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C.A.S. of New England
The Roll of OEM Scan Tools
in Aftermarket Repair Shops
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C.A.S. of New England
? Who is C.A.S. ?
Mission Statement
To provide only the best quality scan tools,
information and after sales support to the
automotive aftermarket repair industry
through an organized network of
professional automotive consultants…
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C.A.S. of New England
? Who is C.A.S. ?
• Offices located in New England – 16 years of learning & growing [“Pach Kaahs”]
• Direct Technical Sales Force– Direct coverage of eastern half of USA
• Web presence : www.oemtools.com• Scan Tools are our only focus
– Aftermarket / Specialty / OEM / HD / Laptop’s
• We Offer ‘Turn Key’ VAR Solutions– Hardware - Software -Training - Support …
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C.A.S. of New England
? Who is C.A.S. ?• Our Typical Customer?
– Aftermarket Repair Shop– Fleet Garages– Multi Store Chains– New and Used Car Dealers– Vocational Schools
• Currently support 4,200 shop locations representing an estimated 5,700 ‘active’ scan tools including 700-800 laptop based platforms…
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C.A.S. of New England
Topic Areas
• Scan Tool Linguistics
• What drives I/A towards OEM level tooling
• What drives them away from OEM tooling
• Future trends that one can expect to see
• Items and issues that can shift the future…
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C.A.S. of New England
Definitions of Scan Tools• OEM Scan Tool: The current or past scan tool that is the
exact same item as used in the franchised dealer service department
• OEM Level Scan Tool: Any tool that any aftermarket scan tool company wishes to term as such.
• Aftermarket Scan Tool: Any scan tool built for industry use that is not a recognized OEM scan tool. Coverage to include Dom / Asian / Euro.
• Specialty Scan Tool: A scan tool with a particular car line(s) focus. Euro only, Euro/Asian, VW/Audi only, Volvo only, etc. Typically if it does not attempt to cover the ‘Domestic Big 3’ it is not considered ‘general purpose’…
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C.A.S. of New England
What Drives Shops Towards OEM Tooling?
• Frustrations with Aftermarket Tooling
– What vehicles does it actually cover?
– What sub-systems are in the coverage
– Special Functions missing
– Data Errors
– Cost of updates w/out improvement in operation
• Some still are looking for the ‘Holy Grail’…
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C.A.S. of New England
What Drives Shops Towards OEM Tooling?
• Efficiencies Realized with OEM Tools
– 38% Tech Productivity Increase w/ OEM scanners (?)
– Topology Map of the car ECU’s!
– Who’s reporting? Who has codes?
– Pending Calibration files indicated and available!
– Key Coding / Security System access!
– Maybe 38% isn’t that hard to believe!…
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C.A.S. of New England
What Drives Shops Towards OEM Tooling?
• The Desire to Compete and Stay Current
• Costs associated with sending cars out
– 50/50 Parts - Labor mix
– $80/Hr Labor = $160/Hr lost revenue
• Poor experience at dealers / Closing dealers
• Prior experience with OEM Level Tools
– Past Dealership experience with an OEM Tool…
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C.A.S. of New England
What Drives Shops Away from OEM Tools?
• Initial Cost of Entry as a % of GPM
– NE Shops $300-850K Gross Revenue
• Confusion over what tool to buy
– DRB-III / StarScan / StarMobile / Wi-Tech
• Confusion on compatibility between tools
– One laptop for every tool?
– Who co-exists with who on the PC?
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C.A.S. of New England
What Drives Shops Away from OEM Tools?
• Lack of Comfort in the Windows/PC world
– Who sets it up? – How do I repair it?
• Fear of OEM tools obsolescence
– Ford IDS Noise?! – GM Tech-2 / MDI
• Cost of Maintaining Multiple OEM Tools
– Subscriptions must be paid or function stop
– ‘Time Bombs’…
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C.A.S. of New England
Individual Responses to ‘The OEM Situation’
• Stay the Course (aka: Do nothing)– Stick with Aftermarket Tools only
• Specialize in one/two/three car lines– Honda/Acura – GM/Ford/Chrysler
• Contract OEM Level Services out– ECU Reflash / Security Issues (keys)
• Buy as many tools as business will allow
- Wife will allow -‘Tool Freaks’ found here…
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C.A.S. of New England
Industry Wide Trends that will Shape the Future Shop
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C.A.S. of New England
Industry Wide Trends That Will Shape the Future Shop
• A Single Location Aftermarket Shop ?
– 1st General Purpose Aftermarket Scanner
• 1st line of attack! Quick - Easy - Dependable
– 2nd Specialty Scanner
• This tool is there to fill the holes of 1st scanner
– 3rd OEM Scan Tool or tools
– 4th J-2534 device...
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C.A.S. of New England
Industry Wide Trends That Will Shape the Future Shop
• Meet the ‘Mobile Diagnostic Super Tech’
– Multiple OEM tools on board his mobile truck
– Internet enabled (3G/4G)
– Lots of on-going experience w common problems
– Non-Compete situation with independent shop
– Allows a fix that includes some profit for the shop
– Transparent to the customer/vehicle owner!...
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C.A.S. of New England
Industry Wide Trends That Will Shape the Future Shop
• Increasing # of ‘Pods of Shops’
– Small groups of independent shops
– Combined purchase of needed OEM tooling
– Tools/Laptop shared between shops ‘as-needed’
– Designated central location as ‘home’
– UPS / Parts House / Employees act as ‘mules’
– Tool costs are shared…
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C.A.S. of New England
Industry Wide Trends That Will Shape the Future Shop
• ‘Hub and Spoke’ Arrangements
– Typically used by multi-store chains
– Multiple OEM scanners at central ‘hub’ location
– Other stores ‘Spokes’ send work to ‘Hub’ shop
– Advice is provided by ‘Hub’ on viability of repair
– Leverages chains ‘Top Techs’ skills
– Helps uncover internal issues…
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C.A.S. of New England
Industry Issues That Can Alter The Future
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C.A.S. of New England
Issues That Can Alter the Future• Single Channel Source for OEM Tooling
– Trend is for OEM’s to direct all orders to 1 party
– Lack of competition produces poor results
• DRB-III’s months to obtain any due to ‘parts’
• IDS’ Typically on back order every 60 days
• Subaru Tool – 12 weeks typical wait time
• Delivery deadlines routinely not met
• Providing dual channels for delivery would help…
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C.A.S. of New England
Issues That Can Alter the Future
• Method of providing service to aftermarket
– Web based solution for tools delivery is easy
– Web based solution for tool repair not so easy
• I think it’s broke?
– Send an e-mail and wait for response
– Receive an e-mail response with suggested C of A
– Send an e-mail with results of C of A
– Receive an e-mail with directions of next step
– Repeat above steps - OR - - Tool is shipping out for repair…
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C.A.S. of New England
Issues That Can Alter the Future
• Trend to shut down tools / penalize owners
– Ford’s IDS Subscription Policy
• $500 - $550/yr updates and cal files
• Expire and you eventually lose ability to re-flash (60-90)
• Renew after being out of subscription for months (8 months)
– Penalty fee of $500 for back filling past months
– Plus $500-550 renewal fee
– 180 days later and you have to renew again at $500-550
• This situation drives I/A away from OEM tooling
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C.A.S. of New England
Issues That Can Alter the Future
• Telematics ‘On-Star’ or ‘Non Star’
– Some feel this is a huge threat to Aftermarket
• Scan tool manufactures wonder if it will effect them
• Aftermarket shops fear being out maneuvered
• Access to OEM level Telematics may be a huge
game changer depending on direction of OEM’s
– NASTF / ETI involvement may be critical…
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C.A.S. of New England
Issues That Can Alter the Future
• Cloned OEM hardware and software
– Continued issue for all parties
• OEM’s
• Aftermarket Shops
• Scan Tool Manufacturers
• Actions to limit/stop cloning will effect what the
future of scan tool development looks like…
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C.A.S. of New England
Issues That Can Alter the Future
• J-2534 Type Device Developments
– Will this be the ‘Holy Grail’ ?
• Laptop / iPad / Tablet PC
• J-2534 device
• Common interface for multiple OEM’s
• Daily day pass for any car line
• Cloud Computing at it’s finest…!?!
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C.A.S. of New England
• Technology changes will continue as we have all come to accept. The future in some cases is fairly clear, but in other areas still fuzzy and uncertain.
• What is certain is that the wants, needs and desires of the aftermarket repair shop owner have not really changed at all over the years.
• There is great opportunity for all who listen and respond to those customers wishes...!
SUMMARY
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C.A.S. of New England
The Roll of OEM Scan Tools
in Aftermarket Repair Shops
? Questions / Comments ?____________________________________
Contact [email protected]