Paul Johnson joined NTN in August as vice president of sales and marketing for NTN USA Corp. and also chairman of NTN’s sales divisions in the Americas region, including NTN Bearing Corp. of America, NTN Bearing Corp. of Canada, NTN de Mexico and NTN Sudamerica. In this role, Johnson also is responsible for all NTN market segments including automotive OEM and aftermarket, as well as industrial OEM and aftermarket. Before joining NTN, Johnson served as vice president, North American aftermarket for Federal-Mogul Corp. Prior to that, he held multiple positions of increasing responsibility within General Motors Corp. in finance, strategic planning, product development and aftersales. He holds an engineering degree from Purdue University and an MBA from the Stephen M. Ross School of Business at the University of Michigan. In today’s Executive Interview, Johnson talks about his new role at NTN, his short- and long-term goals for the business as well as the opportunities and threats in the marketplace today.
You are new to NTN, but certainly not new to the industry. What made you decide to join the company?
I was very excited when NTN asked me to join their organization. It’s a great company with an impressive global production footprint, including a strong presence here in North America, and terrific legacy of innovation and technology. And perhaps most important, I think NTN is laser-focused on what it does well – making truly great bearings and constant velocity joints for both OE and aftermarket.
When NTN approached me, I did more due diligence on the company and its people. What I found were great opportunities for this company, as well as a dedicated, talented and highly motivated core of people. In my previous experience, I worked for companies that had brands and products largely established with customers in their markets. Here at NTN, we have tremendous growth potential, not only in existing markets but new ones as well.
With all the aftermarket expertise you’ve accrued, which skill sets do you feel will serve best in your new role with NTN?
Perhaps the most immediate skill is simply my engineering and technical background; I was an aeronautical engineer at Boeing before coming to the auto industry. That experience gave me some credibility – much needed to get in the door of a technically superior organization such as NTN. Additionally, I believe I bring to the table an ability to combine my analytical approach to strategy and problem-solving with years of real world experience in sales, marketing, planning and finance in both original equipment and aftermarket companies with customers in Canada, Mexico, the U.S. and around the world.
Hopefully, I can bring some levity, too! When I first met our chief engineer last month, he explained to me in great detail engineering and manufacturing processes for making NTN hub assemblies. I told him, while I probably couldn’t help him design the next generation hub assembly, if he wanted, I could make it fly!
In the end, I’m very excited about our future and what we can do to help our wholesale customers succeed in these key segments of the automotive aftermarket.
What advantages does being a global manufacturer and Tier 1 supplier offer the NTN aftermarket business?
Having global market presence and a manufacturing footprint in Asia, Europe and North America, I believe we have a substantial technical advantage over our competition. For example, within the U.S., we provide more than a third of all hub assemblies for North American OE production, with most units coming from our plant in Elgin, Ill., the largest manufacturer of hub assemblies in the world. Combining that with our production in Europe and Asia, NTN comes to the automotive aftermarket with impressive designs, broad coverage and strong brands that will be very attractive to our wholesale customers and channel partners.
What are your thoughts on the overall bearing/wheel hub assemblies category today? What are the immediate threats and opportunities for this product segment?
When it comes to categories like hubs and bearings, these are often safety-critical components, highly engineered to deliver specific performance as intended by the OE manufacturer. NTN knows this, having earned its place in the automotive market through decades of service and experience here in North America.
I believe it is important to educate the consumer that the higher initial cost associated with a genuine OE replacement part for critical components like hubs is an investment in the performance of their vehicle, and in their safety. So, we provide campaigns and seminars to train counter people and service technicians of these benefits so they can help consumers make their own informed decisions. We supply product information and training through aftermarket distribution channels to explain features and benefits of our premium products, provide warranties for customer peace-of-mind and participate with trade associations to network, be aware of key trends and share best practices.
What are your goals for the NTN Americas business in the short- and long-term?
Having been in the aftermarket for a few years now, I have worked for and competed against some great organizations. I believe that to succeed in today’s hyper-competitive markets, a firm needs to know exactly what makes it great. Whether as a manufacturer, distributor or vehicle service provider, once you figure out what sets you apart – your strategic advantage – you must double-down in that area and make it your differentiator in the market. NTN knows this, and our unrelenting focus on manufacturing the highest-quality bearings, hub assemblies and CV joints demonstrates it to me every day.
We have a great team and my hope is to help accelerate more value-add services to our customers in North and South America. These markets are very competitive and customers demand product expertise and expect value-added solutions from their suppliers. They’re making a large investment in us when they choose to carry our line or install our parts on consumers’ vehicles. And we will deliver – as a premium manufacturer offering some of the best product in the market. As NTN’s sales and marketing leader for this part of the world, I want our customers to feel confident that every NTN employee, all over the world, will uphold our commitment to fully satisfy them, every day.