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Production Notice
Distribution of the next issue of The Greensheet will be delayed until Tuesday, Sept. 8, because of the Labor Day holiday.
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Quick Hits …
(A few short items to get us started this week)
⢠The Automotive Parts Services Group has honored Motor Parts Manufacturing as its Co-Man Vendor of the Year and Delphi Technologies as its Co-Man Vendor of the Year for Order Fill.
⢠SSF Imported Auto Parts (South San Francisco, CA) is now a Bosch Preferred Supplier.
⢠The Equipment & Tool Institute (ETI) has presented its Founderâs Award to the late Bill Eernisse, a past president of ETI who died March 7. He was 70. Eernisse retired as regional sales manager for Rotary Lift in 2015.
⢠TireHub, the national tire distributor cofounded by Bridgestone Americas and The Goodyear Tire & Rubber Company, has announced Ted Becker as its vice president of sales. Becker was the president of Exide Americas. Earlier, he worked for Group Michelin in various sales and marketing positions.
SEMA Prepares Online Marketplace In Place Of 2020 Trade Show
SEMA has come forward with plans for an online marketplace in the absence of the traditional SEMA Show this year. The platform, called SEMA360, will allow manufacturers and resellers in the specialty automotive segment to connect and conduct business Nov. 2-6.
Manufacturer applications for SEMA360 will open Thursday, Sept. 3, at a SEMA-member rate of $495 and a nonmember rate of $1,495. Attendee registration, which is expected to open later in September, will be free to qualifying buyers who are SEMA members and $25 for nonmembers. Qualifying media will be able to register at no cost.
According to the association, it created SEMA360 after industry members expressed the need for a viable marketplace solution in the absence of the SEMA Show.
President and CEO Chris Kersting said creating a platform for the industry to gather and discover new products and trends has always been a SEMA priority. âSEMA360 is the ideal solution to bring the industry together at a time when weâve all been kept apart,â Kersting stated in an announcement dated Aug. 27. âThe platform allows qualified buyers to interact with manufacturers, see innovative new products, check out top SEMA Show builds and take in industry-leading educational offerings.â
The association touts SEMA360 as a simplified platform where SEMA can help manufacturers create a straightforward brand presence to reach quality domestic and international buyers. Participating resellers will have access to product offerings and demonstrations, as well as manufacturer personnel.
For additional information about SEMA360 or to register, visit sema360.com.
Pronto Honors Bill Maggs As Executive Of The Year
Bill Maggs â executive vice president of supply chain for Parts Authority and former CEO of the National Pronto Association â was honored as the Pronto Executive of the Year at the recent Automotive Parts Services Group virtual national conference and expo.
The award recognizes dedication and commitment to Pronto and its members. Pronto President Robert Roos called giving Maggs the award âprobably the easiest choice of a winner ever,â adding that no one could be more deserving.
âBill was there at the beginning, helping to forge Pronto into the program distribution group that it is today. To put it simply, there would be no Pronto without Bill Maggs,â Roos said. âHe has tirelessly dedicated over 44 years to developing the Pronto legacy for its members. He has been both an employee and a member, and he continues to âbleed Pronto blueâ today.â
Pronto Recognizes Three Members
The National Pronto Association honored three of its members during the recent Automotive Parts Services Group virtual national conference and expo.
The Monaco Group of Canada received the Pronto Member Marketing Excellence award, which honors Pronto members for excellence in marketing throughout their geographies. Monaco has DCs in Montreal, Ottawa and Toronto that support 22 corporate jobber stores and more than 70 affiliated jobber partners.
The Pronto National Accounts award went to Parts Authority of New Hyde Park, NY. The award recognizes members that provide outstanding service and value to this market channel.
Cost Less Distributing of Vancouver, WA received Pronto Co-Man Member of the Year recognition. The award recognizes significant purchases and growth, as well as support and input for improving the program.
Federated Honors Three Members
Federated Auto Parts recognized three of its members at the recent Automotive Parts Services Group national conference and expo for their commitment to the success of key Federated programs.
TBA & Oil Warehouse in Indianapolis received the Federated Co-Man Member of the Year award, which honors members for supporting the Co-Man warehouse operation and its programs.
Keystone Automotive of Exeter, PA received the Federated Marketing Excellence Award, which recognizes members for their marketing activities and for providing support for other members where possible.
Arch Auto Parts of Hollis, NY received the Federated National Accounts Award, which honors members for excellence in serving national account customers.
Merchandising SVP, CFO Are Retiring From AutoZone At Yearâs End
The following longtime executives will retire from AutoZone Inc. at yearâs end: Bill Hackney, senior vice president of merchandising; and Bill Giles, executive vice president and CFO â finance, information technology and store development.
Hackney has been with the company for 37 years, while Giles has been at AutoZone for 14 years.
They will be succeeded by Seong Ohm as senior vice president of merchandising and Jamere Jackson as executive vice president and CFO-elect â finance and store development.
Ohm comes to AutoZone from the Dairy Farm Group, where she was its group commercial development officer supporting development, sourcing, branding and packaging for private-label and exclusive brands in 7,000 retail outlets across Southeast Asia. She also was the chief commercial officer for Home Plus, the second-largest retailer in Korea.
Ohm will report to Mark Finestone, executive vice president of merchandising, marketing, supply chain and e-commerce.
Jackson comes to AutoZone from Hertz Global Holdings, where he was executive vice president and CFO. Prior to that, Jackson was the CFO of Nielsen Holdings.
He will report to AutoZone Chairman, President and CEO Bill Rhodes.
Ohm and Jackson will be members of AutoZoneâs executive committee.
U.S. Personal Consumption Of Auto Parts Increased 10.5% In July
U.S. personal consumption of auto parts was $50.507 billion in July 2020, according to Hedges & Company. This is nearly even with the revised June 2020 figure of $50.509 billion and up 10.5% when compared to July 2019.
U.S. personal consumption of tires came in at $35.462 billion in July 2020 â close to the adjusted $35.504 billion in June 2020 and up roughly 8% compared to July 2019.
Hedges, a Hudson, OH-based digital marketing agency, defines personal consumption as consumer only (no business to business) through brick and mortar and e-commerce channels. This includes specialty products, performance products, accessories and OEM replacement products. Click here for more information on trends from Hedges.
Atlas Completes Exide Americas Purchase;
Splits Company In Two
The bankruptcy court-supervised sale of Exide Americas to Atlas Holdings is now complete. In the acquisitionâs wake, Atlas has formed out of Exide Americas two standalone companies: Stryten Manufacturing and Element Resources.
Milton, GA-based Stryten manufactures batteries for the transportation and industrial markets. Tim Vargo is the companyâs CEO, and Mike Judd is its president and COO. Stryten operates seven plants across the United States.
Element Resources owns and operates recycling plants in Canon Hollow, MO and Muncie, IN that service Stryten and other battery manufacturers.
EnerSys Reports 8.2% Uptick In Specialty Segment Sales
For the fiscal first quarter ended July 5, 2020, EnerSys reported $88.70 million in Specialty segment net sales â an increase of 8.2% compared to the same period a year ago, attributable to a 12% increase from the acquisition of NorthStar Battery that was partially offset by a 4% decrease in organic volume.
According to management, EnerSysâ Specialty business benefited from several new aftermarket contracts, although this was somewhat offset by weakening demand from truck OEMs.
EnerSys President and CEO David Shaffer said on the companyâs Aug. 13 earnings call that its Specialty segment performed exceptionally well during the quarter, particularly in light of the ongoing impact of coronavirus.
âU.S. transportation beat our internal pre-COVID expectations in the quarter due to an increase in retail market demand and carried that momentum forward by coming out of the block strong in July,â he told analysts on the call. âWe will continue to monitor the success of new retail programs over the coming months but are excited by the way this business is taking off.â
Despite higher net sales, Specialty segment operating earnings declined 47.7% to $5.25 million, primarily because of higher manufacturing costs.
Repforce Announces New Principal
Jim Fitzmaurice has accepted an offer to become a principal in Repforce Inc. Fitzmaurice, who has grown with the agency over the past 12 years, is an active member of the Auto Care Association, sitting on the Manufacturersâ Representatives Council.
Prior to joining Repforce, he spent 18 years with Liedel Fitzmaurice with his father, Tom. Over his 30-year career, Fitzmaurice has worked in all aspects of the aftermarket: traditional automotive, tool and equipment, heavy duty, convenience, and retail.
Magnuson Retains R&R Marketing Consultants
Magnuson Products LLC has retained R&R Marketing Consultants Inc. (RRMCI) to represent the company in the marine aftermarket throughout North America and in the automotive aftermarket in Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, Nebraska, Oklahoma, North Dakota and South Dakota, as well as for all locations of Atech Motorsports/Summit Racing.
Energizerâs Auto Care Business Ekes Out Small
Q2 Sales Increase
For the fiscal third quarter ended June 30, 2020, Energizer Holdings reported $161.40 million in auto care sales â an increase of 0.4% compared to a year ago despite disruptions caused by the coronavirus pandemic. Energizer President and COO Mark LaVigne pointed out on the companyâs Aug. 5 earnings call that category trends in the United States improved significantly.
âFor the 13-week period ending in May, the category value grew 4.3%,â LaVigne said. âImproving trends in the category were driven by consumers hitting the roads versus flying during the summer vacation season as the U.S. economy reopened; a focus on do-it-yourself activities in light of closures or reduced services from car care businesses that were deemed nonessential; an overall focus on cleaning and disinfecting cars as a result of the pandemic; and the return of warm weather, which enabled consumers to attend to the maintenance and cleaning of their vehicles and which drove improved demand for refrigerants.â
He expressed cautious optimism regarding the final months of the summer selling season, as favorable trends had continued into early August. âHowever, the increase in [coronavirus] cases in the U.S. could dampen the growth if more restrictive shelter-in-place orders are reinstated,â LaVigne warned. âLonger term, we remain optimistic about the category fundamentals as consumers shift to do-it-yourself from do-it-for-me, keep their vehicles longer and increase miles driven.
âThere is also a potential benefit from consumers focusing more on cleaning their cars. We are investing heavily in our brands with new creative and innovation and a focused effort to reshape the pipeline and reinvigorate the brands.â
LaVigne added that Energizerâs auto care team has begun to execute on managementâs international expansion plans, which could generate nice growth over the next several years. âThe combination of investment in brands, products and geographic expansion is the right strategy to sustainably grow the auto care business over the long term,â he said.
Energizer’s auto care business is composed of the following automotive appearance and performance product, refrigerant, and freshener brands: Refresh Your Car!, California Scents, Driven, Bahama & Co., Lexol, Eagle One, Armor All, STP and A/C Pro.
Garrett Motion Warns Of Need To Restructure Balance Sheet
Garrett Motion Inc. on Aug. 26 issued an announcement stating that, with the assistance of its financial and legal advisers, it is âexploring alternativesâ for addressing its previously disclosed balance sheet concerns.
According to the company, management had not determined whether to pursue any balance sheet restructuring alternatives. However, any actions taken by Garrett in relation to liability management may materially reduce the value or trading price of its common stock, dilute existing holders of its common stock by the issuance of equity (whether through conversion of existing liabilities into equity or otherwise) or result in the cancellation of existing common stock.
âThere can be no assurance that recoveries in any restructuring will approximate current trading prices of Garrettâs securities,â the company stated.
Garrett laid out its current situation as follows âŚ
âOn June 12, 2020, Garrett entered into an amendment to its credit agreement to obtain relief from certain financial covenants, including the consolidated leverage ratio, in light of current and anticipated operating conditions. However, as disclosed in Garrettâs quarterly report on Form 10-Q for the three months ended June 30, 2020, notwithstanding the relief provided by the credit agreement amendment, Garrettâs leverage ratio remains high and we expect will remain so for at least the next several quarters. Garrettâs leveraged capital structure poses significant challenges to its overall strategic and financial flexibility and may impair its ability to gain or hold market share in the highly competitive automotive supply market, thereby putting Garrett at a meaningful disadvantage relative to its peers.
âIn addition, Garrettâs high leverage is exacerbated by significant claims asserted by Honeywell against certain Garrett subsidiaries under the disputed subordinated asbestos indemnity and the tax matters agreement. These arrangements were a part of an inappropriate capital structure imposed by Honeywell on Garrett as part of its 2018 spinoff that has proven ill-suited to cope with any meaningful challenges at the macroeconomic level, much less those Garrett faces amid a global pandemic. As previously disclosed, payment on the disputed claims by Honeywell has been generally deferred until the second quarter of 2023, but the possibility of the disputed claims being payable in the future â combined with Garrettâs high leverage and competitive situation â create a substantial additional overhang on Garrettâs balance sheet and impede Garrettâs access to capital and its ability to execute its strategy. As a result, Garrett sees a substantial risk that it will not be able to distribute value to its stockholders in the future, despite its strong operating performance and compelling business prospects.
âGarrett is seeking to address its balance sheet concerns while its core business remains strong in order to preserve the resources necessary to provide exceptional service to its customers, be a reliable partner to its suppliers and other stakeholders, and act as a stable and desirable employer. Garrett has ample liquidity to support its current and future commitments to customers, suppliers, employees and other business partners without interruption, with available cash and undrawn revolver capacity totaling $482 million as of June 30, 2020.
âDespite the near-term disruption to the automotive industry and the global economy from COVID-19 and the companyâs over-levered capital structure, Garrett has continued its track record of operational excellence. However, Garrett believes the business must take important steps to maintain its leadership position in light of industry headwinds. In particular, coming out of this crisis, automakers will likely encounter even tougher emission reduction targets and technical challenges that will require new technology to be developed and funded by the major auto suppliers. At the same time, the industry also faces continued uncertainties over the longer-term impact of the pandemic, as well as risk of other similar macroeconomic shocks.
âWe believe that Garrett, with a restructured balance sheet and improved financial flexibility, will be uniquely positioned to bring customers the cutting-edge technologies and required solutions to benefit fully from a global regulatory environment driving future vehicle development. Additionally, Garrett will have the ability to invest to further strengthen its position as a market leader in turbocharger technology and expand its presence in the electric software and automotive software markets.â
Performance Friction Adds Sales & Marketing VP
Don Orrell has joined Performance Friction as its vice president of sales and marketing. Orrell has spent the last seven years with APC Automotive Technologies, including time as director of heavy-duty sales and director of sales â commercial vehicle for Centric Parts. His background also includes time as a national account manager with Bendix Commercial Vehicle Systems.
AASA I.P. Council Hosts Virtual Fly-Ins With Congressional Leaders
Members of the AASA Intellectual Property Council (IPC) met with congressional leaders in a series of Virtual Fly-In sessions July 22-23 regarding the need for legislation to protect automotive aftermarket suppliers and support future innovation in motor vehicle technology.
The conversations focused on the endorsement, co-sponsorship and passage of the Shop Safe Act (H.R. 6058), which would require online sellers to help prevent the sale of counterfeit products to consumers; and the Inform Consumers Act (S. 3431), which would provide for greater transparency of high-volume, third-party sellers on online retail marketplaces.
SPA Turbo USA Hires National Sales Manager
Kevin Floody is now the national sales manager at SPA Turbo USA in Mooresville, NC. Floody was director of client service for Kooks Headers & Exhaust. His background also includes time as director of international sales for AFE Power/Advanced Flow Engineering and international business manager with K&N Engineering.
Worksport Launches Website For Its Solar Panel Tonneau Covers
Worksport Ltd. has launched a website for its new TerraVis technology, which will combine tonneau covers with a solar generation and energy storage system.
According to the manufacturer of tonneau covers and truck accessories, solar panels built into the TerraVis tonneau cover will collect the sunâs rays and store energy in multiple battery banks. The energy stored can be used to provide power to an electric motor or can be removed and used remotely, such as for supporting a mobile workstation or powering a campsite.
The site launch marks the first release of design and application-related details for TerraVis. Management reports that Worksport is in discussions with parties interested in commercial partnerships, including late-stage talks with an undisclosed future electric truck manufacturer that would become become Worksport’s first OEM supply partner.
This comes as Worksport is working to build investment capital to aid in the next phases of development for TerraVis.
REDARC Electronics Hires Agency To Target North America
REDARC Electronics, an Australian manufacturer of electronics for off-road enthusiasts, has retained Idea Ranch of Tulsa, OK as its North American agency partner. The agency, which also maintains an office in Wichita, KS, provides advertising, public relations and consumer insights services to a variety of clients, including some in the outdoor vehicle segment, such as Yakima.
Idea Ranch is tasked with helping REDARC grow its footprint in the North American market. The companyâs product line includes voltage converters and inverters, battery chargers, power management systems, and brake controllers.
Barricade Off-Road Unveils New Sponsorship Program
Off-road parts provider Barricade Off-Road has launched a new sponsorship program for Jeep and truck enthusiasts. Barricade will provide free or discounted products, tools and perks to support participants as they create unique builds, attend car shows and meetups, and share exclusive content with their followers.
Participants can choose to be a âCoreâ team sponsor or an âEliteâ team sponsor, each with its own requirements and benefits. Potential brand ambassadors must be based in the United States and agree to promote the sponsored products in a positive manner. Additional information can be found here.
Wheel Pros Expands Its Domestic Manufacturing Capabilities
Wheel Pros â a manufacturer and distributor of branded automotive aftermarket wheels, performance tires and accessories â has acquired the assets of a 230,000-square-foot manufacturing facility in Auburn, AL. The move bolsters Wheel Prosâ cast wheel manufacturing capabilities in the United States, complementing its 220,000-square-foot cast wheel manufacturing operations in York, SC.
The Auburn facility previously produced wheels for OEMs but will be converted to an aftermarket wheel manufacturing facility under Wheel Prosâ ownership. The company expects to begin production of cast wheels within a few months and, in time, reach run-rate production of approximately 1.50 million wheels annually across its manufacturing footprint.
Wheel Pros is backed by the private investment firm Clearlake Capital.
Sept. 8 Webinar To Addresses Manufacturer, Distributor E-Commerce Issues
GCommerce Inc. is partnering with OptiCat LLC on a digital commerce webinar to be held Sept. 8. Presenters will include âŚ
⢠Clayton Lindgren, senior manager â country approval and brand protection for Bosch Automotive Aftermarket.
⢠Brian Rowland, vice president and general manager â automotive for Walmart.com.
⢠Paul DâCruz, vice president of marketing for Bosch Automotive Aftermarket.
⢠Todd Leimenstoll, co-president and CEO of the Auto-Wares Companies.
⢠Jon Sinclair, president of Parts Geek.com.
AACF Seeks Donations To Assist With Hurricane, Wildfire Aid
The Automotive Aftermarket Charitable Foundation (AACF) is making preparations to aid aftermarket families affected by hurricane Laura and the California fires. âIt is very early in the process, but our intention is to explore every avenue to identify aftermarket families that will need our help recovering from these natural disasters happening during a pandemic already causing untold hardship and stress for so many,â said AACF President Lynn Parker.
âClearly, we donât know what shape our response is going to take yet,â said Executive Director Joel Ayres. âThere are close to 600 fires in California, and this is just the start of the hurricane season. What we do know is weâre going to need the generous support of our industry to be in a position to respond effectively. We thank all of those who have already made contributions and welcome donations of any amount. Our thoughts and prayers are with all those who suffer during this profound time of crisis.â
Donations can be made online at aacfi.org/donate-today, by mail at P.O. Box 864520, Orlando, FL 32886, or by calling (772) 286-5500.
Safety-Kleen Reports Nearly 30% Drop In Q2 Direct Revenue
The Safety-Kleen segment of Clean Harbors Inc. reported $214.56 million in direct revenue for the third quarter of 2020 â a decline of 29.9% compared to the same period a year ago. Segment adjusted EBITDA fell 41.4% to $46.59 million.
Clean Harbors Chairman, President and CEO Alan McKim said that the coronavirus pandemic adversely impacted Safety-Kleen as shelter-in-place restrictions imposed early in the quarter substantially lowered vehicle miles driven across much of the United States. âThis resulted in a reduction in near-term demand for core offerings in our Safety-Kleen branch network as well as for base oil and finished lubricants in our Safety-Kleen Oil business,â McKim stated.
âAggressive cost actions enabled us to partly offset lower revenue in this segment,â he said. âWe also significantly raised our charge-for-oil (CFO) rates for used motor oil (UMO) as crude oil prices crashed and demand for our re-refined lube oil products and other outlets for waste oil shuttered.â
McKim noted that the company saw a measurable recovery from the lows experienced in April as both the U.S. and Canadian economies reopened in subsequent months. âWhile localized [virus] outbreaks have threatened to stall the progress in certain states or regions, we believe that the prudent cost actions we have taken should enable us to weather virus-related slowdowns,â he said.
Specific to Safety-Kleen, McKim said on Aug. 5 that the segment began the third quarter on a positive trajectory yet still remained below prior-year levels.
âThe branch business continues to improve as summer-related driving increases demand for our services. We are monitoring the impact of new shelter-in-place mandates, but the recent rise in COVID cases so far has not derailed our recovery in the Safety-Kleen branch business,â McKim said. âFor Safety-Kleen Oil, we have seen base oil and lubricant demand rebound, and we restarted production in July at two of the four re-refineries that we had temporarily closed. We will continue to actively manage our CFO rates to reflect the value of the waste oil and the collection services we are providing.â
Safety-Kleen environmental services revenue is generated from providing parts washer services, containerized waste-handling and -disposal services, oil collection services, vacuum services, direct sales of blended oil products, and other complementary services and product sales.
Safety-Kleen Oil generates revenue from the sale of base and blended lubricating oil to third-party distributors, government agencies, fleets, railroads and industrial customers. The business also sells recycled fuel oil to asphalt plants, industrial plants, and pulp and paper companies. The used oil also is processed into vacuum gas oil, which can be further re-refined into lubricant base oils or sold directly into the marine diesel oil fuel market.
Openbay Adds Business Benefits Feature To Its Otis Platform
Openbay has added a new feature to its Otis platform, Business Benefits Cards, which is intended to highlight the value and amenities a business offers its customers. With Business Benefits Cards, shops can convey their value when visitors request price estimates and prior to booking service appointments during conversations with the AI-powered online chat platform, Otis.
All benefit statements are customizable and specific to a given business, and an unlimited number of benefit statements can be displayed. Examples of benefit statements include âŚ
⢠Three-year, 36,000-mile nationwide warranty.
⢠Free 24-point inspection included with all services.
⢠Contactless payment processing.
⢠AAA automotive service center.
⢠Interest-free financing for six months.
Business Benefits Cares are currently available for customers with paid subscriptions and for businesses that are currently in a trial with Otis. Pricing is included in the base subscription.
Shop Software Provider Gets $25 Million In âSeries Bâ Funding
Shopmonkey of San Jose, CA has landed $25 million in âSeries Bâ funding led by Bessemer Venture Partners with participation from Index Ventures, e.ventures and I2BF. This brings Shopmonkeyâs total capital raised to $35 million in less than one year.
With the investment, Byron Deeter of Bessemer is joining Shopmonkeyâs board of directors.
Shopmonkey is a cloud-based system for repair shops that includes appointment scheduling, digital vehicle inspections, parts ordering, customer communications and payment processing.
Group 1âs U.S. Customer-Pay Revenue Decreased 14.1% In Q2
For the second quarter of 2020, Group 1 Automotive saw its consolidated parts and service revenue fall 25.4% to $282 million. On a same-store basis, consolidated parts and service revenue declined 26% mainly because of the impact of stay-at-home orders related to the coronavirus pandemic.
Consolidated parts and service gross profit dropped 26.5% to $150 million (down 27.2% on a same-store basis), while gross margin slipped from 54% to 53.2% on a year-over-year basis.
Group 1âs U.S. parts and service revenue came in at $254.20 million, which was down 17.9% compared to the second quarter of 2019. Business recovered steadily in May and June, according to management.
On a same-store basis, U.S. parts and service revenue declined 19% to $249.30 million, attributable to a âŚ
⢠14.1% decrease in customer-pay revenue.
⢠35.2% drop in collision revenue.
⢠23.2% decline in warranty revenue.
⢠14.9% dip in wholesale parts revenue.
U.S. parts and service gross profit fell 18.9% to $135.60 million (down 20% on a same-store basis), while gross margin decreased from 54% to 53.3% on a year-over-year basis. Itâs worth noting that June 2020 customer-pay gross profit was up compared to June 2019.
Houston-based Group 1 owns and operates 186 automotive dealerships (242 franchises) and 49 collision centers in the United States, United Kingdom and Brazil.
Asburyâs Same-Store Customer-Pay Gross Profit Declined 32% In Q2
The Asbury Automotive Group reported $169.20 million in parts and service revenue for the second quarter of 2020 â a decrease of 24.6% compared to the same period a year ago. Same-store service and parts revenue declined 23.8%, which breaks down as âŚ
⢠Same-store customer-pay revenue down 23%.
⢠Same-store warranty revenue down 22%.
⢠Same-store wholesale parts revenue down 29%.
According to Asbury, its parts and service business operated well below capacity during the quarter as consumer fears about becoming ill with coronavirus and shelter-in-place orders adversely affected traffic to the companyâs dealerships and resulted in motorists driving fewer miles. However, Asburyâs parts and service business showed signs of recovery toward the end of the quarter.
The companyâs parts and service gross profit declined 28.5% to $100.50 million. Same-store parts and service gross profit decreased 27.6%, which breaks down as âŚ
⢠Same-store customer-pay gross profit down 32%.
⢠Same-store warranty gross profit down 23%.
⢠Same-store wholesale parts gross profit down 11%.
During the quarter, Asbury provided wage guarantees to certain skilled technicians, which negatively impacted its parts and service gross margin. Additionally, the companyâs parts and service business was negatively impacted by lower miles driven related to shelter-in-place orders and people working from home.
Duluth, GA-based Asbury owned and operated 102 new vehicle franchises (83 dealership locations), as well as 24 collision repair centers, in 16 metropolitan markets across nine states as of June 30, 2020.
Fix Network Canada Names Marketing, Communications Director
Fix Network Canada of Milton, Ontario has named Somer Mullins as its director of marketing and communications for Canada. Mullins works with Fix Networkâs leadership to identify strategic marketing opportunities that promote the value of being part of a network as well as drive awareness and engagement for the Fix Auto, NOVUS Glass, Speedy Auto Service and ProColor Collision brands.
Mullins brings more than 15 years of agency and corporate marketing experience, including time with the Ford Motor Companyâs Customer Service Division in Detroit, where she helped mobilize efforts for its extended service plans, Motorcraft Accessories and Quick Lane businesses.
Her agency work included supporting the development of the Ford Owner Advantage Rewards program in addition to servicing Audi and PartSource Canada.
Dayco Announces New Hire, New Customer For Heavy-Duty Unit
Dayco Products has announced Ron Barnes as its national commercial vehicle business development manager. Barnes comes to Dayco from Tenneco Inc., where he was a strategic account manager for U.S. commercial vehicle customers.
He now leads Daycoâs recently formed heavy-duty aftermarket group. Barnes is responsible for developing and expanding the companyâs brand presence with all heavy-duty and fleet customers nationwide, including its newest account, the Midwest Wheel Company.
Midwest Wheel is the largest member of the HDA Truck Pride group and one of the largest distributors of heavy-duty parts in the Midwest. Midwest Wheel has six locations in Iowa and Missouri.
EnPro Finds Buyer For Motor Wheel, Crewson Assets
EnPro Industries on Aug. 14 announced a definitive agreement to sell all assets related to its Stemco Motor Wheel brake drum and Crewson brake adjuster brands to Hendrickson USA. The sale is expected to close in the current quarter.
âAfter announcing the exit of Stemcoâs Motor Wheel brake drum and Crewson brake adjuster brands on June 25th, we were pleased to receive an offer from Hendrickson to purchase the assets and to continue operating the business,â President and CEO Marvin Riley said in a press release. âThis transaction represents a positive outcome for all stakeholders as it preserves the jobs of our work force and mitigates customer disruptions, while providing EnProâs shareholders a fair valuation for the assets of the business.â
Bendix CVS Elevates Three To Senior Executive Positions
Bendix Commercial Vehicle Systems has appointed three longtime members of its leadership team to newly created senior executive positions. Each will lead a center of competency (COC), overseeing multiple product groups and becoming members of the Bendix Leadership Committee.
Taking new leadership positions are âŚ
⢠Aaron Schwass as vice president â COC Wheel-End NA and general manager of Bendix Spicer Foundation Brake.
⢠Mark Kromer as vice president â COC Air Supply and Drivetrain NA.
⢠Mike Tober as vice president â COC Brake Control NA.
The trio joins the leaders of the companyâs other COCs: Claus Beyer as vice president â COC Advanced Driver Assistance Systems/Highly Automated Driving NA and chief engineer; and John Kemer as vice president â COC Steering NA and general manager of Bendix.
All five are responsible for product strategic market alignment.
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People Watching 8/31/20
⢠Jennifer Harris has retired from Fiat Chrysler Automobiles (FCA), where she was senior manager for the MOPAR merchandise portfolio and e-commerce sales channel. At FCA, Harris also served as manager for the Magneti Marelli portfolio.
⢠Mike Timmons â former vice president of sales â Jeep and off-road for Rugged Ridge, Omix-ADA, AlloyUSA, Havoc, SuperLift and Rampage at Truck Hero â is now a sales executive for the Smash Suites division of Kennect Inc. Timmons also has been a rep with Wes-Coast Marketing and SS Sales & Marketing.
⢠Wayne Hancock has joined West Direct Oil, a fuel and lubrication products distributor, as a regional sales manager. He previously worked for Exide Technologies as a regional sales manager.
⢠Shaun McAlmont has joined BorgWarner Inc.âs board of directors. McAlmont, an education and workforce development expert, is the president of career learning solutions at K12 Inc., a provider of online education programs, skills training and talent development. He also is a former CEO of Lincoln Educational Services, which includes the Lincoln Tech automotive training schools.
⢠NASCAR has appointed President Steve Phelps to its board of directors, joining Chairman and CEO Jim France; Executive Vice Chair Lesa France Kennedy; Mike Helton, senior adviser to NASCAR; and Chief Legal Officer Gary Crotty. Phelps has served as president since 2018 and has been with NASCAR in various roles, including COO, since 2005. He is only the fifth person to hold the position of NASCAR president.
⢠Yong-Sik Shin, president and CEO of Kumho Tireâs American business division, has been elected to the U.S. Tire Manufacturers Association (USTMA) board of directors. Additionally, USTMA has extended the term of current board chair Steve McClellan through October 2021. McClellan is The Goodyear Tire & Rubber Companyâs Americas president.
News Briefs 8/31/20
⢠The SEMA Memorial Scholarship Fund is awarding $307,000 to 106 people this year, including scholarships for current students and loan-forgiveness awards to employees of SEMA-member companies. Click here for more information on the award winners.
⢠The Custom Automotive Network (CAN) is now accepting nominations for its 2020 member awards, including Person of the Year, Manufacturer of the Year and Manufacturer Sales Rep of the Year. All nominations must be received by Sept. 4. Award winners will be announced at the 2020 CAN Connect Virtual event scheduled for Oct. 5-9.
⢠The Automotive Distribution Network has added a number of Spanish-language courses to Network Academy, including basic labscope connection and setup, electronic throttle, HVAC controls, vehicle electronics fundamentals and voltage drop testing techniques. For more information, visit thenetworkacademy.com.
⢠Keystone Automotive Operations now offers the complete line of Champion Blue Flame diesel engine oil in addition to more than 300 other Champion lubricant products.
⢠Total Sealâs Gas Ported Rings are now in stock at Summit Racing Equipment.
⢠Kentucky-based Q-One Trading is now an official Onyx Coating partner. Onyx makes car interior and exterior protection products, including fabric and leather coatings and paint protection wax.
⢠G Force Performance Products has added engine stands to its product lineup. Advanced Resources LLC designed the two new stands specifically for G Force to support LS and Chevy Big and Small Block engines. Both are available at crossmembers.com.
⢠1A Auto has joined ShowMeThePartsâ âBuyNowâ program, which allows users to link directly to the parts for which they are searching. 1A Auto brands include DIY Solutions, TRQ and Trail Ridge.
⢠The Illinois Auto Truck Company â a manufacturer of new clutch assemblies, supplemental clutch parts and flywheels â has joined the OptiCat Network. The cloud-based, supplier-controlled distribution mechanism includes data validation and secure distribution of proprietary data to specifically chosen channel partners.
⢠DMA Sales LLC has announced a new mobile-friendly Tekmaster e-catalog that allows users to search for parts by year, make and model.
⢠Shares of GSP Automotive Group, a global undercar products manufacturer, are now listed on the mainboard of the Shanghai Stock Exchange.
⢠CRP Automotive has introduced a new line of Rein Automotive brake vacuum pumps designed for applications on popular European makes.
⢠Mitchell 1 MessageCenter, a texting app integrated with the Manager SE shop management system, is now available in Canada.
⢠Sensata Technologies has acquired PRECO Electronics, a safety technology company based in Idaho, a move that extends Sensataâs capabilities in vehicle collision avoidance systems for the industrial and heavy-vehicle on- and off-road markets.
Event & Trade Show Briefs 8/31/20
⢠The Import Vehicle Community of the Auto Care Association has produced a new episode in its âCoffee & Conversationâ series featuring Steve Hughes of HCS International and Tom Tucker of the Auto Care Association discussing liability protection, hazard pay legislation and its impact on the aftermarket, and changes in workersâ compensation laws as it relates to the coronavirus pandemic. Click here to listen.
⢠Bill Hanvey, president and CEO of the Auto Care Association, and Mike Wall, executive director of automotive analysis at IHS Markit, will deliver an executive industry briefing Sept. 24 in conjunction with the associationâs Fall Leadership Days virtual event. Hanvey and Wall will discuss the coronavirus pandemicâs impact on the aftermarket and the economy, as well as the âRight to Repairâ vote in Massachusetts. Click here to register for more information on the briefing.
⢠Alison Burham, vice president of data science at RepairSmith, will discuss vehicle technology, aftermarket business processes, and the use of telematics data to understand the service and parts needs of a fleet of passenger vehicles during a panel discussion at the AASA Technology Conference, a virtual event scheduled for Sept. 28-30. Visit aasatech.com for more information or to register for the conference.
⢠The Association for Sustainable Manufacturing (MERA) will host a virtual conference Oct. 5-6. Re-Connection 2020 will include two remanufacturing town hall events, an international remanufacturing panel, key customer address and networking opportunities. Registration is now open. Click here for additional information.
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