Mexico and Latin America are very important and strategic regions for MotoRad… That’s why we offer what other suppliers can’t: being reliable based on our high quality, extensive catalog, top-notch customer service, and excellent fulfillment rates: Matt Bucholz, CEO
MotoRad – We have more than 6,000 products and will add another thousand products in 2024: thermostats, motor management and emerging technologies. – MotoRad has 2 plants in the world, one in Israel and the other in Mexico; 3 Distribution Centers in the USA, Europe and Mexico; in Mexico we have had a presence since 2013, and we will continue to increase our presence with more investments and new part numbers.
By Roger Roy Ocotla, Director of SuMA Automotive Mexico City.– During their visit to our country at the INA PAACE Automechanika Mexico 2024 Expo at the Citibanamex Center, the directors of MotoRad, Paul Dilisio, VP Commercial Global, and Matt Bucholz, CEO of the company, arrived to participate in the best auto parts forum in Mexico, and at SuMA Automotriz we had the opportunity to interview them. Here is the interview with both directors. Roger: Welcome friends of SuMA Automotive. We met at the stand of the MotoRad company, with its executives from Mexico and the United States. Welcome to Mexico, Matt Bucholz and Paul Dilisio.
Matt Bucholz: Thank you very much Roger for having us. It is an honor and a pleasure to be here today at INA PAACE Mexico with you.
Roger: Thank you Matt. First of all, Matt and Paul, tell me about yourselves, who are you, where were you born, and your roles at MotoRad, please.
Matt Bucholz: Thank you very much. I was born and raised in Atlanta, Georgia. I have been in the automotive aftermarket for over 25 years in many different ways, on the auto parts manufacturing side and in service. It’s a market that I love and I’m very proud of, also to be here and talk about it.
Paul: – I’m 55 years old. I was born in Youngstown, Ohio, United States. I have lived in many parts of the United States and in Germany for several years. I have been in the automotive industry for more than 30 years. I have worked for OEMs, for Nissan at some point and for Mercedes-Benz, and for several TIER 1 suppliers. And again thank you for having us.
Roger: Thank you. The next topic is about MotoRad, Matt, what does MotoRad mean, and how and when did it come about? Please.
Paul: – MotoRad produces a very wide range of thermal products, caps, thermostats, cooling housings. Also products around engines; To name a few, all the sensors needed for the engine: coolant temperature sensors, oxygen sensors, camshaft or crankshaft sensors, and ignition coils. Therefore, we also have a very wide range of engine components. One of our core values at MotoRad is to have extremely high coverage. So, for each product line, we have a coverage of between 95 and 99 percent. And that’s why we manufacture parts for virtually every brand of light vehicle on the market. We also have a line of heavy-duty and medium-duty products.
Roger: Perfect, thank you. Matt, what are MotoRad’s values? And if you could give us an in-depth analysis of the current structure of the company, please.
Matt: – The values are really fundamental, what we start with are: service and trust. Today we are here at INA PAACE Mexico, and there is a room full of auto parts suppliers and manufacturers and we are sure that there are distributors who are looking to find someone they can trust. Auto parts can be bought from many people, but we want to be a commercial and reliable partner with people, and that is where our values of service and reliability begin. For the company’s organization, we operate with three business units, and we have a global leadership team that Paul and I are part of, serving the business units and our customers. That is why I reiterate that we are very service-oriented from that point of view, focusing on meeting the needs of customers. Starting there and then giving us feedback on how we can add value. So, again, a global leadership team that is very focused on service, and on the service that our three business units provide: Europe; United States and Canada, and Latin America, well not necessarily in that order, but we focus primarily on the customer that serves the market and those business units.
Roger: All right, thank you Matt. So I understand that you are a manufacturer of products, with corporate offices in the United States and Israel, with branches in some parts of the world and with Distribution Centers; Tell us about MotoRad’s presence in both the United States and other countries, including Mexico, please.
Matt: At MotoRad we have over 6,000 products, and we’ll be adding another thousand products this year. And those products, as Paul mentioned earlier, encompass thermal management shut-off solutions (plugs), as well as motor management and emerging technologies. We have a factory in Israel and here in Mexico, and we have been present in Mexico for 11 years. The plant in Israel has been there since 1958, and we will continue to grow our manufacturing presence. We manufacture most of what we sell, I would say of our total sales, about 80% or a little more. We have three distribution centers, one here in Mexico, one in Europe and one in the United States. Of the products we manufacture, there are mainly very complex electronic products around thermal management, as well as radiator, oil and petrol caps. What MotoRad doesn’t manufacture from what it sells, we have full control over the quality, because we work with high quality third-party manufacturers, but we make sure they adhere to our standards as they are the highest standards in the industry.
Roger: Great, thank you so much Matt. Now, Paul, please, how many dealerships does MotoRad have in the United States and how is your relationship with them right now?
PAUL: – All right, we basically serve all the major distributors within the United States. In terms of our relationship with our customers, as Matt mentioned earlier, we treat our customers as partners and we want to improve their business, right? So, we are an important part of their business, to make sure they succeed, and that’s why we have the trust and security of our customers, and we have a very strong relationship with our customers. They trust us, that’s why we work very well with them in solving problems, and it has been very successful for us.
We do the same in Mexico and Latin America, with that focus of being very customer-centric, and in that philosophy of partnership, which allows us to get new customers and grow our current customer base, since Mexico and Latin America are a very important region for us; A strategic region, and because of our philosophy and values of excellent coverage, customer service, great quality, and because we are an original equipment supplier, we know that our customers want that good service and those values. This has given us success in Mexico and we are going to continue to grow in Mexico, because we can offer what other suppliers cannot offer, right?, therefore, customers want to work with someone they trust, and because of our quality, our great catalog, our customer service and our excellent fulfillment rates, we can earn and maintain that trust with our customers in Mexico and anywhere in the world.
Roger: All right Matt. In these years that you have been leading MotoRad, what have been some of your main achievements? Whatever you can share with us please.
Matt: Definitely the voice of the customer is very important to us. We hear it. One of the pieces of information we have heard in recent years is that the supply chain has been very challenging since 2020, and we have received numerous customer awards for being one of the first supply chains to recover, and that is something that means a lot to us and our customers. We have a very important job as an industry. We have to keep vehicles on the road, running, so people can go to work, they can take their family, or take their kids where they need to go. Therefore, we take very seriously the fact that we have to supply the products to keep the cars running on the road. So maintaining a really strong supply chain and having our customers recognize the value of our supply chain and our high compliance rates, it’s been very meaningful at least in my 10 years at MotoRad, and in the last 3 or 4 years to hear that feedback and how well we’ve done in that area. But, today is not easier than yesterday, so we are always working to continuously improve. As Paul said, we want to improve for them, for our distributor partners every week, every day, every year.
I’m going to add one more thing as well. Last year, one of our key distributors in Mexico had a big problem with the quality levels of one of their suppliers, with very high returns, perceived low quality, so we partnered with them and implemented some strategies. Today I can tell you that their rates have dropped, their sales have gone up and their customers are much happier with the quality they are receiving. We received an award for that, one that we are very proud of, and we continue to try to generate really strong value through that Program, and that has only been in place for about 5 or 6 months.
Roger: All right, thank you Matt. Paul, what are the commercial plans and strategies you are working on to improve the brand’s positioning in the United States, Mexico and Latin America?
Paul: – Sure. One of our core values for our customers is that we manufacture all the parts they need. That is why we want to expand our product lines, to meet your requirements but also, obviously, to attract new customers. That’s why we’re expanding our product lines in the United States, in Mexico, Latin America, and now South America and Europe, and we’re expanding globally. So, as we said, all the pieces with all the customers. Roger: In which countries in Latin America do you have a presence?
Paul: We have businesses in Mexico, Costa Rica, Guatemala, Puerto Rico, Ecuador, in Brazil and Argentina. So practically in all of Latin America, but we are always looking for new countries where we have better opportunities, so we have formed a great team for Latin America. Colombia is where we want to venture soon, but we are always looking for more cities to expand into.
Roger: Great. Now, let’s talk a little more about Mexico. I have already been mentioned about the relationship with their customers, which is very important. Now, tell us how and when you came up with the idea of coming to Mexican territory, please.
Matt: We’ve been shipping products to Mexico for 30 years, so it’s not something new for us in this market. We shipped products from CeDis in the United States and Canada for many years. But about 11 years ago the distributors in Mexico told us: “We need you to be here in Mexico with us”, so we started working until we were able to install a Distribution Center first and then they managed to grow to the point of installing a production plant. Business here in Mexico has grown significantly every year. That is why we also try to add more products because it is what they ask us for. So, they asked us to come to Mexico, they asked us for more products and here we are, trying to improve.
Roger: Now, for MotoRad, how important is Mexico and how important is it to be here; there are plans to expand its presence in Mexico, new investments please. Matt: Mexico is a key market for us. We have key partners that we want to serve very well. So I am announcing that we will be making investments in the next six months to expand our production capacity, as well as our distribution capacity within the country. That’s how important this market is to us. It’s also one of my favorite places and some of my favorite customers are here and I enjoy it. We really enjoyed being here and that is why we plan to continue growing, continue investing and selling more products.
Roger: So, Matt, is there confidence on the part of MotoRad to continue growing in Mexico? Trust in the government, trust in your team, trust in the dealers, trust in everything that’s being done here? Matt: We trust our entire team here. We trust our distribution partners, and I know them. I don’t know the government, but I trust the people we do business with, we listen to them, and they tell us about political issues and how it’s handled. But we plan to continue investing and growing here, as this market has been one of the fastest growing in the world in the last ten years. That’s why we see that the future is still very bright and promising here. We can’t control a lot of things, we can’t control the world, we can’t control governments, but we can wake up every day, and plan how to do business with our customers and develop that trust. Well, in this industry it’s all about relationships. Apart from the auto industry is nonpartisan, you know, it doesn’t matter what party you’re in, if you have a vehicle, and you need that vehicle to be repaired, that’s what we do in this room. So I think that whoever the government or party is, it doesn’t matter if it’s the United States or Mexico, there is support for the aftermarket and it’s needed.
Roger: Thank you, Matt. Paul, on this visit to Mexico, Matt mentioned that you have been visiting your customers, your distributors, what have the distributors told you, is your relationship healthy, productive, win-win?
Paul: That’s a good question. We have received a lot of feedback, and we have visited and received several of our distributor partners. The comments have been consistent. A distributor partner told us that we are very professional as a company and that we provide them with very good service, that we provide them with excellent catalog support, that we have great quality, that our warranty rates are exceptionally low, and that message has been consistent, no matter what customers we talk to. We always try to do our best, and we value feedback. So if there’s something we can improve on, they tell us, and we accept that feedback, and we try to do better, obviously. I think our customers are very happy with us, but we will be continuously trying to improve and be better.
Matt: I’m going to add one more thing. As business seems to be going well in Mexico, right? Business seems to be doing well, it’s healthy, we’re also working the contents of the catalog, to make sure that when someone needs a part, we provide them with the right part. And if we have that auto part on the shelf, we can promptly deliver that part to them. So we’re working with them to make sure that process is better, faster, and with the best concept.
Roger: Let’s close the interview. I thank both of you in advance for your time and for the knowledge you share with us: How many distributors do you have in Mexico? And how many distributors would you consider would be the right number to serve the entire Mexican market?
Matt: The distributor partners that we have today, well, we’re really happy with them. There are others who are interested in partnering with us, but we always evaluate this. We’ve been supplying this market for a long time, and we have some key and very trusted relationships here, and we continue to serve them. Generally speaking, I would say that our products are available throughout Mexico, and throughout Mexico through the partners we have today. And with our Distribution Center in particular, we can reach distributors in a matter of days, and process orders very quickly. So we’re satisfied today, but we’re always open-minded to the possibility, but we’re humble about how we can act in the future, and if that step is taken, make a partnership with the right people. Today we are very focused on automating and expanding production and distribution capacity within our own Distribution Center. And then we will constantly evaluate whether we need to add distribution nodes or new distribution centers within Mexico. But we are currently able to provide the levels of service we need in the country with our own distribution centers.
Roger: Well, thank you very much. Two last comments that I would not like to leave in the inkwell. One is to talk about the quality of MotoRad’s products. If they have quality recognitions or certificates in both the United States and Mexico, on the one hand.
Matt: We have very good quality and we do have certifications such as TSR, ISO certification, and on top of that, we won a Quality Award by the mechanics of Mexico in 2023, an Award that we are very proud of, as it recognizes our high quality standards. When mechanics open the box, and install any of our engine electronics products in vehicles, and they work well, then they know they can trust the products. We are very proud of the Quality Award because it is not from our organization, but a recognition of the users of our products directly. Roger: Precisely, to end this interview, you would like to add more, a message that you want to give to distributors and the end consumer, and also to the MotoRad team in Mexico.
Matt: We love this industry and are so grateful for the opportunity to serve mechanics through our distributor partners. We do this by believing in the products we develop and produce every day. We’re very proud of the fact that, collectively all of us, we keep cars on the road, to allow people to do their lives, to do the things that we all have to do. So, that’s something that makes this industry very special, and just say thank you for that. Thank you to the distributor partners for trusting us, and telling them that we want to continue growing together in the future. Thank you all.
Paul: As Matt said, we take it very seriously that the products we sell to our distributor partners are of the highest quality, because we also understand that our quality protects their reputation. That’s why we also take protecting your reputation as a customer very seriously, so when you buy from MotoRad, rest assured that we’re bringing you the best quality products you can get on the market. We are grateful to have distributor partners who truly trust us and collaborate with us, and who truly treat us as partners. That’s one of the reasons why we’re so successful, because we have that strong relationship and trust. Roger: Finally, only two topics that I could not touch, one is about technology and product development for hybrid and electric vehicles. I do not know if you would like to add in this regard, for my part it would be all. And thank you again for your time, your knowledge, and your wisdom that you share with us.
Paul: Yes. Regarding products for hybrid and electric vehicles, obviously we all know that the industry is moving there, and MotoRad is very aware of this fact; That’s why we have a thousand part numbers available in our catalog specifically for hybrid and electric vehicles, and we’re continually working to add more products to meet the demand for the models being introduced to the market. We are continuously watching the market and adding new products. In fact, we have always been suppliers of electric vehicles because we are evolving with the market. The automotive industry is going through a very interesting renaissance, so to speak, and we are adapting to it. It’s pretty exciting.
Roger: For my part, it would be everything, except what you would like to add that I have not asked you. Matt: We’re fine. Thank you very much for your time. It’s been fun. Roger: Well, thank you both and also thank you to all of you friends and followers of SuMA Automotive, we invite you to enter our channel and follow us. I’m Roger Roy Ocotla and it’s been a pleasure connecting with you. God bless you and see you next time. Have a good trip to both. Thank you. Caption 3 managers: Brandon Kight, VP Marketing & Product Paul Dilisio, VP Commercial Matt Bucholz, CEO MotoRad
