Jesse Jones, a 25 year veteran of the aftermarket, was appointed in 2006 to the role of manager – marketing for Clevite Engine Parts, now MAHLE Clevite Inc. Jones is responsible for the company’s overall strategic marketing efforts, which include communication, customer program management, tradeshows, motor sports, brand management and customer training. He is a graduate of Northwood University. His affiliations include the Society of Automotive Engineers, Automotive Aftermarket Industry Association (AAIA) Leadership Development Network, National Catalog Managers Association, Automotive Aftermarket Suppliers Association, AERA and PERA. Jones is also ASE Certified.

In this exclusive Executive Interview, Jones brings us up to speed on MAHLE Clevite as the company celebrates nearly one and a half years under the ownership of Stuttgart, Germany-based MAHLE Group.

You will be part of a panel discussion at the Aftermarket eForum this week in Chicago. What message will you deliver for the discussion about standards-based technology success for manufacturers?

The only path to success moving forward for all manufacturers – not just MAHLE Clevite – is the acceptance of the industry standards pioneered by organizations like AAIA. Every day the number of our customers doing business electronically grows exponentially. These customers will never revert back to the old way of doing business, and as we move into the future, the shops that do not embrace electronic business will be left behind.

With electronic data being so important, what tools does MAHLE Clevite provide to its jobbers and WDs to help them succeed?

Before the formation of MAHLE Clevite, we made the decision to invest heavily in e-capabilities. Beyond the benefits of an effective and dynamic Web Site, we pioneered a user-friendly electronic catalog that integrated all of our products in an easy to look up format.

One of the resources we are most proud of is our electronic ordering tool available at www.mahlecleviteorder.com. The highly functional and interactive Web Site offers many great features, among them is enabling customers to order products, view inventory at any of our Customer Care Centers, track order shipments – and the best thing is that it is open 24 hours a day.

The thing we are most excited about is a brand new path for MAHLE Clevite. Converting more than 30 years of data to meet the industry standard is not easy or cheap. Yet our recognition of this paradigm shift in the industry prompted us to get on the leading edge to ensure our longevity moving forward. This was the impetus for our partnership with Pricedex. The groundbreaking technology they offer will allow us to provide all of our trading partners’ complete and robust data for our entire product line in a timely fashion.

MAHLE Clevite is quite active in motorsports. In January you announced that beginning with the Daytona 500, the new MAHLE white decal would take the place of the legendary Clevite blue decal throughout all NASCAR competitions. How has the transition gone?

We are overwhelmed by the positive support from our introduction of the MAHLE name throughout American motorsports – most notably within NASCAR – as Clevite has earned the trust of NASCAR engine builders since 1948. The relationships we’ve built with teams and engine builders, enable us to maximize this opportunity and reduce any negative impact a change like this could cause.

NASCAR statistics prove that virtually every team that ran the Clevite decal has made the transition to the highly visible MAHLE decal. The success of this initiative serves as the cornerstone for our introduction of MAHLE to the North American aftermarket.

What is MAHLE Clevite doing to enhance the value of its motorsports program?

The MAHLE presence in motorsports is far-reaching on a global basis. MAHLE sponsors champions throughout series like Rally Car, LeMans and the prestigious Formula 1 Series. Our job is to bring MAHLE to the forefront of American motorsports as well. The first step was completion of the decal transition. Coinciding with that MAHLE Clevite made a commitment to expand sponsorship back into all three NASCAR national series – but more important than that was the commitment to Grass Roots racing. These are the champions that work all week for a chance to shine on their local tracks nationwide.

Circle track racing is not the only arena where we are committed to success. Drag racing offers a proving ground for our products that is more stringent than any test environment can simulate. Being subjected to eight thousand horsepower from a V-8 engine is the ultimate test for an engine part. That is why MAHLE Clevite products are the premier choice for top NHRA and IHRA teams. Outside the professional ranks, drag racing fills a void for those who want to compete for speed on a more limited budget. Serving the needs of both of them are top priorities for us as we share one common goal – Victory Lane.

We are also very excited about the launch of our new “Find Clevite” promotion designed to heighten awareness of the MAHLE name at the customer level and reinforce the fact that the Clevite brand lives on. Participation is easy; anyone can visit www.findclevite.com or click the link on www.mahleclevite.com to play. After a simple free registration, you can win prizes ranging from a VIP trip to a NASCAR race, GPS systems or a MAHLE Clevite prize pack containing several great items.

Bring us up to speed on what has occurred with your company in the last year and a half under new ownership?

The list of things that have occurred in the past 15 months is so long that I can highlight a few areas.

The integration into the MAHLE organization is nearly complete, enabling us to maximize our investment in a number of different areas. MAHLE manufacturing capabilities at the global level are strong, which gives us the opportunity to leverage these resources. This is a positive thing for our customers, as well as for us as a supplier. There’s still work to be done, but we already see dividends.

On another level, we continue to grow through acquisition. Since the formation of MAHLE Clevite in March 2007, we purchased the Mexican piston ring portion of Condumex and the Car Pro piston ring brand. Within the last month, we finalized the deal to purchase Clemex engine bearings solidifying our stake in the Mexican aftermarket, as well as enhancing our engine bearing production capabilities. Combine these with the MAHLE acquisition of Mopisan, and we have laid the groundwork for a sound manufacturing base.

One other highlight is the investment in people and technology. We brought in additional resources to increase product development on the personnel side, we likewise have invested heavily in technology allowing us to research new parts for the product line, as well as enable us to expedite the release of these parts in the industry standard data formats through our partnership with Pricedex.

You mentioned that MAHLE Clevite recently acquired Clemex Mexico S.A. de C.V. What brought this about and how will this affect MAHLE Clevite’s North American operations?

As we have said many times, MAHLE is an engine parts-focused company, the acquisition of Clemex allows us to strategically expand our footprint regarding engine bearing sales and manufacturing.

Clevite engine bearings continue to set the benchmark for both quality and service. The opportunity to integrate an aftermarket engine bearing provider like Clemex offers a unique opportunity to tailor our manufacturing operations to best serve our customers.

We want to make clear that the acquisition of Clemex in no way jeopardizes the future of existing operations throughout the United States. The addition of Clemex solidifies our ability to provide the legendary Clevite engine bearings to all of our markets.

Can you share with us any specific plans MAHLE Clevite has for growing its business in North America?

I mentioned earlier that MAHLE Clevite is focused on the internal combustion engine and its periphery. Aside from the traditional engine parts associated with Clevite, a new horizon for MAHLE Clevite is expansion into filtration products. While this may sound outlandish to traditional Clevite customers – MAHLE has an extensive line of filtration products for both European and Asian applications available today. The product mix expands every day and eventually will cover not only import, but also domestic and heavy duty platforms.

Aside from filtration, MAHLE has already shown a willingness to expand by investing in acquisitions where it fits the corporate strategy.

Where do you see the North American aftermarket headed in the next five years and what are the greatest challenges?

Obviously, the biggest problem facing the industry right now is skyrocketing energy costs. I believe the effects of this on the economy are only beginning. We just implemented our own “Energy Recovery Fee” on all orders placed up to a certain level. This fee has nothing to do with freight shipments to the customer, but solely for the cost it takes for us to get materials in, manufacture the parts and get them to the shelf and available for distribution.

Another challenge facing the aftermarket as well as other industries is the inundation of off shore and low-cost manufacturing. The global economy is no longer evolving; it is alive and well. Technology has enabled these global suppliers to produce “will fit” parts that have OE form and fit, yet are shy on the function. Full line suppliers like us have actually propagated this problem. We are the ones that created the infrastructure through things like part numbers, and different category management techniques that have allowed short-line suppliers to come in and displace us.

For the nearly three decades I have been in the aftermarket, parts proliferation has been a buzzword to describe another challenge we face. With more new car manufacturers than ever before, we now have the biggest coverage environment the industry has ever seen. Like so many other things, it will continue to increase as we face another influx from countries like China and India.

The aftermarket has experienced a high level of consolidation through acquisition both at the manufacturer and customer level. Business schools teach the importance of long term planning. I assure you they have never tried planning in the automotive aftermarket. The ability to maintain an agile organization is paramount to success. Long term planning has to be in place to serve as an effective road map to guide through the future; however at any point something may show up in the news that precludes the viability of that plan. The capacity to react to the changes and effectively reorganize and formulate a new strategy increases the ability to achieve organizational goals.

Possibly the biggest uncertainty relating to the aftermarket is the continued evolution of the distribution channel. The advent of the Internet as a growing source for business including parts ordering at every distribution level continues to alter the way a company goes to market. Combine that with the growth of the retail segment as it relates to traditional warehouse distributors over the last 20 years, as well as the emergence of specialty warehouses – it all creates a level of ambiguity that only time can decipher. Again, this reflects the importance of a manufacturer being equipped to see the changes coming, and to remain on the leading edge in adapting to the challenges presented to succeed.

Protecting intellectual property is another big issue for the aftermarket these days. What are you doing to take action against counterfeiters and counterfeit products?

Counterfeit products pose a serious problem for the entire industry – this crisis is magnified when it relates to products and brands with an increased reputation for quality and performance. MAHLE monitors the market for these products, and when we find something, we respond quickly by prosecuting the counterfeiters.

High-quality “wear parts,” like those produced by MAHLE, are a favorite target of counterfeiters. Chinese market experts estimate that more than half of all filters are counterfeit. While this statistic is difficult to prove, the fact that counterfeit and inferior products have a negative affect on sales figures of the genuine components is not hard to validate. Every counterfeit MAHLE product is also an attack on our carefully maintained brand and product image.

MAHLE has developed an anti-counterfeit team with the sole purpose of researching counterfeiters worldwide. The effort has been considerable, but it has been a great success. MAHLE will continue to take action in the future and use all available measures to fight product counterfeiting. This is in the best interest of our brand and our customers who should be assured: When MAHLE is printed on it, MAHLE is also in it.