The AAMPACT CEO is open about the major challenges facing the independent spare parts and repair market. He believes that a fair future can only be achieved internationally, and explains why repair shops will always be needed.
How do you view the announcement of the Chinese automotive industry to start a European offensive? When will it reach the open aftermarket?
The Chinese have their work cut out for them. They need to ask themselves: What are the typical wear parts, and how can they be transported to Europe? How can we ensure availability? Or should more parts be produced in Europe? How will employees in the workshops be trained? Chinese brands will try to set up authorised workshops in Europe. They are already doing this with sales. The online business has not been all that successful. Now, they are looking for retail partners.
AAMPACT CEO Thomas Fischer
It’s not just different manufacturers; it’s also different cars. Entertainment systems are important, and cars are becoming a ‘home away from home’. “Software-designed vehicles” are already on the way.
These developments affect more than just cars from China. In general, I believe that the independent market, which our association represents, has the same prerequisites to participate in these developments as authorised repair shops do. Mechanics are neither smarter or dumber because of where they work. The problem is that vehicle manufacturers are very selective with their information, despite clear legal regulations stating that all market participants must be treated equally by car manufacturers. This is a battle we have been fighting for a long time.
What exactly are you trying to achieve?
We want to ensure that we have the same opportunities as authorised repair shops – to obtain repair, maintenance, and parts information from vehicle manufacturers, so that we can be competitive in the market. This would also benefit drivers. When you look at how hourly wages and spare part prices at authorised repair shops have developed, it’s clear that the independent market enables affordable mobility for consumers.
You have won some battles recently.
In 2024, the European Court of Justice made three rulings: one concerned open access to the vehicle for diagnostic purposes; another was about the provision of parts information via the chassis number, as this is the only way to identify the exact components in the vehicle and the necessary parts for repairs; and a third concerned excessive diagnostic fees charged by vehicle manufacturers. In the third case, vehicle manufacturers had been charging horrendously high diagnostic fees after raising prices for data disproportionately.
How dependent are workshops on manufacturers today already?
This sort of thing is typical: a mechanic can only activate a spare part after connecting to the vehicle manufacturer's server. The part can only be installed once it has been authorised. Depending on the vehicle's security level, the workshop must first identify itself. And then the mechanic has to personally verify their identity. This is hardly feasible in reality.
With the coronavirus, the semiconductor crisis, and global economic turmoil, the market is in a state of flux. What is your view on the situation?
Although vehicle manufacturers are reporting slumps in profits, if you look at the figures, you will see that profits in 2024 are comparable to those in 2018. The semiconductor crisis has led manufacturers to install available semiconductors in the premium segment, significantly increasing the average price of cars sold. During that time, they were able to sell some cars without even offering a discount. That is over now and profits are now slimming down, though they are still being made. The ones who are suffering now are the suppliers.
Suppliers have to invest in new technologies, even though the market is not even there yet …
… and are feeling significant price pressure from manufacturers. That is the issue. AAMPACT member companies are particularly badly affected by this. However, the overall trend for the spare parts market itself is positive.
Isn’t it also true that cars are being held on to longer on average?
Private customers are unsure whether to choose electric, hybrid, or combustion engines, so they are continuing to drive their current vehicles for the time being. In Germany, the average age of a car is now eleven years. This is unprecedented. Consequently, demand for repairs is higher than ever, and our member companies are feeling the effects. The mood is generally positive. And also, of course, keeping cars on the road for longer is more sustainable than producing new cars.
In what ways is e-mobility changing the industry? Repairs are reportedly becoming less common with electric cars as they are constructed using far fewer parts …
Firstly, loyalty to manufacturers and their authorised repair shops is increasing. Since batteries are the most expensive part and most manufacturers offer an eight-year warranty on them, they also expect customers to use their authorised repair shops. Customers are concerned that they will lose their warranty otherwise. Currently, customers only switch to independent repair shops after four to six years. In future, it might be even longer.
What experiences have workshops had with electric cars?
With electric vehicles, both the software and the battery are usually supplied by the manufacturer, so we don’t have anything to do with them yet. Currently, we might get a few hybrids in for tyre changes, or after accidents, or general wear-and-tear. Teslas often have issues with their steering parts because they are so heavy due to their batteries. Any independent garage could replace these parts easily. However, the required parts are usually more expensive than those for combustion engines. The hourly rates of the mechanics involved are also higher because the garage needs completely different equipment. This means fewer repairs on the whole, but also more expensive ones.
What role do batteries for electric cars play in the independent aftermarket?
Battery repair will become increasingly important to us in the future. Time will tell whether batteries must be replaced entirely, or individual cells can be repaired, or if it’s possible to implement second-life concepts where old batteries are used as energy storage devices.
Remanufacturing –the process of reconditioning used parts– is widely recognised as a key factor in achieving greater sustainability in the aftermarket. How is the industry handling this?
Availability is very good. There are many parts manufacturers and specialists who recycle parts industrially. At the end of the day, the part is just as good as a new one and comes with the same warranties and guarantees. This is particularly appealing for starters, alternators, and brake calipers, i.e. components with cast housings. Preserving these rather than manufacturing new ones achieves the best CO₂ reduction. The question is always one of cost-effectiveness. The part must be removed from the market, processed, and then returned to the market. That costs money. And then there are suppliers in other parts of the world who will sell you the same part newly manufactured and for less money. Old parts have to be returned to the suppliers so that they can be remanufactured. Some retailers find this two-way business too cumbersome and want nothing to do with old parts; they prefer to use new parts instead.
Are customers sceptical? Do they accept the idea of remanufacturing?
This market will grow in the coming years, that much is clear. However, there is no specific customer demand for remanufactured or spare parts, nor is there any brand awareness. But customers can rest assured that a remanufactured part is of the same quality as a new one – complete with all the associated guarantees. There are really only advantages for them.
The industry has long struggled to attract young talent, and has responded with campaigns ranging from ‘Schrauberblog’ to ‘Talents4AA’. Can you see any positive resonance yet?
That cannot be measured directly. However, we can say that the mechatronics apprenticeship is the most popular among young men. And still we are unable to fill all our apprenticeship positions. This is a problem that affects all trades as a whole, though, and is not specific to us. Almost 40 per cent of students graduate with A-levels (German “Abitur”) and try to go for a university degree.
“The mechatronics apprenticeship is the most popular among young men. And still we are unable to fill all our apprenticeship positions.”
What makes a company successful in the independent spare parts and repair market?
You need a comprehensive programme to cater to workshops and dealers. They don't want to have to go to a different source for each car model. Workshops need a supplier who can offer a wide range of services, such as marketing, sales support, assembly instructions, and training. All under one roof. These services are all now expected when it comes to spare parts. Workshops need to be able to rely on a dependable supplier to help them repair the right number of cars every day in order to prevail in the market. For parts suppliers, the order of the day is to expand their offers.
