mema speaks out on trans-pacific partnership • … · 3/1/2016  · ’s new cadillac ct6 sedan...

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Jobber News MAGAZINE MARCH 2016 Serving the Automotive Aftermarket Since 1931 MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • VEHICLE RELIABILITY INFLUENCING SHOPPING DECISIONS AutoServiceWorld.com Canada Post Canadian Publications Mail Sales Agreement No. 40063170 HOW TO CRANK UP STEERING, CHASSIS, AND DRIVELINE SALES BY EXCEEDING CUSTOMER EXPECTATIONS SALES STRATEGIES

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Page 1: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

Jobber NewsMA G AZI NE M A R C H 2 0 1 6

Serving the Automotive Aftermarket Since 1931

MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • VEHICLE RELIABILITY INFLUENCING SHOPPING DECISIONS

AutoServiceWorld.com

Canada Post Canadian Publications Mail Sales Agreement No. 40063170

HOW TO CRANK UP STEERING, CHASSIS, AND

DRIVELINE SALES BY EXCEEDING

CUSTOMER EXPECTATIONS

SALES STRATEGIES

Page 2: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

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Page 3: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 3

COVER STORY

Successful Sales Strategies:

How to Crank Up Steering, Chassis, and Driveline Sales by Exceeding Customer ExpectationsWhen it comes to steering, chassis, and driveline parts, components change is a constant factor as original equipment manufacturers continue to move towards lighter, more fuel-efficient vehicles. This steady flow of design change not only means more SKUs – it also offers a constant flow of new opportunities for parts sales.

12

Q&A

Frontline Perspectives on the Aftermarket The last two years have seen tremendous changes in the Canadian economy, and those changes are challenging jobbers across the country. Jobber News spoke with several jobbers to get their perspectives on what is happening in the economy, and how they are coping.

28

Jobber Profile

C&R Auto Supply Celebrates 40 YearsLooking back on forty years in the automotive aftermarket business, founder/owner Ron Clarke attributes the success of C&R Auto Supply to customer service.

contents | march 2016 » vol. 84 no. 3

regular features

in this issue

departments

4 UpFront The changing face of parts retailing

27 New Products

30 Publisher’s Comment

29 Marketplace Advertisers Index

6

OVER THE COUNTER

Vehicle Reliability Influencing Purchase Decisions; Federal-Mogul Motorparts Announces Partnership with M1 Concourse; KYB Americas Corp. Announces Key Hires and Promotions; Total Establishes Its Leadership In The Caribbean.

15

TECHNOLOGY

3D Printing Expected to Generate $4.3 Billion by 2025Arizona-based Local Motors stunned the automotive industry by live-printing the world’s first 3D-printed car at SEMA last year.The road-worthy LM3D Swim is expected to be released sometime in 2016.

16

MARKET TRACKER

TelematicsTechnologies driving the next-generation supply chain.

26

MONEY & MANAGEMENT Why the loonie could swan dive in 2016.

| Twitter: Andrew Ross (@JobberNews) | www.facebook.com/pages/AutoServiceWorldcom/244916465611841

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Jobber NewsServing the Automotive Aftermarket Since 1931

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Page 4: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

4 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

THE CHANGING FACE OF PARTS RETAILING

upfront | with steve pawlett, editor » [email protected]

Association ofBusiness Publishers205 East 42nd StreetNew York, NY 10017

Jobber NewsFOUNDED 1931

ISSN 0021-7050Online 1923-3477

“We acknowledge the financial support of the Government

of Canada through the Canada Periodical Fund of the

Department of Canadian Heritage”.

Regional Office80 Valleybrook Dr., Toronto ON M3B 2S9 Phone: 416-442-5600 Fax: 416-510-5169

Corporate OfficesHead Office451 Attwell Dr., Toronto ON M9W 5C4 Phone: 416-614-2200 Fax: 416-614-8861

Vice President | Joe Glionna

President | Jim Glionna

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent.

Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170

“Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9

Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

Editor | Steve Pawlett (416) 510-6839 E-Mail: [email protected]

Contributing Editor | Martha Uniacke Breen E-Mail: [email protected]

Contributing Writers | Andrew Brooks, Mark Borkowski, Tom Venetis

Art Director | Barbara Burrows

Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: [email protected]

Publisher & National Sales | Andrew Ross (416) 510-6763 E-Mail: [email protected]

Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: [email protected]

Advertising Production Manager, Print/Digital Kimberly Collins (416) 510-6779 E-Mail: [email protected]

Print Production Manager | Phyllis Wright (416) 510-6786

Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: [email protected]

Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.GM’s new Cadillac CT6 sedan features a twin-turbo

engine, three dozen stereo speakers, and a rearview mirror able to project live video of objects behind the car – but no compact disc player. GM isn’t the only OEM leaving this old standby out. Several new cars hitting dealerships this year are shedding familiar features, in order to keep up with fast-moving technology and save weight.

Well-known components like ignition keys and analogue gauges are going the way of cigarette lighters and hand-cranked windows. This fairly rapid transformation has traditional auto parts makers scrambling to adapt as new players such as Google, Sony, and other tech companies attempt to redefine the automobile.

After reviewing an image of Google’s self-driving car, steering company Jekt Corporation, which is partially owned by Toyota, decided to rethink its business. The Nagoya, Japan-based company is currently developing a “steer-by-wire” system in which the steering wheel, axles, and tires use electronic signals to communicate rather than physical connections.

Autonomy isn’t the only new technological sea change. As General Motors did earlier, Fiat, Chrysler, and Honda no longer offer CD players as standard equipment. With smartphones able to store or stream music, continuing to offering a player for CDs no one uses is now considered a waste of space.

It’s now apparent the increased transmission of data between aftermarket retailer and consumer, as well as consumer and vehicle (see our Telematics Report in Market Tracker on page 16), will emerge as the new standard for parts retailing in the coming years. Expect to see new types of retail businesses emerge to provide services to consumers using the data they are generating online.

Progressive jobbers will soon reach consumers inside their vehicles, using apps that can tell them what’s wrong with their vehicle and connect them to a parts and service provider. You will see device manufacturers, app developers, and even telecom providers emerge as new industry stakeholders in the digital aftermarket, as it continues to evolve into a digital marketplace.

In the not-too-distant future, for those old-school customers who prefer perusing the aisles of an actual store, expect sales enhancements that include self-serve kiosks and “virtual assistants” rather than human counterpeople to aid in picking out the correct battery or wiper blade.

Technologies such as near-field communication tags will transfer information from the product sitting on the retail shelf directly to the shopper’s phone, allowing them to decide if they want to buy it or even to pay for it without ever communicating with a store employee.

Tapping into an already buzzing social media realm shows no signs of slowing down for auto retailers and repair shops looking to leverage digital gathering places. Facebook, for example, has become a very strong platform for reaching targeted customers in a virtual store setting. Buyer and seller can chat during the transaction and the jobber can issue rewards to people who “recommend” them to their friends online.

I already have my vinyl collection in storage. Guess it’s time to make room for my CD collection. JN

Progressive jobbers

will soon reach consumers inside their

vehicles, using apps that can

tell them what’s wrong with their

vehicle and connect them to a parts and

service provider.

Page 5: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

®

www.autopartsdepot.ca

Precision BrandPrecision Engineering

Precision Performance

ProMax High Carbon Cross Drilled Rotorsare manufactured using European HighCarbon content standards which increasesdensity and improves the thermal stabilityof the brake rotor.

CarbonMax Rotors are designed forhigh end European vehicles (Audi, BMW,Mercdes Benz, Porsche, Range Rover,Volkswagen) that are originally equippedwith High Carbon brake rotors.

ProMax High Carbon Cross DrilledRotors allow for increased heat transfer,offers quieter brake operation and lessvibration. Coated hat and fins for rustprevention and for a cooler runningbrake rotor.

High CarbonCross Drilled Rotors

Page 6: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

6 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

over the counter |

VEHICLE RELIABILITY INFLUENCING SHOPPING DECISIONS

For the first time in nearly a decade, concerns about reliability have increased as a reason for shoppers to avoid certain models, according to the J.D. Power 2016 U.S. Auto Avoider Study.

The study, now in its 13th year, examines the reasons consumers purchase, reject, and avoid models in the marketplace when shopping for a new vehicle. The 2016 study measures shopping behaviour among new vehicle buyers who purchased during 2015.

Vehicle reliability has become a top consideration in deciding which vehicle to buy. This year, 55% of new-vehicle buyers cite reliability as a leading purchase reason. Notably, as recently as 2013, vehicle reliability was mentioned by just 48% of new-vehicle buyers as a reason for purchasing. Reliability has also become a greater reason shoppers avoid or do not consider other models (17% in 2016 vs. 14% last year).

“Though vehicle reliability and durability have improved significantly over the years, they remain a vital consideration for consumers,” says Dave Sargent, vice-president, quality practice, J.D. Power. “With so many auto recalls in the news and challenges with the introduction of new technology, consumers are even more attuned to the expected reliability of new vehicles. This impacts which models consumers avoid and which ones they ultimately purchase. Bad news can tarnish an automaker’s reputation in an instant, yet can take years to build back up.

“Automakers need to convince consumers of the true reliability of their vehicles so it is not a reason to avoid selecting a particular model.”

According to Sargent, “Concerns with vehicle reliability can also have a ripple effect on other aspects of vehicle consideration and ownership.” Study findings show that buyers who avoid models for reliability reasons tend to also have concerns

regarding resale value, cost of maintenance, and even safety.

Following are some of the key findings of the 2016 study:

Top Reasons Shoppers Buy/Avoid a Vehicle: Exterior styling

is the top reason shoppers buy a particular model (59%). It is also the top reason to avoid a particular vehicle (31%), followed by the vehicle costs too much, and interior styling (18% each).

Perception of Reliability Weighs Heavily on Purchase Decision: Despite industry-wide efforts to improve reliability, the fact that reliability emerges as a key driver of purchase and avoidance underscores the importance of customer sentiment and perception in an environment of highly publicized recalls.

Car Buyers Doing Less Window Shopping: Since 2012, new-vehicle buyers are considering fewer models and shopping fewer dealers. On average, buyers physically shop only three models, one of which they buy.

Domestic Brands vs. European and Asian Brands: There remains a significant disconnect between perception and reality regarding the reliability of domestic brands compared with European and Asian brands. Avoidance of domestic models due to reliability concerns (24%) is nearly twice that of European (13%) and Asian (12%) models. In reality, the actual reliability of most domestic models is competitive with that of their import competitors.

The 2016 U.S. Auto Avoider Study is based on responses from nearly 26,500 owners who registered a new vehicle in April and May 2015. The study was fielded between July and September 2015.

Automakers need to convince consumers of the

true reliability of their vehicles

so it is not a reason to avoid

selecting a particular

model.

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oto

: Y

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Applications are now being accepted at www.sema.org/speakers for industry leaders to present seminars at the 2016 SEMA Show in Las Vegas, Nev. An emphasis will be on dynamic speakers with proven experience in the areas of “building a business” and “social media.”The emphasis for the education program at the 2016 SEMA Show taking place Nov. 1-4, 2016, is on the following topics:

• Build your Business through Personal Branding

• Help with Yelp

• Scaling Business Growth

• Hiring in the Social Era

• Best Practices for Retaining Employees

• Vehicle Building and Fabrication

• Generational Workforces

• Customer-Facing Technology

• Will Crowd-Funding Go Mainstream?

• The Next Big Thing: Pinterest

• Mobile Technology for a Mobile Workforce

All speakers must focus on industry issues and not a specific company position or agenda. Applications

for speaker submissions are available at www.sema.org/

speakers until March 4, 2016. Speaker entries will be answered by no later than May 20, 2016. For more details, contact SEMA Education Director Zane Clark at [email protected], 909-978-6743.

SEMA SHOW ISSUES OPEN CALL FOR SPEAKERS

Page 7: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

IN THIS BUSINESS,YOU’VE GOT TO

EARN YOUR STRIPES

It takes more than fancy new logos to become the world’s most trusted supplier of OE and aftermarket friction. It takes an unwavering commitment to engineering that stretches back more than 100 years and drives us into the future. From materials to manufacturing to your shop floor, no matter which Wagner® products you recommend to your customers, you can always do it with total confidence.

Mike RoweHuge Fan of Stopping

Jonathan DwyerASE-Certified Technician

Wayne, New Jersey

See the science of better stopping take shape at wagnerbrake.com

©2016 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.

Page 8: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

8 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

over the counter |

FEDERAL-MOGUL TERMINATES SPIN-OFF Federal-Mogul Holdings Corporation has announced it has terminated its previously announced spin-off of its Motorparts division. The company will continue to operate in two separate, independent segments with separate CEOs, who will each report directly to the board of directors. The separate divisions more effectively serve their unique markets and allow each operating segment to more quickly react to its respective market conditions.

Federal-Mogul operates two independent business divisions, each with a chief executive officer reporting to Federal-Mogul’s Board of Directors.

Federal-Mogul Power-train designs and manufactures original equipment powertrain components and systems protection products for auto-motive, heavy-duty, industrial, and trans-port applications.

Federal-Mogul Motorparts and M1 Concourse, Michigan’s highly anticipated automotive enthusiast destination, has announced they have forged a partnership that has resulted in Champion becoming the official sponsor of a new, state-of-the-art, 1.5 mile automotive performance track in Pontiac, Mich.

M1 Concourse is a $40 million-plus development being built on an 87-acre former General Motors plant site in Pontiac, Mich. The development will include a private community of more than 250 private garages, a 1.5-mile performance track and a public experiential restaurant and retail destination. The new performance track will be utilized for a variety of purposes. Most notably, it will be available to the automotive industry for testing, training and marketing events. M1 Concourse will also offer a multitude of events open to the public, including driving schools, open track days, autocross and more. Owners of the Private Garages at M1 Concourse will have track access through the M1 Motorsports Club.

“We are thrilled to welcome Federal-Mogul Motorparts as a partner in our efforts to bring excitement to the automotive enthusiast community here in southeast Michigan,” said Brad Oleshansky, founder and CEO, M1 Concourse. “Racers and car fanatics the world over know Champion products very well, and the brand is synonymous with high performance and winning. We look forward to a long, successful relationship with Federal-Mogul Motorparts.”

For more information about M1 Concourse, please visit www.m1concourse.com.

EXPERT TO EXPERT

Everything you need when working with FAG Wheel Bearings and Hub Units.

Whether it’s product updates, technical training, or installation guides – with just a few clicks automotive professionals can quickly and conveniently find everything that they need to do the job right the first time. Every time.

Further information:www.repxpert.ca

ASSURED PERFORMANCE LAUNCHES COMPLIANCE APP

technicians to properly document the process followed for every repair. The application also allows management to review and approve the technician’s documentation and see alerts when no documentation is provided. All of the compliance documentation is linked to the original estimate and maintained electronically online in the shop’s dataSAFE as a permanent record.

The new OEM Repair Procedure Compliance App enables shops to ensure quality is built into the repair, through an efficient and cost-effective process providing the foundation for an internal quality assurance program. Also, documenting every repair with visual proof of compliance provides critical documentation to limit liability exposure.

Assured Performance Network is launching an application program to document the use of OEM repair procedures for its network of Certified shops. The Assured Performance OEM Repair Procedure Compliance App automatically transforms the shop’s estimate repair line information onto an interactive checklist and delivers it onto the technician’s hands via a smartphone, tablet, or desktop. In just seconds, the technician can use the simple touch screen functionality and commands to take photos and provide other documentation as they follow OEM repair procedures in the proper repair of a vehicle.

Using the program only takes seconds for the

FEDERAL-MOGUL MOTORPARTS ANNOUNCES PARTNERSHIP WITH M1 CONCOURSE

Page 9: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

Smart Automotive Part Distributors know the right choice when they see it.

And that’s why member distributors have been partnering with Bestbuy Distributors for over 60 years.

HOME OF THE TRULY INDEPENDENT SHAREHOLDER

facebook.com/bestbuydistributorswww.bestbuydistributors.ca @BestbuyDist

Open the door to new business opportunities.

www.bestbuydistributors.ca

Page 10: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

10 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

over the counter |

Wells Vehicle Electronics Adds 307 Parts Wells Vehicle Electronics has added 307 new parts to its portfolio of original

equipment-quality replacement components for domestic and foreign

nameplate applications. The January new product launch covers nearly 50

million registered vehicles, and each component is engineered to match or exceed OE fit, form, and

function.

The 307 new part numbers include 248 switches, 27 emissions-related parts, 22 sensors, six control

modules, and four other vehicle electronics parts.

Technicians also have free access to the popular Wells technical library that includes its signature

series of diagnostic case study videos, an extensive library of vehicle diagnostic resources, and

the Wells “Virtual Tech” interactive automotive troubleshooting assistant. Users are welcome to a

free subscription service that includes notifications when free, live, and timely diagnostic webcasts

launch. The new Wells part numbers are now included in the comprehensive, online electronic

catalogue located at www.WellsVE.com.

The International Motor Sports Association (IMSA) and Yokohama Tire Corporation have expanded their partnership to include Yokohama, serving as the official tire provider and presenting sponsor of the Ultra 94 Porsche GT3 Cup Challenge Canada by Yokohama, starting with the 2016 season.

Competitors in the Porsche GT3 Cup Challenge series in the United States and Canada will compete on Yokohama tires, as Yokohama has served as the marketing and technical partner for the Porsche GT3 Cup Challenge USA by Yokohama since 2009. Both IMSA-sanctioned single-make series are among Porsche’s 20 Cup Challenge championships in the world.

“Yokohama’s strong support has been a driving factor in the continued growth of the Porsche GT3 Cup Challenge USA by Yokohama,” says Randy Hembrey, IMSA senior series manager, development and single-make series. “We’re pleased to extend this beneficial partnership into the Canadian series and are excited about its future as we work together with Porsche. With the U.S.A. and Canadian series now running on Yokohama tires, there are greater opportunities for teams and drivers to compete in both championships.”

To further the growth of the Canadian series, Yokohama is committed to activation both onsite and through media

Follow us on Twitter. Get AutoServiceWorld.com news and more by following JobberNews on Twitter.

IMSA, YOKOHAMA EXTEND PARTNERSHIP INTO PORSCHE GT3 CUP

OE parts, direct from the OEM.

VDO - A Trademark of the Continental Corporation

Our new VDO Engine Management and Fuel Supply Program offers ‘OEM-only’ parts, direct from the manufacturer – that’s us!

The line includes Electronic Throttle Valves, Air Actuators, Water Pumps, MAF/MAP Sensors, Flex Fuel Sensors, Fuel Injectors and Fuel Modules, with coverage for European, domestic and Asian vehicles.

For more information, call: 800-564-5066 or email: [email protected]

www.vdo.com/usa

channels, including: Series contingency awards, including the

Yokohama Hard Charger Award Development of a new driver hospitality

area at selected events Media activation, including a print

advertising campaign“We’re thrilled to bolster our presence

within IMSA’s lineup of world-class series and to be associated with a top-level brand like Porsche,” says Duane Sampson, motorsport manager at Yokohama Tire Corporation. “We will bring the same level of support and service to competitors in Canada that we have to the U.S.A. series since 2009, as we relish the increased feedback about the performance and durability of our tires. We’re also excited about the prospect of teams and drivers being able to more easily compete in both series without major setup changes.”

Page 11: MEMA SPEAKS OUT ON TRANS-PACIFIC PARTNERSHIP • … · 3/1/2016  · ’s new Cadillac CT6 sedan features a twin-turbo engine, three dozen stereo speakers, and a rearview mirror

JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 11

Federal-Mogul Holdings Corporation has announced that Jerome Rouquet has been appointed senior vice-president and chief financial officer of Federal-Mogul Holdings Corporation. Rouquet will report directly to Dan Ninivaggi, Federal-Mogul co-CEO, and CEO Federal- Mogul Motorparts, and Rainer Jueckstock, Federal-Mogul co-CEO, and CEO Federal-Mogul Powertrain. In addition to assuming the new corporate CFO responsibilities, Rouquet will continue in his role as senior vice-president, finance of the Motorparts division.

Power Stop LLC has announced Joe Stephan has been appointed to the newly created position of chief operating officer. Stephan brings more than 25 years of experience to his new role, having most recently served as vice-president, business development, at Federal-Mogul. Previously, he held various positions of increasing responsibility including director, global chassis products; director, key account sales; and global director, product management. Prior to joining F-M in 1999, Stephan held sales and marketing positions with Tenneco for the Monroe and Walker brands.

KYB Americas Corp. has announced the hiring of two key sales positions and two other important company promotions. The announcement was made by Mike Fiorito from KYB’s Aftermarket headquarters in Greenwood, Indiana.

Aaron Shaffer was appointed as business development manager covering key channel partners in the North America market. Shaffer is a Northwood graduate with prior experience in the automotive aftermarket in various positions.

Aaron’s knowledge of the marketplace will benefit him and his new accounts well.

Randy Bowlen is a new territory sales manager from the Indianapolis area. Bowlen will cover portions of the central and southern U.S.A. servicing key KYB channel partners. Prior to KYB, Bowlen was a member of the U.S. Marine Corps from 2010 to 2015. Bowlen also previously worked in the automotive aftermarket for an independent service provider. His experiences will serve him well in his new position.

Ricky Torres was recently promoted to customer support manager at the KYB Headquarters in Greenwood, Ind. Torres has been a key part of KYB’s expansion in Indiana since his hire in 2013. He will now oversee all activity of KYB’s customer support department. His high level of energy and positive attitude will improve KYB’s customer support team.

Ryan Dickerman was recently appointed to the position of north regional manager. Formerly a KYB territory sales and customer support manager, Dickerman joined KYB in 2006. A graduate of Post University, Dickerman also recently completed his MBA from Southern New Hampshire University in 2015. He will coordinate all KYB territory managers and channel partner activities in the North Region of the U.S.

“We are very pleased to announce these key hires and promotion appointments,” KYB vice-president Mike Fiorito comments. “We are especially pleased to have the ability to promote from within, rehire a key employee, and add another veteran from the U.S. Armed Forces to our team.”

appointments |

This ad space generously donated by the media partners.

Since 1954, Muscular Dystrophy Canada has been committed to improving the quality of life, mainly through donations, for the tens of thousands of Canadians with neuromuscular disorders and taking the lead in research for the discovery of therapies and cures. Shad’s R&R has continually supported these efforts since 1973 by donating over $4.5 million dollars to Muscular Dystrophy Canada. Now entering our 43nd year of support, the automotive aftermarket continues to fulfill founder Fred Shaddick’s original mission of FOR THE KIDS.

Mark your calendars for the 43nd Annual Shad’s R&R Golf Tournament on Thursday, June 9, with all proceeds to Muscular Dystrophy Canada.

Luc Champagne [email protected] Fazackerley [email protected] Gushie [email protected] Hay [email protected]

Shaun Keogh [email protected] Osika [email protected] Stone [email protected] Young [email protected]

If you would like to become a sponsor or make a donation to SHAD’s R&R For the Kids, please contact one of our board members directly.

Shad’s Board of Directors

Chairman Brad Shaddick [email protected]

Station Creek Golf & Country Club - Stouffville, Ontario

Your continued support (more than $4.5 million in donations) has had a profound impact on MDC. In honour of our efforts, and yours, MDC has created the Annual Fred Shaddick Community Service Award recognizing outstanding contribution to the community.

DORMAN PRODUCTS ANNOUNCES NEW WEBSITE ENHANCEMENTS

It is now easier to look up parts using Dorman’s Web-based search tools. The www.DormanProducts.com, www.DormanProducts.mx, and www.DormanHDSolutions.com websites now offer “recently viewed” functions, in addition to a search option for VMRS codes (Vehicle Maintenance Reporting Standards). These new Web features, largely based on customer input, are designed to add customization and flexibility to Dorman’s Web properties.

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12 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

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The last two years have seen tremendous changes in the

Canadian economy, and those changes are challenging jobbers across the country. Jobber News decided to talk with several jobbers in Canada to get their perspectives on what is happening in the economy and how they are coping.

One of the issues facing jobbers right now is an economy that is weathering a storm created by the rapidly declining Canadian dollar – which is mainly caused by a collapse in global oil prices. The Canadian dollar’s earlier strength was predominantly based on oil being over US$100 per barrel. To put things in perspective: around June of 2014, a barrel of Brent crude was going for US$110 on the open market, and the Canadian dollar was worth just a tad over 92 (U.S.) cents during the same period. Fast-forward to today, and that same barrel of oil is just a little over US$33, and the Canadian dollar is sitting just shy of 72 cents.

This has upset the Canadian economy, with slowing growth in some sectors and in provinces such as Alberta, a precipitous decline in growth and a rapid spike in unemployment.

Wayne Maunula, owner of Auto Parts Central in Thunder

Q&A |

Bay, Ontario, says that along with the challenges of a rapidly changing economic landscape, a lot of major aftermarket parts makers are starting to change the landscape of how parts are going to get into the aftermarket, potentially upsetting the status quo. “If you look at Carl Icahn from Federal-Mogul, he just bought Pep Boys and he recently acquired Uni-Select in the United States, and he is now trying to change the model of the aftermarket. He is a manufacturer who is now moving to having jobber and retail stores, and that is going to start to change how products are offered.”

Maunula’s Auto Parts Central has two locations, with the head office in Thunder Bay and the other in Winnipeg, along with nine operations throughout Ontario and Manitoba. Maunula adds that changes to the economy have meant that he has had to make changes to his business in order to remain competitive. One such change is investing in new software systems that allow his operations to keep a better track of inventory, to better manage the rapid proliferation of parts and to move parts with greater accuracy and speed to customers.

FRONTLINE PERSPECTIVES ON THE AFTERMARKET

“I remember, twenty years

ago, being told that if I

did not have an electronic catalogue, I

would not be in business

in the future. I recently went to a

meeting and was told that

if I did not have a driver

delivery system,

I could not be competitive.”

– WAYNE MAUNULA, OWNER, AUTO PARTS

CENTRAL, THUNDER BAY, ONTARIO

JOBBERS FOCUSING ON CUSTOMER SERVICE, NEW TECHNOLOGIES TO STAY COMPETITIVE

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JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 13

“I remember, twenty years ago, being told that if I did not have an electronic catalogue, I would not be in business in the future,” Maunula says. “I recently went to a meeting and I was told that if I did not have a driver delivery system I could not be competitive.”

Maunula says that he just rolled out such a driver delivery system, which allows Auto Parts Central to use GPS tracking to see where the delivery fleet is at any moment. In addition, that GPS information is now linked to parts invoices that are then tagged to specific delivery vehicles, so that his staff can see where part orders are in the delivery cycle and how far away parts are from customers. The system updates automatically when the part is delivered.

Maunula says that this system has allowed his business to improve efficiencies and delivery times. “If a customer comes to us and says that our deliveries are typically taking an hour or more, we can go through the whole order process and delivery and find out exactly where the problem is happening. We can see where improvements need to be made and we can then see

if those improvements are making an impact.”“We are being forced into using much more in-depth and

comprehensive computer systems now because the margins [on parts] are getting tighter,” Maunula continues. “Everybody now has online catalogues, so our customers can now go online and call up two or three competitors and they can choose the part that is the least expensive. So now we have to do more than just offer a competitive price to stay competitive, when you now have a landscape where people can make decisions even before they call you.”

Dale Devlin, owner of Halton Automotive in Milton, Ontario, says that economic uncertainty is now a normal part of today’s competitive landscape. He says that for him, right now it is staffing that is presenting the biggest challenge.

“[The issue] is primarily around finding the right people and having those people wanting to stay with you and grow with the industry,” Devlin says. “We have been very lucky in being able to find and retain very good people, and we have people here who have been with us for a very long time. If there is a challenge right now for us, it is that some of our staff are getting close to retirement age, and we are looking for good people to replace them when they make the decision to retire. What I have found is that if you have someone who is good, you will do what you can to keep them.”

Maunula agrees with Devlin that staffing remains an issue that poses challenges to jobbers. “It is easy to find good people, but it is hard to find good people who understand the automotive industry. Sometimes, we have taken people on and trained them, only to lose them when they were offered something better. With our stores in Saskatchewan, with the downturn in the oil and gas industry, it has taken the pressure off of our staff, as there are fewer opportunities to make $30 an hour as there were before. So we are able to retain staff a bit better now.”

Like Maunula, Devlin has had to remain proactive to stay on top of the growing proliferation of parts. One thing he has noticed is that not only are there more part numbers in the last 15 years to keep on top of, “but there has been a change in box sizes. Ball joints are now being replaced by complete control arms. So where you had a small box, you now have a large box. So you have to ask yourself how you can expand the walls of your building to accommodate those larger boxes. And then there are the new parts categories you have to carry. Fifteen years ago, you never sold a window regulator. Now you have to stock 200 of them, just to have decent coverage and to be competitive.”

Wayne Hoskins of Vancouver-based Pacific Parts says that with margins

“If there is a challenge right now for us, it is that some of our staff is getting close to retirement age, and we are looking for good people to replace them when they make the decision to retire.”– DALE DEVLIN, OWNER, HALTON AUTOMOTIVE, MILTON, ONTARIO

BY TOM VENETIS

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14 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

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on parts becoming tighter all the time and with customers now using the Internet to price-shop, the focus now has to be on improving customer service to stay competitive.

“The main way to remain profitable today is being available to the customer,” Hoskins says. “The independent [jobber’s] advantage has always been the same: the ability to make parts choices that have an immediate impact on the customer.”

Hoskins says that while parts proliferation can seem to some to bring a competitive disadvantage, he says there’s an upside to that proliferation. But that can only happen if jobbers work to get constant feedback from customers about what is happening with vehicles and the kinds of service work being done. “We have an advantage of being able to quickly see service trends happening

in our area, from the kinds of vehicles being worked on and

the kinds of work being done. So we can establish an inventory based on what we see and hear from our customers whom we speak to every day.”

“My counterpeople will tell me what they have heard and what we should be carrying,” Hoskins continues. “That can be a specific SKU, line, or even a variation on a single product. We are not driven by computer models or national trends, but from the input we get from our customers. The promise we make to our customers is to give them the best service we possibly can all the time. Vancouver property values and property taxes are so high, our customers cannot afford to have a vehicle sitting on a hoist for too long. They have got to get that vehicle in and out in a timely fashion.”

Where all three jobbers see things progressing in the future is the increasing use of smart technologies and apps by service writers and technicians to order and communicate with jobbers. Technology is changing the relationship service operations and their staff have with vehicle owners, and that change is being reflected in their relationships with jobbers. Maunula of Auto Parts Central says that smart technologies and apps are soon going to become the primary means of communications and parts ordering by service operations, and jobbers need to start making those technologies part of the business plans moving forward. JN

Q&A |

“My counterpeople

will tell me what they

have heard and what we

should be carrying. We

are not driven by computer

models or national

trends, but from the input we

get from our customers.”

– WAYNE HOSKINS, PACIFIC PARTS, VANCOUVER, B.C.

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JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 15

3D PRINTING EXPECTED TO GENERATE $4.3 BILLION BY 2025

This could be the year of the 3D-printed car.

Arizona-based Local Motors stunned the automotive industry by live-

printing the world’s first 3D-printed car at SEMA last year. The company is now moving into intensive testing and development phases that will culminate with a road-ready, fully homologated series of cars built using direct digital manufacturing (DDM), of which 3D printing is a part. The road-worthy LM3D Swim is expected to be released some time in 2016.

The future of 3D printing in the automotive aftermarket is quite promising, according to a recent report by Frost & Sullivan. The report, Executive Analysis of 3D Printing in the Automotive Industry, predicts 3D printing will generate $4.3 billion in the auto industry by 2025.

“Innovative materials such as carbon fibre, metal powders, and titanium are expected to radically improve the mechanical, chemical, and thermal characteristics of printed products,” states Frost & Sullivan research analyst Viroop Narla.

While the technology is still in its infancy in many respects, Narla says he expects design improvements will follow in quick succession and will enable 3D printers to produce the superior tolerances and surface finish details necessary for the automobile industry. That impact could be enormous in the aftermarket. However, this impact will depend on whether or not 3D printing will decrease in price and reach the mainstream, the report says.

3D printing could pay big dividends in the collision repair industry, as this sector has a constant demand for numerous small parts, often for cars that are no longer manufactured. Many repairs are held up by the smallest and seemingly most insignificant parts, and the ability to 3D-print those parts onsite would

work wonders for using actual OEM specification rivets, screws, clips, and retainers, though it will be necessary for the 3D printer to manufacture satisfactory material properties.

The report says 3D printing could significantly cut down repair times, and in turn shorten the number of rental days, cycle times, and employee downtime, making the whole repair process far more streamlined. What’s more, the technology could further reduce repair costs by 3D-printing replacement parts onsite. The likelihood of subsequent repairs will also be lower, because all parts will be made to fit – OEM-standard fitting and specifications can be guaranteed.

Technology | 3D Printing BY STEVE PAWLETT

Local Motors made a huge splash in the

Industry when it unveiled the 3D-printed

LM3D Swim at SEMA.

All things considered, the day may not be that far off when a bodyshop will be able to print all the parts needed for a repair right onsite. Consider what that will do for efficiency and cost when shipping is eliminated, the need to carry inventory is unnecessary, and the parts can be printed for use when the vehicle is ready for the parts. While it will take some time before 3D-printed cars become a common sight, the potential impact on the aftermarket sector definitely makes that $4.3 billion sound realistic. JN

Driving should bean adventure.Stopping shouldn’t.

WagnerBrake.com©2016 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.s. All rights reserved.

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16 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

market tracker | telematics

16 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

WHY JOBBERS NEED TO EMBRACE TELEMATICS

To understand the kind of disruption and opportunity telematics is bringing

to the aftermarket, one only needs to look at how the Internet fundamentally changed today’s vehicle maintenance marketplace.

Less than two decades ago, the aftermarket’s relationship with vehicle owners and jobbers was based on loyalty. Vehicle owners stuck with a trusted repair shop for the life of the vehicle, or over several vehicles. It would take a lot to make one switch to another facility. The same dynamic was in place with jobbers. Jobbers and independents formed a long-term bond based on the knowledge the front-line staff demonstrated, and the customer service that same jobber provided to the shop owner and his technicians. Back then, it took a lot for an independent to switch jobbers.

The Internet has changed all that. Loyalty is now in short supply. Vehicle owners can, from virtually any hand-

held device, research independent shops and make a quick decision on where to take their vehicle for service. They are no longer loyal to a single independent shop. They can, and will, switch based on a quick Google search of online reviews. The same goes for service writers. A service writer can quickly search three or four jobbers for parts and make the buying decision on price, speed of service, or if online ordering is offered. No one jobber is favoured over another.

Telematics is expected to have that same level of disruption on the aftermarket. The difference is that

telematics has the possibly to make loyalty a part of the equation once again – but only if jobbers and independents work together to make telematics a central part of their business model.

In a nutshell, telematics is the connecting of computers over a wireless network in order to improve business functions. For the aftermarket, this means having vehicles connect wirelessly over a network and exchange information about a vehicle’s operation in order to better service and maintain that vehicle. The number of sensors on vehicles today has increased dramatically, and more vehicles are now equipped with factory-installed telematics systems. ABI Research estimates that more than 73 million vehicles will have some kind of commercial telematics system installed by 2020. Toyota is a good example: it has announced that it will begin to install a data communication module (DCM) in a wide range of its 2017 vehicles for the U.S., and the DCM will be able to transfer and share vehicle data over a cellular network.

OBD-II telematics-based solutions – systems that will plug directly into a vehicle’s OBD-II port to collect information on vehicles without built-in telematics systems – are also expected to grow rapidly by 2020. Frost & Sullivan sees the OBD-II-based telematics market growing to US$1 billion by 2020.

The growing standardization of vehicle telematics is also spurring the development of third-party software that connects vehicle information to independent repair shops and jobbers. The goal is to create a seamless communication network, where the service operation has direct access to critical vehicle diagnostic information in real time, and the jobber also has a direct connection to the independent service

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that is happening with the car right now, either from the OE telematics side of the world or from third-party telematics providers, and look to see how they can make that part of their business model.”– MALCOLM SISSMORE, COUNTRY DIRECTOR, CANADA, AND NORTH AMERICAN SALES DIRECTOR, TRAINING, TELEMATICS, AND TOOLS, DELPHI

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JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 17

BY TOM VENETIS

JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 17

operation so that it can quickly deliver the needed parts and accessories to service the vehicle.

Derek Kaufman, managing partner at Schwartz Advisors, LLC, and an expert on the impact telematics is having on the aftermarket, says while telematics technologies have been rapidly developing, “It has been a technology without a business model.”

“Yes, I can get data off my vehicle…but not many applications tie in the parts community to the service providers,” Kaufman says. “The complete package of telematics is when vehicle owners are supported by their service provider of choice and their service providers are supported by their jobber of choice.”

Work currently is being done to bridge that gap, mainly by third-party developers who are working closely with the aftermarket. Solutions are starting to appear that tie vehicle telematics to automotive service operations and jobbers.

The business case is compelling, according to Aaron Lowe, senior vice-president, regulatory and government affairs, at the Automotive Aftermarket Industry Association. “If you want to look at things from a global perspective, there are a lot of efficiencies that can be built into the supply chain through telematics,” he says. “For example, if you know – before the vehicle comes into the shop – what issues it is having, the service operation can take that information and automatically order the needed components, before the vehicle is even at the shop.”

“If you think of this from an efficiency perspective, it is advantageous to the jobber to get those parts to the customer quickly, and to know not only that they have the right parts in stock, but that the right parts are going to the right place, quickly.”

Lowe says that while a lot of the talk around telematics has focused on the advantages to independent service operations, there are also plenty of advantages for jobbers. He says accurate, real-time information about vehicle types and health can be used to get a better

handle on inventories, and to help jobbers make sure the right parts are in stock and that stock matches the kinds of vehicle makes and models that are being serviced by their customers. “This can make parts inventories much more accurate, and improve the efficiencies in getting the right parts to the right place when the service operations need them,” he adds.

Jim Dykstra, president of Aftermarket Telematics Technologies, says telematics has an important role to play in building relationships between jobbers and their independent service provider customers. Today’s independents expect that parts will be delivered quickly and accurately.

Jobbers need to be able to have their point-of-sale systems, catalogues, and inventory monitoring systems tied together so that when an order comes in, it will automatically generate a part order and an invoice. That invoice and part will be linked to a delivery vehicle, which can be tracked through GPS monitoring in real time.

“Shops today expect to receive that water pump as quickly as they get a pizza,” Dykstra says. “When you integrate a telematics solution into the jobber’s back end point-of-sales system, you can now see the invoice, what is on that

continued on page 18

“The complete package of telematics is when vehicle owners are supported by their service providers of choice, and their

service providers are supported by their jobber of choice. ”– DEREK KAUFMAN, MANAGING PARTNER, SCHWARTZ ADVISORS, LLC

Keep your car from becoming a cold-weather casualty.y.MOOGProblemSolver.com©2016 Federal-Mogul Motorparts Corporation. NASCAR is a registered trademark of NASCAR, Inc. All other trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.

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18 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

invoice, what truck that part is on, and when that part has been delivered. In real time, you can pull all that information up and see where things are. We are only a couple of years away from when a vehicle triggers an alert to replace a part, and have that information seamlessly integrate with our catalogues and then automatically generate the parts order and invoice, and ship the part to the service bay.”

The advantage of this is that jobbers will have even greater control of their inventories and supply chains, knowing in real time what parts they need to have in stock, and where parts are in the delivery cycle to improve delivery times for their customers, Dykstra adds.

Malcolm Sissmore, country director,

Canada, and North American sales director, training, telematics, and tools with Delphi, one of the companies at the forefront of aftermarket telematics, says that jobbers now have a rapidly shrinking timeline in which to make telematics part of their business plan. It is no longer a question of if telematics will arrive, but when – and that “when” is very close.

“From the jobber perspective, we are now moving to a connected-car-care model,” Sissmore says. “Jobbers need to be able to take the information that is happening with the car right now, either from the OE telematics side of the world or from third-party telematics providers, and look to see how they can make that part of their business model.”

Sissmore says that jobbers need to

market tracker | telematics

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begin working with service operators to get them up to speed on how to make telematics part of their own business relationship, and how to make telematics part of their relationship with jobbers. There is also a tremendous business opportunity for third-party OBD-II telematics solutions for owners of vehicles that do not have built-in telematics systems, which jobbers and service operations can provide. If one can move people to using telematics for assisting in vehicle maintenance and service, the business opportunities are tremendous.

Once the connection is made between the vehicle, the service operation, and the jobbers, efficiencies will quickly fall into place, as will profits. Jobbers need to take the lead in making this happen. JN

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©2016 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.

At least you’ll be able to see the deer in the headlights.

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20 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

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cover feature |

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How to crank up

steering, chassis, and

driveline sales by

exceeding customer

expectations

BY STEVE PAWLETT

JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 21

salesstrategies

SUCCESSFUL

When it comes to steering, chassis, and driveline parts, components

change is a constant factor as original equipment manufacturers continue to move towards lighter, more fuel-efficient vehicles. This steady flow of design change not only means more SKUs – it also offers a constant flow of new oppor-tunities for parts sales. The other key component of this equation is sales skills: ensuring that your relationships with service provider customers are such that they see you as their first-call jobber.

With economic indicators pointing to a steady upswing in aftermarket sales, there is no better time to re-evaluate your current sales strategies. Identify the ones that are working well and look for ways to make them even better. And, more importantly, identify any strategies that are outdated and no longer working effectively.

“I think the role of the counterperson is getting more valuable every day,” says Mevotech’s vice-president of sales and marketing, Scott Stone. “It’s more complex out there. Every manufacturer seems to call the same part by a different name. The counterperson’s role with technicians is more than just a parts order taker. It is really a service advisor/

product advisor role. Those who can tap into that kind of thinking at the counter level can really drive a lot of value for the technicians, and value turns into sales.”

“When it comes to understanding product lines, experience has shown me that counterpeople have to have the discussion with clients about good, better, and best. There are product lines that are good, there are product lines that are better, and some product lines that are the best,” explains Bob Greenwood, president and CEO of the Automotive Aftermarket E-Learning Centre.

“The conversation with the shop owner who is ordering should be, ‘What line are you looking for?’ Just throw out those words,” Greenwood continues. “Let them choose and also let them know the dif-ferences as far as warranty and product longevity go. Some may last three times as long, so they need to be aware of that. I find a lot of the weaker counterpeople are simply order takers; they couldn’t care less about the conversation. Then you end up having huge problems after the fact. I think that asking the right ques-tion is a front-line defence right off the start that has to be taken.”

Product knowledge is another key continued on page 22

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22 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

adds Greenwood. “Look not only at how they (successful jobbers) hire counter staff, but how they train them and the way they treat them. Customers speak to a counterperson more than they speak to a service rep. A good counterperson should be more of an advisor than an order taker. He should look at each part ordered for the job and ensure all the parts needed are accounted for. Make sure the customer hasn’t forgotten something: ‘By the way, if you’re doing that, then you will need to replace this as well.” Rather than the customer finding out later, when they are well into the repair job, that they have to wait for another part, so now the hoist is tied up until the part arrives. They need to have a discussion about the complete job or what it leads into.”

The Internet has allowed a lot of inventory pricing to be seen at the technician level, but the real magic is getting that vehicle serviced properly and getting it out the door. The real profit opportunity is not just the parts and the price, but whether the technician can book his full labour for what he’s doing. And a good counterperson, who works with the technician, will enable him to be more effective and more efficient.

For any business to be successful, it’s strongly recommended that you don’t try to be all things to all people. To understand the needs of your buyers, you must first do an analysis of your particular market. Identify the needs, and identify the limits as well. Once you understand your local business base of service providers, consumers, industrial, commercial, and seasonal business, you can then apply that data to your particular aftermarket sweet spot.

“Increasingly, the ordering task is being automated through web portals; therefore counter staff must transition to a role of product advisor and build strong relationships with their core commercial and retail customers. They must understand the products they provide and match them to the needs of their customers. As a product advisor, counter personnel must be knowledgeable of the industry, products, trends, computer systems, and their customers’ demands. They must also be able to quickly explain the differences between premium and value products and specifically why

cover feature | successful sales strategies

component of customer service. “It is extremely important for counter staff to understand the products they carry. The products are an extension of their com-pany’s reputation, the reputation of the shop, and the professional technicians installing them. For example, in steering and suspension, there are many different brands to choose from. In order for the counterperson to provide the best recom-mendation to the customer, he/she needs to understand the features and benefits of the different brands, products, and the construction of the component,” says Bryon Osterland, general manager, Global Steering & Suspension, Federal-Mogul Motorparts.

“A client could be calling about a part number that sounds like it’s in distress. If you know a lot about those suspension systems you can anticipate that there may be another part in distress that should also be considered for service,” adds Stone. “You want to make sure that everything is dealt with and the job is done correctly. The one part may be the victim, but it may not be the cause. It may be that something else has caused the failure. That’s a big part of what the opportunity is. It’s more than just knowing part numbers. It’s a matter of knowing those platforms and how to fix them.”

“If you look at the really great jobbers out there, they have great counterpeople,”

there is a difference in price,” explains Osterland.

A key method to exceed customer expectations each and every time is to build product knowledge by working closely with suppliers. Talk to your reps about upcoming training seminars/webinars and other product knowledge building clinics. Utilize free, online training programs that many of your suppliers now provide.

By working closely with suppliers you now have knowledgeable staff that under-stand and appreciate the high-anxiety environment that technicians work in every day, and you also have to have the right parts available. By tapping into your suppliers’ expertise, you can ensure you have the right inventory modelling.

“That’s where the magic is,” says Stone. “Parts proliferation is going crazy, and the trend line is crazy. Part numbers come in and out of their life cycle quickly these days, making it more important than ever for jobbers to be paired with manufacturers that can help them understand what they need to do in their own world – how they need to manage that inventory and manage the asset and keep it fresh, current, and moving.”

“Knowledge transfer is also important: training, for the counter staff and outside sales people. Again, that just doesn’t mean who’s got the cheapest price for parts. It’s the whole value package and taking it beyond the SKU level, and what can we do with our overall inventory dollar investment and service levels and things of that nature. Time is money. Techs are pressured not to hold up these jobs, so beyond the price, they are looking for ‘do I have the right part and can I trust it to do the job?’ So if you have the relationship with a jobber who has the right parts that are in demand on the shelf, then you take a lot of the price pressure off right up front,” adds Stone.

“Counter personnel must know the top two or three selling points of premium products vs. value products. Parts may look similar on the outside, but it is what the customer cannot see that is important. This is what the counter personnel must know. Because chassis parts are components of the steering and suspension system, they are safety-critical and customers need to understand the

“Counter personnel must know the top two or three selling points of

premium products vs. value products.

Parts may look similar on the

outside, but it is what the customer cannot see that is

important.”

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YOUR NAME:_________________________________ YOUR COMPANY NAME:____________________________________________

YOUR COMPANY ADDRESS:_____________________________________________PHONE NUMBER:(____) ____________________

I NOMINATE_________________________________________ WHO OWNS______________________________________________

AND IS LOCATED AT THE FOLLOWING ADDRESS:____________________________________________________________________

BUSINESS PHONE:(____)_________________________ HE/SHE HAS BEEN IN BUSINESS FOR APPROXIMATELY___________YEARS

AND I NOMINATE THIS PERSON FOR THE FOLLOWING REASONS: (attach a separate sheet if necessary)

BUSINESS SUCCESS: ___________________________________________________________________________________________

____________________________________________________________________________________________________________

____________________________________________________________________________________________________________

INDUSTRY INVOLVEMENT:____________________________________________________________________________________________________________

___________________________________________________________________________________________________________

COMMUNITY SERVICE: _________________________________________________________________________________________

____________________________________________________________________________________________________________

___________________________________________________________________________________________________________

(Your Signature) _________________________________ (Date) ____________________________________________

also online at www.autoserviceworld.com

NOMINATE SOMEONE TODAY!

Named after the founders of Jobber News Magazine, E.J. & A.E. Wadham Memorial Award recipients are a who’s who of the best in the Canadian automotive aftermarket, representing aftermarket auto parts wholesalers from across Canada, from businesses large and small, and of all affiliations.

Since 1984, the award has recognized those who epitomize the values of the automotive aftermarket through business excellence, community service, and industry contributions.

JOBBER OF THE YEAR AWARD

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differences between premium and low-cost aftermarket products. For example, Federal-Mogul Motorparts still produces 85% of its Moog socket-style products in North America, and is the only manufacturer that can make that claim,” adds Osterland.

How can counter staff improve relationships with their customers? It’s a matter of slowing it down and taking the time to show that they care and making sure that they get the right part ordered properly. There are so many situations where the wrong part gets ordered, and that mistake costs everyone. It costs the supplier, and it costs down time, as well as frustration for the customer and the risk of losing that customer, because if it happens too often they are going to go somewhere else. Waiting for the correct part while the hoist is tied up is a huge cost to a shop. And the shop could lose their customer because they didn’t get the job done when they promised.

Supplier programs like the Garage Gurus training platform, offered by

Federal-Mogul Motorparts, provide a good level of support for counter staff, technicians, and product sales specialists.

“Jobbers sell a wide variety of products and they must rely on their suppliers to provide accurate point of sales information to convey the features and benefits of premium products. Also, suppliers must work with jobbers to increase brand awareness and to help pull premium products through the supply chain. For example, Moog provides jobbers with wall posters, counter mats, Problem Solver informational bulletins, gusher bearing displays, and an interactive website to learn more about the specific features of the premium chassis products they are selling,” adds Osterland.

Another common challenge for counter staff is dealing with a customer who is price-focused. Does the counterperson understand the value their company brings to the table, and are they able to communicate that to the customer effectively? What training have they

gone through? Do they understand how their shop differentiates itself from the competition?

“I find they are not even involved in those kinds of classes. The sales rep will be. But the counter staff will not. So how do I get a guy off price when I don’t know the value we bring to the table? They have to be trained properly and they have to be exposed to that. It’s up to the owner/manager, who is responsible for differentiating his business in the marketplace,” advises Greenwood.

That comes back to a word that is very well understood these days – culture. What is the culture at your store and how does it compare to any other store? What differentiates you? Is it professionalism, caring, looking after the details? All these attributes create the type of culture that attracts loyal customers.

So, what can you do to ensure you are the first-call jobber?

“From a shop perspective, I am dealing with a counterperson who understands and explains the value he brings to the table, so now I understand this, and damn it, he gets the right part to me fast. You have my loyalty; but my loyalty can change quickly when service drops. If the service isn’t there they are not going to stick around,” says Greenwood.

There are advantages to doing a large volume of business with a particular group of aftermarket manufacturer suppliers. They can provide various benefits to jobbers, such as product training for all staff, and they can help you beef up your value to customers; it should be a win-win relationship with your suppliers.

“There are too many jobbers that are just identical to their customers. They simply shop around for price and they don’t care about the quality. But as the market moves forward, these types of jobbers are going to have a tough time getting the better shops to be loyal to them and even buy from them. The better shops only want quality product and service,” advises Greenwood.

By building strong ties with suppliers and equipping your counter staff with product knowledge through regular product training programs, you will create a positive culture in your store that will ensure you stand out from your competition. JN

cover feature | successful sales strategies

24 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

©2016 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved.

At least you’ll be able to see the deer in the headlights.WagnerLighting.com

e

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26 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

WHY THE LOONIE COULD SWAN DIVE IN 2016

BY MARK BORKOWSKI

Irecently spoke to a Canadian authority in foreign exchange, Rahim Madhavji, who is president of

Knightsridgefx based in Toronto. The year 2015 was a busy one for Canada, he

noted. But 2015 was not kind to the loonie. Over the year, the Canadian dollar declined 16.45% against the U.S. dollar. In the wake of January’s surprise rate cut by the Bank of Canada, the loonie suffered amidst an environment of stagnant growth.

Madhavji believes that across the nation Canadians have been feeling the impact of the weak Canadian dollar. Importers, snowbirds, and consumers alike are asking the same question: Will 2016 be a different story for the loonie?

Along with other nations for which commodities are an important component of the domestic econ-omy, the Canadian dollar is identified as “commod-ity currency.” These currencies tend to perform well in tandem with commodities. Commodities, namely oil, did not perform well in 2015, as WTI fell 30.18% in 2015. Early in 2016, oil prices are below $30/ barrel, and approaching $25/barrel with alacrity.

The main reason for 2015’s oil price shock was side factors, as many OPEC nations refused to curtail production. Geopolitical tensions between Iran and Saudi Arabia make it unlikely that supply will be limited any time soon.

With major economic concerns arising for both the European and Chinese economies throughout 2015, any material demand increases in the short term are unlikely. Therefore, oil prices don’t look poised to improve in the short term, which will weigh on the Canadian dollar throughout 2016.The Canadian economy performed quite poorly in 2015, and remains a focal point moving forwards. However, the economy began to improve marginally towards the tail end of Q3.

Moving forward, the Bank of Canada is hoping that non-energy exports will help to offset the effects of low oil prices on the Canadian economy. Despite holding rates at January’s meeting, the Bank of Canada expects GDP growth of 1.5% for 2016. Over the course of 2016, we will see the effect of the low Canadian dollar begin to trickle down into an increase in exports.

Without a sharp uptick in oil prices, it’s likely we will see the Canadian resource sector continue

to weigh on the Canadian economy at large. Specifically, Western Canada is unlikely to see substantial economic improvement in the short term. Poor Canadian economic performance will plague the Canadian dollar throughout 2016.The Bank of Canada was active in 2015, making several rate cuts in an attempt to stimulate the economy. Governor Poloz has shown a willingness to act preemptively, as well as a willingness to base monetary policy decisions on oil prices.

Meanwhile, the U.S. economy showed great signs of improvement throughout 2015. The U.S. labour force is quickly approaching full employment, currently pegged at 5.1%. Promising underlying fundamentals have contributed to broad-based U.S. dollar strength. Inflation has lagged slightly behind expectations, with the strong U.S. dollar likely contributing to this.

Further rate cuts in 2016 by the Bank of Canada remain a possibility. The Bank of Canada will assess the stimulus budget package that will be implemented by Finance Minister Morneau and the Liberal party in 2016. We can expect to see fiscal policy affect monetary policy decisions more heavily.

The Federal Reserve already moved to raise rates during December of 2015, in contrast to the 2015 rate cuts in Canada. The path to normalization for the U.S. will be a continuing saga throughout 2016, as rates are expected to rise slowly. The divergent monetary policy between the two nations has helped support the U.S. dollar. 2Y treasury spreads have increased against their Canadian counterparts, representing the divergence in monetary policy.Upon closer analysis, Madhavji believes that the key drivers of the Canadian dollar imply further downward pressure for the Canadian dollar. The loonie is clearly lacking a catalyst early in 2016, and it appears the Canadian dollar will not fare much better in 2016 than it did in 2015.

In 2003, we saw USD/CAD reach levels of over 1.60. While it would take a further plunge in oil prices and a recession to reach similar levels, a further drop in the loonie remains in the cards if the Canadian economic climate does not improve. JN

money & management |

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation, an M&A brokerage firm – www.mercantilemergersacquisitions.com.

Rahim Madhavji is president of Knightsbridgefx.com, a currency company that helps Canadians buy or sell US dollars at better exchange rates than banks.

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JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 27

new products |

18V Compact DrillSnap-on introduces a compact version

of the popular CDR8850H with the new

CDR8815 18V MonsterLithium Compact

1/2” Cordless Drill Kit. Packed with power,

the CDR8815 boasts 500 inch-pounds

of torque output for tackling tough

jobs. The CDR8815 features a precision

enhancing variable-speed trigger and a

22-position clutch to increase versatility,

with a two-speed “high and low setting”

gearbox. A two-speed gearbox lets you

select the proper torque for your specific

application. The CDR8815 also features a

bright, one-watt LED light to illuminate

the work area. The all-metal single sleeve

steel chuck with carbide jaws keeps the

bit from slipping. This powerful drill is a

necessity for efficiency and productivity

in the shop and out in the field.

SnapOn

www.snapon.com

5 Micron Compressed Air Filter The 5 Micron Compressed

Air Filter provides point-

of-use filtration of liquids,

oils, and other contaminants.

According to Walmec North

America, this two-stage filter

is designed to operate most

effectively when placed near

the point of use. It has a 5 micron

rating, and is available in sizes with flow

ranges of 15 SCFM to 250 SCFM, and

pressure ratings of up to 250 PSI. The 5

Micron Compressed Air Filter is ideal for

a large variety of applications, including

surface preparation, paint spraying,

powder coating, air powered tools, and

pneumatically operated equipment. The

first-stage filter knocks out all liquids, and

particles of dirt, dust, rust, and scale. The

second-stage filter removes remaining

moisture, contaminants, and particles

down to 5 microns. An automatic float

drain under the second-stage filter

opens and expels all collected liquids

when an ounce or more is present. It is

fully automatic with no continuous air

loss. The 5 Micron Compressed Air Filter

has a permanently mounted differential

pressure gauge and comes with mounting

brackets. The differential pressure gauge

provides a visual indication of required

maintenance, which is easily done by

installing the appropriate service kit.

Walmec North America

www.walmecna.com

Coolant Leak Repair K-Seal Permanent Coolant Leak Repair

is suitable to use with all makes and

models and all types of water-cooled

engines. K-Seal will repair leaks in the

head, head gasket, block, radiator, heater

core, water pump casing, and freeze plug.

There is no need to drain or flush the

cooling system, and K-Seal is safe to add

to all types of antifreeze available today.

Specifically formulated for the Canadian

market, K-Seal is freeze-proof to minus 38

degrees C. K-Seal is available in Canada

from FMSI.

K-Seal

www.kseal.com

Rust Remover CRP Automotive offers its new Fertan Rust Remover as a quick and cost-effective solution for rust

on all types of metals. Fertan Rust Remover is a water-based, non-toxic, and non-flammable rust

treatment that quickly dissolves rust from all types of metals and leaves a clean metal surface that

is ready for a protective coating application. It is ideal for rustproofing and maintenance on any

material that is susceptible to rust. Fertan Rust Remover is available in a liquid and gel formulation.

The liquid formula can be diluted up to a 1:10 ratio and effectively re-used several times. Fertan

Rust Remover is also available in a gel formula that can be applied directly to metal surfaces. The

solution washes away easily with water. In addition to Fertan Rust Remover, CRP Automotive also

offers Fertan Rust Converter, a non-toxic product that converts loose rust to a powder that can

be easily washed away, leaving a stable, inert surface that is safe from further rusting and can be

painted. Fertan Rust Converter can be applied to cavities such as doors and trunk lids. All Fertan

Rust products are backed by the CRP Automotive standard of excellence.

CRP Automotive

www.fertan.com

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28 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

After forty years in the automotive aftermarket business, founder/owner Ron Clarke says the

success of Halifax’s C&R Auto Supply comes down to a simple principle: customer service.

“When a customer comes to us, we treat them so well they won’t go anywhere else. Today we have a lot of second-generation customers coming in here; that attests to our level of service,” declares Clarke.

“We are the last independent left. We’ve been here since 1976, and there have been 17 jobbers who have gone out of business since then. We also do a lot of military cash and carry and a lot of unique business that we have developed over the years,” he continues. “We have over 100 taxi drivers that buy their parts from us. We built that relationship over the years. We also have an installer program, and have seven installers that we have long-term relationships with. The shipyard, which is just down the street from C&R Auto, has a new ship-building contract for $25 billion, so we are in a really nice location here in the north end of Halifax.”

40 yearsC&R AUTO SUPPLY CELEBRATES

Clarke started the business back in 1976 with his partner Chuck Zinck. With hard work and lots of laughs, the two were able to build their business quickly in the early days. Since then, C&R Auto has undergone many transformations. Upon Chuck’s early retirement and, sadly, a much too early passing, Ron continued to carry on, and has worn many hats over the years. “I can’t retire. I tried. It’s

“We are the last

independent left. We’ve been here

since 1976, and there

have been 17 jobbers who have gone out

of business since then.”

– RON CLARKE, C&R AUTO SUPPLY

profile | for the counterperson

Top: Clarke started the business back in 1976 with his partner Chuck Zinck. Left to right: Ron Clarke,

James Clarke, Brian Amirault, Ryan Francis.

Right: C&R Auto plans to expand its retail footprint and launch a new web portal to better serve a growing

customer base.

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JOBBER NEWS / MARCH 2016 |www.autoserviceworld.com 29

impossible, so I’m not even going to think about it. I just love what I do too much. I started when I was 17 years old and I’m 70 now, but I feel like I’m 22,” says Clarke.

Ron’s son James joined the company in 1995. Over that time, James has become a knowledgeable automotive industry specialist, and C&R’s general manager and go-to guy for all automotive parts inquiries. But Ron is still very much involved in the day-to-day operations, ensuring prompt and pleas-ant delivery to their many corporate customers.

“I’ve dealt with Brian, Ryan, Jamie, and Ronnie, and you would swear to God they were country folk,” laughs Shirley Tanner of Atlantic 12 Volt, located just outside Hubbard, Nova Scotia.

“We were just in the store at Christmas,” she continues. “I was really impressed with the store. I think what’s kept them in business so long is their customer service and their competitive pricing. If you don’t treat your customers right, they are just going to go somewhere else. Then you are spending money trying to get back customers you shouldn’t have lost in the first place. These guys certainly don’t suffer from that.”

While C&R Auto has always been in the automo-tive aftermarket, it is also heavily focused on indus-try and marine. “About six years ago we decided we wanted to move in a more retail direction with the store. We’re located in north Halifax, which, at one time, was a tough area to be in, but now with all the redevelopment going on, it’s a really nice area again and we’ve worked hard to build up our walk-in traffic. And it’s hard to hurt that,” explains Clarke.

“Vast Auto is one of our suppliers and we deal with Altrom, which is just up the street from us, for import parts, and Worldpac is nearby too. We are in a great location. We are just across the bridge from all the major suppliers. We have a good inventory with good turns, but the access to suppliers nearby does make it easier for us.

“I live in Bridgewater, Nova Scotia, and there is a Vast Auto Value corporate store there. I travel 125 km to work every day. I’m up at 3:30 in the morning and on the road by 5:30, so I pick up a lot of stuff at that store. That works out well for us,” adds Clarke.

C&R Auto is now in the process of launching a new website. “We’ve kept a pretty low profile for a lot of years, but now, with the retail store focus, we are looking to change that.”

Based on C&R Auto Supply’s accomplishments to date, it looks like this jobber will be around to celebrate another 40 years in the business. JN

BY STEVE PAWLETT

advertiser index |

VDO--A Trademark of The Continental Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10www.vdo.com/usa

Shad’s R&R for Muscular Dystrophy . . 11

Schaeffler Group USA Inc. . . . . . . . . . . . . . . . 8www.repxpert.ca

Promax Auto Parts Depot. . . . . . . . . . . . . . . . 5www.autopartsdepot.ca®

Mevotech Inc. . . . . . . . . . . . . . . . . . . . . . . . . . OBCwww.mevotech.com

K-Seal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14www.kseal.com

Jobber News Jobber of the Year Nomination Form. . . . . . . . . . . . . . . . . . 23www.autoserviceworld.com/awards/

Federal-Mogul Motorparts/ Moog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC,17www.Moogproblemsolver.com

Federal-Mogul Motorparts/ Wagner Brakes . . . . . . . . . . . . . . . . . . . . . . . 7,15www.WagnerBrake.com

Federal-Mogul Motorparts/ Wagner Lighting . . . . . . . . . . . . . . . . . . . . 19,24www.WagnerLighting.com

Automotive Industries Association of Canada . . . . . . . . . . . . . . . . . 25www.aiacanada.com/membership/

Bestbuy Distributors Limited . . . . . . . . . . . . 9www.bestbuydistributors.ca

ACI-Agri-Cover Inc. . . . . . . . . . . . . . . . . . . . . . 18www.accesscover.com

Continental ContiTech . . . . . . . . . IBCwww.contitech.ca

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30 www.autoserviceworld.com | JOBBER NEWS / MARCH 2016

TELEMATICS AND YOU

As amazing as it might seem, telematics runs the risk of being treated like yesterday’s news

before it has even had a fraction of the impact it is sure to have on the aftermarket.

On one level this is understandable. After all, we’ve been talking about the role of telematics and the aftermarket service provider for years now – initially, as a threat on the horizon, then as a perceived threat on the roads, and more recently as a playing field in which the aftermarket can participate.

All these facets of the evolution of telematics are forces to be reckoned with, and yet somehow it seems to be treated more often than not with something short of urgency by the service providers – who worry about its impact, but often do little to use aftermarket tools at their disposal – and by the supply chain: folks like you.

I am sure that those service providers who have taken the time to educate themselves, and maybe even put a plan in place to address the coming challenge, must still accept the fact that they see little impact on their businesses today. But they take it on faith that it will have an impact one day, and are looking for ways to address it.

In the supply chain, the telematics threat is certainly taken seriously, but only inasmuch as it puts at risk the sale of parts to customers who might be drawn away from the independent aftermarket and into the original equipment service channel.

However, in the end, despite its expected impact on the aftermarket as a whole, it is viewed as a service provider problem.

It’s time to think about telematics from a different perspective: as more than just a way of drawing customers into their allied dealer service networks.

Viewed as a supply chain problem, not just a

service provider issue, it would surely gain more traction with manufacturers, distributors, and wholesalers.

What do you think telematics will mean for automakers’ ability to forecast service parts demand if they could get data on part and system failures, even when their own service networks don’t get that work? Sophisticated number crunching could dramatically increase their supply chain efficiency over time, making them more cost-competitive with the aftermarket. Similar demand modelling could also pay dividends in their service bays, by tracking lost service opportunities and comparing that against appointment wait times.

Of course, it’s a natural extension of this that in-time information from part failures outside the sweet spot for the OES channel – vehicles 7 to 11 years old – could spur greater competitiveness in post-warranty vehicle service, the aftermarket’s bread and butter.

And naturally, feedback could help the automakers improve designs, possibly yielding even lower failure rates than we are already seeing.

Yes, these are speculative musings, but they are offered here with seriousness, for as sure as you or can sit at our respective desks and wonder aloud, there are engineers working with the original equipment sector who are doing the same, and turning those musings into reality.

While the impact on the independent aftermarket service bay can be viewed as the most acute threat, it is not the only one.

So the next time you think about telematics, don’t think about it as a problem for your customers first, and yourself second. Recognize it for what it is: a game changer for everyone in the independent aftermarket. JN

NEXT MONTH Annual Chairman’s Issue: Profiling The Incoming Chairman of the Automotive Industries Association of Canada | Succession Planning: What You Need To Know | Motor Oil Report : Premium Oil Sales | CounterTalk: Selling Value Over Price

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publisher’s comment | with andrew ross, publisher » [email protected]

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