Bunmi Ade: Abt is the first team to confirm both its drivers and its technology partner for next season; what is the status of Würth Elektronik eiSos’ relationship with the team?
OO: We have a multi-year contract with Abt Formula E – actually it came off the long standing existing relationship (over 10 years) we have with the team in DTM. Abt and Würth Elektronik eiSos know each other very well so we know when they make a commitment like this, it is not a short term deal.
BA: How do you anticipate measuring the increased awareness and Return On Investment (ROI) on the partnership?
Oliver Optiz: In terms of the contract, I can’t disclose the exact duration of the contract but I can say it is more than 2 years. Also, I can’t say what the monetary value of the investment is but I can say it is negligible compared to the investment afterwards into development and the
resulting output/benefits to us. Abt team only take on partners that they’ve known for many years and have trust in their expertise. They want the advantage of the development in the future; they want partners who have innovative ways of working on developments; rather than just for the sake of a logo or sticker on a car. This is something you can’t put a figure on – one could try to, but it would be difficult.
With regards to Brand Awareness, having our logo or sticker on a car is an additional (benefit) because this is mainly a Technology partnership. For us, on the technical side, we can clearly define new test procedures to increase reliability and have customers interested in paying for the excellent performance. We can clearly measure how much money we invest into development and what the outcome from, let’s call them “Quality+” products is.
Also, we noticed that we are getting quite a lot of job applications from students or professionals seeking employment, and that they refer to Formula E: they recognise the company name from the series and they are more aware of it.
BA: I see Würth Elektronik eiSos is quite active on Twitter and also help promote the ABT drivers’ FanBoost votes. How has Social Media changed the awareness of the company especially outside Germany?
OO: Yes, we are quite active on social media – our social media team tweet in English and German, and we get a lot of interactions from people who have the ambition to follow racing. It’s pure adrenalin. It certainly is different from posting an article on passive components! It’s not impossible (to get the same level of interest) but it is difficult. And given that our products are not “visible”, we appreciate all that you do make people more aware of the brand and activities.
Würth is about tools, bolts, nuts etc. The history goes back since the Second World War and Prof Würth made it a large successful company. It is difficult for a company like ours working on the technology and applications inside of the car – it isn’t visible or sexy as if we were Audi. If you are an engineer and were interested in working for Audi, you could say “I was looking at the headbeams of the A6 and got inspired” but it’s not the same with our electronic components. This is why Formula E is helping with awareness, even though it’s not our main intention with the partnership.
Also on social media, we have data – we can analyse the statistics (and draw some conclusions). For instance, the first post we had Twitter at the first ePrix in Beijing got the most hits in our whole social media experience at the time. This was because people were following the race through Twitter. In Germany we have an issue with Formula E because the race isn’t broadcast on free TV (it is on Pay-per-View Sky channel) so audience numbers are limited (and therefore brand exposure). FE knows about this issue and I guess things may change in the future but for now, most of our customers are increasing following us and the races through social media.
BA: The tough conditions of motorsport is the perfect test environment for your components – could you elaborate on how you intend to transfer the lessons learned in race conditions to other automotive applications?
OO: We are not only looking into automotive industry – for us, we are interested in eMobility as a whole. Not just the electric car but also wheelchairs, eBikes, eScooters – anything that can be mobile through an electric motor. We don’t have the history in automotive industry so we focus on small-to-medium sized customers. Whereas our competitors are working with big companies like Apple, Samsung etc, we are taking care of small-to-medium sized customers.
Automotive is a different business - we’d like to get more into automotive in the future but I’m pretty sure we can learn a lot from FormulaE and generally from the relationships we can build through FormulaE, through the races, through meeting partners and customers, and to get into different fields. We are looking for higher diversification but right now, we are not limited to just the automotive sector.
BA: Wurth currently supply 13 different parts to automotive applications - is this the maximum limit or do you envisage expanding the range as you learn more from FE series
OO: No, this isn’t the maximum limit of parts we can provide to the automotive industry however it is the most we can show in public. As you can imagine, automotive involves a lot of “custom-business” – customised/bespoke items created for customers and bound by Non-Disclosure Agreements (NDAs).
But essentially, we are mainly focused in standard components, we have a catalogue where a customer can select and buy items, and receive the package in 24 hours. Automotive is different – when we develop an item for them, they don’t want us to talk to anyone. Sometimes it is even difficult just to get the information of what they want from us! So there is a limit to what can be made publicly available. We have a separate business unit called Würth Elektronik iBE. This company engineers and manufactures 100% custom-specific passive components for the automotive industry and is market leader for rod chore inductors.
Right now, what you have in the FE car is standardised, it is homologated and in the next season, when development starts, our intention is not to sell any components to another FE team. Though if the team were to sell the transmission or power train to another team, then this would mean our technology being available to other teams indirectly.
BA: I know Würth Elektronik eiSos has several patents and even though you are involved in Formula E – but do you envisage your engagement in motorsport preventing future patents (at it is in F1, for example)?
OO: Bottom line is no, we don’t want to prevent patents. You have to look at patents from two angles; on one hand the more patents you have, the more your competition can see and analyse what you do as a company and secondly patents (application) take a lot of time and resources – to fill out templates, and send off forms to the patent office. I assume this is another reason why F1 doesn’t bother with patents because it takes a long time, which they don’t have (to waste)!
We have a similar approach: we say patents are nice but our main focus is actually just to be faster than the competition.
It has been reported that the lack of patents in F1 is because if a team takes out a patent on a design, that locks in an advantage the other teams cannot access. So the other teams just vote it out through the FIA Technical Working Group process by the end of the season.
BA: What were your thoughts on the Berlin ePrix?
OO: Berlin was a good event despite the result. I mean depends how you look at it; from the Drivers’ championship perspective, there was a lack of points for Lucas but in terms of publicity and awareness for the brand and the team, it was good. Usually the race is over once the drivers receive their trophies and you look forward to the next race. And even with the disqualification, people are still talking about it after the race, they post pictures so awareness was even better.
BA: I organise a Twitter Q&A after each ePrix (#FEBuzz) and after Berlin, ABT’s PR joined the session to clarify aspects of the race and everyone appreciated their effort to explain the error which lead to the disqualification. You certainly chose the perfect partner with a strong brand.
OO: Abt is a strong team and I know we made the right call with our partnership with them. As I said before, we have a long history and partnership with the Abt team so it is already a family. Being a partner is more than sending invoices back and forth – a lot of things are happy on the side lines. In terms of the disqualification, it wasn’t nice and the team said they wouldn’t appeal for the sake of sportsmanship. They know the sport is not always black and white – there is always a grey zone but the team knows if they are good enough, they will win the championship. Sometimes it’s luck, other times you are unlucky but you try to make the best of it.
Speaking to partners and guests, they were satisfied with the Berlin ePrix event. You know, most of them attend to get closer to the drivers and to the action. Even with our customers, we have partnerships – it’s not just a buying-selling story; it’s a long term partnership and this is where the company’s success comes from.
Follow Würth Elektronik eiSos on Twitter at @we_online
Image: Abt