INEOS signs up Bosch for local Grenadier servicing

A groundbreaking deal between boutique 4x4-maker INEOS and global automotive giant Bosch, which will allow Australian owners of the upcoming INEOS Grenadier off-roader to have their vehicles serviced around the country, shows the rapidly changing nature of the wide automotive industry.

And though he wouldn’t confirm it, Bosch Australia CEO Gavin Smith indicated that the deal would not be the last.

“The INEOS deal is certainly one which is I think pretty interesting for us,” Smith told carsales.

“We operate the world's largest independent car service network globally. And we've been in this business 60, 70 years around the globe, given that we are the world's largest manufacturer of components and systems for the mobility industry.

“These days, we know so much about the control systems and the components, and we have so much intellectual property and as cars become more sophisticated with more electronics and less things that just need a drain plug taken out to let the fluids out; it becomes core software and complex diagnostics.”

Asia-Pacific region chief for INEOS, Justin Hocevar, said that a network to provide aftersales care was critical.

“They [Bosch] is one of the partners in developing the vehicle,” explained Hocevar. “They've obviously therefore got a role to play as a supplier in both manufacturing and after-sales.

“Therefore as part of this global approach, it kicked off a discussion with Bosch to find a ready-made service network that was already into linked into the vehicle's development.”

The arrangement will augment the 32 dealer and service outlets that have signed on with INEOS, and will be used to offer support in more remote areas.

“We've been in discussion with Bosch locally around where do we have other locations that we need to provide service-only support, and have they got a Bosch partner in those locations that is willing to work with us and vice-versa, to provide that additional service footprint that won't necessarily happen at launch,” said Hocevar.

Bosch Car Service is one of the world's largest independent workshop chains, with more than 15,000 authorised workshops in 150 countries. There are almost 150 outlets across Australia and New Zealand.

Smith said that the company is well placed with access to its own car service network and the intellectual property to support vehicle manufacturers, and that INEOS’s decision to supplement its own service centre network made a lot of sense.

“They are a small emerging vehicle manufacturing company, with a very exciting product that for this country is something that is absolutely bang on the money,” he said.

“But in a small country where they're selling a small volume of vehicles, it absolutely makes sense to partner with someone who's got the knowledge, the IP, the systems and the test equipment, and an already existing network of car service facilities.”

While Smith wouldn’t be drawn on potential future partners for Bosch, he suggested that the INEOS deal could pave the way for future collaborations with car-makers.

“The model that has been defined and is implemented for INEOS could apply equally to lots of other emerging vehicle manufacturers that don't have that infrastructure, as well,” he said.

When asked whether the emerging agency model for dealerships presents any potential opportunity, Smith said that it didn’t present either opportunity or risk for Bosch.

“[The agency model] is probably keeping the dealership groups awake at night, but for us as a manufacturer and supplier of parts and an independent servicer, no, it’s not a concern,” he said.

The perils of providing a service and warranty footprint for a fledgling brand are being publicly played out at BYD at present, with the impending rollout of the Atto3 small electric SUV beset by inconsistent warranty communications from importer EV Direct, including a roll-back of the seven-year vehicle warranty it previously announced.

EV Direct has partnered with AP Eagers in a five-year deal to provide a national franchise retail and service network. It’s understood that an earlier deal with the MyCar chain to provide training for technicians to cover 30 locations is still in place.