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Joćo Cardoso, Bosch Service : Service for all brands within one global network
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Bosch is one of the leading technology and services companies in the world. The German company, founded 125 years ago by Robert Bosch has invented and developed numerous products and services in mobility, industry, software and household applications. In 2004 Bosch marched down the fleet management road by offering to service fleets vehicles throughout their international workshop Network. According to Joćo Cardoso, Worldwide Key Account Manager of Bosch Service, the goal is to expand that business and to become a leading fleet servicing supplier.
“Bosch is the number one automotive technology supplier in the world and there’s a huge chance that the vehicle you’re driving is equipped with several Bosch technologies and components”, says João Cardoso of Bosch Service. “For instance diesel and gasoline injections systems, alternators and starters including the start-stop systems, lithium-ion batteries, electric drive systems and so on. But also safety systems like ABS, airbag, ESP, traction control system, auto cruise control. Moreover Bosch produces brake discs and pads, wiper systems, steering systems, radio navigation systems. In 2010 Bosch published 3,800 high tendered patents, or 15 a day, so Bosch is working closely with the manufacturers to make the cars more economical, safer and more fun to drive. If we are talking about figures concerning the Bosch world, in 2010 the automobile technology division achieved around 28,1 billion Euros turnover and this is a share of about 59% of Bosch total sales.”
The headquarter of Bosch is in Stuttgart, but the aftermarket business is driven from Karlsruhe. How important is this aftermarket business?
J. Cardoso: “The automotive aftermarket headquarter in Karlsruhe provides a complete range of workshop test equipment, software and services and a wide range of Bosch spare parts for the aftermarket and repair shops. We provide new parts and exchange parts for passenger cars and commercial vehicles. More than 10,000 associates in 140 countries as well as a global logistics network ensures that round about 450,000 different spare parts arrive to our customers on time. Our product portfolio includes products made as Bosch original equipment as well as aftermarket products and services. Our division is responsible for the Bosch Service network, the world’s largest independent chain of repair shops with some 15,000 franchises globally, 7,500 in Europe. We plan to grow worldwide to over 20,000 Bosch workshops in 2016."
When we look at the fleet business, which services do you deliver through the aftermarket?
J. Cardoso: “Well, service means for a fleet about 25% of the total cost of ownership, so cost savings on the service side means a high potential point of improvement for the fleet profitability. The Bosch Service offer many solutions for quality multi brand vehicle servicing with significant cost reduction. Fleet vehicles from all brands can be serviced without losing the car manufacturer’s warranty because our service network respect the OEM repair instructions which are included in the compulsory Bosch software ESItronic and uses OE-equivalent quality parts, being Bosch branded of course preferred. Outside the manufacturer’s warranty the Bosch Service network is prepared to do complete “bumper-to-bumper” service. A smaller number of shops are additionally specialized in accident and smart repair.
Important for fleets is that all our 15,000 service centers are experts in diagnose and repair of diesel cars. 3,700 of those service centers, in Europe more than 900, are even diesel specialists, who are the most competent technicians for the diesel components repair. Instead of exchanging a defective diesel injector or pump, they will repair them, exchanging only the small defective components inside, and thus achieving significant service cost savings. And for this they are equipped with special Bosch test equipment that cost around 100.000 EUR. When you go to a Bosch Service that is not a diesel component specialist, this Bosch Service will ask the specialized Bosch diesel experts for guidance.”
Do you already have experience in fleet business?
J. Cardoso: “We have experience in fleet since 2004 and last year our network executed more than 200,000 services only for fleet vehicles. Today our network has service contracts with the largest leasing companies in the world and in order to manage fleet needs we have a dedicated fleet team centrally and fleet contacts in nearly every country. Our network is able to provide global service solutions for international fleet companies. As we are multi brand and present in 140 countries we really have the broadest worldwide service offer for fleets. In the future we will significantly extend the collaboration with fleet companies, but I can’t present any figures on that."
Are there any other advantages for fleets?
J. Cardoso: “Basically the fleet managers profit from relevant cost savings because of the excellent service on all possible vehicles. The fleets using the Bosch Service centers confirm that they realize 2 digit cost savings compared with their previous service provider. The Bosch Service have a competitive package of labor rates, parts and service prices and are able to offer special fleet rates. Moreover our workshops are clearly recognized by the uniform image, profiting also from the strength of the Bosch brand. Being a multi brand network with high coverage, the fleets also profit from efficient and easy logistics. Service for all brands can be organized within only one network, so as a fleet manager you have less service contacts and fewer garages to manage. This leads in many cases to a reduced vehicle downtime for fleets which saves costs and optimizes customer satisfaction."
How does Bosch manage the element quality throughout the complete service network?
J. Cardoso: “Quality is key for Bosch. It starts with supplying the workshop with Bosch test equipment and is assured by a permanent training of our people, the internal and external audits and regular visits to the workshops. I would like to underline the two external audits that we organize with recognized service providers, using worldwide the same criteria. On one side we have the Service Quality Assessment, to make sure that the Bosch standards concerning service quality, training equipment, customer handling and image are fulfilled. On the other side we organize the so called Service Quality Test, also known as the mystery shopping. This test evaluates the full service experience of the customer from the service appointment to the vehicle reception.”
How do you face the current challenge towards new automotive technologies?
J. Cardoso: “We are ourselves at the edge of the new technology developments as we are the leading automotive technology supplier. All Bosch Service workshops use the Bosch software ESItronic, which is constantly updated. We have in this software the data and service specifics of more than 150 brands and 230,000 models of cars. We also have 46 technical training centers in 37 countries and every year more than 75,000 mechanics are trained in these centers. And on top of this we have a technical hotline that answers to more than 10,000 technical questions and possible problems a year."
Is Bosch ready for the EV revolution?
J. Cardoso: “Bosch will invest heavily in e-mobility with about 400 million Euros in e-powertrains a year. In 2013 Bosch will have 20 projects on e-vehicles with 12 different OEMs. With Samsung, Bosch has a joint venture on the development of lithium-ion batteries and with Mercedes we have a joint venture for the development of electric engines. We are also preparing our workshops on this matter, with special new trainings and safety course. There are two examples concerning e-mobility that I would like to mention. Today in Germany, Switzerland and Austria some 50 Service centers already organize the servicing for My Way in Switzerland and Move About in Germany. The e-scooters from Govex, which were awarded the title European Scooter of the Year, are serviced by 200 selected Bosch Service centers in Italy, Germany, Switzerland and Austria. So this
e-servicing is already a reality today at Bosch Service.”
Don’t you fear that your relationship with OEMs could be negatively affected by the growing success of your servicing business?
J. Cardoso: “The OEMs are really important partners of Bosch, but we have decided to be present also in the free aftermarket, so we deal with this with neutrality and let the healthy competition rule."
Note: Mr João Cardoso's answers on new technology developments and the servicing of e-verhicles, you can read in the January issue of Fleet Europe on Green Fleet Management. If you want to subscribe please click here.
| 28/11/2011 | Steven Schoefs
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