Quick Hits …
(A few short items to get us started this week)
• Shareholders of Delphi Technologies have approved BorgWarner’s all-stock acquisition of Delphi, moving the transaction one step closer to closure, which is expected to occur in the second half of 2020. The deal remains subject to regulatory approval and certain other closing conditions.
• A sale of Les Schwab Tire Centers is on hold with plans to restart at a future date, according to Tire Business. The article cites a company executive as saying that travel restrictions related to the coronavirus pandemic have kept potential buyers from visiting shops and meeting with employees.
• The Chick Capoli Sales Company has announced an exclusive sales representation partnership with MotoRad. The firm will represent MotoRad’s complete product line in the Southeast states of Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee and Virginia, as well as western New York.
• Auto Body Outlet/Brakes and More has joined the National Pronto Association. The company, founded in 2019 by George Salfiti and Firas Hamami, services the San Francisco Peninsula area.
Rich White Retiring As Car Care Council Executive Director
Rich White is retiring as executive director of the Car Care Council, a position he has held since 1999. Assuming the role of directing the Car Care Council will be Nathan Perrine, CFO of the Auto Care Association.
The Car Care Council is funded and operated by the Auto Care Association.
During his tenure, White led the industrywide working group that developed the “Be Car Care Aware” campaign and spearheaded the development of the Car Care Guide.
More recently, White established the Car Care Council North America, a partnership with AIA Canada and ARIDRA, an association based in Mexico City for manufacturers, representatives, importers and distributors of auto parts and accessories.
“The Be Car Care Aware campaign originated as a member-driven initiative. Rich has been its steward for more than 20 years, elevating it from just an idea to where it is today,” said Bill Hanvey, president and CEO of the Auto Care Association. “We have been fortunate to have Rich develop the campaign from its inception to numerous programs and partnerships. We greatly appreciate how far he has taken it.”
As you may recall, White retired as senior vice president of the Auto Care Association in 2017, having served the association in a variety of positions for nearly 20 years, overseeing marketing and communications, market research, member services, trade shows and education.
Editor’s Note: Rich is a professional and exceptionally effective communicator. He has been a tremendous asset to the industry and a valuable resource to the media. Rich, we wish you well in your retirement. You will be missed.
Delayed Vehicle Repair, Maintenance Rose In Q2
IMR Inc.’s second-quarter 2020 delayed maintenance report indicates that 20.1% of households surveyed have delayed vehicle repairs or maintenance — an increase from 17.6% in the first quarter of 2020. Notably, this marked the first quarter-over-quarter increase since IMR began tracking delayed maintenance trends in 2016.
The automotive market research firm surveys 25,000 households each quarter to gauge how they have serviced and maintained the vehicles. IMR defines delayed maintenance as maintenance and repairs that vehicle owners know their vehicles need but intentionally have not yet performed.
Since 2016, the delayed maintenance trend has slowly declined from nearly 23.6%. According to IMR, this downward trend was interrupted in the second quarter of 2020 by shelter-in-place orders and fewer miles driven, attributable to the coronavirus pandemic.
A closer look at vehicles in the aftermarket “sweet spot” (vehicles between six and 12 years old) shows that delayed maintenance rose from 16.8% in the first quarter of 2020 to 19.7% in the second quarter of 2020.
In the second quarter of 2020, the Top 10 categories for delayed maintenance and repair were …
• 1. Oil change.
• 2. Tires (new).
• 3. Battery (car).
• 4. Scheduled maintenance.
• 5. Brake shoes or pads.
• 6. Brake discs, rotors or drums.
• 7. Air filter.
• 8. Other collision, paint or body repairs.
• 9. Major or minor paint work.
• 10. Wiper blades
For households that plan on having delayed service or repair performed on their vehicles, 45.8% plan to come to market within the next two months. Additional findings from IMR’s second-quarter 2020 survey can be found here.
Jefferies Predicts Solid Sequential Improvement
In U.S. Miles Traveled
Jefferies LLC’s vehicle miles traveled (VMT) modeling predicts that May 2020 VMT in the United States came in around 211.00 billion miles — down 26% year-over-year — with an upper limit of 230.10 billion miles and a lower limit of 190.90 billion miles. This stands in stark contrast to official government driving data for April 2020 of 169.60 billion miles, or a year-over-year decrease of 39.8%.
Jefferies’ predictive model for June 2020 estimates U.S. VMT of approximately 230.30 million miles — a decrease of 18% year-over-year — with an upper limit of 243.10 billion miles and a lower limit of 205.10 billion miles.
“Concurrent with the rebound in driving post-lockdown, we continue to hear of a strong rebound in parts/service demand,” analysts Bret Jordan, Mark Jordan and Ethan Huntley wrote in Jefferies’ July 2020 Monthly Tune-Up report. “Given the correlation of stimulus/unemployment payment increases and timing of the rebound, we believe drivers of older cars are increasingly able to afford what has been deferred maintenance. We continue to hear South/Central and rural markets are outperforming metro Northeast.”
U.S. Gasoline Demand Was More Than Halfway Back By Mid June
The Oil Price Information Service by IHS Markit on June 24 reported that U.S. gasoline consumption was more than halfway back to pre-pandemic levels.
According to OPIS, fill-ups hit their bottom in the second week of April nationwide (down 49% compared to the same period in 2019) but had rebounded by the second week of June to down only 22% year-over-year. And, U.S. gasoline sales have been rising at an average of 6.4% per week since the low point in April.
OPIS tracks weekly same-store gasoline volume at over 15,000 stations, aggregated on a national, regional and state level. Volumes were the most challenged in the Northeast, off 27% from the same point last year. The West was 25% below prior-year levels. States seeing stronger revivals included Indiana (consumption down 15%), Texas (down 18%) and Florida (down 19%).
Uni-Select Says April, May Sales Beat Internal Forecasts
Uni-Select Inc. on June 22 provided a business update, noting better-than-expected operating performance, with sales and cash management topping internal forecasts in April and May. Management pegged the improvement to actions implemented in response to the coronavirus pandemic. “We believe that all operating units have performed either in line with their respective markets or ahead,” the announcement stated.
“Strong cash management and a renegotiation of our credit facilities has ensured that we have the liquidity required to manage through this period and for the longer term,” President and CEO Brent Windom is quoted as saying.
With the steps taken to stabilize the business, Uni-Select reports that management is now focusing on its “Continuous Improvement Plan” (CIP), which was announced before the pandemic. The plan is designed to improve the productivity and efficiency of Uni-Select’s three businesses. To do this, a number of initiatives will be implemented over the next several months, including “right-sizing where required, automation and supply chain logistics.”
Management’s “Performance Improvement Plan” (PIP), which began in 2018, was completed in the first quarter of 2020, generating $53 million in annualized savings, according to Uni-Select.
Management expects CIP to generate a further $28 million to $30 million in annualized savings. The company expects to record roughly $20 million in restructuring and other one-time charges this year, mainly related to right-sizing initiatives.
APA Elects 2020 Board Of Directors
Automotive Parts Associates (APA) shareholders have elected Douglas Squires of Bestbuy Distributors in Mississauga, Ontario to serve as chairman of the 2020 board of directors. Squires is joined by fellow officers Jim Holmquist of H&H Wholesale Parts in Arleta, CA as vice chairman and Ben Yelowitz of POJA Warehouse in Philadelphia as secretary/treasurer. The other 2020 directors are …
• Edward Harake of Value Plus Auto Parts Wholesale in Westland, MI.
• Suzanne Koudsi-Walker of S&J Euro Parts in North Hollywood, CA.
• Randall Swedlove of Morris Automotive Supply in Fontana, CA.
The Group To Hold Virtual National Member Meeting
The Automotive Parts Services Group plans to hold a virtual national membership conference and expo Aug. 18-20, bringing together members of Federated Auto Parts and the National Pronto Association, as well as supplier partners and associates.
“Our goal is to make this virtual event as close to our annual meeting as possible and provide an opportunity for Pronto and Federated members to involve more of their staff in the national meeting,” said Larry Pavey, CEO of The Group.
The online conference will include sessions for both members and suppliers. The expo will allow suppliers to host virtual booths and select suppliers to present to the entire membership. The last day of the conference will feature one-on-one sessions between suppliers and members. Additionally, the event will include an industry update, keynote address and an awards presentation.
Excel Sales Consulting Courses Added To Alliance University
The Aftermarket Auto Parts Alliance has announced a new partnership with Excel Sales Consulting that will add a video-based series of customized sales, customer service and store manager leadership training courses to the group’s internal training platform, Alliance University. This will include delivery driver, inside counterperson and leadership offerings. Among the topics covered are relationship selling skills, communicating effectively and creating the ultimate customer experience.
Nexus Unveils New Structure For China
Nexus Automotive International has announced a new structure in China that aims to extend Nexus’ activity in the country to a wider base of distributors. The new organization, NexMento, will consolidate the purchasing needs of companies in mainly Tier-2 and Tier-3 cities, giving Nexus suppliers a single point of contact.
The move is an extension of the IAMAGA concept, introduced by Nexus in Africa last year, to help fast-track business development in emerging markets. James Zhang, Nexus’ business developer for the Asia/Pacific region, will manage NexMento.
“The main objective is to go further down the distribution chain,” Zhang explained. “By grouping together specific distributors that are currently out of reach but have a strong interest in developing qualitative aftermarket programs, we can facilitate mutually productive relationships with Nexus-approved suppliers.”
Additionally, Zhang is tasked with facilitating relationships between repair shops and distributors, supporting marketing campaigns and developing dedicated projects, such as Nexus Academy training and the Nexus Academy Wechat-tool.
“Under this new structure, we will be able to bring better local support to both Nexus suppliers and Nexus members and further develop local actions all the way through to the [repair shop] level,” he said.
Stifel Hires Former LKQ CEO
Former LKQ Corp. President and CEO Rob Wagman has joined Stifel Financial Corp. as a senior adviser. He will primarily work with Stifel’s investment banking team, which covers all facets of the global automotive, mobility, capital goods, automotive aftermarket and auto technology sectors. Wagman currently serves as a board member to a number of aftermarket and industrial companies. He retired from LKQ in 2017.
This comes a little over a month after Greg Urban joined Stifel with a specific focus on the automotive sector. Urban spent nine years with UBS Investment Bank in its global industrials group, where he completed a range of public and private securities offerings and advised on various merger and acquisition transactions. He also has worked as an investment banker at Piper Jaffray. Urban began his career with the Ford Motor Company as a product development engineer.
New Leader Announced For GM Customer Care & Aftersales
Tim Turvey is retiring as global vice president of General Motors Customer Care & Aftersales (CCA). He has been with GM for 37 years and the head of CCA since 2014.
John Roth will succeed Turvey effective Sept. 1. Roth has been the president and managing director of GM’s Africa & Middle East operations since 2018. Roth was the vice president of GM Canada Marketing, Sales & Service from 2013-2018. He joined GM in 1991.
Genuine Parts Company Sells S.P. Richards
The Genuine Parts Company (GPC) has sold its S.P. Richards operations through two separate transactions. The company sold S.P. Richards’ core U.S. operations to an undisclosed “investor group led by industry professionals” and sold S.P. Richards’ Supply Source Enterprises business (composed of The Safety Zone and Impact Products) to an affiliate of H.I.G. Capital.
S.P. Richards is a business products wholesaler. Its core U.S. operations offer products and services in four primary product categories: general office products; technology products and accessories; office furniture; and janitorial, cleaning and safety supplies. The Safety Zone and Impact Products operations specialize in providing personal protective equipment and janitorial, safety, hygiene and sanitation products.
“The sale of S.P. Richards represents the further streamlining of our operations and a significant step forward in our long-term strategy to optimize our portfolio,” GPC Chairman and CEO Paul Donahue said in an announcement dated June 30. “With this divestiture, we will continue to opportunistically expand our global footprint and strengthen our focus on sustainable, value-driving initiatives associated with our faster-growing and higher-margin automotive and industrial businesses.”
According to the announcement, GPC expects to use the net cash proceeds from the transactions to enhance its cash position for capital allocation and to repay debt.
Financial terms of the S.P. Richards transactions have not been disclosed.
Wix Expands Its eLearning Center
The Wix Filters division of the Mann+Hummel Group has revamped its Filtration eLearning Center, which includes free online courses on filter construction, system functions and performance dynamics. The redesigned site includes new diagrams and updated product information. The platform is available in English, Spanish and French, with additional languages targeted for future expansions.
Daystar Names New CEO
Phoenix-based Daystar Products International has announced a series of personnel changes led by the hiring of Ray Fundora as the company’s president and CEO. Fundora has more than 30 years of managerial experience in aftermarket accessories for light trucks, cars and specialty vehicles. He most recently was the president of Nivel HD. Fundora’s background also includes time as vice president of sales and marketing for the Truck Accessories Group (TAG).
He is joined by the following executives in new capacities …
• Tom Schneider is now Daystar’s CFO. He joined the company last year. Schneider was the finance chief for APSM Systems and Loudmouth Golf.
• Kelly Davis, co-founder of Tuff Country EZ-Ride Suspension, is now the general manager of Daystar’s light truck division.
• John Grounds has been promoted to manager of engineering and product development.
• Shane Jones has been promoted to director of operations and distribution for Daystar’s light truck division.
Along with these personnel changes, Daystar has segmented its brands into three divisions: light truck, powersports and e-commerce.
Mahle Motorsport Appoints Sales, Program Manager
Mahle Motorsport has promoted Joe Maylish to sales and program manager for the company’s North American motorsports division in Fletcher, NC.
Maylish is now the primary contact for all external sales representatives, WDs and other customers. He is tasked with developing and coordinating sales strategies, goals and missions, as well as directing training and coordinating market research to meet sales goals.
Maylish will temporarily continue to provide direction and oversight of the company’s marketing efforts and media buys until the marketing manager position is filled. He has led the division’s marketing department since 2018.
GearFX Relocates To Bigger Facility
GearFX Driveline, a two-year-old driveline products and services company, has relocated to a larger facility in Mooresville, NC. The new, 18,000-square-foot location on Infield Court is more than 5,000 square feet larger than the company’s previous facility, also in Mooresville.
The new location includes increased warehouse capacity and a larger dyno area, as well as a machine shop, build shop and fabrication shop, each housed in individual, climate-controlled spaces to better control dust mitigation.
The company is a provider of gears and driveline components to the performance racing industries.
PurePower Technologies Adds Director Of Business Development, Sales
PurePower Technologies (Columbia, SC), a diesel fuel injectors and turbochargers engineering and remanufacturing company, has added Stephen Gow as its director of business development and sales.
Reporting to Managing Director Greg Butler, Gow is responsible for leading all business development, marketing and sales activities in addition to growing PurePower’s overall product portfolio in the aftermarket and with OEM key accounts and end-user customers.
Gow joins PurePower after a long career with Spirax Saco, also of Columbia, where he was vice president of marketing.
New Owner For Modern Tire Dealer, Auto Service Professional
10 Missions Media of St. Paul, MN has acquired the automotive aftermarket division of Bobit Business Media. The deal adds Modern Tire Dealer and Auto Service Professional to 10 Missions’ auto care industry portfolio, which already includes FenderBender, Ratchet+Wrench, National Oil and Lube News and ADAPT.
Modern Tire Dealer covers the independent tire dealer market, while Auto Service Professional offers technical content and business support for independent repair facilities, new car dealer service departments and light fleet maintenance facilities. The latter is seen as complementing 10 Missions’ existing publication, Ratchet+Wrench, which focuses on business and management strategies for auto care center owners and operators.
10 Missions’ Founder and President Jay DeWitt said the acquisition expands the company’s reach to now cover the entirety of the automotive aftermarket. “As an independent media company, our purpose is to help small business owners across the country through our content, live events and other offerings,” DeWitt added. “This deal only heightens our ability to do that, and we’re excited for what these new brands bring to the table.”
The transaction, which closed in June, also includes ownership of the Dealer Strategic Planning (DSP) 20 Group, a training operation for tire dealers.
AAPEX Releases Training Schedule For New Repair Shop HQ
Event organizers have announced the trainers and topics that will be covered at the new Repair Shop HQ at AAPEX 2020. Training will be offered in three theatres and will be experiential and hands-on. Seating is first-come, first-served, and all classes are included in the attendee online registration, which is $40 through Friday, Oct. 9.
Trainers selected to lead the classes are …
• Jim Wilson of The Group Training Academy.
• Richard Cregar of Automotive Training Authority.
• Bill Haas of Haas Performance Consulting.
• Cecil Bullard of the Institute for Automotive Business Excellence.
• Mike Reynolds of Mobile Automotive Service Solutions.
• Eric Ziegler of EZ Diagnostic Solutions.
• Murray Voth of RPM Training.
• Tony Salas of The Group Training Academy.
• Jeremy O’Neal of Advisorfix.
• Greg Bunch of the Aspen Auto Clinic.
• John Thornton of Autotrain Inc.
• Rick White of 180BIZ.
• Maylan Newton of Educational Seminars Institute.
Technical classes will cover …
• Labscope usage.
• ADAS calibrations.
• Controller area networks (CANs).
• European diagnostics.
• Essential diagnostic steps.
• Aftertreatment diagnosis in electronically controlled diesel trucks.
• Push-button ignition diagnostics.
• In-cylinder pressure transducer diagnostics.
Business management classes will focus on …
• Effective leadership and communication.
• Diagnosing and repairing a business.
• Moving from a price-based model to a value-based model.
• Diagnostic sales skills.
• Success with multi-location businesses.
• Attracting top talent.
AAPEX 2020 is scheduled for Nov. 3-5 at the Sands Expo and Caesars Forum Conference Center in Las Vegas.
Bolt On Adds Online Appointment Setting To Its NextGear Platform
Bolt On Technology has launched ThirdGear, an upgrade to its NextGear standalone platform. ThirdGear includes the ability for customers to book appointments online, the ability to integrate appointment scheduling with a shop’s existing website and the ability to remind customers about previously recommended services during the appointment scheduling process.
ThirdGear is available to any repair shop using NextGear. It costs $50 per month on top of the NextGear subscription cost. And for shops that don’t have their own website or need an upgraded website, Bolt On Technology can create a website. ThirdGear with website development is $100 per month.
Group 1 Reports U.S. Operating Profits Improving Faster Than Anticipated
Group 1 Automotive on June 25 provided an operational update on its business for the second quarter of 2020, noting significantly improving market conditions and operating trends in May and June-to-date when compared to March and April 2020.
The company reports that, in late March, shelter-in-place orders dramatically curtailed operations and overall business levels. However, all of its U.S. automotive retail dealership sales and service operations have been open since early May, with the exception of a small number of temporary facility closures tied to instances of specific coronavirus cases. “Since that time, revenues for new vehicle sales and service have increased at a much faster rate than associated costs,” Group 1 reported. “As a result, U.S. operating profits are improving much faster than anticipated.”
Nonetheless, new vehicle sales and service are not yet back to pre-pandemic levels.
Houston-based Group 1 had 186 automotive dealerships (242 franchises) and 49 collision repair centers in the United States, United Kingdom and Brazil as of March 31, 2020.
CarMax Settles California Waste Disposal Action
For $1.60 Million
Seventeen district attorney’s offices across California have reached a settlement with CarMax in Orange County Supreme Court regarding allegations of unlawfully handling and disposing hazardous material at various locations. Local inspections reportedly uncovered the illegal disposal of auto body sanding dust, sanding pads, paint, solvents and more in trash containers, as well as confidential customer information.
The settlement requires CarMax to pay $1 million in civil penalties and $300,000 for investigative costs in addition to paying $300,000 to fund supplemental environmental projects in California. CarMax was cooperative throughout the investigation and implemented training and compliance programs at each of its facilities, according to Alameda County District Attorney Nancy O’Malley.
In response to the settlement, a spokesperson for CarMax told The Greensheet: “CarMax is committed to environmental stewardship and has fully cooperated with the state of California and the district attorneys’ offices. Once notified of the program issues, CarMax immediately began to enhance its waste management policies and procedures. CarMax thanks its store teams for their hard work and commitment to implement and sustain these enhancements.”
ATD Selects Partner For Data Upgrade
American Tire Distributors (ATD) has selected Winshuttle, the provider of EnterWorks Master Data Management (MDM) and Product Information Management (PIM) technology, to optimize processes for customer and product data management. ATD features 40,000 SKUs and serves 80,000 customers across four primary channels: core customers, auto dealers, corporate customers and e-commerce.
EnterWorks will support a redesign of ATD’s data management processes and help move the company from a conceptual business strategy into an MDM environment that is designed to provide clear insight into all of its internal business processes, data analytics and transactions.
“Leveraging our multi-domain MDM solution will give ATD the flexibility it requires to support its grouping and hierarchies, create relationships based on specific business needs, and provide the granular visibility of data needed to run the business,” said Kerry Young, vice president and general manager of Winshuttle EnterWorks.
The technology also will allow customer and product workflow standardization and audit control.
“Not only will we have new capabilities to streamline and improve the user experience, the solution will also allow us to better manage frequency and a number of product changes,” said Lalit Thakur, senior vice president and chief data officer at ATD.
The tire distributor has more than 140 locations, over 5,000 employees and an operating fleet of 1,400 trucks.
Jefferies Launches Heavy-Duty Market M&A Report
Jefferies LLC has released its inaugural Heavy Duty and Specialty Vehicle Market M&A Report, which offers an overview of recent mergers and acquisitions trends as well as public equity performance. The purpose of the publication is to touch on the trends of the last half-decade and to provide an overview of notable transactions.
According to Treavor Hill and Bill Della Giustina of Jefferies, the heavy-duty mergers and acquisitions environment has been active in recent years, with 73 transactions in North America in 2019. However, as a result of the coronavirus pandemic, there is significant uncertainty regarding merger and acquisition activity for 2020. “We believe that M&A activity in the heavy-duty market will rebound steadily, given the critical nature of much of the industry,” Jefferies’ report states.
Wheeler Brothers Getting New Name
Wheeler Brothers Inc. of Somerset, PA plans to change its name Aug. 4. This will only be a name change and not a change of ownership, the company advised. Wheeler will remain a subsidiary of VSE Corp., a Virginia-based provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets.
Wheeler distributes parts to more than 250,000 light-, medium- and heavy-duty trucks across the United States, as well as the U.S. Postal Service and the U.S. Department of Defense.
EnPro Exiting STEMCO Brake Products Business; Buyer Found For Lunar Line
EnPro Industries on June 25 announced plans to exit its STEMCO Brake Products business. This will involve the exit of manufacturing operations related to its Motor Wheel brake drum and Crewson brake adjuster brands, as well as the sale of its Lunar air disc brake product line and related manufacturing facility in Shanghai, China.
The buyer for the Lunar business is Commercial Vehicle Components LLC, which is led by Jack Mitchell, Gina Morse, Peter Morse and Daniel Morse. They previously sold the business to STEMCO/EnPro back in 2017.
The acquisition is subject to regulatory approval in China and is expected to take four to six weeks to complete. Manufacturing lines for air disc brakes — as well as hydraulic disc brakes, inventory, brands, intellectual property and patents — are included in the transaction.
EnPro’s restructuring is part of an effort to refocus STEMCO on “core products that are highly differentiated and have market-leading positions,” according to the June 25 announcement.
“The exit of STEMCO’s Brake Products business is another step forward along our journey of reshaping our portfolio towards businesses with compelling margins, leading technology and high cash-flow return on investment in markets with favorable secular tailwinds; maintaining a balanced approach to capital allocation; increasing aftermarket exposure and recurring revenue opportunities; and leveraging the EnPro operating system for continuous improvement to increase margins and cash flow return on investment,” said Marvin Riley, president and CEO.
The moves are expected to be completed during the third quarter of 2020. EnPro forecasts that the total restructuring charges related to these actions to come in around $12 million, composed of …
• $4.20 million for severance and other expenses.
• $3.70 million in inventory write-offs.
• $3.50 million for impairment of intangible assets (trademarks).
• $600,000 in estimated contract cancellation costs.
These charges — other than contract cancellation costs, severance and other expenses totaling $4.80 million — are non-cash charges.
We are now looking for a team member responsible for guiding product and merchandising strategies and functions to ensure the achievement of objectives related to key performance indicators, sales, gross margins, inventory, service levels and overall profitability. … (more) … Click here to find out more.
SKF Announces Management Changes
Bernd Stephan, president – automotive and aerospace at SKF, has stepped down from his role in group management for health reasons, according to a June 30 company announcement.
Responsibility for automotive sales and the aerospace business unit is being handled on an interim basis by Alrik Danielson, president and CEO. Stephan will support Danielson as an adviser until Stephan’s retirement at year’s end.
Responsibility for automotive manufacturing has moved to Kent Viitanen, president – bearing operations.
ITT Announces CFO Transition
ITT Inc. (White Plains, NY) announced June 30 that Emmanuel Caprais will succeed Tom Scalera as CFO of the company effective Oct. 1. This is part of a planned transition process, according to ITT.
Scalera joined ITT in 2006 and became its finance chief in 2011. He will work with ITT’s management team on the transition until October and will continue as an adviser through Jan. 6, 2021. Following his departure from ITT, Scalera will serve on the board of The Cancer Couch Foundation, a charitable foundation focused on metastatic breast cancer research that he co-founded with his late wife, Rebecca.
Caprais is currently a group CFO in charge of ITT’s business unit finance teams, financial planning and analysis, and investor relations. His new title will be senior vice president and CFO. Caprais joined ITT in 2012 as segment CFO for the company’s Motion Technologies business. Prior to joining ITT, he held finance leadership roles with Magneti Marelli and at Valeo in Europe and North America.
Cooper Standard Makes Changes To Global Leadership Team
Cooper Standard (Northville, MI) has announced the following changes to its global leadership team, effective Aug. 1 …
• Patrick Clark will replace Hans Helmrich as senior vice president and chief global manufacturing officer. Helmrich is leaving the company “to pursue another opportunity,” according to Cooper Standard.
• Chris Couch will continue to lead the company’s global technology effort, while also taking on responsibility for global product development, product strategy and program management.
• Bill Pumphrey will continue to lead Cooper Standard’s global automotive business, while also taking on responsibility for corporate strategy and the company’s return on invested capital improvement initiative.
Cooper Standard Sells Certain Ops. In Europe, India
Cooper Standard Holdings (Northville, MI) has completed the divestiture of its European rubber fluid transfer and specialty sealing businesses, as well as its Indian operations, to Mutares SE & Co. KGaA. The transaction included two manufacturing plants in Poland, one facility each in Spain and Italy, and all of the company’s operations in India, excluding corporate IT development.
“The divestiture of these non-core operations will enable us to improve profitability and focus important company resources in areas where we see greater potential for profitable growth,” Chairman and CEO Jeffrey Edwards said in a July 1 announcement.
After the divestiture, Cooper Standard has 21 production facilities in eight European countries and 18 manufacturing plants across China and South Korea.
People Watching 7/6/20
• Larry Greenberger has retired as executive vice president – transportation at Endeavor Business Media. Greenberger is the former group publisher for the Vehicle Repair Group at Cygnus Business Media, which included Professional Tool & Equipment News, Professional Distributor and Fleet Management Magazine. “I am retiring after many, many years in B2B media. I am leaving an industry that helps people do their jobs better. This mission is why I chose this industry for a career,” Greenberger wrote on LinkedIn. “I am retiring but not going away.”
• John Lindle, executive chairman of Kinderhook Industries portfolio company asTech, has joined the board of directors at Original One Parts, a fellow Kinderhook portfolio company that sells certified recycled OEM parts. Lindle is the founder of QCSA Auto Auctions. He grew the business to a multi-state corporation with more than 100 employees. In 2009, Lindle partnered with Kinderhook to recapitalize QCSA, which was sold to Copart in 2013.
• Burt Jordan has retired as the Ford Motor Company’s vice president of global purchasing operations and supply chain sustainability. Jordan’s more than 20-year purchasing career at Ford began in 1999.
• Jon Husby, president and CEO of SEG Automotive, has been elected vice chair of the Original Equipment Suppliers Association (OESA).
• Colin Hindman, former chief human resources officer at Dayco, is now the chief human resources officer at The Shyft Group (formerly Spartan Motors). Hindman also was vice president of human resources at TriMas Corp. for nearly 15 years.
• Northwood University Vice President of Finance and Administration Karl Stephan has retired. Stephan also served on the university’s board of trustees as secretary and treasurer. He came to Northwood in 2007 after a long career in senior management with Kmart Corp. and Sears Holdings Corp.
• The Marx Buscemi Eisbrenner Group — a full-service marketing communications agency focused on the automotive, mobility, trucking, tech and consumer goods industries — has promoted Kaleigh Jerzykowski from assistant account executive to account executive. As such, Jerzykowski will lead initiatives for business-to-business and business-to-consumer clients, including public relations, event management, social media marketing, advertising campaigns and digital strategies.
News Briefs 7/6/20
• U.S. Auto Parts Network has been added to the Russell 2000, a capitalization-weighted index maintained by FTSE Russell that benchmarks the U.S. stock market.
• Turn 14 Distribution has added products from Roush Performance to its line card.
• Lucas Oil Products has launched three of its fuel additives — Lucas High Mileage Fuel Treatment, Lucas Deep Clean Fuel System Cleaner and Lucas Fuel Treatment — at nearly 25 convenience store chains across 20 states, including Safeway, Kroger and 7-Eleven.
• Federated Co-operatives Limited (FCL) has tapped ShowMeTheParts to create a battery-finder tool for its retail home centers and agro centers to help customer service reps match up the correct battery to the specific application. The technology also includes the ability for customers to search for batteries online and in-store.
• StockWise Auto is a new BuyNow partner of ShowMeTheParts.
• The Trico Group has announced a multi-faceted marketing plan for its Carter brand that includes a new brand mark, redesigned packaging, and updated website and domain (CarterEngineered.com). The focal point of this initiative is the tagline “Engineered Quality.”
• Strickland Brothers 10 Minute Oil Change has announced three new franchise agreements: one for 15 locations in the Dallas and Fort Worth area, one for three shops in the Denver area and one for two shops in the Richmond, VA area.
• Icahn Automotive will award $2,500 “Find Your Drive” scholarships to 15 automotive technician students this year. The scholarship program is part of the company’s “Race to 2026” initiative, which aims to increase the number of trained techs across the United States. Click here to see a list of this year’s scholarship recipients.
• Garage Gurus, a national training platform from DRiV Inc., has presented $2,500 scholarships to 12 U.S. students studying to become automotive service professionals. Since its inception six years ago, the program has provided $180,000 in tuition support. Click here to see a list of this year’s scholarship recipients.
• On June 30, Universal Technical Institute (UTI) provided an update on its business and campus operations, noting that student starts for the fiscal 2020 third quarter ending June 30, 2020 were up 3% to 6% compared to the previous year and that new student enrollments for the fiscal 2020 fourth quarter ending Sept. 30, 2020 have exceeded 90% of management’s pre-pandemic goal for the period.
• SEMA is now accepting nominations for its annual industry awards program, which includes Person of the Year, Manufacturer of the Year, Rep Agency of the Year, WD of the Year and Gen-III Innovator of the Year. To nominate someone or learn more about the initiative, visit sema.org/awards.
• Women in Auto Care has extended the nominations deadline for the 2020 “Women of the Year” awards to July 31. Click here to access the online entry form.
• AIA Canada has issued a new report, Understanding Millennials: A Quick Profile of Young Canadian Vehicle Owners, that explores the practices and attitudes of this demographic when it comes to vehicle ownership, maintenance and repair; how they use online shopping; and their views about the data their vehicles generate.
Event & Trade Show Briefs 7/6/20
• Integrated Supply Network (ISN) will host a virtual Tool Dealer Expo Aug. 28-29 on ToolWEB.com. The event will include live-streamed training, supplier meetings via Zoom, exclusive deals and prizes. Click here for more information on the “Viva Las Virtual Vegas Tool Dealer Expo.”
• Thousands of exhibitors and attendees are registered and planning to attend the 2020 SEMA Show Nov. 3-6 in Las Vegas, according to an association announcement dated June 25. “We are steadfast in our belief that our members and our industry will recover more quickly from the current climate by safely coming together to share ideas and look ahead to strategize for 2021 and beyond,” said Tom Gattuso, SEMA’s vice president of events.
• SEMA will host is 2020 Annual Membership Meeting as a live online event July 23. All association members are invited to attend. Click here for additional information.
• ASA Northwest’s Automotive Training Expo (ATE) — which was postponed in March because of the coronavirus pandemic — will now become a virtual training event that will take place Aug. 3-6. There will be eight classes per day with management and service adviser-oriented sessions in the morning and technical courses in the afternoon. Registration is now available. Click here for additional information.
• AASA will host a webinar Wednesday, July 8, on opportunities in the OE service channel featuring panelists from Denso, Brake Parts Inc. and the Ford Motor Company. The presentation is free for all AASA members. Click here for more information.