John Nielsen was appointed vice president and general manager, North America Parts and Service for TRW Automotive in Feb. 2008. In this position, Nielsen is responsible for all North America Parts and Service to the OES (Original Equipment Service) and IAM (Independent After Market) distribution channels. The primary operations and warehouse distribution network are in Garrett, Ind., and Wixom, Mich. Nielsen also is the senior North America staff member to the Global Parts and Service organization, where he works in conjunction with the global vice president to satisfy the TRW worldwide aftermarket customer base. In today’s Executive Interview, Nielsen talks about the numerous exciting changes taking place at TRW. At the beginning of the year, TRW announced the formation of the TRW North American (NA) Aftermarket Group, designed to serve the needs of distributors and repair technicians with an extensive range of safety products, and just a few weeks ago, TRW launched a premium brake pad program. 
Prior to his current role, Nielsen served as the vice president and global account director for TRW’s General Motors Account organization and was the lead commercial representative for TRW’s North American Braking and Suspension Division. Prior to his tenure with TRW, he served various roles of increasing responsibility in the commercial, engineering and operations for the former Kelsey Hayes, and earlier in his career with General Motors. Nielsen holds a bachelor of science degree from Bowling Green State University and executive level leadership certifications.
TRW Automotive is a global leader today when it comes to automotive safety systems, and was among the first automotive suppliers to highlight the need for safety-related advancements in vehicles today. Why is this such an important segment to TRW Automotive as well as your aftermarket business?
TRW believes passionately in the importance of making safety-related products accessible and affordable across all global markets. It is an excellent segment of the market to be in because the growth of safety systems has typically been faster than the growth of the overall vehicle market and as the content per vehicle continues to rise significantly as consumers demand safety components and systems, vehicle manufacturers use safety components and systems to differentiate their vehicles in the market and governments mandate vehicle safety technologies.
TRW’s wide portfolio of active and passive safety systems accounts for more than 85 percent of its sales. According to World Health Organization statistics, approximately 1.3 million people die each year on the world’s roads. The focus from the industry has made a significant difference in the past decade across Europe (road deaths reduced by more than 28 percent [1] and the United States of America, down by approximately 10 percent [2]), but with the rapid expansion of markets in the Asia Pacific region, increased demand for affordable safety systems is likely.
With more than 100 years of experience manufacturing products for vehicle manufacturers and the aftermarket, TRW has built its reputation on delivering safety-related components and systems to both the OEM and aftermarket. Supplying nearly every car manufacturer in the world with safety-related components and systems, TRW’s comprehensive and expanding range of aftermarket products cover the spectrum of safety components and systems in the Corner Module area, which includes the braking, suspension and steering systems.
Clearly, the company expects growth in this sector to continue. Please tell us more about the investments TRW Parts & Service has announced recently to support continued growth in this and other markets.
In the aftermarket business, TRW’s aim is to have facilities and offices that are close to its customers. We recently announced the formation of the North American Aftermarket Group to serve both our existing and new customers in North America. Other recent developments include the opening of a sales office in Dubai and the formation of a business unit in Russia. TRW is constantly looking globally to accommodate the increasing business with a growing sales and logistics footprint.
What changes have been made to the company’s organizational structure to support this growth?
In the aftermarket business, TRW is aligning its structure to match the needs of its increasingly global customer base and business. TRW’s goal is to utilize its size and global scope to provide professional technicians with the highest-quality products from our facilities around the world.
We are leveraging our global organization and capabilities where it makes sense, while continually focusing on supporting the needs of the local market. In North America, that is reflected through the formation of our local Aftermarket Group and our active participation in the industry.
We have also recognized that our customer base is becoming increasingly global. Our challenge will be to successfully adapt ourselves to the different requirements of each customer.
The company has said it will focus a good portion of its investments in Brazil, India and China, but alluded to supporting all customers globally. What other emerging markets are important to TRW Parts & Service going forward?
Within the aftermarket business, North America is an important growth market for us.
We are focused on serving the needs of the professional technician here, and have committed to significant investment in inventory, logistic capability and technical training among other areas.
Along with the countries mentioned above, we have recently put a focus on Russia and have identified this as a key market opportunity. TRW Parts & Service is working with a global scope and we respond to market opportunities as they develop.
Braking is another key product segment for TRW Parts & Service. What is the company’s approach to the competitive and cluttered friction category today?
TRW Parts & Service utilizes its expertise as the global leader in safety systems to provide the aftermarket the right choice in disc brake pads, simplifying the confusion over material, (Ceramic, Metallic, Semi-Met, Non-Asbestos-Organic and Carbon Metallic), while offering superior coverage in the 15-year and newer vehicle range.
Our program offers the most suitable friction formulation for each vehicle application to optimize safety and performance. In addition, TRW’s pad range features hardware (on most applications), grease and fitting instructions in the box, facilitating optimal installation.
The TRW-branded program comprises more than 760 part numbers at launch. We are committed to a first-to-market policy that will see this range rapidly increase. Providing a dominant offering of chamfered, slotted and shimmed designs, the range comprises ceramic and semi-metallic brake pad sets. For a quieter and more comfortable drive, TRW’s brake pads are fitted with shims, which act as a damper between the friction material and the brake caliper.
Our experience in OE safety systems allows us to offer quality parts to the aftermarket that have been manufactured to work in harmony, delivering enhanced performance and comfort.
At HDAW in January, TRW Commercial Steering Systems announced its expansion into the North American independent aftermarket. Please tell us more about this expansion and how products will be distributed to customers.
TRW announced its entry into the North American heavy-duty market for steering and suspension. TRW has already established relationships with major distributors and is currently working to partner with additional distributors. Distributors will stock and sell TRW remanufactured steering gear assemblies, which are not rebuilt but remanufactured to OEM-grade specifications with original TRW components and tested to meet TRW’s stringent production requirements. In addition, TRW will go to market with power steering pumps, steering gear seal kits, linkage components and heavy-duty steering systems.
[1] Source: CARE – European Road Accident Database
[2] Source: FARS – U.S. Fatality Analysis Reporting System
