In today’s Executive Interview, Odd Joergenrud, regional president, North America, Automotive Aftermarket, Robert Bosch LLC, shares with aftermarketNews an update on Bosch’s recent acquisition of Taiwan’s Unipoint and its latest partnership with NASCAR, in addition to talking about the important roles that R&D and IPR management play at Bosch.

Bosch recently closed its acquisition of Unipoint in Taiwan. Can you please tell us what benefits this acquisition provides the Bosch Aftermarket division and its customers?

We pursued this acquisition because Unipoint has excellent manufacturing capabilities with products very important to Bosch, including starters, alternators and wiper blades. They also bring important manufacturing expertise in temperature control products such as air conditioning compressors and cooling fan clutches.

Unipoint has more than 2,000 associates working in two sophisticated plants, both of which are ISO-compliant. All of these products fit very nicely with our current product mix and afford opportunities to strengthen our competitive position for these products by allowing Bosch to compete in additional price segments in both the North American and Asia Pacific markets.

Bosch has been a strong proponent of the AASA Know Your Parts campaign. Why is this program so important to you?

Our success depends on the success of parts distributors and repair shops. So, it is in our collective interest that the aftermarket prospers. We are convinced that quality repairs and customer satisfaction are keys to market growth and consumer confidence in the repair and maintenance of vehicles. Substandard and imitation parts threaten the viability of durable auto repair and customer satisfaction. So, we wholeheartedly support the Know Your Parts campaign and their key messages, which include, “When repair professionals need to replace parts, they should be sure to use premium parts from a full service manufacturer.”

In the context of the Know Your Parts effort, are there certain parts that lend themselves more to imitation than others?

We are finding that parts that seem less complex in design and appearance are most commonly imitated, since they are the easiest and least expensive to manufacture. The problem is that motorists may end up with disappointing or even dangerous performance from products that look similar to what they’ve come to trust. A good example is wiper blades, which appear to be simple in design but are actually very sophisticated, in both design and materials. Bosch has pioneered the development of beam-type blades, sometimes referred to as “bracketless blades,” and we have seen a number of similar-looking blades being marketed whose construction and performance are substandard.

Actually, we have been aggressive in pursuing those companies that are making and marketing wiper blades that infringe on our patents and technology. Last year, during the AAPEX show, we initiated legal action against 10 companies that were infringing several of Bosch patents on wiper blade design. All but two of these actions have already been resolved in Bosch’s favor, either by way of agreement or by court action. Bosch believes it will prevail in the remaining two actions that are still being litigated.

This year, just prior to the AAPEX show, we filed a request with the United States International Trade Commission requesting an investigation of 13 companies that are involved in the importation of wiper blades that infringe our patents on wiper blade technology.

Is this action good for the industry and for the motoring public?

Absolutely. Technicians and motorists need to be confident that the beam type wiper blades and other parts they’re buying and installing measure up to the standards we’ve developed and patented, and this is the very essence of the Know Your Parts campaign. In fact, at this year’s AAPEX show, AASA announced the addition of the tag line, “It’s what’s inside that counts,” reinforcing the importance of customers knowing that they’re receiving the quality they’re paying for.

Does the industry support your actions?

Yes, indeed. In fact, following our legal actions just prior to the AAPEX show this year, the legal teams from Bosch and AAIA met and, after discussion, AAIA show management officials actually directed a number of exhibiting companies to remove from their displays wiper blades that were deemed to infringe Bosch patents. We appreciate the support of these officials and appreciate their actions.

Will you take other such actions in the future?

We certainly will, whenever we believe others are improperly infringing on our intellectual property rights. We invest a huge amount of time, effort and resources in developing products that our customers rely on for performance and value, and we will continue to pursue all appropriate avenues necessary to protect these rights and assure that customers receive the value they’re paying for.

How extensive is your new product development program?

It’s massive. In 2010, Bosch spent more than $5 billion in research and development, a higher percentage of sales than any other major auto parts company. On average, Bosch obtains 15 patents every working day. It’s this kind of commitment to innovation that has enabled our growth over the past 125 years, and we know that it takes this kind of commitment to assure our continued growth and success.

How is this research important to parts distributors and repair technicians?

Continuous improvement benefits everyone in the auto repair supply chain. In concert with our partnerships with automakers, both here in the U.S. and around the world, we develop parts and systems for gasoline direct injection, clean diesel, hybrid and electric vehicles. Our OE involvement breeds top-quality replacement parts for the aftermarket. In some cases, this involvement allows us to supply replacement parts that are actually better than the parts they replace because they are built on newer technology.

Can you cite some examples?

Certainly. Bosch currently offers turbine-style in-tank fuel pumps and new-generation EV-14 fuel injectors that, in many cases, can be used to replace parts that, while state-of-the-art in their day, have been superseded by parts using new and better technology.

Tell us about your new partnership with NASCAR in supplying oxygen sensors for the new fuel-injected engine and the benefits that partnerships such as this offer.

Our involvement with NASCAR and other forms of motorsports is very important to us. Bosch invented the modern engine management system, so it’s a natural fit that NASCAR selected Bosch as its official oxygen sensor supplier. Beginning in 2012, every Sprint Cup car will be equipped with two of our oxygen sensors. In addition, Bosch fuel injectors are approved for use in Sprint Cup cars. These developments are good for us and our customers because motorsports represents the world’s toughest proving ground to help us produce the most durable and precise engine management products in the industry. And the motorsports arena also affords terrific exposure for our brand, so our channel partners have a greater opportunity to sell and install Bosch products.

Is there anything else that you’d like to add?

Just one thing. We want our partners in the aftermarket to know that we will continue to support them in their business, whether it’s in parts distribution or in the service bays throughout North America. We will continue to provide not only products, but also diagnostic and service equipment, technical training and marketing support to assure their continued success.

Bosch has just celebrated 125 years in business, more than 100 years of doing business in North America, and 75 years of pioneering product design in diesel engine technology. We want to help all of our customers achieve similar milestones of their own.