Posts tagged with "liqui moly"

LIQUI MOLY remains loyal to Mercedes Cup

Lubricant specialist continues sponsorship of ATP tennis tournament in Germany.

The Pentecost weekend will see the start of this year’s MercedesCup. It marks LIQUI MOLY’s eighth year as premium sponsor of the renowned tennis event, which will take place in Stuttgart, Germany, from 8 to 16 June. There is method behind this far-sighted approach.

“Dependability and commitment are important constants in our relationships with customers, suppliers and advertising partners,” says LIQUI MOLY Managing Director Ernst Prost. “That’s why we generally opt for longer-term sponsorship commitments that – ideally – develop further.”

And this is exactly the case with the MercedesCup. The event, held at the Weissenhof tennis complex in Stuttgart, is constantly evolving. Although the felt ball was initially thrashed over the net on a clay court, the tournament has been played on grass since 2015. There is also motion as far as play is concerned: This year’s competition is very strong. In order to participate, players must occupy at least 55th place in the world rankings.

“Here, too, there are parallels with our company. Our product range too has changed and developed over more than 60 years. And when it comes to product and service quality, we’re always looking for the potential to get one tick better. This is what we demand of ourselves as a premium brand,” Ernst Prost emphasizes.

And just as LIQUI MOLY’s range of products and services is a very special one, the MercedesCup also occupies a very special place in the ATP World Tour: It is one of the few competitions held on lawn. The event is correspondingly popular with spectators and players alike.

This in turn generates great media interest: More than 100 journalists from all over the world will report on the tournament. As a brand with an increasing international share – LIQUI MOLY now generates more than 60 percent of its sales outside its home market of Germany – international sporting events are at the top of the list of communication vehicles for this medium-sized enterprise from Ulm. “As the most popular motor oil brand in Germany, we do not just want to be at the top in our domestic market: we want to be on top all over the world,” explains the Managing Director.

About LIQUI MOLY

With around 4,000 items, LIQUI MOLY offers a global, uniquely broad range of automotive chemicals: Motor oils and additives, greases and pastes, sprays and car care, glues and sealants. Founded in 1957, LIQUI MOLY develops and produces exclusively in Germany. There it is the undisputed market leader for additives and is repeatedly voted the best oil brand. The company sells its products in more than 120 countries and generated € 544 million in sales in 2018.

Record Turnover For LIQUI MOLY With Lower Growth

During its first year as part of the Würth Group LIQUI MOLY has chalked up a new record turnover. But the growth has been more subdued than previously. The German oil and additive specialist recorded a turnover of € 544 million, just two percent more than the previous year. “International trade disputes, the hot summer and increasing costs, especially the dramatically increased crude oil prices, have all contributed to the significant slowing down of our earnings growth,” says Ernst Prost, LIQUI MOLY CEO.

Whilst previous years have been noted for their high growth rates, 2018 was an exception with much more moderate growth. October was the most successful month in the company’s more than 60 year history, with a turnover of almost € 54 million and growth of 34 percent. A range of factors prevented there being a similarly high rate of growth across the whole year. Latent global trade disputes had an impact on LIQUI MOLY. Business with China, for example, decreased by a third. And trade with Russia, a significant export market for the company, has also decreased rapidly over the last two years due to the substantial devaluation of the ruble. “Such changes cannot help but have an impact,” says Export Manager Salvatore Coniglio. “These setbacks in China and Russia would have had a much greater impact if we were not active in 150 countries. We can offset the reduction in turnover in some countries by opening up new markets in others.”

One of the greatest rays of hope in terms of export was the development of the subsidiary LIQUI MOLY USA, which handles business in the USA and Canada. It posted an increase of 39 percent in comparison with the previous year. This strong growth was no coincidence. LIQUI MOLY invested heavily in personnel, in order to offer its customers a comprehensive service.

The dents in export performance did nothing to cushion the fragile growth in the highly competitive German market. “In present circumstances, a two percent growth in Germany and Austria is a huge success,” says CEO Günter Hiermaier, “after all, the number of competitors has increased but the pie to be shared is still the same size. And so the competition is correspondingly fierce. We continue to rely on a combination of marketing packages and sales power.”

At the same time as turnover growth has reduced, the company’s costs have dramatically increased. On top of investment in additional inventory control strategies, new software and an additional tank storage facility of around eleven million euro, increasing raw material prices added additional costs of around six million euro. The weather also had an impact.  The prolonged period of high temperatures over the summer restricted the use of the Rhine and made it unnavigable at times which, in turn, increased the transport costs for raw materials and finished goods. “Overall, our freight and logistics costs increased by some € 1.2 million. All in all, a cold shower. Of course, a double hit like this, higher costs and lower than planned turnover, has brought our performance to its knees. But that is how it goes in life, and in business, you have to adapt to new circumstances or you’re out of the running. And no two years are the same,” says Ernst Prost.

Spending on marketing and on research and development have also increased, but this was planned. In 2017 LIQUI MOLY invested € 19.8 million in brand awareness, and almost a million more in 2018. The biggest coup of all is undoubtedly the endorsement contract with the Chicago Bulls. The basketball team is one of the most well-known global sports brands. They boast 175 million fans. “No other professional team in the USA can top this,” says Marketing Director Peter Baumann, explaining the significance of international activities to the German company.

Nationally and internationally, the quality associated with “Made in Germany”, still has enormous pulling power for LIQUI MOLY. And this consistently high quality requires research and development, spending in this area has risen to almost € 6 million. “Modern lubricants are highly complex solutions. If you want to stay at the top of the game, you need the latest technology for development and quality testing,” explains David Kaiser who is responsible for this area and for application technology.

Another figure that has led to increased costs is the number of LIQUI MOLY employees. 24 jobs were created in 2018. A total of 848 people are now employed in Ulm, Saarlouis and the international subsidiaries. “We are more than happy to be spending this money, it is always a pleasure to be creating jobs. We are also happy to pay the additional one million euro for the new wage agreement from the Industrial Mining, Chemistry and Energy Union, as it benefits people in the LIQUI MOLY family,” says Ernst Prost.

Since the CEO sold his shares to the Würth Group at the turn of the year, many have been fearing radical change at the oil and additive specialist. “The opposite is the case,” says Ernst Prost. “My business cards now just say CEO instead of Managing Partner and our long-standing Sales Director Günter Hiermaier has risen to be our second CEO, but otherwise it is business as usual.”

Top Tec 6300 for Mercedes

OIL FOR THE NEWEST MERCEDES ENGINES

The be LIQUI MOLY Top Tec 6300 0W-20 is one of the first with the Mercedes approval 229.71.

September 2018 – The newest car engines by Mercedes require a very special oil. The new Top Tec 6300 0W-20 by LIQUI MOLY is one of the first oils to be officially approved by Mercedes for them. “This is a double leap in development – both for the engine technology of Mercedes and for our oil technology,” says Oliver Kuhn, deputy manager of the LIQUI MOLY oil laboratory.

The current E-Class models by Mercedes require such an oil, as do several models in the C and S-Class. These include diesel vehicles as well as gasoline and hybrid vehicles. Top Tec 6300 is officially approved by Mercedes (MB 229.71). “Such an official manufacturer approval is the highest quality award that an oil can receive,” says Oliver Kuhn. “It says that the car manufacturer has tested the oil themselves and consider it to be good.” Top Tec 6300 is not just suitable for new Mercedes models, but also for Jaguar and Land Rover models (STJLR.51.5122).

What characterizes such a state-of-the-art oil? Most obviously, with a viscosity of 0W-20 it is a very low viscosity oil. “The thinner the oil, the less inner friction it has and the more efficiently the engine works,” says Oliver Kuhn. This is one of the many adjust screws in engine development in order to reduce consumption and emissions. “The challenge is, despite this low viscosity, to ensure lubrication even under extreme conditions.” It is also low ash. This means that combustion residues of the oil do not burden the exhaust gas treatment systems. With a different oil, for example, the diesel or gasoline particulates filters would quickly become blocked and have to be expensively replaced.

As with other engine oils, Top Tec 6300 is so special that it cannot be used for other vehicles. If it is filled into an engine that is not designed for it, there could be heavy friction and even engine damage. Oliver Kuhn: “This is the price for ever more efficient engines: Oil becomes a liquid replacement part that only fits very specific engines.”

World Class – Roger Federer and Peter Baumann

LIQUI MOLY Company Magazine, July issue

LIQUI MOLY published the July issue of “Pictures and Stories” on their website. They look back to the MercedesCup, the ATP tennis tournament in Stuttgart, Germany which they supported as premium sponsor. They have 10 tips when you take the car for your holiday trip. And there is lots of motorsports, exhibitions and other events.

You may read the issue here.

 

About LIQUI MOLY

With around 4,000 items, LIQUI MOLY offers a global, uniquely broad range of automotive chemicals: Motor oils and additives, greases and pastes, sprays and car care, glues and sealants. Founded in 1957, LIQUI MOLY develops and produces exclusively in Germany. There it is the undisputed market leader for additives and is repeatedly voted the best oil brand. The company sells its products in more than 120 countries and generated 532m euros in sales in 2017.

Tailor-made for Porsche motors

Tailor-made for Porsche motors

New oil by LIQUI MOLY: Synthoil Energy A40 0W-40

More motor power means more strain on the motor oil. The wrong oil not only leads to performance losses, but can seriously damage the motor.That’s why the German motor oil and additive specialist LIQUI MOLY has developed a new oil specially for Porsche: Synthoil Energy A40 SAE 0W-40.

The A40 in the name indicates it: The oil is officially approved by Porsche for all vehicles that require an oil with the Porsche A40 standard – which is effectively every Porsche with a gasoline motor. It is a completely newly developed fully synthetic motor oil. The viscosity area 0W-40 is greater than in many conventional oils for cars. This offers greater performance reserves if the motor is under heavy strain. Geographical proximity helped in the cooperation with Porsche: LIQUI MOLY is located just one hour’s drive from the Porsche headquarters.

“This new oil is uncompromisingly designed for sports cars,” says Sebastian Zelger, Director of LIQUI MOLY USA. “With this oil we did not take normal cars into account at all, but developed a lubricant that is tailor-made for Porsche motors.”

About LIQUI MOLY
With around 4,000 items, LIQUI MOLY offers a global, uniquely broad range of automotive chemicals: Motor oils and additives, greases and pastes, sprays and car care, glues and sealants. Founded in 1957, LIQUI MOLY develops and produces exclusively in Germany. There it is the undisputed market leader for additives and is repeatedly voted the best oil brand. The company led by Ernst Prost sells its products in more than 120 countries and generated 489m euros in sales in 2016.