INTERVIEW: Pieter Klinkers, Global CEO - Maxion Wheels
Q: Maxion has 9 aluminum wheel manufacturing facilities across the globe. How unique will the Indian plant be, and what are all the learnings you had so far?
Klinkers: Our first important aspect is quality. Over the last 4 decades, we have learnt a lot about quality and how to avoid making mistakes. Because, we will not forget as wheels are safety part. Second is cost. We shared with the world and among our plants that every small piece you find is cost saving. Third is people. You can buy equipment, build a plant but people are needed to run the process. As it is important to have right knowledge, we provide training and learning experience to our people for better outcome. So, we get a lot of learnings from our global operations.
Q: India is a cost-effective market and aluminum is more expensive than steel, so how do you manage and bring out costeffective products in the Indian market?
Klinkers: Aluminum can be compared only with the aluminum. In that case, if we have the right plant set up, right knowledge, right people and supplier support, then it is easy to produce cost-effective and high-quality products. We will not compete in terms of cost with our competitors, but we have internal competition among our plants. For steel, in the last 5 to 10 years, the Indian market was more costcomparative so, our expectation is the same with aluminum wheels.
Q: Going forward, the cost will be a predominant factor for the aluminum wheel manufacturer. How will you address this issue?
Klinkers: In terms of raw materials, the price for wheels are being adapted quarterly or semi-annually based on metal exchange. From a manufacturer’s perspective, it is important to have right people and in process, several learnings are required. As a matter of fact, we are trying for better. So, these learnings, will help us to build a new plant like we have in Turkey or Brazil or USA. We are trying from the scratch and obtain all the learnings from our plants all around the world.
Q: Do you believe that even an entry level car can have aluminum wheels?
Klinkers: Yes. We don’t see traditional wheels anymore in the industry, but aluminum wheels are seen even in small cars. It was also a kind of fashion. So, we can replace the conventional wheels with aluminum wheels.
Q: The durability of aluminum wheels is lesser than steel wheels. What is your opinion about it?
Klinkers: It was a perception in the past. The only thing I want to say is, if you crash the steel wheel, then you can replace the steel wheel cover. When it comes to durability, aluminum is as strong as steel.
Q: Do you see scope for aluminum wheels in LCV & SCV segments?
Klinkers: We feel that those are typical segments where steel wheels’ penetration remains higher especially in India. Steel wheels will continue to prevail in America and Europe also. I am not saying no aluminum wheels for LCVs and SCVs but the penetration of steel is higher in these segments than aluminum.
Q: We see a lot of new technologies coming in steel wheels, similarly, can we see any new technology for aluminum wheels?
Klinkers: We see that there are no sudden product changes in aluminum. aluminum wheels have become bigger and fashionable and has more different colours on the wheels. So, we are working on aluminum wheels to make it more attractive and affordable. Having aluminum wheels is the mainstream in many markets in the world. Obviously, there will be product improvements in aluminum wheels.
Q: Aluminum wheels provide many advantages for both manufacturers and end-users, especially in terms of design. How do you view this, will there be any new design coming from Maxion?
Klinkers: What we see is more diversification. In a vehicle, the wheels will provide differentiation and uniqueness. There will be more choices for the customers in terms of style and a quicker succession of wheels. We have a lot of experience in this and we will meet the requirements of our clients. We will be able to make 21 or 22-inch wheels with new diamond-cut designs. All these will take some time in India. Currently, we are importing products from Europe, but that will not be a permanent situation. We will start manufacturing in our Indian plant which will make it costeffective.
Q: Are you also looking at exporting wheels from the Indian operations?
Klinkers: It depends upon the customers’ requirements. Our primary focus is to serve and satisfy the local market. Our capacity will be sold out locally which we believe firmly. We also see an enormous growth in vehicle production and so our capacity of producing wheels will be increased tremendously. Our challenge is not to sell out all the products but to provide cost-comparative products.
Q: How will be the R&D set up in India?
Klinkers: We will absolutely use the current potential of our R&D department. We have headquarters specially for aluminum engineering. I could imagine of more R&D set-up in India in a couple of years to cater to the needs of the local customers.