Special Show Week Schedule
To accommodate the flow of news coming out of Las Vegas during AAPEX, SEMA and the myriad other events leading up to the show and during show week, we are publishing three issues of The Greensheet over a two-week period. The publication dates of each of those issues are …
• Issue #40 – Friday, Oct. 29.
• Issue #41 – Thursday, Nov. 4.
• Issue #42 – Tuesday, Nov. 9.
We believe this schedule will help us keep you, our subscribers — including a large portion of you who are attending events in Las Vegas and traveling during this time — apprised of the news during a hectic time.
Jefferies Comments On Aftermarket In-Stocks, Supply Chain Issues
In an Oct. 19 report on the U.S. automotive aftermarket titled “Interesting Topics into Q3 Reports,” Jefferies LLC analysts Bret Jordan, Mark Jordan and Ethan Huntley noted that recent channel commentary suggests that Advance Auto Parts saw some in-stock headwinds in the third quarter within the chassis segment given its recent shift to direct import in the category.
“As a result, it appears O’Reilly Automotive and AutoZone Inc. may have seen some benefit in Q3 as customers noted O’Reilly’s industry-leading supply chain and in-stocks and improved parts quality at AutoZone,” they wrote. “We note, however, that Advance appears to have straightened out the chassis in-stock issue and is in a competitive position moving forward.”
Jefferies’ report also stated that general aftermarket demand remains strong with well-publicized supply chain issues a much greater challenge than consumer demand. And, in regard to inflation, the analysts noted that second-half pricing appears to be up over 3% and that technician wages appear up more than 10%.
“While shipping capacity remains tight, pricing appears to have eased slightly,” the analysts wrote. “We recently heard from a parts importer that shipping costs have moderated slightly though still remain highly variable. And, while capacity remains a challenge, it appears container availability has improved modestly.”
Advance Auto Parts Honors Vendors
Advance Auto Parts has presented its 2021 Vendor of the Year award to the flow control solutions company Gilmore. Also recognized at the company’s Partner Growth Summit were …
• New Vendor of the Year: Solmark International and Action Sales & Marketing.
• Strategic Initiative Vendor of the Year: Amalie Oil Company.
• Strategic Initiative Vendor of the Year: Clarios.
• Superior Availability Vendor of the Year: Anchor Industries.
• Professional Excellence Vendor of the Year: Motorcar Parts of America.
NAPA In Battery Pact With AAA
NAPA Auto Parts and AAA have executed an agreement for NAPA to be the exclusive auto parts supplier for AAA’s new branded premium battery. According to comments made by Genuine Parts Company Chairman and CEO Paul Donahue during GPC’s Oct. 21 earnings call, the battery will be available to all consumers, with a focus on the over 62 million AAA cardholders and 5,400 approved auto repair centers.
GPC Buying AutoAccessoriesGarage
The Genuine Parts Company (GPC) has signed a definitive agreement to acquire AutoAccessoriesGarage, a U.S.-based digital platform specializing in automotive accessories. According to comments made by GPC President Will Stengel during the company’s Oct. 21 earnings call, the digital acquisition adds new capabilities and accelerates a strategic product category for GPC’s U.S. automotive team.
The transaction is expected to close in the fourth quarter of 2021.
GPC Reports 8% U.S. Comp Sales Growth;
Canadian Comps Essentially Flat
The Genuine Parts Company’s third-quarter 2021 net sales increased 10.3% to $4.82 billion, attributable to a 7.6% rise in comparable sales, a 1.8% benefit from acquisitions and a 0.9% net favorable impact from foreign currency and other items.
GPC’s gross profit rose 12.0% to $1.71 billion, and its gross margin improved 50 basis points to 35.5%. Net earnings grew 0.5% to a record $228.59 million. It was the second consecutive quarter of record earnings for the company.
Taking a closer look at GPC’s financials, we see that Automotive Group sales rose 8.2% to a record $3.20 billion in the third quarter of 2021, attributable to a 4.8% global increase in comparable sales, a 2.4% benefit from acquisitions and a 1.0% net favorable impact from foreign currency and other items.
Compared to the third quarter of 2019, sales were up 15%. Comp sales were up 7% on a two-year stack, with the Automotive Group’s strongest year-over-year comps coming from the U.S. business.
In terms of cadence, Chairman and CEO Paul Donahue told analysts on the company’s Oct. 21 earnings call that Automotive Group sales held up well through the quarter, with the strongest average daily sales volume in each geography coming in September.
NORTH AMERICA … Total U.S. Automotive Group sales were up 9%, and U.S. comp sales increased 8% from last year and were up 5% on a two-year stack.
Donahue said on the call that U.S. sales were driven by strong demand for such product categories as exhaust, ride control, brakes, tools and equipment, which all outperformed. In addition, both retail and commercial ticket and traffic counts were positive for the third consecutive quarter.
By customer segment, sales to both commercial and retail customers held strong, with DIFM sales outperforming DIY for the second straight quarter.
Regarding the commercial side of the business, sales to major account partners were strongest with mid-teens growth, followed by sales for NAPA AutoCare customers, which were up low double digits. “We would add that our NAPA AutoCare membership has surged with the reopening of markets and includes nearly 400 shop upgrades thus far in 2021,” Donahue said.
Fleet, government and other wholesale customers also posted high single-digit growth for the quarter.
In Canada, total sales were up 1% with comp sales essentially flat both year-over-year and on a two-year stack, attributable to lockdowns in major markets having slowed the recovery. “It’s been encouraging to see these restrictions easing of late, which should lead to stronger demand through the final three months of 2021,” Donahue said.
ELSEWHERE … Donahue told analysts that the Alliance Automotive Group (AAG) in Europe continued to perform well with total sales up 8% for the third quarter of 2021 and up 23% on a two-year stack. Comp sales increased 2.5% from last year and were up 14% on a two-year stack.
“While the U.K. and Benelux continue to stand out with really strong results, we were pleased with solid results in each of our seven European markets — a reflection of stable market conditions and execution of our key sales initiatives,” Donahue said. “These include the continued rollout of the NAPA brand and ongoing emphasis on key account development, which are driving market share gains.”
During the quarter, AAG acquired J&S Automotive Distributors, an auto parts distributor in Ireland. The acquired business, which includes the subsidiary Auto Components Northern Ireland, trades from three distribution centers in Dublin, Cork and Omagh, and boasts annual sales of approximately $40 million.
J&S will continue to be run by its existing management team under the leadership of Alan Gaynor.
The transaction marks the first step in building a distribution infrastructure in the Irish market to match that of AAG’s U.K. infrastructure. Ireland represents the 15th country in which GPC operates.
Meanwhile, GPC’s Asia/Pacific total sales were up 2% for the third quarter of 2021 and up 18% on a two-year stack. Comp sales were up slightly from last year and up 15% on a two-year stack with both commercial and retail sales up double digits, attributable to positive growth with both the Repco and NAPA brands.
“We are really pleased with these results given the severe lockdowns in the major markets of Sydney, Melbourne and Auckland during much of the quarter,” Donahue said. “We’re energized to see that the reopening of these markets is finally getting underway, and we expect a surge in demand in the coming months.”
INFLATION & SUPPLY CHAIN … On a total company basis, management estimates a 3% inflationary impact on its third quarter 2021 sales, with global automotive inflation at 3.5%. “Based on current trends, we expect to see additional price inflation in the fourth quarter, and we will utilize our strategies to protect our gross margin as appropriate,” Executive Vice President and CFO Carol Yancey said on the call.
Yancey estimated that fourth quarter 2021 global automotive inflation will be in the 3% to 4% range, slightly higher in U.S. automotive than in international automotive.
“Supply chain disruptions have been more substantial for U.S. automotive than in our international or industrial operations, and we continue to work closely with our global suppliers to manage through these issues and ensure we have the right inventory available for our customers” Donahue told analysts. “We are confident in the effectiveness of our global sourcing team and believe we are well-positioned in the industry.”
During the call, he also said: “As we size up the business climate and how we are managing through the recovery, we can report the GPC team is generating positive momentum in both our sales and operating results, and we are well positioned for both near- and long-term growth. Despite inflationary pressures, our margins reflect the success of our category management initiatives and cost control efforts, which have offset these increases. And finally, our strategic efforts with our global supplier partners have prevented significant shortfalls in our overall inventory levels, allowing us to deliver quality customer service.”
LOOKING AHEAD … Management has increased its full-year 2021 outlook in light of recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, and uncertainty surrounding the COVID-19 pandemic and its potential impact on GPC’s results.
The company now expects to report total sales growth of 12% to 13% — up from the 10% to 12% guidance issued on July 22. Full-year automotive sales growth is now forecast to come in between 14% and 15% — up from 11% to %13 in GPC’s prior guidance. — Marc Vincent
APA Adds Marketing Director
Automotive Parts Associates (APA) has hired Jan Larson as its director of marketing. Prior to joining APA, Larson spent nearly 35 years with the Automotive Distribution Network in various areas of the organization. She has experience in virtually every aspect of group management, including marketing, human relations and general office management.
Larson is now responsible for creating APA promotions and communication pieces, as well as creating and managing advertising.
Obituary: Rayburn Bryant, Retired AutoZone Merchandiser, Manufacturer’s Rep
Rayburn Bryant, retired AutoZone merchandiser and manufacturer’s rep, died Oct. 6. He was 73.
Bryant had a long career with AutoZone. According to his funeral home obituary, he was one of the founding members of the starter club for Autoshack/AutoZone, where he opened the first five of what are now AutoZone stores.
Toward the end of his time with AutoZone, Bryant spent about five years supervising product managers in the buying group for salesfloor items and roughly seven years as the director for visual display and merchandising concepts. He retired from AutoZone in 2001.
A year later, Bryant became vice president of sales for the aftermarket rep firm PSKB. The accounts he called on were AutoZone and TruckPro. He retired from PSKB in 2013.
Robert Brannon, a partner at PSKB, said Bryant’s drive to always do the right thing made him a stand-out in the industry.
“One of the most memorable things about Rayburn was that he had a great moral compass,” Brannon said. “Whether it was when he had the role of a merchant at AutoZone or later in his career as a sales rep, he always tried to do what was right. It was ingrained in him, and he never wavered.
“He was honest, fair and forthright. I think you would have a hard time finding someone who would have a negative comment about Rayburn, whether personal or business-related. He was a fine and selfless man who had an impact on a great number of people in the aftermarket. He will be missed.”
The family requests anyone wishing to make donations to give to the AutoZoner Assistance Fund, 123 S. Front St., Memphis, Tennessee 38103 or to St. Jude Children’s Research Hospital.
Obituary: John Kilroy, Former VP/GM Of Performance Racing Industry
John Kilroy, former vice president and general manager of Performance Racing Industry (PRI), has died after a long battle with cancer. Kilroy spent more than 25 years with PRI, publishing its monthly magazine for the racing and performance industry. He also produced the annual PRI Show for many years.
More recently, Kilroy joined EPARTRADE in 2018 as chief of content and audience development, and was responsible for developing and implementing the overall content strategy for the company.
On Oct. 6, Kilroy’s son, Jake, a Los Angeles-based journalist and film producer, penned a moving tribute to his father on EPARTRADE’s website. Using a multitude of glowing adjectives, the younger Kilroy spoke of his father’s profound influence on his life and the other lives he touched.
“He was vibrant, funny, wise, honest, grounded, pensive, insightful and kind, but he didn’t take shit,” Jake Kilroy said. “My dad was just a social, adaptable guy who didn’t believe in pretense and was able to meet anyone on their level.
“You could drop him anywhere, and he’d strike up a conversation that led with him earnestly asking questions. He was interested in people, whether they were a lifelong friend or a shy acquaintance. Whether tyke, teen or tycoon, he approached them with the same curious and cheerful spirit. He rooted for others regularly, complimented them directly and shared himself openly, hoping others would do the same.”
Francisque Savinien, founder and CEO of EPARTADE, met Kilroy in 1999 when he was hired to develop PRI’s international market. Savinien came to PRI from his native France and recalls bonding with Kilroy over French culture.
“What a lot of people don’t know about John is that he was not only a racer and racing guy but a brilliant writer,” Savinien said. “He was the first person I met when I came to PRI, and we bonded right away because he loved French poetry and literature.”
When SEMA acquired PRI, Kilroy became Sevinien’s boss, and the two often traveled globally together to generate business, he recalled.
“John was just incredibly smart, eloquent and funny man,” Sevinien said. “He had a huge understanding and appreciation of the industry. He believed in me from day one, and he also understood that the world was changing. He realized that marketing was going global and was instrumental in bringing international buyers to the SEMA Shows and also did a lot to help U.S. companies sell overseas.”
When Sevinien left PRI to start EPARTRADE, he appealed to his former boss to come out of retirement and get on board with the new venture. Kilroy agreed and made his mark in the few short years he was part of the organization.
“He was instrumental in the launching of EPARTRADE,” Sevinien said. “He was with us until the end.”
Peter MacGillivray, senior sales rep at the MotorTrend Group, worked with Kilroy after SEMA acquired PRI. He knew Kilroy as both a competitor and later a collaborator, and recalled his passion for the racing industry.
“I first met John when we were both competing for business in the racing industry,” MacGillivray said. “Years later, we became collaborators when SEMA acquired PRI. As a competitor and collaborator, John defined himself by his love for the industry and his passion for racing, his family and the written word. I will always cherish the moments I had with him.”
Bill Miller, SEMA senior vice president of operations, worked side-by-side with Kilroy during SEMA’s PRI acquisition and recalled his devotion to the industry.
“John was a great ambassador for PRI, SEMA and the industry as a whole. He and I spent hours talking PRI before the deal [with SEMA] was finalized, and we worked hand-in-hand in those early years to successfully integrate our teams,” Miller said. “I always appreciated his upfront and candid demeanor. He was a man of great integrity. I only hope he and Robin Miller are bench racing up in heaven.”
Steve Cox Joins A Restructured Turbo International As President, CEO
Northern Cross Partners, a Los Angeles-based private equity firm, has announced that its ownership and restructuring processes has concluded at Turbo International in Carlsbad, CA, effective Oct. 18.
Turbo International, founded in 1989, manufactures and distributes turbocharger assemblies, cartridges and component parts along with related fuel delivery products to a global customer base. Markets served include automotive, heavy duty, industrial, agricultural and marine through distribution points in the United States and Europe.
Steve Cox is now the president and CEO of Turbo International. Cox was COO of the Hanson Distributing Company, where he had worked for a little over 10 years. Prior to that, he was a director of sales for Dorman Products.
Cox’s career also has included time as a vice president and general manager with the Pacific Supply Company, as well as a vice president of merchandising, senior merchandising manager and director of marketing at Parts America/Auto Expo/Cardis.
ZF Aftermarket Announces VP, Aftermarket For North America Region
ZF Aftermarket has announced Ben Smart as the vice president – aftermarket for the North America region composed of the United States, Canada, Mexico, Central America and the Caribbean.
Smart has more than 15 years of sales and marketing management experience across the financial, business and commerce sectors. He has been with the ZF Group since 2015 and TRW Automotive (prior to the ZF acquisition) since 2010.
Most recently, Smart was head of the independent aftermarket business unit, responsible for driving the overall growth and strategy of the business segment in North America. He also held the position of global marketing and communications director for the aftermarket, where he was involved in the growth and rollout of the TRW Corner Module in addition to the rebranding projects of ZF Aftermarket after the acquisition of TRW Automotive.
In his new role, Smart will drive aftermarket regional growth for both the independent aftermarket and OES business lines for the passenger car aftermarket, commercial vehicle aftermarket, industrial and new mobility aftermarket, and digital services, reporting to Philippe Colpron, executive vice president and head of ZF Aftermarket.
DMA Sales Hires Vice Presidents
Loris, SC-based DMA Sales has announced the additions of Gary Hertzog as vice president of automotive aftermarket sales and Ray Glunz as vice president of supply chain.
Hertzog is responsible for developing and leading DMA’s strategic sales strategy across all automotive aftermarket sales channels. His career spans 30 years in automotive OES and aftermarket sales and marketing.
Most recently, Hertzog was director of retail sales for Mann+Hummel Filters, where he oversaw sales teams for both branded and private-label sales in the big box retail and e-commerce segments of the aftermarket. From 2006-‘15, he worked for Trico Products/AVM Industries in a variety sales and marketing roles, including executive director of sales. Hertzog’s background also includes time with Perfection Clutch and Dorman Products.
Glunz is responsible for directing and planning all aspects of DMA’s supply chain operations, initiatives and strategic objectives. He brings 30 years of supply chain, material management and operations experience, most recently as director of operations for Terlato Wines International.
Plews & Edelmann Names Director Of Retail Sales
Dixon, IL-based Plews Inc., which does business as Plews & Edelmann, has announced Ken Glaser as director of retail sales. He is responsible for key accounts in the automotive retail channel nationwide, reporting to Tony Edwards, vice president of business development.
Glaser has more than 25 years of sales and business development experience, most recently as vice president of business development for the automotive division of Alltrade Tools. He also spent nearly 20 years with General Cable Corp., including time as its director of U.S. automotive sales.
Snap-on Tools Group Reports 3.7% Organic Sales Growth
Snap-on Inc. saw its net sales increase 10.2% to $1.04 billion in the third quarter of 2021, reflecting a $67.00 million (or 7.0%) organic sales gain, $19.50 million in acquisition-related sales and $9.60 million in favorable foreign currency translation.
Notably, net sales in the period increased 15.1% when compared to the third quarter of 2019 (pre- COVID-19 pandemic), reflecting an 11.1% organic sales gain.
The company’s gross profit came in at $520.70 million — an increase of $51.20 million, or 10.9%, compared to a year ago. Consolidated gross margin improved 30 basis points to 50.2%. And, Snap-on’s net income rose 9.1% to $201.50 million.
“We’re encouraged by our third quarter performance as it reflects the ongoing positive trajectory of our businesses and represents our fifth consecutive period of advancement beyond the pre-pandemic levels of 2019,” said Nick Pinchuk, chairman and CEO. “The continued momentum of our operations demonstrates the varied and abundant opportunities along our runways for growth and, we believe, confirms the resilience of our markets and our considerable capabilities to overcome the challenges of the COVID environment.”
TOOLS GROUP … The Snap-on Tools Group (TG) saw its net sales increase 4.8% to $471.40 million, attributable to a 3.7% organic sales gain and $4.90 million in favorable foreign currency translation. According to management, the organic sales increase reflects a mid single-digit gain in TG’s U.S. business and a low single-digit gain in its international operations.
By product line, hand tools were down in the third quarter of 2021 versus exceptionally strong prior levels, while bigger ticket items were up double digits in aggregate — something of a reversal of what has been going on lately at TG.
It’s worth noting that segment net sales were up 22.4% when compared to the third quarter of 2019, with organic sales up 20.6%.
TG’s gross margin improved 30 basis points to 45.8% from last year and 130 basis points compared to the third quarter of 2019.
Segment operating earnings rose 12.7% to $98.20 million, and its operating margin improved from 19.4% to 20.8% on a year-over-year basis.
REPAIR SYSTEMS & INFORMATION … Repair Systems & Information (RS&I) net sales rose 14.8% to $364.40 million, reflecting a 9.9% organic increase, $12.00 million in acquisition-related sales and $3.20 million in favorable foreign currency translation.
According to management, RS&I experienced a strong double-digit rise in undercar equipment along with a double-digit increase in sales of diagnostic and repair information products to independent shop owners and managers. However, activity focused on OEM dealerships was essentially flat.
For comparison sake, segment net sales increased 12.9% compared to the third quarter of 2019, with organic sales up 7.4%.
RS&I’s gross margin slipped from 47.3% to 46.8% for the third quarter of 2021, primarily attributable to the impact of higher sales in lower gross margin businesses, increased material and other costs, and unfavorable foreign currency effects.
Segment operating earnings increased 4.0% to $83.30 million; however, its operating margin decreased from 25.2% to 22.9% on a year-over-year basis. — Marc Vincent
E.R.I. Group Grows In Maritimes
The E.R.I. Group expects to open an Independent Parts Warehousing (I.P.W.) distribution center on Baig Boulevard in Moncton, New Brunswick on Nov. 1. Marshall Jardine will be its branch manager. Jardine is a veteran of Clevite Engine Parts and Ertel Manufacturing Corp. of Canada.
A.R.E. And The AAM Group Partner On Custom Website Modules
The AAM Group is partnering with A.R.E. on creating custom web modules to be used on Aftermarket Websites, AAM’s e-commerce and product-data platform for resellers.
Instead of building their own pages, Aftermarket Websites reseller partners that also are authorized A.R.E. dealers can now enable these modules on their sites to help them market and sell A.R.E. truck caps. Prebuilt by A.R.E., the pages are current and accurate, helping resellers make product presentations to customers.
Part of the Truck Hero family of brands, A.R.E. is a manufacturer of aluminum and fiberglass truck caps, truck bed covers, canopies, shells and similar products.
AAM plans to expand this initiative to include custom web modules for other regional and national service provider groups in the automotive aftermarket.
2021 SEMA Launch Pad Finalists Announced
The 2021 SEMA Launch Pad finalists are …
• Jonathan Hurley, owner of ToolBox Widget, whose product is a modular tool organizer that allows a mechanic to connect as many tool organizers together as needed, making them customizable to the mechanic.
• Brendan McGrath, CEO of Dyme Performance Systems, whose product, Rattlesnake Toolkit, can measure the length and angle of a hose assembly down to the millimeter, reducing time and cost.
• Kevin Robinson, president of TRAC LLC, whose product, TRAC Tire Rotation Assistance Cart – Tool, is designed to lift and remove a wheel from a vehicle during service, reducing workplace injuries and increasing productivity.
• Tom Sawarynski, owner of Off-Road Research, whose product, Smart Cap Module, allows any aftermarket shock absorber with a bridge- or remote-mounted reservoir to broadcast damper position to an external module or modules.
• Dustin Woolf, owner of Woolfpack Racing, whose product, Natural Nitrous, is a stand-alone refrigerated system for the air induction of a motor. It lowers the air charge and dehumidifies the moisture to increase horsepower and lower emissions.
The finalists will compete for the grand prize during the 2021 SEMA Show in Las Vegas. SEMA Launch Pad is a product-pitching competition designed to encourage automotive entrepreneurship and help inventors launch new products into the marketplace.
To watch the video in which the judges selected the five finalists, or to learn more about SEMA Launch Pad, visit sema.org/launchpad.
Continental’s Autodiagnos Drive Delivers Live Vehicle Diagnostic Data To Service Providers, Fleets
Continental has launched Autodiagnos Drive, a remote vehicle data solution designed to deliver advanced diagnostic information for service providers, fleet managers and repair facilities. The plug-and-play technology provides users with live access to extended vehicle diagnostic data for all popular makes and models of passenger cars, light trucks and commercial vehicles, according to the company.
Continental hosts the platform, which integrates with customers’ own service platforms via APIs. This gives shops, fleets, insurance providers, roadside service providers and owner-operators access to generic as well as OEM-specific vehicle data tailored to their needs.
According to Continental, the hardware is built to OEM standards, using diagnostic data purchased or licensed directly from OEMs.
Fullbay Launches Fullbay Marketplace, Partners With FinditParts
Fullbay, a turn-key platform designed to improve the operational efficiency of heavy-duty repair shops, is introducing Fullbay Marketplace, a tool intended to streamline the parts-purchasing process for independent shops and fleet maintenance departments. According to the company, the new feature eliminates multiple steps related to ordering parts, saving time, maximizing searchability and simplifying the vendor interface.
Fullbay Marketplace is touted as an integrated parts-purchasing tool that allows shops to view parts cost, availability and shipping times across vendors and then perform a single-click order. Additionally, the system allows users to drill down on landed costs for each part.
The Fullbay Marketplace module, which is free to all Fullbay customers, is launching with FinditParts as its first integrated parts vendor. FinditParts.com is an e-commerce provider of heavy-duty truck and trailer parts.
On Oct. 26, Fullbay and FinditParts will conduct a webinar on overcoming the current parts shortage, including how Fullbay Marketplace can help.
RelaDyne Buys Chicago-Based Lubricants Blender, Packager, Distributor
Cincinnati-based RelaDyne — one of the nation’s largest providers of lubricants, fuel, DEF and more — has acquired the Enterprise Oil Company, an automotive and industrial lubricants blender, packager and distributor that boasts a long relationship with Ford Motorcraft and Castrol. Financial terms of the transaction were not disclosed.
Enterprise’s automotive business services passenger, commercial and off-road customers. According to its website, Enterprise’s product offering includes engine oil, transmission fluid, grease, gear oil, hydraulic fluid and other automotive fluids. It carries Ford Motorcraft, BP/Castrol and Durafilm products and also offers equipment for dealerships, quick lubes and service centers, providing access to such brands as Graco, Champion, Shure, Eurovent and Harvey. And, Enterprise’s automotive service offering includes inventory management, equipment installation and repair, and oil analysis.
“The business at Enterprise Oil Company offers a significant, pre-existing foundation that further expands RelaDyne’s presence in Chicago, one of RelaDyne’s core markets,” said Larry Stoddard, president and CEO of RelaDyne. “The combination of Enterprise with RelaDyne will greatly expand our existing custom-blending business and provides a great opportunity for us to expand our relationship with Ford Motorcraft, Castrol and Eastman.”
David Schumacher, RelaDyne’s vice president of business development, called the acquisition a continuation of the company’s expansion strategy in the Midwest as well as a continuation of RelaDyne’s focus on diversifying and investing into long-term, sustainable growth markets.
“Our partnership with the Enterprise Oil Company team expands our core product offering, expands our supplier base and further solidifies RelaDyne’s unparalleled expertise in the automotive, commercial and industrial sectors and unmatched service offering for all of our customers,” Schumacher said. “The Kruke family built a phenomenal business, and we are honored to help carry on that legacy for the next generation and beyond.”
Kyle Kruke, vice president and owner of the Enterprise, talked about growth opportunities related to this partnership.
“RelaDyne’s expertise across the industrial, commercial and automotive segments will enable our existing sales and operations to better serve long-time, loyal customers,” Kruke stated. “Our more than 30-year history in lubrication, custom blending and distribution services will complement RelaDyne’s market-leading position in the Chicagoland area. Our strategic alignment with RelaDyne ensures a future full of opportunities for our customers, suppliers and associates.”
Stephens was the exclusive financial adviser to the Enterprise.
Dexter Acquires Saskatchewan’s National Trailer Parts Warehouse
The Dexter Axle Company, a wholly owned subsidiary of DexKo Global Inc., has acquired the National Trailer Parts Warehouse in Swift Current, Saskatchewan. National Trailer Parts sells trailer components to manufacturers, dealers and service centers in Western Canada. It services customers directly from its warehouse in Swift Current with its own fleet of trucks.
According to Dexter President and CEO Adam Dexter, National Trailer Parts fills a void in Dexter’s coverage of Western Canada and will allow the company to more effectively service that customer base.
Dexter, headquartered in Elkhart, IN, has 17 manufacturing facilities and 32 distribution locations. Dexter serves utility trailer, RV, marine, heavy duty, agricultural, and specialty equipment manufacturers and distributors.
Novi, MI-based DexKo Global is a trailer running gear, chassis assemblies and components company.
FullSpeed Has Completed 14 Shop Acquisitions Since Start Of Q3
FullSpeed Automotive recently acquired Super Lube Service in Boliver, MO and two franchised Grease Monkey shops in Savage, MN and Eden Prairie, MN, giving FullSpeed 14 total acquisitions since the start of the third quarter.
The 14 acquired shops came from nine separate transactions across eight states (Arizona, Colorado, Connecticut, Louisiana, New Hampshire, Texas, Missouri and Minnesota). All will be rebranded to one of FullSpeed’s brands, Grease Monkey or SpeeDee Oil Change & Auto Service.
Since its acquisition by MidOcean Partners in November 2020, FullSpeed has completed 21 transactions that have added 60 new shops. FullSpeed now has 690 franchised and company-owned locations.
MidOcean is a New York-based alternative asset manager specializing in middle-market private equity and alternative credit investments.
Oil Changers Expands To Texas
Lube ‘n Go, which has more than a dozen shops in the El Paso, TX area, has merged with Oil Changers, a California-based quick-lube company. Oil Changers has more than 55 shops in California and Hawaii. The deal marks its entry into Texas.
“This merger gives us the opportunity to continue to pursue growth opportunities in El Paso and the surrounding area while continuing to ensure the best for our team members and guests,” John and Mark Bochnowski of Lube ‘n Go wrote in a statement posted on Facebook.
Discount Tire Taps InMoment For Fleet Customer Experience
Discount Tire is partnering with InMoment on a new customer experience program for fleet customers using InMoment’s XI Technology to implement touchpoint surveys. Discount Tire will check in with new fleet customers regarding initial experiences in becoming a customer, measure experiences over time, and field exit surveys when a customer decides to end a fleet relationship.
“B2B sales are an important component of Discount Tire’s customer base, but previously we were not able to distinguish between the experience and satisfaction of non-fleet and fleet customers,” said Chris Adams, vice president of fleet and business to business for Discount Tire. “We rely on the voice of our customers to guide us on our journey of continuous improvement, and partnering with InMoment will help segment feedback to better guide effective and targeted efforts to serve B2B clients with a safe and positive experience.”
Repairify Parent Company Unveils New Global Tagline
Repairify Inc., a portfolio company of Kinderhook Industries, has announced a strategic initiative to align its family of brands, which includes asTech, adas-Think, BlueDriver, FleetGenix, Mobile Tech RX and RED (EU). This comes as Repairify has expanded over time to become a global business comprised of six operating companies with customers in 48 countries.
All existing brands and future acquisitions are to be aligned in pursuing the collective goal of revolutionizing vehicle care, performance and safety through both OE and validated OEM-compatible tools and data. This concept is encapsulated in the new portfolio company tagline “Driven by Repairify.”
Parts Shortages, Staffing Woes Hold Back Dealer Service Departments
According to the 2021 Cox Automotive Service Industry Study, 34% of consumers said they prefer dealership service centers — a 1 percentage point increase from 2018 and ahead of general repair shops.
More than half (55%) of consumers surveyed by Cox said they prefer dealership service centers because dealerships know their vehicles. The top barriers to returning to the dealership were cost, location and service visits taking longer than expected.
Consumers want to review and approve repair estimates online (67%) and access their vehicle service history (66%), which survey participants cited as among the most critical digital features a service center should offer.
Cox’s 2021 Service Industry Study included 2,502 consumers in the United States ages 18 to 75 who had at least one service visit over the past 12 months, along with 529 franchise dealers with decision-making authority over fixed operations.
Exacerbated by the COVID-19 pandemic, dealership service departments cited part delays from manufacturers (58%) and finding or hiring the right technicians (45%) as their top operational frustrations. Interestingly, only 55% of dealers said they believe the customer satisfaction they deliver has improved in the past 12 months — down from 71% when surveyed in 2018.
More than half (57%) of dealership respondents said their service department was not fully staffed, and 80% expected these labor shortages to continue or worsen in the future. 60% said that service technician is the top role they plan to grow this year, so there was a focus on investing in this area of the business.
According to Cox, dealership service centers offering digital features had a more positive outlook. Of the dealers who said that the customer experience had improved over the past year, they more often offer such services as pick-up and delivery, ridesharing, progress tracking, online cost estimates and mobile check-in.
Auto Value, Bumper To Bumper Celebrate Techs Of The Year
Auto Value and Bumper to Bumper have named Jeff Weller of Auto Fix LLC in Henning, MN as its 2021 Technician of the Year. Weller achieved the highest score on a custom ASE exam, beating out a dozen U.S. finalists. Auto Fix is an Auto Value Certified Service Center and customer of Automotive Parts Headquarters.
The Canadian Auto Value Technician of the Year is Cody Carnahan of OK Tire Park Street, an Auto Electric Service certified service center customer in Regina, Saskatchewan.
The Auto Value Latin America Technician of the Year is Angel Alberto Hernandez Recinos of Autoservicio Del Valle, a customer of Triple A Autopartes in San Pedro Sula, Honduras.
SMP Awards $50,000 Across Three Scholarship Programs
Standard Motor Products (SMP) has announced the recipients of its 2021 scholarships, 10 people who will each receive $5,000 awards.
With an emphasis on import automotive technology, Intermotor “Import Leader’ scholarships went to Ashley Stamboulian of Robbinsville, NJ; Saige Byram of Evansville, IN; Alexzander Freeman of Lockhart, TX; and Julien Vargas of Lehighton, PA.
Blue Streak “Better Then, Better Now” awards went to Derrick Graham of Medford, OR; Vance Hagerman of Hanover, PA; Deeandra Lucio of Phoenix, AZ; and Will Finney of Coeur d’Alene, ID.
SMP “Women in Auto Care” scholarships went to Makena Gaylor of Eagle Point, OR; and Jennea Katic of Pompano Beach, FL.
Epicor Seeks Sr. Product Manager
This position will perform a range of functions involved with automotive eCommerce related to product management to build products and market share for the automotive aftermarket. The person in this position will be responsible for working closely with members of the product management team, product development teams, automotive and corporate marketing, sales, and various operations departments to ensure continuity in product offering and reinforce the company’s strategic goals. … (more) … Click here to find out more.
PPG Appoints VP Of Global Automotive Coatings
PPG has announced Vincent Robin as its vice president of global automotive coatings, effective Nov. 1. Robin, who currently is president of the Asia Pacific region and vice president of automotive coatings – Asia, will continue to report to Rebecca Liebert, PPG executive vice president, and will join the company’s operating committee.
Robin will be responsible for leading the global automotive coatings business and for the global rollout and execution strategy for PPG’s automotive mobility initiatives. He has been with PPG since 1987.
People Watching 10/25/21
• Shao Dyi — general manager and COO of Parts Warehouse Distributors Inc. (PWD), which does business as City Auto Supply and AEC International — has joined CAWA’s board of directors.
• Genuine Parts Company (GPC) veteran Scott Hankal has joined the Axis Group — an Atlanta-based analytics, information technology and services company — as a data analytics professional. Hankal has been a senior IT director for GPC and a senior director of store technology for NAPA Auto Parts.
• Brian Schroeder is now the vice president of franchise development for Mister Transmission (International). Schroeder previously was director of business development for Richmond Hill, Ontario-based Mister Transmission. His background also includes nearly 30 years as the owner of a Mister Transmission location in Waterloo, Ontario.
• Tom Giannone, former Monro Inc. director of facilities, is now project manager – construction and facilities for Quicklee’s Convenience Stores, a convenience store, restaurant and car wash travel centers chain with about two dozen locations across Upstate New York. Giannone retired earlier this year after nearly 25 years with Rochester, NY-based Monro.
• Nick Chelman has joined BorgWarner Inc. as an account manager, representing the Delco Remy brand. Chelman has spent the last nine and a half years with Phillips Industries, most recently as eastern regional sales manager for the OES team.
News Briefs 10/25/21
• The Auto Care Association’s website, autocare.org, is now Spanish language accessible.
• Turn 14 Distribution has added truck racks and accessories from BackRack to its line card.
• Spark Lines’ Goodyear and Clim Art automotive aftermarket accessories are now available via CarParts.com. Its line includes shatterproof window deflectors, sunroof deflectors, custom-fit rubber floor mats, cargo liners, steering wheel covers and more. Spark Lines also makes private-label accessories for various high-profile national brand names.
• The University of the Aftermarket Foundation has kicked off the 2021 AWDA Aftermarket Challenge. In 2020, the AWDA Challenge raised $177,775 for programs to help develop a strong, knowledgeable aftermarket work force. To repeat your company’s last donation or become a new supporter, contact UAF Executive Director Jennifer Tio at [email protected].
• LINE-X has awarded 15 new franchise agreements in the United States and Canada so far in 2021, including its first in Chattanooga, TN; Flagstaff, AZ; and Conroe, TX. Its network had 549 franchises on Oct. 20. Management expects to surpass 600 franchise locations open or in development by the end of 2021.
• SONAX USA has renewed its partnership as the official car care product of the Indianapolis Motor Speedway Museum. As such, SONAX USA will provide premium car care products, conduct training sessions for the museum’s detailing team, provide consultation and process recommendations for restoration projects, and provide support upon request for IMS Museum events and workshops.
• Brembo will be the official technical partner in braking systems for Gran Turismo 7, a new video game that will be available for PS4 and PS5 consoles in March.
• The Commercial Vehicle Solutions Network (CVSN) has announced Pardo Fleet Solutions as a new member of the association. Pardo is a fourth-generation, family-owned truck parts and fleet maintenance business serving four states.
• Elite has launched a campaign to raise money and awareness for canine cancer research. “Elite’s Top Dogs: Putting People (and their Pets) First” is a partnership with the Cummings School of Veterinary Medicine at Tufts University. The fundraiser runs through Dec. 3. To learn more, visit eliteworldwide.com/tufts.
• Merlin Complete Auto Care has launched a new website at merlins.com featuring location searching, offers by location, appointment setting and franchise information. Merlin, a Driven Brands company, has more than 4,200 shops across North America.
• Champion Oil has launched a racer-specific landing page with links for product sponsorships, contingency payouts and purchase rebates.
Event & Trade Show Briefs 10/25/21
• Three AASA Mexico Technology Summit & Webinar Series sessions are taking place Oct. 25, Nov. 15 and Dec. 1 that focus on advancing the use of technology to grow Latin America’s aftermarket business. Attendees will include suppliers, technology providers, WDs, retailers, and repair shops in Mexico and Latin America. The sessions will be translated into Spanish and English and will include such topics as e-commerce and e-tailing, market intelligence and more.
• Advance Auto Parts’ annual Partner Growth Summit helped raise $1.50 million for Building Homes for Heroes through vendor contributions. Since 2009, Advance has helped raise more than $16 million for Building Homes for Heroes, which gifts mortgage-free homes to wounded service members.
• Christian Brothers Automotive on Oct. 16 held its 11th annual National Service Day, a community giveback initiative where the company provide complimentary oil changes and other free services to people in need.
• National Performance Warehouse (NPW) plans to hold its 2022 Fast Expo on Jan. 30 at the Miami Airport Convention Center.
• The Mobile Air Conditioning Society (MACS) plans to hold three regional training events in 2022: Feb. 4-5 in Tampa; Feb. 25-26 in Long Beach, CA; and April 1-2 in Dallas.
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