"Competition does not scare me" |Paperjam News

You have been CEO of the Losch group since January, but have been present in the group for 20 years.What was your course?

Thierry Beffort.- "I started working at Losch on January 28, 1999.For 17 years within the Audi brand, for the import component.I started as a Project Manager, still for this brand, then became Sales Manager and Director of the Audi brand.So I have an experience that was built with regard to brands and the product.In 2016, I became an import and responsible for the various brands marketed by our group with regard to importation. Enfin, j’ai été nommé CEO du groupe Losch le 1^er janvier dernier.

Does your good knowledge of the field influence your way of directing the whole group now?

"Surely!No one can tell me stories, because I know the basics and the profession.Obviously, via contacts with teams, the risk is to fall back into this daily management desire.But today my priority is the strategy.This shows that it is quite possible to evolve within our company.There are many other examples in Losch.

How did the health crisis have impacted the Losch group?

"The crisis touched us, and the year 2020 was a difficult year with regard to sales, which is seen in the figures, since we lost 1.500 car sales over the year.But on the other hand, we still gained 1.3% market share during the health crisis, to reach 29.8% market share at the end of last year.What we have done to feel the effects of the crisis less is trying to reduce costs as much as possible.

How do we gain market share during such a crisis?

"The Luxembourg market is oriented towards premium, which remains a highly sought -after product.A brand like Volkswagen, which is a little less premium, suffered more than others, like Porsche which has remained very stable.On the other hand, we sold very well in the utility segment, where we signed a record year.Just like at Skoda, where we also made a record year.Without forgetting motivated and involved dealerships.

You explained it: in times of crisis, we try to reduce costs ...

"With the pandemic, travel and travel costs have been reduced.We have analyzed our marketing and advertising costs.We also postponed investments that were not necessary immediately.At the same time, we have decided to achieve those we consider as essential.The automotive sector changes completely, so we had to continue investing to continue to advance.This is what we did with Losch Business Solutions and Losch Real Estate.

Thierry Beffort,&nbspCEO,&nbspgroupe Losch

Has the cost reduction concerned the staff?

"We have more people employed now than in 2019.If we want the quality that we want in the various departments and the different garages of the group, we must have the necessary staff.The crisis was not taken as a pretext not to hire.Currently, we have 1.080 employees, 22 concessions, including 10 Losch concessions, the rest being private dealerships.

Are employees still affected by partial unemployment?

"During the containment from March to May 2020, we used to partial unemployment, especially in terms of retail, less in importance.This year, we are complete.

What about teleworking at Losch?

"Today, there is still telework, but not much.Within the Losch group, there are two major departments: one dedicated to retail, and the other to import.Regarding retail, the workforce must be in the garage, in the concessions.Just like on the import side, where the workforce must also be on site to support the retail.But I am aware that it is necessary to adapt the behavior.Employees have expectations at this level, especially among the youngest, and the crisis has accelerated these changes.On the other hand, there are also teleworking employees who want to come back.

Crises are sometimes an opportunity to revitalize good practices or allow certain expenses to be rationalized.Can you identify a good practice that results from the health crisis?

"I cannot say that there was previously superfluous expenses.To answer your question, you can take the example of business trips.Traveling and meeting people, exchanging ... social contact is very important in our sector of activity.

We have spared costs at this level, but as soon as we can start traveling again, we will return to people in the factories and in manufacturers.Now the question is whether it will still be necessary to travel ten times a month, or whether it will be enough to travel three times and do the rest in videoconferencing.Direct contact will remain important, but I think there will be changes that will continue after the crisis.

You have also accelerated the digitalization of customer services.Concretely, how do we digitize an automotive company?

"Last December, we weren't sure to be able to organize the AutofStival and welcome customers.Our marketing and communication service has offered a digital festival through new communication channels.We therefore recorded and broadcast videos on social networks to show customers our products, our cars.We have also set up a website so that they can acquire our products, whether new cars or used cars.

We also offered the possibility of exchanging online with our sellers.We also digitized our showrooms.That is to say it is possible to move virtually in our concessions, to open the door of a car and to go up in.All this digitalization was a success.The after-sales component was not forgotten, since the customer could obtain a quote and a video showing him the repairs to be carried out on his vehicle.

With the Internet, the customer is also already very well informed before even arriving at the concession.What will be the role of the seller of tomorrow?

"It is clear that the customer is better and better informed through digital.It can be learned on the internet and online configurators.The seller must therefore be better and better informed.His role remains essential, because he can provide information, he knows the product, he knows how to advise the customer on the various configurations, the compatibility between the options.It can bring more combinations to make the best choice.Nor should we neglect the help that the seller can bring to the different car navigation systems, or even on driving assistance systems, which can save lives and bring better driving comfort.

Thierry Beffort,&nbspCEO,&nbspgroupe Losch

It is sometimes complex, and I think you have to show the possibilities of the car, what is done by driving.Again, the seller is the person who knows the product.And today and tomorrow, the seller will have to be able to advise the customer anywhere thanks to the new media, whether the customer is in the concession or at home.

In the garages, what will be the role of the mechanic of tomorrow, who becomes more a mecatronician?

"It is true that now we are talking about mecatronicians.We see less and less the mechanics with oil spots everywhere on their clothes.However, we continue to change the oil from the thermal motorization cars and to make repairs.The training of mechanics evolves, they must know how to use a computer, a tablet ...

But the expertise of the mechanic is still as important.The computer may indicate a breakdown, but it will not fix the failure.It is a complement to the mechanic.Even if we use the computer more and more, the mechanic must have the same formation as before, understand the operation of a car, thermal or electric, know the motors and the different systems of the.

Is it difficult to find sellers, mechanics or mechatronics in Luxembourg?

"As in other activity branches, finding the right people is increasingly difficult.And if you can't find it, you have to train yourself.This is what we do at Losch.Each year, we have around sixty people we form in our training department, whether in the post-sale or sale.In 2020, Losch was elected best trainer in the sector.

Will this digitalization continue?

"I think it will last, because the customer wants a greater comfort of life.If this makes life easier for him, the customer will continue to use this digitalization, and we will continue to invest in this direction.

At the market level, electrified vehicles have for the first time exceeded those with diesel ...

"You have to be careful with the statistics.We often speak of more than 20% of new registrations of electric cars.But this is not true.You have to make the difference between the 100% electric, the hybrid plug-in and the hybrids.The term electrified is fairer, but there are only 12 to 15% of cars that move in electric mode.Today, the 100% electric is at a rate of 6.5%, and the 8% hybrid.We are therefore sometimes far from the figures announced.

But there is still a real trend that goes towards electrification ...

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"Yes.Behaviors change thanks to several factors, such as state subsidies, or the consideration of the climate issue.It is clear that in the future, electric cars will sell better and better, especially when all models are on the market.Today, we do not have an electric model for all customers, of the right size, with the right aspect, the good engine, the right volume ... This year, we will have a dozen electric models in our showrooms.

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In addition to the diversity of models, does the electrification of cars also pose a large number of other problems?

"Especially in terms of infrastructure.The government sets up terminals in public places, and it has put fast chargers at the Kirchberg, but currently, there are not enough charging stations if you want to ride with a certain autonomy.If we are on the right track with public limits, there is still work on the private level, and especially companies.

Thierry Beffort,&nbspCEO,&nbspgroupe Losch

At the private level, there are state aid, but there is none for companies.If a leasing company rents a car, it cannot introduce the terminal in the leasing.If a company wants to set up around thirty terminals, there are no help either.Where do we load the most?It's at home and at work.So there is a brake at this level.And if there are more electric terminals, this will help sell more electric cars.

The electric car is upsetting the automotive world at the same time as the health crisis strikes.Does this upheaval come at the right time?

"There is never a good time.In times of crisis, we try to reduce costs, societies want to ensure their sustainability.On the other hand, there is climate change, young people who demonstrate for the climate and a better future.These are things that we understand completely.This is why the Volkswagen group announced in 2015 wanting to be the first manufacturer to respect the Paris Agreements.Today, the zero issue in 2050 is launched, and by 2030, 70% of sales will be electric cars.This commitment has become a necessity, and most manufacturers have understood the obligation to change.Today, the path on which we are engaged is that of electricity, but we do not know what can happen in 20 or 30 years.

A manufacturer like Volvo has announced that it wanted to make sales only on the Internet.Will we go towards the end of "cathedral" concessions?

"It is obvious, the change is also on the way to this level, and the use of smartphones, tablets, internet, becomes the norm.Today, there are only 1.4 visits before the purchase of a car.Previously, we were at 4-5 visits before choosing your car.There is a change in behavior, and with this crisis, we notice it even more.We have set up online appointments on our different sites.We had cats where the seller could chat with the customer.However, we have noticed that most people who want to buy a car go to their dealer, they want to test the car, chat with the professional, who can provide information.

So the announcement of the death of concessions is a little premature?

"Direct professional contact remains important, even if there are changes and customers will find solutions on the Internet.This is particularly the case for the used car.But I think the professional will always have a role to play, in the delivery of the car, which will be done at the dealer, in the contact at the post-sale level ... It's just a change in the business modelreferred.

The Losch group has invested by developing Losch Business Solutions, Digital Lab, Cube4T8… What is the role of each entity?

"The cube4T8 is there to find interesting ideas, keep informed, look at the opportunities for the automotive business or for other sectors.So the cube4t8 brings together ideas in order to transform them into a business case.Losch Business Solutions is our software company.We develop systems and programs that we need internally within our group.We can also develop mobility systems and programs for other companies, therefore software as a service (SaaS).With our developments, we set up solutions to solve the problem of carsharing, mobility on demand, etc..For example, the adapter system and that of buses management were produced with us.We also sell these solutions internationally, in Austria, Italy, Switzerland.We do it here, from Luxembourg, but also from a branch in Porto.

Thierry Beffort,&nbspCEO,&nbspgroupe Losch

Why in Porto?

"Because, at the time, it was there that we had found the right people to do it.

Recently, we saw an actor like avenue consolidating his position in Luxembourg.A brand like Peugeot displays the best progression in the first quarter on the Luxembourg market.Does competition scare you?

"I think you should never be afraid of competition.It makes us advancing rather.We have been on the market for over 70 years, and competition will always be present.We have some experience, we have good products, and we have good brands.If we dwell on statistics, the latter change according to many parameters, such as the releases of the new models.If we release a new golf in January, it is certain that the figures will climb during this month.This observation also applies to other brands.Peugeot proposed new models at the start of the year, and this is noticed directly at the figures, while in 2020, they had regressed.

The Losch group markets 12 brands.Are others expected?

"We are importer of the Volkswagen group.For the moment, we focus exclusively on these brands.But if, one day, there is a product on the market for which our manufacturer has no solution, we can make the choice to look at what exists elsewhere.This is what we did with StreetScooter two years ago, just as we made the choice of silence for electric scooters.But currently, we have a good partnership with the Volkswagen group, good products, so we do not envisage an enlargement of our brands.

Luxembourg is not a large automotive market in Europe, compared to France, Germany, Italy or the United Kingdom.How does Volkswagen see Luxembourg?

"In view of the market share, Luxembourg is important for Volkswagen.In terms of volume, indeed, we are not the most impressive importer in Europe.

We are talking more and more about flexibility, of adaptation.Can a group like Losch easily adapt to future challenges?

"I don't think it's hard at all to be flexible.This is why we created Losch Business Solutions.Being flexible is not more difficult for a large group.The most important thing is to have the right people to set up the right ideas, launch them and test them.

For the past year, it is difficult to move, to travel, to feel free.In this context, is it more difficult to sell what remains the symbol of individual freedom, mobility, travel?

"I think the car was rather synonymous with safety.Public transport worked fairly well, and people were carpooling before the crisis.And then, I think the car remains a beautiful product that always makes you dream, whatever happens.

Does passion still have its place in the automobile?

"Our slogan is" Driving Dreams ".The car is a passion, a dream.There is also the notion of pleasure.It is clear that politics is trying to influence people with regard to the choice of their car, or even mobility to have.Politics must be careful not to limit people too much in this choice.If we are talking about speed limitation, this has made it possible to reduce the number of accidents, in addition to improving vehicle safety.But that does not mean that the speed must be considered as something bad.The car is also a question of choice and need.If we talk about the rationality of the choice of the car, the person who works hard to earn money to offer a 4x4, a SUV or a sports car has the right to have fun.

Thierry Beffort,&nbspCEO,&nbspgroupe Losch

Some will make this choice according to needs.A family of seven people will not buy a small car for the home.But the automobile must also find solutions to the problems that concern policies.Mobility and behavior change.In Luxembourg, tram and free public transport are a very good thing.It is a complement to the car, and you should not oppose both.The car will remain essential in certain situations, as if to move quickly to get to a medical appointment or for an emergency.Among young people, mobility also changes.

Some feel the need to have a car, while others only want to use a car without having it.Still others want a specific car, like a Porsche, for example, because it is a dream.

You succeed Damon Damiani, who has reoriented the Losch group's strategy, with the introduction of a new brand image, a restructuring of sales networks, and which has made the group grow with new activities, like Losch Real Estateand Losch Business Solutions.What are the future projects?

"Damon Damiani has worked enormously and worked to transform the Losch group.We invested in Real Estate, we created Losch Business Solutions, and there was a rebranding of the brand.But it is not finished.In terms of rebranding, it was only one step, others will come.In terms of strategy, we are busy setting up a 2030 plan.We are thinking about the best ways to progress on the market and activities that must be priorities.For the moment, we are only at the start of the Real Estate activity.We will continue to work in this direction and continue our work in the continuity of what has been started.

Isn't it strange to see a company specializing in the automobile wanting to develop real estate activities?

"For us, this is a balancing.We were 100% automobile -oriented, but we have to focus on other pillars, other activities, to ensure the sustainability of the group in the event of a crisis.We will always have a foot in the automobile, even by developing Losch Real Estate for our real estate projects, but also for private projects.

Besides, we still have new garages projects, we have just opened for the brands Cupra, Seat and Skoda in Roost.And in July, we will open a new Porsche and Lamborghini center, in Roost also.»»

This article was written for the Paperjam magazine edition of the June published on May 27, 2021.

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