At this year’s IAA Commercial Vehicles, Krone presents a strategic expansion programme whereby Krone trailers will be available with the Krone Trailer Axle. The complete solution now comprises trailer and chassis and in parallel to the introduction of axles Krone is also expanding its service range: In this interview, Chief Executive Bernard Krone explains how this decision came about, and looks at the customer benefits offered by the new concept.
Mr Krone, your company has decided to launch its own trailer axle to the market. What brought about this decision?
Bernard Krone: The new axle is part of a fundamental change in strategy. Until recently, we have focused on the installation of premium components in the production of Krone trailers. For a long time, though, we have observed that customer demands have risen beyond product features – with regard to the supply of spare parts, services and resale value.So it was a strategic decision to assume responsibility for the centrepiece of a vehicle – the axle.We are thus able to offer a complete solution and, one associated with entirely new service dimensions. Now we are the sole point of contact for everything supplied to our customers, because now we have a trailer which is equipped with our own axle and consists only of quality parts bearing the Krone logo. These trailers also have a very high resale value. That’s because the Krone name is synonymous with maximum quality and reliability throughout Europe.
The axle is produced by gigant Trenkamp & Gehle. Why have you chosen this partner?
Bernard Krone: gigant has exactly the expertise and culture that suit us. The company enjoys an excellent reputation in the field of special axles. As a company producing high-tech axles for heavy transport, it also has, of course, the necessary expertise for standard trailer axles. In addition, we are also fine-tuned at a personal level: The Gehle and Krone families know each other very well because gigant has already been supplying us for decades. In addition, we share core values: customer benefits and excellent service are our main focus. We feel responsible towards our customers. We strive to achieve maximum quality in all areas, right down to the smallest detail.
Joining forces was the right decision: with the Krone Trailer Axle, we can offer a high-quality product with which we complete our range and upgrade our trailers once again.
The collaboration with gigant has been ongoing since January 2013. What actions have you taken since then?
Bernard Krone: Initially, our intention was to bring together the two companies and to make use of synergies. We aligned our processes and connected our ERP systems to each other.
Having thus created a fundamental basis, we were able to address the specific plan to develop a Krone trailer axle and make it ready to launch on the market.
It was important to us in every step of the process to proceed carefully and systematically on a new developmental axis.
What concrete benefits does the combination of trailer and new axle offer your customers?
Bernard Krone: Our customers benefit from the new solution in many ways. Right from the time of purchase they get a long-lasting quality product with an excellent price-performance ratio. In addition, customers can choose from an extensive range of services to do with axles and trailers. For example, as part of our “Fair Care” service package, we offer complete maintenance contracts for entire trailers, including the Krone Trailer Axle, and also all other axle components. Another clear advantage for our customers is that now they only have one point of contact for trailers, axles and components. Thanks to the “All in Krone” principle, they get all the spare parts from us in one package. This has a cost-saving effect, because the spare parts and service costs are much easier to plan. And when the trailer has finally done its job, our customers benefit from the attractive resale value
Customers expect absolute reliability from such an important component as an axle. How do you ensure that the new axle is stable and dependable?
Bernard Krone: We have performed extensive calculations and run comparison tests for the Krone Trailer Axle. Not least, together with the Fraunhofer Institute, as an independent expert, we have carried out comprehensive tests including extensive trials on a test track. The axle was completely convincing. In addition, we rely on our experience: Our expert technicians install around 90,000 axles a year.
Therefore, we know exactly what the requirements for this central component are – and our axle complies with these.
We are so convinced of the quality of our service that our six-year warranty on bearings and axle beams is not mileage-capped.
The Gigant brand continues and the company not only produces axles for Krone. What does this mean for your strategy?
Bernard Krone: gigant is a strong partner with a multifaceted product portfolio and broad expertise. This opens up very interesting perspectives for Krone.
The Krone Trailer Axle will at first only be installed in Krone trailers. In the next step, however, the axle expertise of gigant may play a role in our agricultural engineering.