ZF Sales Service Launches New Site in China and Continues to Launch China Automotive Aftermarket

On October 15, 2014, Shanghai ZF Sales Service (China) Co., Ltd. announced the official opening of its new site at 162 Luoxiu Road in Shanghai, further deepening its service to the rapidly developing Chinese automotive aftermarket and laying a solid foundation for the development of the remanufacturing business.

Located in Xuhui District, Shanghai, the new site covers an area of ​​7,500 square meters and will serve as ZF's sales and service business headquarters in China. In addition to the core decision-making management organizations that focus on all operations, it will also add new laboratories, Asia-Pacific training centers, and remanufacturing workshops. It also expanded its logistics and warehousing center. The remanufacturing workshop planned for the first phase of the Asia-Pacific remanufacturing base covers an area of ​​1,500 square meters. The China headquarters, which integrates sales, maintenance, product, technical support, laboratories and training, will be better positioned to lead ZF's sales and service operations in the country's branches and strengthen the management capabilities of the sales service network. To support the rapid and steady development of the aftermarket business in China.

ZF Sales Service China New Site
ZF Sales Service China New Site

In 2013, sales of ZF sales and service business in China amounted to RMB 284 million, which represented a 12.6% increase in performance over 2012. It is expected that it will maintain a double-digit growth rate in 2014. At present, ZF has over 130 authorized dealers and nearly 40 authorized service stations in China. “The Asia-Pacific and Chinese markets are one of the markets that ZF has always attached importance to. We have three to five years of experience in the Chinese automotive aftermarket. The development holds an optimistic judgment,” said Alois Ludwig, Chairman of the Global Board of Directors of the ZF Sales & Services Division. “The new plan at the China headquarters will support us to move forward in two directions: on the one hand, and on the direction of customer needs, In order to provide a wide range of products for local customers; on the other hand, to continue to provide comprehensive services and a full range of solutions to bring innovative technologies and mature applications to the Chinese market."

In the new site planning of the China headquarters, the remanufacturing workshops, laboratories, and Asia Pacific Training Centers have attracted attention. In early 2013, with the approval of the National Development and Reform Commission, ZF became the first wholly foreign-owned enterprise in China with the qualification for remanufacturing pilots. This new remanufacturing workshop is also the first phase of ZF's establishment of a remanufacturing demonstration base in the Asia-Pacific region in Shanghai. The business plan, which was established to improve ZF's remanufacturing core business skills in the Chinese market, now has the remanufacturability of existing ZF 6-speed, 8-speed and 9-speed transmissions. It is expected that by 2016, it will achieve 4, 600 passenger car transmissions remanufacture annual production. Based on this, ZF will gradually promote the coverage of the remanufacturing business in the entire Asia Pacific region. The remanufactured products will also be expanded from the initial single model transmission and its spare parts remanufacturing to multi-model transmissions and spare parts remanufacturing. And finally improve the remanufactured product line to achieve diversified product manufacturing and services.

“Based on the judgment of global and Chinese automotive parts market development trends: the automotive industry is increasingly demanding environmental protection requirements and continued upward pressure on costs, whether it is vehicle manufacturers, distributors, or repair shops, are more optimistic about the amount Production remanufactured parts as an alternative to new parts, remanufacturing business has become one of the key points in ZF's after-sales service business,” said Helmut Ernst, member of ZF Global Business Unit Sales Business, “We will The re-manufacturing know-how gained from the German market and its successful experience have been brought into China to ensure that remanufactured products that meet the standards of new production standards are produced in the Chinese market."

At the same time, the laboratory planned in the new site will work with Singapore laboratories to form a complete product development and product inspection center. Besides serving local development, it can also directly support global development. The global sharing of experimental data can ensure that laboratories can carry out standard development and product certification as quickly as possible. The multiple test equipment, including clutch, shock absorber and steering pump integrated function tests, will help ZF achieve full functional coverage from product development, testing, and quality inspection. In addition, the newly completed after-sale training base in the Asia-Pacific region will provide active support for technical and operational training in various regions of the region.

As China's auto aftermarket environment matures and becomes more standardized, ZF Sales Services Division is also continuously integrating resources, consolidating its core product lines, optimizing branding, and providing local customers with integrated core and efficient services. “We are full of confidence in ZF's sales and service business in the development of the Chinese market,” said Dr. Shih-Jen Yeh, managing director of ZF Sales & Service (China) Co., Ltd., “Special for China’s auto aftermarket. Sex, such as the current distribution of vehicle ownership and the structure of the vehicle, has obvious regional differences. It puts forward special requirements for maintenance, maintenance and technical support that are different from mature markets. ZF will use our global resources to meet the needs of the market. With the advantages of technology and management, we will continue to expand, improve, and improve localized services.”

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