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A Decade of Innovation: ITG Nexus Business Forum Marks 10 Year Anniversary with a Focus on Sustainability

Mar 10, 2024 Nexus, Motus, Bosch, WAG, Events, International shows, Gael Escribe

A Decade of Innovation: ITG Nexus Business Forum Marks 10 Year Anniversary with a Focus on Sustainability

Monaco – The 2024 Nexus Business Forum commemorated its 10th anniversary by driving discussions on sustainability and the evolution of the automotive aftermarket. Nexus Climate Day kicked off with Emmanuel Voguet's pledge to actionable commitments, a legacy from the Montreal 2023 resolutions, emphasizing proactive industry standards.
 
Michael Boe, co-chair of the Automotive Aftermarket Sustainability Forum, highlighted the advancements in sustainability. His introduction of working groups delineated a clear blueprint for manufacturing, Product Carbon Footprint (PCF) methodology, and logistics, all tailored to outpace regulatory demands through collaborative studies, legal frameworks, and shared best practices.
 
The U.S. Auto Care Association presented awe-inspiring figures, boasting a $480 billion industry with a workforce of 4.5 million. The narrative pivoted around the 'right to repair,' advocating for re-manufacturing, refurbishing, and recycling. The goal? To empower vehicle owners with options that minimise waste and maximise efficiency.
 
Malcolm Sissmore delved into the concept of the “circular economy”, emphasising the untapped potential of used parts in aftermarket services. Highlighting the upcoming 'Reman Day' on April 11, 2024, he underscored the need for efficient “reverse logistics” to streamline the remanufacturing processes.
 
Delphi/Phinia's plant manager, Brown Bailey, showcased their facility’s transition to a reman-focused model. Through the lens of their business, Bailey illustrated the economic boons of such a shift: lower energy consumption, cost reductions, and job creation, while also acknowledging the hurdles like perceived quality issues.
 
Flexibility and innovation surfaced as key themes, particularly with the presentation of flexible solar panels. Customised for heavy vehicles, these panels represent a leap towards energy efficiency and emission reduction. The collaboration between Total and Motus in South Africa was also a stand out, revealing the initiative to collect and recycle (all brand’s) oil containers from workshops and DIY enthusiasts, complementing the Rose Foundation's oil recycling efforts.
 
After a short lunch overlooking the Monaco beaches, the plenary sessions detailed an ageing car parc with cost-conscious owners, aligning with a slight rise in EV market share. However, with ICE and hybrids predicted to dominate Europe's roads by 2035, Nexus members are eyeing service opportunities for all three categories of vehicles. This, while maintaining a competitive edge in their traditional markets that should, according to indicators and an ageing car parc, remain a healthy growth sector over the next decade.
 
Spotlights on different focus markets illuminated the forum:
  • Malcom Perrie's analysis of Africa's $15 billion automotive sector projected a prospective burgeoning growth, specifically thanks to its youthful demographic notwithstanding the various challenges the continent faces.
  • In juxtaposition, the U.S. retains the top performance spot within the Nexus network, with a robust $500 billion valuation. Meanwhile, the LATAM market boasts a significant shift towards ethanol, surpassing gasoline since 2022, hinting at a bullish future for ICE vehicles in those markets.
  • China's narrative pivoted from its dominance in vehicle production and export to the recent downturn in car service – a trend expected to reverse in 2024, suggesting a recovering aftermarket sector.
  • Heavy-duty vehicle (HDV) markets, as Olaf Giesen noted, might lag a decade behind cars, but the lull presents a unique opportunity to prepare for eventual electrification.
 
The forum's climax was the candid discussion between Nexus and Stellantis, followed by a dedicated press event the following day. The collaboration, is being observed through seven task forces working on diverse projects from workshop services to digital back-office optimisations.
 
Stellantis’ Sylvie Layec’s insights on circular economies and the 'non-radical', selective yet synergetic relationship between Nexus and Stellantis were particularly enlightening. This collaboration, while global, recognises the nuances of regional markets, ensuring that existing frameworks remain undisturbed. Gael Escribe commented that it demonstrated the two companies as leading industry players, ready to break the mould and consider “out of the ordinary” relationship-building between vehicle OEMs and the aftermarket .
 
2024's Nexus Business Forum and anniversary event did not merely reflect on a decade of achievements but also set a bold trajectory for the future, in terms of automotive sustainability and new collaborations. The Nexus-Stellantis alliance, underpinned by shared values and visions, may very well redefine parts of the automotive aftermarket landscape, proving that unity can foster innovation.
 

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