Your internal Newsletter for the AAG Team across Europe Edition 10 - 2024
Page 01 CEO Message
A message from Franck Baduel.
Page 02 Workday
Read all about the benefits of our new HR platform.
Page 04 Competition Time
Find out how you could win with our latest competition.
Page 05 European Diversity Month
Take a look at the results from our latest D&I survey, plus some of the initiatives we are running this year.
Page 06 Management Development Seminar 2024
Find out what took place at this year’s MDS.
Page 07 NAPA News
The latest updates from NAPA across all countries.
Page 08 Events Round Up
Take a look at the key events taking place across the group in 2024.
Page 09 Madrid’s New DC
Find out about Iberia's largest distribution centre.
Page 10 GPC News
The latest updates from our colleagues at GPC.
Page 11 Cyber Security Series
Find out how GPC Cyber Security has been improved to form one team.
I hope you are doing well in these Spring days.
After a record year in 2023, the year 2024 starts well even if the top line growth is less impressive than a year ago. The main explanations come from several external factors, starting with a flatter European economy, high energy prices, the inflation rate returning back to normal in our industry, and an interest rate that is still very high.
In addition to these macro-economic factors, the constant messages urging people to become greener and choose an electric vehicle that consumers don't want, mainly because of its price, creates confusion in the minds of citizens and consumers.
CEO MESSAGE
Introduction from Chief Executive Officer, Franck Baduel
All these elements create a wait-and-see attitude amongst consumers and generate, consequently, a less favourable environment for strong growth.
Despite this situation, AAG remains very well positioned in the market and continues to deliver a solid revenue growth in the beginning of 2024. We recorded in the first Quarter, €900m in revenue, i.e. +8% growth versus 2023, +1% on a like-for-like basis and +7% thanks to the external growth. Moreover, GPC also delivered a great performance in Q1 2024 with a strong result everywhere across the globe.
It is clear that whilst the start of the year is more complicated than last year, we're strong, organised and united.
In Europe, this positive development of the group is explained by several successful initiatives, such as the continuous and impressive roll-out of our NAPA offering, the positive business with our Key Accounts, and last but not least, the great extension of our networks composed of independent wholesalers and garages.
On top of these commercial actions, and thanks to the GPC shareholding, we have continued to grow externally by acquiring 7 companies since January 1st. 3 companies were acquired in the UK, including Parts in Motion, a €30m online business. 4 companies were acquired in Benelux, including ASN, a leading company in the Netherlands as a franchisor within the body repair
domain with 100+ affiliated body repair shops, but also the company Ronden Banden, a €20m tire specialist. These two large acquisitions are part of our Dutch strategy to enlarge the product portfolio to become a one-stop-shop player.
Despite the significant revenue growth depicted above, we also have to deal with the increase of cost structure negatively affected by the high inflation of several costs, so I rely on all of you to take care of our spendings, overheads, fuel, electricity, and gas in order to limit the impact on our profit.
Alongside these actions and commercial developments, we have been working on our transformational projects with notable milestones in Europe. There have been great progresses made in our French, German, British, Dutch and Spanish Distribution Centres with a go live in both France and Spain, the roll-out of the Microsoft 365 solution in Germany (3rd wave), the deployment of the Part360 catalogue in the Netherlands and a continuous focus on topics related to Emerging Technology.
I hope it is clear that whilst the start of the year is more complicated than last year, we're strong, organised and united to continue to grow profitably, and I rely on all of you to develop our business.
After 4 years in a row of continuous success, I remain optimistic and convinced that we can beat the market and tackle competitors. I count on you all to strive to satisfy our customers and gain market share.
I wish you the best and good business!
Franck
WORKDAY UPDATE
You will have recently learnt that Workday, our new HR platform, will be launched this year and available for all team members in Q4 2024.
The system comes with a lot of benefits, empowering you and enhancing the way we support, engage, and develop our people. Workday will capture all our employee information in one central global system, making it easier to access information quickly and efficiently.
One of the key benefits of Workday is that it is userfriendly and intuitive, accessible anytime, anywhere, including on mobile devices. This means that you can easily update your personal information, like your home address or name, using Employee Self-Service.
Examples of Self-Service functionalities for employees:
• View and change personal information
• View company Org Charts
• View and perform annual reviews
• Check internal job openings and apply through the system
• Participate in training
To ensure a smooth transition, we will share more information about the Workday launch on a regular basis. This will include what is changing, when, what you have to do, and what it means for you. In addition, you will have access to on-demand training materials, like job aids or training videos, whenever you need guidance for any common transactions in Workday.
How will Workday support Managers?
All people managers will get the opportunity to participate in instructor-led training as part of the go-live, and they should be the main point of contact for employees in case of any questions. With Workday, you will have access to reports and dashboards in real time, empowering you and your managers to own your HR data and find information quickly and easily. Workday will also speed up HR transactions, allowing teammates and managers to initiate requests on their own in real time.
Examples of Self-Service functionalities for managers:
• View and manage your team
• View team performance and development results
View company Org Charts View and perform annual reviews
• View individual compensation of team members
• Start recruitment process
The benefits of Workday:
We are thrilled to launch this new HR system across Europe, the benefits of Workday include best-in-class technology and business processes, intuitive and user-friendly design, empowering team members and managers, and speeding up HR transactions for teammates and managers. We are excited about this change and believe it will be a significant improvement to the way we work together.
We spoke with some of our workstream leads from the Workday project about their favourite features in the new system. Take a look at some of their thoughts:
Recruiting Workstream Lead
George Oduro, UK: “Its intuitive design and processes make it easy for managers to navigate and ensures candidates have a positive recruitment experience.”
HCM Workstream Lead Ding Dang Hoksbergen, Netherlands: “The convenience for all our employees to be able to have an HRIS which has the same abilities on the web and mobile version. Another key feature is the ability for Managers to delegate their approvals to a peer or their manager with a few clicks of a button.”
Talent
Workstream Lead Marike Schmidt, Germany: “Workday offers so many different features. I find it difficult to choose just one. I think the best thing about Workday is that we have a common tool for different areas and processes. This consolidation will make daily work much easier.”
Change Management & Training Workstream
Lead Caroline Schmiedel, Europe: “I love that our whole AAG-GPC family will be on the same platform, meaning all colleagues will have the same user experience. Furthermore, we do not need to login to several systems anymore as most of our HR activities will be accessible via one login to Workday.”
Learning
Workstream Lead Marleen Kaiser, Netherlands: “It’s one go-to platform for employees to view their employment data as well as their performance appraisals and training. There are also extensive search and filter options in the learning catalogue.”
View and manage your team
Previous Competition Winners:
Congratulations to the winners from of our competition in Edition 9.
We are excited to announce our 4 winners:
• Campbell Morri son
• Di rk Klein-Kormelink
• Jurgen Rummens
• Albert Viure Roldan
We hope you are enjoying your new AAG hoodies!
COMPETITION TIME
Take part in our AAG-themed crossword competition for your chance to win a special prize! To participate, simply complete the crossword and submit your answers to maag@allianceautomotive.eu before 1st July 2024.
All correct entries will be entered into a prize draw and we will pick 5 lucky winners at random.
Across
2. Founded by GPC in 1925
5. We strive for inclusivity, diversity and sustainability for a better future, one of our values
6. The quality of being honest, one of our values
7. We understand that big dreams are achieved by practical, realistic and tangible actions, one of our values
8. The foundation of our success, one of our values
1. The industry involved in motor vehicles.
3. A union or association formed for mutual benefit
4. We go further than finishing the task, we persevere until we are proud of the result, one of our values
Albert Viure Roldan - Spain
EUROPEAN DIVERSITY MONTH
2024 marks the fifth celebration of the European Diversity Month, an important initiative that AAG are proud to support each year. This year’s theme is ‘Embracing the future of work through inclusion and diversity’ and the aim is to celebrate and promote the power of differences in shaping a modern and forward-thinking workplace where curiosity, fluidity and acceptance thrive.
D&I SURVEY RESULTS
Recently, we conducted a comprehensive Diversity and Inclusion survey to gain insights into D&I within our workplace.
The survey was designed to capture the attitudes and experiences of our employees on a variety of topics including organisational culture, leadership, training and development, and workplace processes. The results of the survey taken from 1,471 participants, have provided us with valuable information that will help us to identify areas of strength, as well as areas for improvement, in our efforts to create a more diverse and inclusive workplace.
Top 3 Strengths Top 3 Opportunities
I am respected by my colleagues The company has adequately implemented diversity and inclusion initiatives The training I receive raises my awareness about D&I
I am familiar with the company values
I understand all the procedures for reporting incidents of workplace bias
78% 53% 54% 78% 70%
59%
The company works well towards hiring candidates from different diversity groups
INTERNATIONAL WOMEN’S DAY 2024
Back in March, we celebrated International Women’s Day by interviewing women across the AAG European network to understand their views on women working in the automotive industry.
One inspirational woman we spoke to was Joke van den Brink, New Business Product Manager, at AAG Benelux.
Q: What advice would you give to other women working in male-dominated industries?
A: As a woman, you often have a slightly different view on certain matters or you handle matters in a slightly different way. That extra perspective can yield a lot in business, and that is why, in my opinion, diversity is always a must within a team.
Stay true to yourself and be steadfast! Hard work produces results, even as a woman among men. Show yourself, indicate your ambitions and set clear goals for yourself. Then no one can ignore you!
Q: Have you noticed any changes in the industry over the years regarding gender diversity and inclusion?
A: Certainly! More and more attention is being paid to gender diversity and inclusion and you notice that people are naturally concerned with this and acting on it. You also notice outside the organisation that women are increasingly feeling at home in the automotive industry. However, we are not there yet! There are few women to be found, especially in the fields of garage owners, mechanics and car sales.
Q: How has AAG supported your growth and career development?
A: AAG has played an extremely important role in my career development. I joined AAG more than 8 years ago, and within a few years I was promoted to the position of Foreman. Within that position I learned a lot about leadership, and this also resulted in personal growth. After several years, I was given the opportunity to move to the position of Logistics Analyst where I also learned a lot professionally and personally which led, among other things, to my recent transition to Product Manager in the New Business team. AAG has meant a lot to me in my career and my personal development. I am very grateful for that!
To read the full interviews with some of the incredible women we are proud to have as a part of our AAG family, simply scan the QR code.
MANAGEMENT DEVELOPMENT SEMINAR 2024
From April 8th to 12th 2024, 19 leaders from 5 European AAG countries gathered in Kraków, Poland to attend the AAG Management Development Seminar (MDS). In our effort to cultivate strong leadership within AAG, this seminar provided an opportunity for those participating with a chance to gain knowledge and skills on various aspects of management.
The seminar started off with management presentations from Franck Baduel (CEO), Cyrius Peter (CFO), Asireh Moradkhani (CHRO), Wit Wyborski (Country Manager Poland), and Alex Bertoli (CTO), who shared their experience and knowledge with the attendees. Paul Donahue, GPC CEO, also joined the event via video call, sharing his insights on GPC.
Team building and networking activities were also part of the program, which allowed attendees to build relationships and learn from each other. The seminar provided training on
The MDS allows us to connect to other countries and discuss how to solve common problems.
- Julia Große Holz, Germany
leadership, change management, communication and feedback, which are essential skills for any manager.
One of the highlights of the seminar was the chance to visit our GPC colleagues at the Global Technology Centre (GTC) in Kraków. This provided a unique opportunity for attendees to see the latest technology advancements and innovations in the industry and learn about the challenges and solutions for managing such a complex organisation. We look forward to the next MDS and the opportunity to continue learning and growing together.
If you have an opportunity to attend, you should grab it with both hands.
- Neil Rayner, UK
My favourite thing about the MDS was the visit to the GTC and learning about AAG becoming future proof.
- Rob Jansen, Netherlands
The MDS focuses on empowering people, our team, and ourselves.
- Yasmina Velia Andrianasolo, Europe (France)
The trainers we have are excellent. It’s great to have the presentations but the communication-focused training is particularly helpful. Everything about the communication ways has helped me understand why I react to the inputs that I receive. This part, for me, is the best one.
- Alexander Larrea, Spain
It’s forbidden to feed pigeons in Kraków.
NAPA NEWS
Racing to Victory
The Champions are Back
Following a year of abundant victories, NAPA Racing UK is back for another exciting season of motorsport!
NAPA Racing Weekend Continues
NAPA Iberia is proud to be continuing NAPA Racing Weekend for a second year! Six racing events will be held during 2024 where customers and their families can enjoy activities such as Batak competitions, a ride inside an easydrift car, racing simulators, and VIP tours of the most influential circuits in the country.
With the NAPA colours taking centre stage, the NAPA Racing Weekend events will include:
• Eurocup3
• Formula 4
• Porsche Sprint Challenge Cup
• SuperCars
• Toyota Gazoo Racing Cup Spain
The NAPA Racing Weekend events gathered a total of 80,000 spectators last year, and 2024 is expected to be even greater!
The Growth of NAPA Truck
Committed to continuous development, NAPA Truck has been expanding rapidly in France. The commercial vehicle brand had a strong presence at the Solutrans Trade Show, with the NAPA Racing truck in attendance and a product roadmap available for presentation.
NAPA is also excited to be partnering with BEN, the automotive industry’s “Support for Life” charity, with a variety of fundraising efforts this year. The initiative kicked off with NAPA Racing drivers Jamie Osborne and Cam Richardson undertaking the Race Across Britain challenge at the end of February. NAPA has already raised over £3,700 for BEN so far in 2024, with many more plans to come!
Never miss a piece of NAPA news — follow @NAPARacingUK on social media for all the latest.
Recent product launches by NAPA Truck France
• Brake Discs
Air Tanks
• Commercial Oil
• Load Restraints
• Steering and Suspension
As part of this keen focus on NAPA Truck, NAPA can proudly confirm that their partnership with Team Robineau in the French Truck Racing Championship continues for another year!
MINI CHALLENGE JCW
Ash Sutton (Reigning Champion)
Paul Rivett (Reigning Division 2 Champion)
Jamie Osborne (Reigning Graduates Cup Champion)
BriSCA F1
AAG France
On November 16th, AAG France will organise its trade show in Paris, taking place in Villepinte, in a 18,000 sq. m. hall. A total of 5,000 participants are expected, as the show will bring together the entire profession, GROUPAUTO, Precisium, Pièces Auto, MP Truck, cars and trucks. The aim of the show is for AAG France to not only make it the reference fair for the entire industry, but also to generate sales and leads, and provide network opportunities for everyone.
AAG UK & IE
Trading Group Spring Event
The Trading Group Spring Event returned to the luxury 5-star Tivoli Marina Hotel this year, following a successful event in 2023. The event provides an opportunity for Trading Group members, key suppliers and representatives from AAG to network and discuss products, offers, and deals.
The event consists of formal networking opportunities through supplier workshop meetings, and more informal meetings during lunch, dinner, golf, and the member awards dinner.
AAG Germany
Throughout 2024, our colleagues in Germany will be hosting four dedicated roadshows, taking place across the country from April to August in different locations including Speyer, Bremen, Munich, and Chemnitz. Plus, AAG.technika is set to return in October 2024, after the success of the 2023 show which saw customers network with over 120 key suppliers, attend technical seminars, visit the AAG Concept Centre, plus much more.
AAG UK & IE Expo
dinner, plus much more.
The show is open exclusively to LV and CV motor factor members of the GROUPAUTO, UAN and CAAR Trading Groups. There will also be a dedicated day available for garages to attend to make the most of visiting key suppliers.
AAG Benelux
From 24th to 27th March, the AAG Benelux team attended AutoTechnica 2024 in Brussels, the leading trade fair for automotive professionals, hosting the largest stand of 900m2.
The event brought together a range of innovative automotive and aftersales solutions and products.
The AAG UK & Ireland Expo is our biggest trade show yet! With a brand-new name for 2024, we have a range of exciting opportunities lined up for members, including two full days to meet with over 150 supplier exhibitors, member network conferences, technical seminars, a NAPA Racing store and driver meet and greet, gala
AAG Spain
In addition to dedicated NAPA Racing Weekend events (see page 7), AAG Iberia will also be hosting a convention taking place later this year. The event will see managers from the Iberia head office and warehouses gather to obtain an overview of plans for the following year such as new brands, products and internal engagement.
NEW DC IN MADRID
AAG Iberia’s National Distribution Centre (NDC) is a newly built logistics warehouse located in Torrejón de Ardoz, Madrid. Covering an area of 18,000 square meters, it is situated in one of the most soughtafter locations for logistics operations, where many national and international logistics operators are already based.
The warehouse is designed to support the development of new activities that commenced at the end of March 2024, allowing us to accommodate expected growth in the coming years.
The NDC is equipped with 25 docks for lorries, 23,000 rack locations, plus a 3-story picking tower with picking racks for 70,000 locations. Additionally, there is a buffer area that can be used for future automation.
The new facility will optimise national distribution operations by allowing suppliers to make a single delivery to the site. Stock will then be regulated to the AAG Iberia network, including 69 AAG warehouses, and our independent members who will receive their deliveries less than 24 hours from ordering. This will improve overall efficiency, and enable the centres, which are currently at full capacity, to take on new volumes.
The new facility is the largest of its kind in the sector in Iberia, consolidating AAG’s leading position in the market. It will ensure that all customers receive the widest product range and the best service. Furthermore, it will prepare AAG Iberia’s supply chain for future M&A operations in Spain and Portugal.
We spoke with Gerard Leonardi, Logistics Project Manager for the new NDC to find out more:
Q: What is your role at AAG?
A: I joined the AAG France Logistics Department 12 years ago, previously working as Operational Director for 3 Regional DCs in the South of France. Since 2023, I have held the role of Logistics Project Manager.
through and designed was finally becoming a reality, and of course, the first pallets placed and orders shipped.
Q: And what has been the hardest part?
A: A project of this magnitude is like a marathon. The topics are very varied, and everything has to go perfectly in order to reach the goal. The AAG team and our partners have allowed the planning to be fulfilled and I thank them for all the work and involvement they have had. Teamwork has made what was initially difficult, end up being easy.
Q: What are the advantages of the new distribution centre?
Q: What has been the most exciting part of preparing to open this new NDC?
A: There have been many emotions throughout this project and there will be many more. The first of them was when the project was first proposed to me. I was very excited to participate in shaping the NDC project and contributing to the expansion of AAG in Iberia. Another important point was when the installations at the NDC began, everything we had been
A: At the new NDC, we will be able to improve the regulation of stock, not only for the AAG Iberia network, but also all our customers. This will be especially beneficial to those who work with larger volumes within the group in Iberia.
2023 GPC CHAIRMAN’S AWARD QUARTERLY BUSINESS REVIEW
Each year since 1959, GPC has recognised a GPC Manager of the Year. This recognition has been awarded to deserving individuals who embody our culture and make a material impact with exceptional performance at Genuine Parts Company.
For 2023, we are thrilled to present the Genuine Parts Company Chairman’s Award to the GPC Global Technology Center, located in Kraków, Poland.
Well done to the whole team, from everyone at AAG!
Earlier this year, GPC’s Executive Leadership Team hosted the Q4 and full year 2023 Quarterly Business Review (QBR).
We had four business units that triple crown this past year. So to all the folks out there that are watching this Alliance Automotive Group, to Frank and the team, absolutely exceptional year, our European business led the way for all of the Genuine Parts Company. Congrats, that’s three in a row for that group.
Paul Donahue, Chairman and CEO.
Scan the QR code to view the video to hear our GPC leaders talk about the latest company results, strategic initiatives, human resources updates and more.
Highlights included:
• Chairman and CEO Paul Donahue gave an overview of GPC’s global performance for Q4 and full year 2023 and announced the winner of the 2023 GPC Chairman’s Award.
• President and COO Will Stengel talked about culture, sales and technology wins we celebrated in 2023 and how we are investing back into our businesses for sustained success.
• EVP and CIDO Naveen Krishna discussed the numerous accomplishments achieved by our global technology teams last year and what is coming up in 2024.
• Alliance Automotive Group CEO Franck Baduel shared an overview of our European business success in 2023, including a third straight Triple Crown.
• GPC North America's Group President, Randy Breaux, talked about how our North American industrial and automotive businesses performed and the positive changes that will continue to drive the business forward in 2024.
• GPC Asia Pacific Managing Director and Group CEO Rob Cameron talked about how our Australasian business performed in 2023, including a fourth straight Triple Crown.
• SVP, Employee Experience Vickie Smith filled in for EVP and CHRO Jim Neill to give an update on human resources, wellbeing and giving initiatives going into 2024.
CYBER SECURITY SERIES
Since November of last year, the Cyber team across all regions of GPC have evolved into a global force, equipped with access to extensive resources worldwide. Importantly, we are no longer separate country teams, but rather operate as a cohesive unit as #OneGPC Team. You may wonder, what is different now, and is this better than before? The organisational and geographical boundaries have been removed which leads to increased collaboration with our teammates in Europe, North America and Australasia, as well as working on projects with all GPC business units. We are able to connect globally on various different topics and can therefore better align to the global strategies and plans. This offers us new opportunities to not only collaborate and grow professionally within our organisation, but also in a personal capacity. Another reason why being a global team is so beneficial is having a greater sense of purpose and sharing our knowledge and the ability to leverage expertise globally. As we now have expert teams, the roles are clearer, and we can leverage our skill sets much better. Given the size of the global team, we are much better prepared for larger initiatives, ensuring state of the art protection. We are also becoming more independent, which is a critical need for Cyber Security, we are able to cover issues and problems earlier, even before they occur.
Exciting times lie ahead. A range of new and amazing opportunities await for us to build world class security. We are looking forward to being able to use best practices from the individual business units and scaling them across GPC globally to ensure we have the right level of protection at the right time. Working with teammates across the world allows us to learn even more about different cultures, languages and habits,
which is helping us to achieve an even greater common shared goal. Overall, the new global structure allows for even more professional and personal growth, and we are happy to grow and build reliable and standardised structures to provide the best support and outcomes that we can achieve as #OneGPCTeam.
