ZF Friedrichshafen (ZF) is a company with a long industrial history, founded in 1915 by Graf Zeppelin to manufacture gears for his airships.
Today, the company is a leading manufacturer of transmissions, steering systems and axles for the automotive and commercial vehicle industries, with 71,500 employees worldwide, and revenue of $19.5 billion (EUR 15.5 bn) in 2011.
ZF has been responsible for a number of technological advancements, including the first 5 and 6-speed automatic transmissions for passenger cars, as well as premiering the first 9-speed passenger car transmission in 2011.
In the field of commercial vehicles it is introducing increasingly high-tech automated and automatic transmissions, and supplies OEM components to manufacturers including JCB and Doosan.
If you own a fleet of trucks or machines, the odds are fairly good that it contains a transmission, steering system or axle built by ZF. PMV Middle East editor Stian Overdahl speaks with ZF Middle East’s regional managing director Dr Khalid Sabbah about their decision to deal direct with the market, and the demands of servicing a new era of high tech components.
While ZF has a long standing presence as a brand in the Middle East, it was formerly represented by an agent, Al Yahya, who was responsible for after sales activities in the UAE, Oman, Kuwait, Qatar, Bahrain and Yemen.
Two years ago the decision was made to establish ZF entities across the GCC. Dr Khalid Alexander Sabbah, ZF Middle East’s regional managing director, says the decision to establish an on-the-ground presence came both as a result of the increasing share of ZF componentry in the market place, as well as the complexity of those components, especially the newer automated and automatic gearboxes.
“Management made a decision to have more of presence here, due to the fact that this is a growth region,” says Sabbah. “We are looking at the entire chain. Formerly, our main business was selling spare parts, without much emphasis on providing high quality repairs.
“This region has huge potential, and we see more and more vehicles and construction machines in the market using our components.”
As the technology improves, including use of specialised alloys and lubricating fluids, the level of expertise required for servicing and maintenance increases, as well as the need for
specialised tools and technical support.
“For the newest transmission in the car industry you have to repair them in a clean room, because they are so sensitive to dirt. The oils that we are using are specially designed to reduce friction and churning loss while raising temperature resistance and oxidation stability.”
Sabbah holds a PhD in Mechanical engineering, specialised in the field of production management and production engineering in the automotive sector. It’s a background that serves him well, with the degree of complexity and logistics required for ZF’s Middle East operation. In Germany, the company is headquartered in Friedrichshafen.
But consisting of four divisions, as well as a joint venture with Bosch GmbH, each has its own product range, regional production facility, and logistics hub.
ZF Services Middle East is part of a cross divisional organisation called ZF Services, responsible for all aftersales activities of ZF.
Therefore ZF Services Middle East bills itself as ‘a one stop shop’, covering technical support in the region for all ZF divisions.
The company has set up workshops, offices and logistics hubs in the region, and has entities in Dubai, Abu Dhabi, Kuwait, Doha and Salalah. In other parts of the GCC, ZF works with local partners, and is actively providing support to the ZF service agent in Saudi Arabia, ZF-Driveline Services KSA (DSK).
“What is important to us, and the reason why the company has invested money here, is that we want to provide the same services and the same quality standards as our colleagues do in Germany,” says Sabah.
The investment includes a new $430,000 (350,000 euro) test bench, which will be installed in their expanding Dubai service centre by the end of the year, in addition to the test bench already in operation.
“You are able to make sure that the component you have repaired is working 100% correctly,” says Sabbah. “The [vehicle] owners will receive a certificate showing that the product has been tested. This is something unique, there are not a lot of other companies doing this here.”
ZF’s role in the Middle East varies, acting both as a back-up to dealers and manufacturers, as well as negotiating service contracts direct with fleet operators. New machines and vehicle are normally sold with service support, meaning that the dealer carries out any repairs.
ZF Middle East provides support and training to dealers, and when a dealer lacks expertise to deal with a complex problem related to a ZF component, or even specialist tools, components will be sent to ZF for repairs.
“We can aid the situation much faster than if it goes through the chain to Germany and then comes back,” explains Sabbah. “That’s why we are also in contact with local dealers, and support them during warranty periods.
Our business does not only kick in two-three years after the sale, it kicks in from the moment a sale has been done, and we support the warranty process in complex cases.” He compares the role of ZF with a medical specialist such as a heart surgeon.
“The dealer is a like a general practitioner (GP) doctor. When you have a more complex problem with your heart or lungs you need to go see a specialist. The GP will send you to an expert who has got the tools and knowledge to examine the problem in detail.”
Visiting the ZF workshop in Dubai, and comparing it with your average service workshop, it’s easy to see from where the analogy with a medical specialist arises. The tools are carefully arranged on the walls, the floor is clean, and all components are dismantled in isolation, with the fluids captured and contained.
A white board details the progression of components through the workshop, and computers and phones provide a direct link with technical information in Germany. “It’s the organisation we have that ensures that the quality of repairs that we’re doing,” explains Sabbah. “Every process is trackeable. The organisation and processes we have are a copy of what we have in Germany.”
ZF sells complete and remanufactured components, and it also provides service and preventative maintenance contracts with companies. To this end they offer free ‘health checks’, diagnosing the unit in the field by using a testing device uploading information from the computer chip in the gearbox, and carrying out an analysis of the fluid inside transmissions and axles.
From the presence of copper and iron fragments that have been shorn from friction parts, they can determine how worn the components are.
“We give this information to the customer, and it gives them an overview of their fleet. They can then decide whether they want repair only, or an annual contract to repair the components preventatively, and if there is any damage we do a corrective repair.”
Nevertheless, he is keen to stress that the diagnosis remains a recommendation only, and it is up to the customer to decide on the correct course of action for his vehicle and machinery fleets.
Within the last few months ZF have signed on several customers for preventative maintenance contracts, and Sabbah says they’re on track for good growth in 2012. He believes they’re also benefiting from a stronger awareness of the value of quality repairs among fleet operators in the region.
“[Customers have a better] understanding of what quality means. Especially if companies are working under pressure, and construction companies or fleet owners have liabilities or defined times, that’s where they’re more interested in having proper maintenance for their fleet, to ensure that there are no breakdowns.”
Another aspect of this is a generational shift, with younger operators coming into the business.
“The newer generation coming in is more aware of what service means, and what it means to maintain a product properly and assure its functionality. The younger people coming in are more educated, and more aware of how to manage a business properly, and managing a fleet properly means servicing it.”
Overall the perception in the GCC of preventative maintenance and regular maintenance intervals lags behind Europe, says Sabbah, and still has some way to go.
“But I am optimistic and I am seeing improvement, because we have established a number of service contracts with our customers, which is a very positive sign.”
