IT service providers and many parts producers are faced with considerable hurdles. However, technical progress often serves as a means of restricting access to technical information; just two examples: We are increasingly seeing OEM activation codes on vehicle parts, which are attached to spare parts - usually as a QR code - and are not passed on to independent market participants. If these QR codes cannot be read by multi-brand diagnostic devices, for example, these parts cannot be activated via these devices. This is an attempt to make it more difficult or even to prevent the installation of spare parts from the free market. Or let’s take the features of a vehicle. The manufacturer network can easily access vehicle installation and configuration features. This information is generally not made available to independent market participants.

And these were just examples of static vehicle data. The situation is no different with dynamic vehicle data, i.e. that generated in real time by the use of the vehicle. The only one who has access to this is the vehicle manufacturer. And they can decide entirely at their own discretion whether they pass on data, to whom, when and in what form they pass it on. On this basis, competition simply doesn't work.

How should unrestricted data access be made possible for independent workshops in the future?

The desired European data legislation sets the basic direction here. The aim of the data law is to give users greater control over their data. This means that users should be able to access the data that they generate through the use of products or related services. At the same time, users should also have the opportunity to transfer these data access rights to a third-party provider of their choice. A user within the meaning of the data law is the person or company that owns, leases or rents the product or uses a service. A significant effect: This would, for example, create the basis for users to make a free decision, independent of the product manufacturer, with regard to the selection of (digital) repair or maintenance providers.

However, users would not have any of the new rights if access to their data was made difficult. That is why manufacturers of products or providers of services are obliged to make the data transparent and easily accessible. At the same time, manufacturers and providers are also restricted in terms of monitoring the activities of the user or third parties. The proposal for a data law presented last year is an important first step for a strong European data economy that puts the user at the center. From the perspective of the free vehicle market, one thing is also certain: a general data law alone is not enough. Currently, only vehicle manufacturers have privileged access to data due to the technical design of the systems installed in the vehicles. This gives vehicle manufacturers a dominant position and a competitive advantage - with the corresponding negative consequences: European consumers and companies are deprived of a greater choice of innovative and affordable mobility and retrofitting services. This is why the vehicle sector needs sector-specific legislation. The EU Commission – and Austria in particular – is now urgently required to take action.

In your opinion, what measures could ensure the survival of independent companies in the future?

All measures that contribute to fair competition in the automotive aftermarket. Fair competition means: equal starting conditions for manufacturer networks and independent companies. Numerous important areas where measures are necessary to create a level playing field have already been mentioned.

According to forecasts, the volume of spare parts trading will shrink over the next ten years - how much do you expect?

At our most recent VFT industry meeting, which took place at the end of January, we examined precisely these questions together with the participants. The management consultancy Roland Berger provided figures on this in a recent study and presented it to us: Basically, it can be assumed that the need for “traditional” spare parts for battery-electric vehicles is on average 30 percent lower than for vehicles with combustion engines. In the coming years, however, little of this will be noticeable in the aftermarket. From today's perspective, combustion engines will be in operation until the late 2040s, but the proportion of electric vehicles will gradually increase. In 2040, the demand for spare parts is expected to decline by between 13 and 17 percent. This decline is expected to be partially mitigated by the need for specific spare parts for battery electric vehicles. The estimate of the Europe-wide market volume in 2040 for such parts - especially drive batteries, electric motors and power electronics - is up to seven billion euros

In your opinion, what political framework conditions would be desirable in order to secure free parts trade in the future?

We operate in a European internal market. That is why the economic policy framework in the EU is crucial. One of the current EU Commission's economic priorities is eliminating inequalities. The objective fits in my opinion. What do I want? That this goal is pursued more consistently.

Are there any dates coming up this year for decisions that affect the future of the parts trade in Austria and the EU?

Here too, the EU and its institutions – and above all the Commission – play an important role. However, it is not long until the next European elections. This is planned for spring 2024. When the EU Commission sets its workload for this legislative period. For example, if the sector-specific data law or the new version of the Design Directive are actually fulfilled, we will see decisions that affect not only the future of the independent parts trade, but of the entire independent repair sector and thus ultimately also the future of vehicle users in Austria and Europe.