David Mestdagh is director of North American aftermarket business for Continental Automotive Systems. He is responsible for overall business strategy, product quality, and performance; as well as development of effective sales and marketing activities in North America for the Continental, ATE, and VDO brand of products.
Mestdagh has more than 24 years experience in the sales, marketing, financial and operational functions of the aftermarket, and has worked extensively with senior management and customers alike to develop and execute a variety of programs and product strategies.
Prior to joining Continental, Mestdagh served as national accounts sales manager for Visteon Corporation’s aftermarket group, and held key sales, marketing, finance and logistics positions at Federal-Mogul Corporation.
Mestdagh holds a BA in economics from The University of Michigan (Ann Arbor, MI), and attended The University of Michigan Business School Executive Development Program. He is a member of the Automotive Aftermarket Industry Association (AAIA) Marketing and Member Relations Committee, the Automotive Sales Council, and has received his Automotive Aftermarket Professional designation from the University of the Aftermarket.
Join us as Mestdagh brings us up to speed on Continental’s plans for the future, following last year’s acquisition of Siemens VDO.
Since Continental’s acquisition of Siemens VDO Automotive last year, there has been a lot of media speculation as to what Continental plans to do with the various businesses it has acquired. Can you bring us up to speed on the company’s vision for the future?
Our vision is to make individual mobility safer, more comfortable and sustainable, while creating value for our customers and shareholders. As a company, we have the utmost confidence in our people, our skills, and our passion for automotive innovation and quality.
The acquisition has given us some significant new resources and capabilities that we believe will help make the new Continental a stronger and even better partner for our customers, business colleagues, and vendors. Our extended portfolio of products and technologies, combined with the spirit of Continental people, makes us a leading-edge supplier to the global automotive industry, with more than $40.7 billion in annual sales.
With the acquisition of Siemens VDO, Continental has become one of the top five automotive suppliers in the world, in terms of revenues. What are some of the other benefits of this acquisition?
On the OE side, the combined organization will enhance Continental’s ability to develop electronic solutions that improve vehicle performance. Eighty-eight percent of the new product categories that came with this acquisition are in the top three market position within their specific segments, a definite plus for our customers and our overall business plan.
The Aftermarket group is also seeing the benefits of this great acquisition. As with the entire acquisition, this perfect fit of people and products will allow us to offer our customers the products, programs, and services of two highly innovative companies, from one source, with very competitive prices and unsurpassed quality. Our customers can count on us to ensure that the new Continental Aftermarket will offer competitive pricing, reliable fill rates, consistent category growth, and regular new part number introductions, along with the first-rate programs, tools and services they need to increase their revenue opportunities.
Will there be any changes in terms of branding following the acquisition of Siemens VDO?
Yes. In the aftermarket, we will now market three brands: ATE, Continental and VDO.
Our ATE replacement brake pads and rotors brand is 100 years strong and has always represented OE engineering heritage and excellence. We are a market-leading global supplier with a level of credibility, strength, and expertise unmatched in the industry.
We also have the formidable VDO brand. As our recent ad campaigns state, OE engineering experience is what sets our product and team apart from the competition. Customers need and demand VDO because it’s the brand that delivers best-in-the-business quality, service, and coverage. The VDO brand name has represented quality engineering and innovation for over 75 years. Prior to the acquisition, the brand was most recognized in the aftermarket as a leader in instrumentation. Now, the VDO brand is also found on all of our aftermarket blower and radiator fan motors, fan assemblies, power window motors and assemblies, door lock actuators, and engine management products.
Continental is our namesake brand and will represent our TPMS replacement parts category. This was a very conscious decision – we chose Continental as the brand for our TPMS sensors, component kits, and bands, because Continental already has an excellent presence in the tire distribution segment.
I should note that Continental Tire (OE and Aftermarket) falls into our Passenger Car and Light Truck Tire Division. Likewise, ContiTech, which is the world’s major manufacturer in the field of non-tire rubber and plastics technology, is also a separate division.
On a more personal level, tell us about your new role at Continental and your own goals for Continental’s Aftermarket Group.
I have been charged with the responsibility of putting a team in place that is dedicated to sales leadership and product management, to ensure that the company continues to maintain its aggressive momentum of success and future growth. Our team is responsible for growing individual accounts, product businesses, and addressing new opportunities. Our individual approaches have always been somewhat entrepreneurial and that will continue because the results have been very rewarding. Every person on our team is an expert at their job and focused on providing quality product and services to our customers and business associates.
We have spent the last few months taking a detailed look at our customers, our product portfolio, logistics, and all our support functions and have already identified several synergies. We will benefit internally from these efficiencies, and are looking forward to passing these new opportunities on to our customers. Our collective customer base will have access to new product categories as well as new and redesigned programs and services.
Our sales staff has been trained on our total product portfolio and will take our programs to our customers with the aid of sales agency representatives. We anticipate that our customers and representatives will find an even stronger business partner with the new Continental Aftermarket.
Continental is widely regarded as a world-class organization known for exemplary standards. What would you say are some of the key differentiators that Continental is most proud of?
We offer best-in-class value and performance. Creating value is our driving force and performance is our passion. We have major market and technology leadership, and are key innovators in our product segments. We offer a comprehensive product portfolio, with a mix of products that complement each other. And, we are where our customers are, with 200 plants, R&D centers, and test tracks in 36 countries around the world.
The new Continental is well positioned to take advantage of future trends in the global markets it serves, which will benefit the employees, customers, and shareholders.
What advantages in the aftermarket does Continental receive from its OE engineering heritage?
Our position as a world leader in OE systems helps us to be first to market with new technologies and application coverage for the Aftermarket. TPMS would be an example – we’re among the first to market with TPMS service products, and we now have sensor and service kit coverage for over 10 million vehicles on the road today.
Our OE engineering heritage also allows us to consistently deliver on our promise of OE form, fit, and function, and continue to keep our customers’ trust and confidence. For example, as a brake supplier to automakers worldwide, we can bring our OE engineering standards to the entire ATE line of brake products. Our ATE PremiumOne pads feature application-matched, OE-engineered friction formulations, which help restore performance, reduce wheel dusting, and extend life. Our premium rotors feature our patented RotorLife wear indicator, which enhances performance and provides the technicians a visual indicator of when the rotor should be replaced.
With VDO electric motors we have the most comprehensive line of dependable OE engineered, aftermarket smart electric motors on the market, and are continually developing new technologies that translate into better designs to keep our customer ahead of the competitors.
OE Engineering again plays a critical part in our market leading Door Systems Program. Our foresight and expertise as an OE manufacturer allows us to ensure that our aftermarket customer has new product and technologies well ahead of the competition.
Clearly, the advantage is that our aftermarket brands carry a strong reputation of OE quality, design, and innovation. The OE heritage also means that we can continue to strengthen these brands in the North American Aftermarket with new and existing programs and growth opportunities.
