Interview With Ted Hughes, Mahle Aftermarket Marketing Chief - Tire Review Magazine

Interview With Ted Hughes, Mahle Aftermarket Marketing Chief

Ted Hughes was named head of marketing in North America for Mahle Aftermarket Inc. in February 2011. Hughes is responsible for promotions, public relations, advertising, Hughesmotorsports programs and all electronic and Web-based activities. He recently celebrated 15 years with the company, having served in various marketing roles since graduating in 2000 from Eastern Michigan University, and he actively volunteers his time on multiple industry committees in the auto care industry and was the 2014 recipient of the Auto International Association “Young Executive of the Year” award. Today, Hughes updates us Mahle’s acquisition of RTI technologies, new award-winning products and what’s next for the company.

It’s been a little over two years since Mahle acquired RTI Technologies and renamed it Mahle Service Solutions. Bring us up to speed on some of the changes that have taken place as a result of the integration.

“The team in York, Pa., far surpassed our expectations on the integration side. Certainly there were lingering challenges that kept presenting themselves, but the team worked together utilizing the Mahle culture to resolve them as quickly and as positively as possible.

“The Mahle acquisition of what was RTI Technologies in January 2013 signaled the beginning of a new chapter for Mahle. While Mahle today measures more than $13 billion in global revenue, the aftermarket business accounts for $1 billion of that. The leadership organized key growth areas, and while aftermarket was certainly a major one, the tool and equipment industry was a major part of that. The opportunity with RTI, while perhaps a tad earlier than we wanted, presented the perfect place to gain entry into this market segment.

“The two years since the acquisition was finalized have been eventful to say the least. We completed a successful rebranding to Mahle Service Solutions, which now encompasses much more than just the ArcticPro, FluidPro, and NitroPro brands; it also includes the brand new TechPro diagnostic scan tool set to hit the market in the next couple of months.”

At AAPEX last fall, the company made a big splash with the launch of TechPro, describing it as a ‘game-changer’ for the industry. Tell us a bit about the product, what makes it unique and when will it be available?

“We introduced TechPro to the industry at AAPEX 2014 in Las Vegas and had great feedback from technicians who stopped by our booth to participate in TechPro demos. Our work over decades of providing diagnostics to OEMs for end-of-line manufacturing test systems really helped us bring that same speed and stability to an aftermarket scan tool for the first time.

“We touted TechPro as a game-changer and we really believe that it is the most technologically advanced device available for professional technicians. One feature that technicians have raved about is the tool’s versatility. It’s easy to take TechPro into the bays because it is software-based. The vehicle communication interface and software can be used with a technician’s current desktop, laptop or tablet, so it’s very portable. TechPro also eliminates the need to buy or lease extra hardware. Plus, regular vehicle data and software updates are downloaded automatically and seamlessly via the Internet.

“The other thing that techs are excited about is TechPro’s speed – it can decode a vehicle identification number in mere moments with just one click. We measure our speed of diagnosis in seconds, while our competitors are looking at minutes. TechPro will be available for purchase later this year.”

ArcticPro ACX1280 received the ‘Best Use of Technology’ new product award at the 2015 Mobile Air Conditioning Society Worldwide Trade Show. What is it about this machine that sets it apart from the competition?

“Mahle never sets a goal to be ‘as good’ as any of the competitors. If we cannot bring something to the market that is better than what is currently there, we will not enter the market. In the case of the ACX1280, we certainly believe that we have the best RRR device in the industry – and it is great to see that the industry accolades are coming in to substantiate our feeling.

“The ACX1280 complies with all applicable performance and safety requirements set forth by the SAE J2843 standard. Additionally, the multitude of automated features saves time for technicians as it gives them the ability to step away from the machine to work on other tasks while the machine works. It recovers over 95% of automobile A/C refrigerants, along with a ton of features providing advantages for the ACX1280 over the competition.

The ACX1280 incorporates numerous safety features, including a controlled ventilation system to prevent a fire. While other U.S. manufacturers only offer an internal refrigerant identifier, the Mahle Service Solutions ACX 1280 is available with either an internal or external identifier, offering technicians greater flexibility in choosing what is right for them. The unobstructed accessibility, also an industry exclusive, to make maintenance easier than ever, is proof that the ACX1280 is a service professional’s best friend. Perhaps the biggest testimonial is that the new ACX1280 is approved and recommended by several vehicle manufacturers.”

Let’s talk about the new R1234yf refrigerant. What are your thoughts on how the service industry can best prepare for the transition?

“Now that we appear to finally be on the road to resolution of the R1234yf battles that have occurred throughout the past few years, the industry can move on to integrating it into the service sector.

“As vehicles equipped with R1234yf continue to grow, technicians will be asked to service these vehicles more and more. For the independent aftermarket, the first opportunity exists on the collision side of the industry. It will be a few more years before the critical mass of R1234yf vehicles enter the aftermarket “sweet spot” for traditional repair.

“Fortunately we have experienced positive growth among the OE service channel as many new car dealers are furnishing their bays with the ACX1280. This share of the OE dealer market is a continuing example that Mahle Service Solutions carries the expertise of a solutions provider in the tool and equipment industry. We are strong supporters of the Mobile Air Conditioning Society as a company, attending and exhibiting at their trade show and participating in educational forums. They have great resources for technicians in how to work with this new refrigerant and we strongly encourage technicians to soak up all the information and knowledge that MACS has available. Of course, we also believe that purchasing a machine like the ACX1280 is the best place to start because of its efficiency and safety.”

Talk to us about the relationship between Mahle Service Solutions and Mahle Aftermarket. They are two entirely separate divisions, but is there any crossover or partnership at all between the two?

“Certainly there is crossover as in the organizational structure as Mahle Service Solutions is a division of Mahle Aftermarket. That said, as we moved through the integration, we took great care and caution to define where it made sense for there to be crossover, and where we were better leaving the two to operate independently.

“Above all else, the most important recognition that we could make was that these are two entirely different customer bases. We did not want to be like many of our contemporaries that thought we could simply buy a T&E manufacturer, and just like that we are in the T&E business. One of the best things about being part of Mahle is our freedom from Wall Street. Mahle is foundation-owned, so we have the ability to make investments for the long term, and not just the next quarterly statement. This afforded us the ability to essentially create a new structure from the ground up and tailor it to the market we were going to be competing in.

“Logic, something that may seem under-utilized in today’s business world, played an integral role in the framework. Because of the difference in customer bases, the two divisions have totally different sales teams. However in terms of administrative functions like accounting, IT systems, supply chain management, and marketing – there is overlap here and we have designed a system to take advantage of these opportunities. All of it is with the continuing goal to be the easiest aftermarket manufacturer to do business with. We may not be there yet, but we are working hard on that goal.”

AAPEX 2015 will be here before we know it. What does Mahle have planned for this year’s show?

“We found great success with the brand new layout we unveiled last year at AAPEX. The separation of the traditional Mahle Aftermarket parts exhibit, and the new Mahle Service Solutions exhibit just across the aisle gave us the opportunity to showcase the separate divisions within the organization – yet maintain a commonality that we are one Mahle Aftermarket.

“We pulled the curtain back on the TechPro diagnostic scan tool in 2014, offering technicians and industry people across the board the opportunity to take part in the preview, participate in demos in real-time, at their own pace, and the response was overwhelming. This, year we will feature a very similar exhibit as the hot cars and hot tools and equipment will be on display again in what we call the Mahle Auto Service Center, showcasing the most productive tools and equipment in the industry.

“AAPEX 2015 also brings a stepped up display on the Mahle Aftermarket parts side, as well. Mahle has long been recognized as a world-class engine parts manufacturer, however people in America do not realize that Mahle OE filters represent more than $3 billion of our organization’s top line, and it is the technology and quality engineered into every one that makes Mahle filtration products the choice of many OE manufacturers. We bring this OE presence directly to the aftermarket – we like to say that Mahle does not just meet the OE standard; we define the OE standard.”

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