LIVE FROM GAAS: Federal-Mogul’s Jose Marie Alapont Outlines the Requirements for Driving Profitable Growth

While the automotive industry may be struggling today, industry professionals can rest easy, knowing that the interest in and need for vehicles is not slowing down. According to Federal-Mogul's top executive Jose Marie Alapont, the consumer population will grow to 2 billion consumers, or 29 percent of world population by 2015, compared to 1.1 billion consumers, or 17 percent of the population in 2000. The global market will reach 76 million units by 2010, said Alapont. With this growth, will come a need for more cars, more parts, more service and repair.

With more than 30 years in the automotive industry, Alapont speaks from experience in his presentation, “The Drive for Profitable Growth.”

by Amy Antenora
Editor, aftermarketNews.com

DETROIT — As the chairman, president and chief executive officer (CEO) of a company that is successfully emerging from bankruptcy, Federal-Mogul’s Jose Marie Alapont, knows a little something about how to drive profitable growth. After years of financial struggles, Federal-Mogul reported $2.14 billion in North American aftermarket sales in 2005, proving the company is on an upward track.

A native of Spain, Alapont was the chief executive officer of IVECO, the commercial vehicle division of the Fiat Group, prior to joining Federal-Mogul in March 2005. He has worked on both sides of the automotive fence – in both the OE market and the aftermarket – having served in leadership roles at Delphi, Valeo and Ford.

While the automotive industry may be struggling today, industry professionals can rest easy, knowing that the interest in and need for vehicles is not slowing down. According to Alapont, the consumer population will grow to 2 billion consumers, or 29 percent of world population by 2015, compared to 1.1 billion consumers, or 17 percent of the population in 2000. The global market will reach 76 million units by 2010, said Alapont. With this growth, will come a need for more cars, more parts, more service and repair.

This is good but challenging news for some. Only global businesses will succeed and survive, the CEO said. “There is no more ‘niche’ left in this industry,” said Alapont. “We need to design added value for both the mature markets and the emerging markets.”

Aftermarket manufacturers need to be financially profitable and attractive, while still meeting new customer expectations. The speed to market today has changed and there are no opportunities to slow down, said Alapont. Price, quality and service, which used to be key differentiators to customers, now are minimum expectations. “To compete globally, we need to be best in class,” Alapont said.

So, what must an aftermarket company do to keep pace? “In my view there is only one answer,” Alapont said. “We need to drive for profitable growth. You need to be global in whatever you do. Whether it’s the European, American or Asian markets, the market is changing. North American business needs to globalize, grow and be profitable.”

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