P. Zeitoun: “Vernet is the only one to offer a global range”

Yes, that’s one of Vernet’s defining features. Overall, the group generates 90% of its turnover from export business to 144 countries with around a thousand clients and 95% to the aftermarket, with a network of 300 clients covering 60 countries. This positioning isn’t very common for a turnover like ours, standing at €185 M in 2021. Sales will have increased further in 2022 with good levels of business. And in the spare parts segment, which is celebrating its 30th anniversary and accounts for 25% of total turnover, (+25% in the last five years), all systems are go, with two-figure growth.

If we include Eastern European countries, our business is predominantly in Europe, with deliveries leaving our French hub and supplemented by depots in Italy and Poland. Let’s remember that Vernet France is the European entity of the group which also operates in the United States, Latin America (plants in Argentina and Mexico), China and now India, with a factory being built in Bhopal.

In the space of two years, we have finished organising the spare parts business by building on the OE organisation of Vernet US. We offer a range that covers 90% of the North American fleet, and which is visible on the three main American catalogues. We have a dedicated team and a depot. Now that all the tools are there, we’re going to ramp up the signature of business agreements with local purchasing offices. We have already signed with Automotive Parts Associates and VIPAR Heavy Duty, both members of Nexus North America, and more will follow. We estimate the aftersales potential in the thermostat function to be around $110 M-120 M. We harbour high ambitions, since the only remaining competitor is MotoRad. We have taken two years to become operational.

We have opened a depot in Brazil which will enable us to accelerate our sales which previously were delivered out of Argentina. In fact, Vernet is the only one today to offer a truly global range. There isn’t a single thermostat technology that we don’t master, or a single manufacturer in the world that we don’t work with. Therefore, once we have a few distribution touchpoints around the world, we are capable of providing the range everywhere. In 2023, we are going to develop India, with a major local partner. We are also delivering our first order to stock up our plant in Zhuhai which will supply the Chinese market with European and American applications. We are rounding out our Asian set-up with assistance of a sales representative, a former Valeo employee, who will help us penetrate Thailand, Malaysia, etc. There aren’t many areas left that we haven’t got covered.