A world of safer vehicles
Haldex is guided by its long-term vision of creating a world of safer vehicles. The strategy, which is based on five pillars – product leadership, customer focus, aftermarket expansion offering, operational excellence and a bridge-building culture – forms the basis of our action plan, which in turn targets long-term and short-term objectives.
Haldex’s vision is to contribute to a world with a better traffic environment and safer vehicles. Our product development is aimed at improving braking capacity and contributing to a more sustainable society by, for example, reducing fuel consumption.
Nothing can go wrong when we manufacture our products. Everyone, from supplier to assembler, must understand that people’s lives and health can be affected if the product does not meet all safety requirements. We are one of many players creating safer vehicles and our solutions must work together optimally to offer the driver the best possible experience and the best conditions for operating the vehicle safely.
Haldex’s strategy is based on strengths identified in dialogue with customers, suppliers, and employees. The strategy has been named “Driving our future” and is based on five strategic pillars. The strategy is intended to show the way for the next five years and is followed up internally by several milestones, activities and indicators.
Every single product that Haldex develops or includes in its customer portfolio shall have the potential to be the market leader in its segment. It should also have an attractive aftermarket offering, to keep the revenue stream continuing for many years.
Becoming a market leader requires innovation and deep insight into the customer’s business. Prioritized areas of value creation are safety, environmental impact, and total cost of ownership. These are areas where product innovation contributes to the customer’s business benefit. Market knowledge is also required so that the product that is created has the potential to attain the critical volumes required to achieve adequate profitability.
With the long lead times that exist in the automotive industry, future technology trends are of great interest. What happens in the automotive industry 10-15 years from now can have direct consequences on how product development looks today.
Product leadership requires focus. We aim to invest our resources where they generate the most value by building on the product areas that are successful today. Our resources will be focused on projects that can make a difference, rather than being thinly distributed across many projects. We must also ensure that our development engineers have the right skills, both to understand and develop the products currently in the market, but also to anticipate and develop products for the future.
In the aftermarket, the customers’ needs change over the lifetime of their vehicles. During the first few years, parts with high durability are generally in demand. The older a vehicle becomes, the shorter the period it is owned by each owner and the durability of spare parts is not prioritized to the same extent. The goal is to increase revenue from the more profitable aftermarket through a broader offering and use of new technologies such as e-commerce.
Haldex is a supplier of premium products that are attractive to owners who prioritize a high level of quality and service at brand workshops. Haldex’ quality awareness and knowledge can be extended to include products of the same high quality, but with a shorter lifetime. We are working to broaden our product range to be attractive over a longer portion of the vehicle’s lifetime. Acquisitions are high priority as a way of bringing in additional complementary products and several acquisition targets have been discussed without yet having resulted in any completed acquisitions.
An important step in efforts to broaden the product range is the grouping of products under the Premium Line, Value Line and Reman line, which were launched in the spring of 2016. Value line comprises affordable products based on simpler specifications. Reman line offers refurbished products that are accordingly both environmentally friendly and cost less than premium products.
The Grau and Midland brands have been introduced to make it clear to the customer what properties each product represents. As a step in simplifying the offering to aftermarket customers, e-commerce solutions were introduced in Europe and North America during the year. Other digitized offerings are continually evaluated to increase the service further.
The target is to grow faster than the market, but with increased customer satisfaction. It should be easy to do business with Haldex. As our customer, you are greeted by people who understand your business, who want to contribute to your success and build solid and long-lasting relationships. Haldex encourages entrepreneurship, which means being innovative, proactive, and able to identify market potential. We use our size to our advantage. By being a fast-moving and flexible organization, we can adapt to our customers, providing that extra degree of service that distinguishes Haldex.
With our OEM customers, we are building personal and strategic relationships. Joint development projects are conducted with the largest customers, and we work in close proximity to their operations. Aftermarket customers have different needs and require convenient access to a wide range of products. We must therefore apply different strategies and internal tools for different customer groups to facilitate doing business with us for all customers, while we use our own resources in an efficient manner.
Efficiency, cost awareness, high safety levels, precision and quality are prerequisites for achieving product leadership and customer focus. Effective processes free up time and energy for developing products, building customer relationships, and providing good service. Quality at every stage, from production, supplier procurement and cost monitoring to competence development and recruitment. Continuous efficiency improvements and cost savings are a matter of survival in an industry under price pressure. In other words, operational excellence is a precondition for competitiveness in our industry.
The goal is to create a better workplace with high levels of job satisfaction. Over the past few years, we have intensified our efforts regarding culture, values and leadership in the workplace. High standards in terms of ethics and morals are essential in developing a better workplace. A sound culture that inspires, challenges and motivates employees has been complemented with five behaviors that we call the 5 Cs, since all of them start with the letter C – Connect (understanding the big picture and network), Communicate (globally and locally), Collaborate (across the company), Coach (help yourself and others) and Create (build opportunities). These behaviors act as a daily reminder to build bridges internally to solve problems, understand the bigger picture and strengthen the sense of community.
The role of our leaders is to create opportunities for everyone to reach their full potential and work toward the Group’s shared objectives. Since 2015, we have introduced a joint framework for how we want to develop and evaluate our managers. The Haldex Bridge Leadership Framework defines the qualities we consider important for effective leadership: an ability to communicate and understand the business vision, to achieve results, successfully drive improvement processes, develop him/her self and the team, be a global team player and be accountable and take ownership. In the Bridge Leadership Framework, our 5 Cs are even more prominent and there is a strong focus is on building bridges internally and externally.
New technologies also allow different working environments to be created that adapt to employees’ wishes and circumstances. This is even more important in a global environment where cooperation between countries and time zones is necessary.