AFTERMARKET BUSINESS WORLD (Digital ISSN 1938-0593) Is Published 12 Times Yearly by UBM 131 W First St., Duluth MN 55802-2065

Program Distribution Group Report

AAM Group +"/6"3: Advance Auto Parts

Aftermarket Auto Parts Alliance

AIM Automotive TRUMP ADMINISTRATION Group Automotive Distribution Network

PUTS THE BRAKES ON Automotive Parts Associates

Engine Pro/ Engine Parts CONNECTED VEHICLE Group

Federated REQUIREMENTS Auto Parts

NAPA

National Pronto Association

DOMESTIC: INTERNATIONAL: t$MJDLPODFUP[PPNJO TruStar t$MJDLIPMEUPNPWFQBHFBSPVOE *OEVTUSZ/FXT *OUFSOBUJPOBM/FXT 1SPEVDUT "VUPNFDIBOJLB&WFOUT t%JTUSJCVUJPOt$PMMJTJPO3FQBJS Talk Shop Anytime 0QJOJPO$PNNFOUBSZ &WFOUT$PWFSBHF 4QFDJBM3FQPSUT *NQPSU&YQPSU(VJEF t4FSWJDF3FQBJSt5FDIOJDJBOT Analysis by market Opinion Program REPLACEMENT Distribution TRUMP Group Vendors: How will the arrival of autono- John Shoemaker Report mous cars change driving expectations? Achieving profi tability ADMINISTRATION through parts control TECHNOLOGY AAM Group Logistics: Test proves autonomous robots PUTS THE can take auto parts inventory. Advance Auto Parts INTERNATIONAL Scott Luckett BRAKES ON The high stakes Business: Aftermarket exporters capitaliz- aftermarket Aftermarket telematics game ing on Ex-Im support to fund foreign sales. Auto Parts Alliance CONNECTED TECHNOLOGY AIM Telematics: CarFix to issue Vehicle Automotive VEHICLE Lifecycle Blockchain tokens for repairs. Group Aaron Lowe The battle over Automotive Research telematics access Distribution REQUIREMENTS Network Program Distribution Group Report: This original research from Aftermarket Automotive Business World offers the latest information Parts Associates on the major program groups. Jerry Hutcheson IoT raises security Engine Pro/ BY BRIAN ALBRIGHT | Correspondent issues for connected Engine Parts NACE Automechanika Atlanta vehicles Group proposed mandate for wireless auto industry sources and the Department of COMMITMENT TO TRAINING vehicle-to-vehicle (V2V) communica- Transportation (DOT). Federated Virtual Training: eBay unveils Virtual Tech Auto Parts tion technology that was originally “They are removing the mandatory part of training for job tips, parts guidance. Nathan Rigby drafted under the Obama adminis- the language,” says Mike Ramsey, analyst at The Next Generation: Connecting with A The Amazon effect on NAPA tration may be dead in the water. Gartner. “If companies aren’t required to do youngsters today enhances recruitment accessory sales In 2016, the National Highway Traffic Safety this, it changes the paradigm and the introduc- opportunities tomorrow. Administration (NHTSA) released a notice of pro- tion schedule.” National

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2 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com $POOFDUFEWFIJDMFT Program Distribution Group NHTSA still doesn’t have a director, The Power Report which means new agency initiatives are unlikely. of AAM Group

connected and autonomous vehicle initiatives. could stifle initiatives that are already underway Collaboration Advance “We have guidelines on connected and by car manufacturers and government agen- Auto Parts With thousands of locations across North America, the autonomous vehicles, but we don’t know if cies. NHTSA had planned to mandate V2V sys- Automotive Parts Services Group is stronger together, sharing resources in areas that benefit all in the supply chain, such as IT Aftermarket that is going to turn into regulation or sit with tems based on dedicated short-range commu- and data management, electronic catalog and Co-Man warehouse. These combined efforts help The Group excel at providing all Auto Parts no action,” says Bob Redding, Washington nication (DSRC) technology, which would have customers with high-quality service and name brand quality parts Alliance from leading manufacturers. representative for the Automotive Service standardized communication protocols across While Federated and Pronto members continue to focus on building their local businesses, The Group's national footprint has AIM Association (ASA). manufacturers. enabled these members to serve national accounts that were Automotive previously out of reach. Global collaboration is being developed Group The DOT did issue a statement on the V2V There are a number of state and municipal and enhanced through Federated and Pronto agreements mandate, indicating that the proposed rule and safety efforts that hinge upon better vehicle with 1Parts. The Group is working on innovative technology solutions to Automotive related comments were still being reviewed. communication, for example. “The vehicle-to- enhance efficiency and accuracy as well as telematics systems Distribution that allow for seamless communication from consumers to repair Network According to a DOT statement: “The vehicle communication standard is the foun- outlets to parts providers. Integrated technology is the key to the future and The Group is leading the way, delivering so much Department of Transportation and NHTSA dation for the vehicle-to-infrastructure and more than parts to its customers. Automotive That’s the power of collaboration. Parts have not made any final decision on the pro- vehicle-to-pedestrian safety. V2V will make our Associates posed rulemaking concerning a V2V mandate. streets safer for pedestrians at a time when Any reports to the contrary are mistaken. In all the number of people being injured and killed Engine Pro/ Engine Parts events, DOT hopes to use the dedicated spec- in vehicle-pedestrian crashes is increasing,” Group trum for transportation lifesaving technologies. said David St. Amant, interim president and Safety is the department’s number one priority.” CEO of the Intelligent Transportation Society of Federated Auto Parts However, most sources believe that the America (ITS). administration’s general opposition to regula- General Motors already announced DSRC- tion make it unlikely that any new mandates will based systems in its new Cadillac CTS sedan, NAPA be forthcoming. In addition, NHTSA still doesn’t and more than $1 billion has already been have a director, which means new agency ini- invested in the technology across the auto National Pronto tiatives are also unlikely. ...CONTINUE READING ◽ Association If a V2V mandate doesn’t’ move forward, it Together Strong t$MJDLPODFUP[PPNJO www.TheGroupAPSG.com TruStar t$MJDLIPMEUPNPWFQBHFBSPVOE

eBay unveils Virtual Tech training ASE GUIDES QUESTION AAM Group OF THE MONTH FOR JOB TIPS, PARTS GUIDANCE Advance Auto Parts A customer has called you and given you a part number from JAMES E. GUYETTE | a ﬁ lter that he has on the shelf. What section of the catalog By News Correspondent lets have already garnered eBay’s approval. Aftermarket would you look in to determine what it ﬁ ts? Auto Parts Bay Motors is revving up its e-commerce ini- The new service is designed to further spur online Alliance tiatives aimed at “redefining the automotive sales by eliminating the hassle of customers having to A. The index AIM E shopping experience” via the recent rollout receive delivery at home and then hauling their mer- Automotive of “Virtual Tech.” Offering task-specific, on-the-spot chandise to an installer who may or may not want to B. The table of contents Group

training for DIFM providers and DIYers, the program deal with products bought elsewhere. C. The footnotes Automotive enables technicians and shade tree mechanics to “Every seven seconds, a wheel or tire part is sold Distribution Network directly communicate with a team of ASE certified on eBay Motors in the U.S.,” according to Madeiros. D. The part number index technicians for advice on which parts need to be pur- “Now, with tire installation services, shoppers have Automotive Click here to see the answer. Parts chased and how to proceed on a particular repair or access to eBay’s tire inventory, plus the added con- Associates vehicle enhancement project. venience of expert local installation to fully complete “With our new Virtual Tech add-on, we’re bridg- their automotive needs.” Engine Pro/ [ WATCH AND LEARN ] Engine Parts ing the gap and helping to connect shoppers with A consumer-friendly online fitment feature ensures Group experienced professionals, while also providing them that a tire or wheel assembly under consideration with our massive selection of inventory,” says Todd accurately matches vehicle make and model specifi- Federated Auto Parts Madeiros, vice president of parts and accessories. cations. Shortly after the purchase is completed the “When shopping for parts and accessories, many of customer makes an appointment with the desired our buyers may stumble across a question or need local service center. “Buyers simply drive up in their NAPA directions when it comes to the installation process.” car. Their tires will be there and ready for installation.” “My Garage” is another recently inaugurated inno- While My Garage was developed in-house, Virtual National Pronto vation that allows tire and wheel buyers to have their Tech is hosted by Identifix, which serves more than How to Perform a Parasitic The Trainer #68 – Trouble- Association purchases shipped to a preferred local shop for 250,000 technicians and shop owners in the United Draw Test – Eric The Car Guy shooting P0420/0430 Diag- ◽ nostic Trouble Codes mounting, valves and balancing. More than 9,000 out- States, Canada and ...CONTINUE READING TruStar

Aftermarket exporters capitalizing on AAM Group Ex-Im support to fund foreign sales Advance BY JAMES E. GUYETTE Auto Parts News Correspondent Vendor Newsmaker Aftermarket Auto Parts lthough it may be flying under the Q&A Alliance radar for many aftermarket execu- JAMES G. BURROWS AIM tives, exploring the financial pro- Senior VP for Small Business Automotive A grams available through the Export- Export-Import Bank of the U.S. Group Import Bank of the United States (Ex-Im) could Automotive help you gain a foothold in the international What programs are available Distribution Network sales arena. to assist smaller automotive businesses interested in selling TRENDS & MARKET Analysis Q Automotive their products overseas? Parts Associates “A lot of people are unfamiliar with the Ex-Im What did Burrows say? Continue Bank and the programs they offer,” reports A Engine Pro/ reading online. Engine Parts Steve Hughes, chairman of the Auto Care Group Read full interview Association’s International Trade Committee. If you find the idea of global trade intriguing Federated Auto Parts yet intimidating, “It would be a benefit for all with automotive-oriented clients, requesting aftermarket companies interested in exporting anonymity because he is not officially autho- their products to get more information on this rized to speak publicly about the independent, NAPA agency,” he says. self-sustaining federal agency – which has been When pitching potential overseas buyers, attracting increased Congressional scrutiny National Pronto “You can be aggressive in your sales stance,” from both sides of the aisle. Association says an Ex-Im executive who works closely “We’re in the background of the transaction

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making sure everyone gets paid,” the executive guarantees; and purchase finished products Gets you more sales. Advance explains. Ex-Im’s involvement can be espe- for export.” Auto Parts cially helpful for sealing a deal if you’re meeting If you remain rather wary about venturing into Philips Ultinon LEDs deliver brilliant lighting performance in a choice of four colors: blue, intense red, intense amber, with a prospective international customer at a global sales, Burrows suggests that “Canada Aftermarket or 6000K bright white. Easy to install and available for a Auto Parts trade show, for example, and questions arise is an ideal marketplace for U.S. businesses wide range of interior and exterior applications, Ultinon LEDs Alliance about credit and payment guarantees. looking to export for the first time, or who have are direct replacements for conventional bulbs. AIM “Most people don’t realize how small our received inquiries from Canadian customers Automotive transactions can be,” the executive points out. and have remained hesitant about starting their Group www.philips.com/turnon Insurance policies are available for contracts in export journey.” Automotive the $25,000 to $50,000 range and above, plus Primarily selling its lines of OEM and aftermar- Distribution Network there are options for providing “working capital ket engine components into Canada, Mexico that can cover multiple export orders.” and Europe along with several other nations, the Automotive Parts “For many U.S. exporters, a lack of access to Cleveland-based A.J. Rose Manufacturing Co. Associates financing can stand in the way of sales growth. has been an agency client since 2008. Commercial lenders do not always have the “The Ex-Im insures our receivables to our pri- Engine Pro/ Engine Parts capacity or willingness to provide loans for mary lender. It allows us to have a higher line Group higher-risk markets or transactions,” says of credit, which is great,” says CFO Douglas James G. Burrows, Ex-Im’s senior vice presi- E. Krzywicki. “It’s definitely a financial tool to Federated Auto Parts dent for small business. provide security and raise your ability to bor- “Ex-Im can work with a company’s lender row funds.” Some 20 jobs are supported by the to help secure financing,” he says. “The funds export initiatives. NAPA may be used to pay for materials, equipment, International trade currently accounts for “25 supplies, labor and other inputs to fulfill export percent of our sales and growing,” he says, National Pronto orders; post standby letters of credit to serve ...CONTINUE READING ◽ Association as bid bonds, performance bonds, or payment Philips Ultinon LED t$MJDLPODFUP[PPNJO interior and exterior lighting TruStar t$MJDLIPMEUPNPWFQBHFBSPVOE

5FTUQSPWFTBVUPOPNPVTSPCPUTDBOUBLFBVUPQBSUTJOWFOUPSZ AAM Group

BY BRIAN ALBRIGHT where it can go and where it’s not allowed to go.” Correspondent Advance Surgere and Fetch tested preliminary models before Technology Newsmaker Auto Parts uto parts manufacturer Mahle Behr has installing the robots at the Dayton plant. Now the compa- wrapped up a pilot test of a new robotic nies are offering the solution to other customers. Q&A Aftermarket Auto Parts cycle counting solution. Mahle worked with Alliance PETER GREEN digital supply chain solution provider Surgere 3FBMUJNFWJTJCJMJUZ A President, BellHawk Systems AIM and Fetch Robotics to test the system at its Dayton, ROBi can help companies maintain real-time visibility of Automotive Group Ohio, facility. parts and assets without throwing labor at the problem. What is the motivation for companies Mahle is using Surgere’s Robotically Optimized and “You’ve got a cost per person for the folks who are to shift from location-based tracking to Automotive Balanced Inventory (ROBi) platform, combined with walking around just to count boxes,” Zingery says. “As Distribution more granular, license-plate barcode Network RFID tags, the company’s cloud-based asset manage- things move in and out of the warehouse, there’s no way Q tracking? ment supply chain analytics system (COS) and Fetch’s to tell how accurate those cycle counts are.” Automotive Parts robot technology. William Wappler, president and CEO of Surgere, agrees. What did Green say? Associates “Even with workflow management systems (WMSs) in A Continue reading online. Read full interview TRENDS & MARKET Analysis place, many of our clients find the fast-paced automo- Engine Pro/ Engine Parts According to David Zingery, head of strategy and tive part and container inventory storage, retrieval, and stantly, consistently, quietly, safely and accurately.” Group growth at Surgere, the ROBi system grew out of distribution process to often be ad hoc, time-intensive, By scanning an RFID tag on the container, companies Surgere’s experience in developing asset tracking and error-prone and costly. Without supporting technology, can associate extended information about items inside Federated Auto Parts inventory tracking solutions. “Over the years we’ve it can be a process in chaos,” says Wappler. “After rig- the container. The robots can then scan the tags to more deployed a number of different RFID portals and hand- orous testing and evaluation, we’ve arrived at a place accurately collect location data than is possible with held systems, and we wanted to come up with a way to where our decision was solidly in favor of robotics over manual approaches. NAPA propel that into an autonomous, hands-off entry point,” drones and other mobile and fixed devices. We found “Inside a facility we have deployed systems where Zingery says. “We liked Fetch’s platform. It had all the ROBi is a much more accurate and granular form of RFID employees use handheld units like a Geiger counter to National Pronto things we needed: WiFi, power, robust mapping, sen- data acquisition in automotive environments. Using ROBi locate RFID-tagged assets,” Zingery says. “With the robot, Association sors, LIDAR, etc. You can map the area and tell the robot technology; inventory tracking takes place con- t$MJDLPODFUP[PPNJO TruStar More articles by BRIAN ALBRIGHT RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

Industry News Products 4 Commitment to Training 7 Technology: Logistics 10 Technology: Telematics Sign up for weekly Distribution e-newsletters JANUARY Market Trends & Analysis Contact Us 5 International Trends 9 Vendor Market Trends 12 Scott Luckett 2018 7 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com LEGAL NOTICE Aftermarket Technology If you purchased certain Aftermarket Automotive LOGISTICS/CONNECTIVITY Sheet Metal Products (“AMSM”) directly from one of Program the Defendants below, you may be entitled to a cash Distribution payment and your rights may be affected. Group Defendants Include: Taiwan Kai Yih Industrial Co., Ltd.; Tong Yang Industry Co., Report ROBi helps companies keep real-time visibility of parts Ltd.; TYG Products, L.P.; Jui Li Enterprise Company, Ltd.; Gordon Auto Body Parts Co. Ltd.; Auto Parts Industrial, Ltd.; and Cornerstone Auto Parts, LLC. What is this lawsuit about? Direct Purchaser Plaintiffs claim that Defendants violated the and assets without throwing labor at the problem. United States federal antitrust laws by agreeing to fix prices and limit supply for AMSM. AMSM includes hoods, doors, bumpers, fenders, bonnets, floor panels, trunk assemblies, trunk lids, tailgates, roof panels and reinforcement parts. Defendants have denied and continue to AAM Group deny each and all of the claims and contentions alleged by Direct Purchaser Plaintiffs, as well as all charges of wrongdoing or liability. The Court has not decided in favor of any Party. you have a hands-off method of doing that. You can set a A proposed Settlement has been reached with Jui Li Enterprise Company, Ltd. for USD$3,350,000 in cash, which, after Taiwan taxes, will net USD$2,680,000 in a settlement schedule and map the location, and set different paths and fund (“Settlement Fund”). Prior settlements were reached with Tong Yang Industry Co., Ltd., Taiwan Kai Yih Industrial Co., Ltd., and TYG Products, L.P., and Gordon Auto Body Parts Co. Advance orientations to run at certain times of the day.” Ltd. After deducting costs, fees and expenses, the balance of the Jui Li Settlement Fund will be Auto Parts distributed to the Class on a pro-rata basis depending on how much you spent on AMSM during the Class Period from all the Defendants. The lawsuit will continue against the defaulting Non- The robot (based on the Fetch TagSurveyor platform) Settling Defendants—Auto Parts Industrial, Ltd. and Cornerstone Auto Parts, LLC. You are included in the Court certified Settlement Class if you fit the following description: can locate and count RFID-tagged items automatically and All persons and entities in the United States, and its territories and possessions, that purchased Aftermarket Aftermarket Automotive Sheet Metal Products directly from any of the Defendants between Auto Parts January 1, 2003 and May 14, 2015. You are included in the Court certified Litigation Class if Alliance autonomously in order to cut labor from the cycle process you fit the following description: All persons and entities in the United States, and its territories and possessions, that purchased AM Sheet Metal Parts directly from a Defendant between at and create a reliable map of part locations within a facility. least as early as January 1, 2003, and September 4, 2009. How do I get a Settlement payment? If you are included in the Court certified Settlement AIM Class and you submitted a valid Claim Form in 2015, you will automatically receive a payment San Jose-based Fetch provides robotic solutions that from this Settlement if it is approved and becomes final. Automotive What are my options? Do Nothing: If you do nothing, you are choosing to stay in the Settlement Group are equipped with obstacle avoidance features that can Class and Litigation Class, and you will be bound by the Settlement Agreement and Release, as well as the Court’s orders and decisions in this Settlement and Litigation against the Non- help them avoid potential collisions with employees and Settling Defendants. Exclude yourself from the Settlement Class and Litigation Class: If you want to keep your right to sue or continue to sue Jui Li or the Non-Settling Defendants on your Automotive own about the same issues in this case, you must exclude yourself from the Settlement Class and Distribution equipment. They also slow down when approaching blind Litigation Class. If you exclude yourself, you cannot get a payment from this Settlement and you will not be bound by the Settlement or the Court’s orders and judgments in this Settlement. Network corners. The ROBi hardware also includes three RFID You will also give up your right to get a payment from any money that may be obtained as a result of the Litigation against the Non-Settling Defendants and be bound by the Court’s orders and judgments in continued Litigation. To exclude yourself, you must submit a written request readers set at different angles and heights. for exclusion, postmarked by January 11, 2018 to the Settlement and Litigation Administrator Automotive at Aftermarket Sheet Metal Settlement and Litigation Administrator, 3301 Kerner Blvd., San Parts Moving on programmable routes, the solution transfers Rafael, CA 94901. Object to the Settlement: You may object to all or any part of the Settlement Associates and give reasons why you think the Court should not approve it. Your written objection must asset identification and location data to Surgere’s cloud- cores, HVAC modules, radiators, fan clutches and engine be mailed to the Settlement and Litigation Administrator, Class Counsel, Counsel for Jui Li, and the Court and must be postmarked no later than January 11, 2018. You may also request to appear and speak at the Final Approval Hearing. You may have your own attorney attend, at Engine Pro/ based asset management system, which validates and cooling modules. your own expense, but are not required to. More information regarding your rights can be found in the Long Form Notice available at www.AftermarketSheetMetalSettlement.com. Engine Parts provides documentation of where tagged packaging, “We conducted velocity testing as well, and we kept Do I have a lawyer in this case? Yes, the Court appointed Jason S. Hartley of Stueve Siegel Group Hanson, LLP, and Vincent J. Esades of Heins Mills & Olson, P.L.C. as Class Counsel to represent you and other Class Members. parts, tools and other assets are located inside a distri- working through different settings and adjustments to The Fairness Hearing. The Court will hold the Final Approval Hearing beginning at 11:30 a.m. February 16, 20108, at the United States District Court for the Eastern District of Wisconsin. Federated bution center. ROBi’s data acquisition also accounts for make sure we knew where to position the robot in the At this hearing, the Court will listen to any objections and consider whether to approve the Settlement as fair, reasonable, and adequate; a request by Class Counsel for attorneys’ fees and Auto Parts expenses; and a service award of $5,000 to each of the Class Representatives (Fond du Lac height of stacked or racked product above floor, depth aisle,” Zingery says. “We wanted to get the read height Bumper Exchange Inc. and Roberts Wholesale Body Parts, Inc.). Class Counsel is requesting attorneys’ fees in the amount of no more than 33% of the Net Settlement Fund (that is, the within shelving, and the speed of robotic travel, so it can and depth right, and the optimal speed.” Settlement Fund amount after deduction of Taiwan taxes) and payment of litigation costs and expenses. Class Counsel’s motion for attorneys’ fees, costs and expenses will be filed with the scan for assets anywhere in the building. The companies also wanted to ensure the robots could Court and posted at the case website, www.AftermarketSheetMetalSettlement.com, prior to the NAPA Final Approval Hearing. These costs and expenses include each law firm’s reported expenses and common costs to date. As the litigation continues, Class Counsel will incur more expenses In the Mahle facility, the robots scanned containers on operate safely alongside employees. The robots include and may ask the Court for an additional payment. Class Counsel’s motion for attorneys’ fees and costs and service awards will be available at www.AftermarketSheetMetalSettlement.com, three-tiered racks. According to Zingery, the RFID read- safety lights so that employees can see it coming, and it’s on or about December 28, 2017, prior to the deadline to file an objection. National For more information, including the Long Form Notice, Settlement Agreement and the Court’s Pronto ◽ Decision and Order regarding the Litigation Class, go to www.AftermarketSheetMetalSettlement. ers were able to scan tags up to 82 degrees from the unit. layered with sensors and built-in ...CONTINUE READING com, call 1-866-413-5892 or write the Settlement and Litigation Administrator at Aftermarket Association Sheet Metal Settlement and Litigation Administrator, c/o KCC Class Action Services, PO Box Mahle’s 570,000-square-foot Dayton factory makes heater 404041, Louisville, KY 40233-4041. t$MJDLPODFUP[PPNJO Please do not call the Court or the Clerk of the Court. They cannot discuss the Settlement or continued action. TruStar t$MJDLIPMEUPNPWFQBHFBSPVOE

The driving experience in a )PXXJMMUIFBSSJWBMPGBVUPOPNPVT AAM Group highly urbanized country like WFIJDMFTDIBOHFESJWJOHFYQFSJFODFT China can be horrific. Advance Auto Parts BY JAMES E. GUYETTE major technology shifts in transportation, such as trains es that same time to a matter of hours. We can circle the News Correspondent or commercial aviation, to what extent were these shifts world in a jet in little more than a day. Not so long ago, in Aftermarket Auto Parts 30-year industry veteran, Bill Russo was driven by the user-convenience factor? historical terms, that journey took people years in a boat Alliance previously a Chrysler executive before A: When you look back in history, the greatest inven- and they may not even have lived to tell the story. AIM becoming managing director at the Gao tions by humans – the wheel, the bicycle, the steam ship, Q: Where do cars fit in the historical narrative? Automotive A Feng Advisory Co.’s automotive division. the train, the airplane – they all exist to give us the ability A: The car became a primary means for the average Group person to satisfy their daily needs for mobility. We’ve Responding to questions posed by executives at a to travel over increasingly greater distances. Over time, Automotive Nissan roundtable, Russo discusses how autonomous each invention added more convenience and more new designed city and transportation networks that were Distribution Network vehicles will impact the future behind-the-wheel behaviors: features to make the experience of mobility much more basically designed for vehicular transportation. In the Q: How will the driving experience change in the auton- enjoyable and painless. And as each of these solutions 21st century, we’re seeing a phenomenon – particularly Automotive Parts omous age? became commercially viable and affordable, they did so in emerging markets in Asia – where there are now very Associates densely populated urban centers. That urbanized context TRENDS & MARKET Analysis by offering users a benefit versus whatever preceding form of transportation they had favored up to that point – is not really well suited for the car that we know today. Engine Pro/ Engine Parts A: The potential is there for a complete redefinition of a benefit for which they were willing to pay. Today’s cars are designed really for Group what we mean by transportation, both in terms of com- Q: How important was the pace of technological progress? highway transportation. So in an fort and convenience. With the advent of autonomous A: It’s not about creating a technology for the sake of increasingly urbanized world, we’re Federated Auto Parts driving, we’re talking about a transition from a device having the technology; it’s about providing a more com- going to experience the next evolu- where we really had to focus on the road – because we fortable and convenient way for people to travel the dis- tion of convenience and mobility, were the brains of the car – to where we can focus on tances that we travel each day. They have to provide a which I think will be an autonomous NAPA other things. That is time given back to us that will allow tangible benefit for people to be willing to pay and use mobility solution. us to do other things because we won’t have to monitor the new mode of transport. For example, trains reduced Q: Will perceptions of autonomous National BILL RUSSO Pronto what’s going on with the vehicle itself. the amount of time that it took to travel across the coun- ...CONTINUE READING ◽ Association Q: Thinking back to how the public reacted to other try from months to days. The commercial airplane reduc- t$MJDLPODFUP[PPNJO TruStar More articles by JAMES E. GUYETTE RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

Blockchain provides a tailor- $BS'JYUPJTTVF7FIJDMF-JGFDZDMF AAM Group made approach to provide a clear #MPDLDIBJOUPLFOTGPSSFQBJST history of the car and the driver. Advance Auto Parts BY BRIAN ALBRIGHT the car and the driver. how many labor hours are required. The customer can Correspondent Blockchain can also reduce the cost of recalls by limit- book the car repair after looking at those prices. Aftermarket Auto Parts arFix is a Russian tech start-up that is estab- ing the recall to specific vehicles that are affected. Car Currently, CarFix gets 15 percent for each repair that Alliance lishing an online platform to connect car owners will have a clear history of all the damages and is booked. Once we launch the blockchain tokens, there AIM owners, repairers and parts distributors insurance claims made on a car they want to buy on the will be paying participants in the network – car manufac- Automotive Cwhile providing price transparency and con- secondary market. turers, insurance companies, repair shops, etc. Car own- Group Q: ers are non-paying participants. sistency for repairs. The company recently announced How will the use of the blockchain tokens work with Automotive it would begin to issue Vehicle Lifecycle Blockchain repair shops and parts suppliers? Q: What are the benefits for Distribution Network tokens to establish reliable repair records and price A: A repair shop that is working with a blockchain inter- repairers and distributors? information, allowing for secure transactions among face can provide information to the insurance company, A: There is a reduction in cus- Automotive Parts customers, dealerships, insurance companies and the for example. The car manufacturer is made aware if there tomer acquisition cost. Car own- Associates automotive repair industry. is a warranty claim, and all of this is recorded simultane- ers will go primarily to shops ously. This can help reduce warranty fraud cases origi- that are connected to block- Engine Pro/ TRENDS & MARKET Analysis Engine Parts nated at repair shops. chain to make sure their history Group Aftermarket Business World spoke to Vladimir Lupenko, If the warranty is expired, the repair shop still records the is maintained and transparent. co-founder and chief operating officer, about the solution. transaction in blockchain to update the vehicle history. Insurance companies will also Federated Auto Parts Q: How will the use of blockchain technology improve Right now, CarFix includes a software system that has direct traffic to repair shops who vehicle repair transactions? a database of all the spare parts needed for repair and use this blockchain solution. A: Our main objective was to simplify the use of block- maintenance. The shop puts a VIN number into our inter- Distributors will also increase NAPA chain. With our use of blockchain, we can reduce the net platform, which connects to spare parts distributors. sales volume of spare parts that claims management cost to insurance companies or cus- We know through our algorithm what SKU is needed for are driven by the participation VLADIMIR LUPENKO National Pronto tomer acquisition costs for other entities. Blockchain pro- the part. We provide an instant price set by the distribu- of these repair shops. ◽ Association vides a tailor-made approach to provide a clear history of tors. We provide transparent prices, and we also know t$MJDLPODFUP[PPNJO TruStar More articles by BRIAN ALBRIGHT RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

Advance ccording to position statements from the cedures. 1.Pre-Scan; a scan accomplished to identify paste the wording from the OE position statement that Auto Parts majority of original equipment manufacturers any DTCs or fault codes. 2. Diagnostic Scan; a thor- requires the scan, in most cases it is the first paragraph. (OEMs), vehicles involved in a collision must be ough review of the faults detected in the Pre-Scan. 3. Next include what you found in the notes. For exam- Aftermarket A Auto Parts tested for diagnostic trouble codes (DTCs). No argu- Calibration Scan; a reset or reinitialization of vehicle ple, Steering Wheel Angle Sensor Module: U0121 00 Alliance ment, it has to be done! control systems and 4. Post-Scan; a system check to Lost Communication with Electronic Brake Control AIM The challenge within the industry focuses on the dis- validate OEM settings and restore customer confidence Module, Power Steering Control Module: U0415 00 Automotive cussions repairers have with in the repair. Invalid Data Received from Electronic Brake Control Group What I have seen on estimates is Pre-Scan and Post- Module: U0126 00 Lost Communication with Steering COLUMNISTS insurers about payment. As Automotive I have investigated this chal- Scan with the shop asking for 1.0 to 2.0 hours for the Wheel Angle Sensor Module. If you just cleared codes Distribution Scott Luckett Network The high stakes aftermarket lenge, I found the problem process without any line notes or explanation. That, my indicate, “Performed a full vehicle scan clearing all telematics game insurers have is the docu- friends, is the problem. The result from the scan needs faults, 0 faults returned, established base line.” Using Automotive mentation repairers provide to be used as justification in your documentation. After either of those results will jus- Parts Aaron Lowe Associates The battle over telematics for the scans, not the scans coaching customers on scan documentation, here are tify you receiving payment for themselves. As I reviewed esti- my recommendations for processes I have worked on the scan. Secondary to this Engine Pro/ access Engine Parts with my shops that are satisfying insurers. procedure, you should add a Group Jerry Hutcheson mates, I saw very little docu- IoT raises many security mentation about the scans or Pre-Scan. Performed as a first step in the repair plan. line under electrical or battery the results. The first line of the repair plan should say: “Performed to test or charge the battery as Federated issues for connected cars Auto Parts most scan processes require a Shane Westwood Let’s look at the scan pro- Pre-Scan as required by OEM bulletin dated October Going from zero to 60 with cedures. Currently, repairers 2016.” Then there should either be a sublet charge or fully charged battery. fraud prevention strategy are identifying two on their a labor amount equaling the time required to complete Diagnostic Scan. For this NAPA estimates – Pre-Scan and the scan. Calculate your time based on a tenth being procedure, you will enter a line Nathan Rigby JOHN SHOEMAKER Shoppers fuel up on Post-Scan. With the changes six minutes, or you can round it off to five to simplify the on the repair plan within Business Development Manager National BASF North America Pronto accessories due to Amazon in vehicle systems there actu- calculations. If it took you 20 minutes, I would select ...CONTINUE READING ◽ Association ally are four different scan pro- .4 as the billed time for the pre-scan. In the line note t$MJDLPODFUP[PPNJO TruStar More articles by JOHN SHOEMAKER RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

from the aftermarket. Advance Auto Parts n a recent column I wrote about the impact on con- (nearly everything) components of a modern vehicle. a connected car. Demonstration videos commonly sumer choice and the industry-wide business con- A lot of aftermarket energy and capital has been show a family driving along when their check engine Aftermarket Auto Parts I sequences of embedded OE telematics devices. invested in developing a safe and secure method for light comes on. Alliance That column was written in the weeks leading up the aftermarket to participate in telematics and give the When they safely pull over to consult with the smart AIM to the Auto Care Association Legislative Summit in consumer control and choice in where the data from phone app or speak with the associated call center, Automotive Washington D.C. their vehicle is sent. A technical proposal for a secure they learn that the code probably indicates a failed oxy- Group gen sensor, for example. But, the vehicle is no closer Thank you and congratulations to those of you who vehicle interface (SVI) was presented to Society of Automotive made the trip to call on your elected officials and Automotive Engineers (SAE) earlier this past year. to being fixed and with the assurance that it is safe to Distribution Network express to them your position on the issues that matter This proposal, representing the consensus of the continue driving the vehicle, the O2 sensor is ignored – most to you. In a recent Auto Care Association mem- major aftermarket trade associations, service organiza- until the next emission test. The vehicle is connected – Automotive Parts bership survey, 41 percent of respondents put “Vehicle tions, the Equipment and Tool Institute and AAA, got but the service shop is not. Associates Data and Telematics” at the top of the list of issues the no response from the principal automotive technical At AAPEX this past year, an members are most concerned about. gatekeepers for months. When SAE finally responded, announcement was made that Engine Pro/ Engine Parts That concern is well-founded and appropriate. By the answer was “no.” It didn’t come as a great surprise changes the aftermarket telemat- Group 2020, 90 percent of the vehicles sold in the U.S. will that the OE’s were not warm to a technical proposal ics story in an important way. be equipped with technology that communicates with from the aftermarket. But, nearly a year was lost to this Mitchell 1 announced a program Federated Auto Parts the OE vehicle manufacturer and their dealer network. cycle of proposal – wait – rejection. In the meantime, in partnership with Entricit that The OE dealer network will receive trouble codes and more connected vehicles are hitting the road that the links as many as 8 million vehi- symptoms the moment they occur. You can be sure aftermarket is blind to. cles that are currently equipped NAPA they’ll use that information to their advantage to pro- Over the last several years a number of technology with a plug-in telematics device SCOTT LUCKETT SPONSORED BY VP, Industry Strategy actively market service to the vehicle owner. This will companies have introduced plug-in telematics devices with the shop of their choosing GCommerce Inc. National Pronto create a disadvantage for the independent aftermarket or dongles to provide consumers with many of the ...CONTINUE READING ◽ Association when it comes to servicing the computer-controlled connected features they crave without the need to buy t$MJDLPODFUP[PPNJO TruStar More articles by SCOTT LUCKETT RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

Advance ack in the late 1980s, the automotive aftermar- Fortunately, the industry’s lobbying efforts were suc- information needed to service their customer’s vehicle. Auto Parts ket lobbied Congress for an amendment to pro- cessful, and Congress included a provision in the 1990 The aftermarket would be back in the same position we visions in the 1990 Clean Air Act Amendments Amendments that required that the OBD II port to be were in during the debate in the 1980s over a standard- Aftermarket B Auto Parts that required all 1996 and later vehicles be equipped “standard and uniform on all motor vehicles” and that ized OBD II port: Less competition and increased con- Alliance with on-board diagnostic systems (OBD) II. access to the OBD II system is unrestricted and “shall trol by the manufacturer over the repair market. AIM The provision in question mandated that the OBD II not require any access code or any device which is only Whether it’s the OBD port or if the information is trans- Automotive system was supposed to accurately identify a “emis- available from a vehicle manufacturer.” Decades later, mitted wirelessly, the technician needs access to that Group data directly from the vehicle and that access needs to sions-related system deterioration or malfunction which it’s easy to forget the efforts that were necessary to Automotive could cause or result in failure of the vehicle to comply obtain a standardized diagnostic connector or to think be standardized such that each vehicle manufacturer Distribution Network with emission standards.” The devices further had to about the impact on the competitiveness of the industry cannot make the diagnostic data available in a propri- alert the vehicle owner to the need for emission related had Congress not acted. etary code. Of course, the advent of wireless communi- Automotive Parts components or system maintenance or repair. Now, with the advent of telematics, which permits cations has increased the dan- Associates Notwithstanding the benefits of OBD II systems to the wireless transmission of diagnostic information, the ger of someone hacking into a clean air and to technicians attempting to diagnose and industry once again stands on the precipice of either vehicle, but that does not mean Engine Pro/ Engine Parts repair a vehicle’s emissions system, the aftermarket a rosy future or possibly one controlled by the vehicle that methods cannot be devel- Group was concerned that car companies would use propri- manufacturer. While the manufacturers can obtain diag- oped that would protect critical etary OBD ports. The absence of port standardization, nostic information wirelessly directly from the vehicle, vehicle systems while still mak- Federated Auto Parts the aftermarket told Congress, would create, at best, the aftermarket continues to rely on the OBD II port for ing data available. increased costs to shops that would need to obtain a the same data. It was with this in mind, that variety of connectors for every brand of vehicle they ser- But what happens if Congress permits the port to the Auto Care Association and NAPA viced; or at worst, a way for car companies to control go away; or if manufacturers limit the port to only the other industry groups have AARON LOWE Senior Vice President of access to the port in order to drive business to their pre- emissions related information that is required by cur- been working to Regulatory and Government National Affairs, Auto Care Association Pronto ferred service provider (likely the new car dealer or those rent law? The independent technician would be forced ...CONTINUE READING ◽ Association that purchased the most replacement parts from them). to fully rely on the vehicle manufacturer to obtain the t$MJDLPODFUP[PPNJO TruStar More articles by AARON LOWE RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

connected to the internet. ago, and it’s coming true. In fact, as cars becomes more goes after the weak, the slow, or the one that strays Automotive As you add items to the IoT, your attack surface computerized, and the control systems move to electri- from the school. The same with hackers. They are look- Distribution Network becomes broader. In cybersecurity terms, the attack cal, they become computerized and then networked. ing for low-hanging fruit. So businesses need to be surface is the number of places and areas that are vul- I remember when I was a kid and helped my dad work ever vigilant. But we can’t predict where every attack is Automotive Parts nerable to attack. Every time you add another system, on our vehicle. He was a very talented mechanic, simi- going to come from. So here Associates your attack surface grows. Every time you add another lar to others who grew up on a farm and needed to be are a few suggestions. person, your attack surface gets bigger and more com- able to fix mechanical things. Back then, the only things Engine Pro/ Engine Parts plex. This makes the job of cybersecurity more chal- that were electrical were the ignition system, the charg- 4UBSUBUUIFCFHJOOJOH Group lenging. So companies today need to be prepared for ing system, and the accessories on his 1966 Chevy If you are building any type of this increasing threat as a way of life. pickup truck. And nothing was electronic. I literally system that can be controlled Federated Auto Parts Many industrial plants have large manufacturing sys- used to stand inside the engine compartment when we by computer or will be net- tems that are now network connected. Cars have wire- worked on it. Of course, I was very skinny back then. working into a computer net- less networks and dozens of computers. In fact, the Today, you would never attempt to work on a vehicle work, you need to look at how NAPA average car has between 25 and 50 computers. without sophisticated electronic and diagnostic tools. that device is engineered from JERRY HUTCHESON Owner National But what is not being so heavily invested in and scru- the ground up. There are Cybercreed Consulting Pronto tinized is security for these devices. This can pose a 8IBUTUIFQPTTJCJMJUZ ...CONTINUE READING ◽ Association problem moving forward for a few reasons. Everybody in the aftermarket knows that today’s vehi- t$MJDLPODFUP[PPNJO TruStar More articles by JERRY HUTCHESON RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

With so many aging vehicles, the automotive after- Automotive market is thriving and has become one of the fastest- Distribution Network growing segment in online sales. Enter Amazon. The eCommerce juggernaut is not new Automotive Parts to automotive sales, having originally introduced auto Advanced Auto Parts have underperformed in the stock replacement parts, with underhood and undercar Associates parts to the platform back in 2006. Last year Amazon market, according to Canton Rep, despite expectations replacement parts generating nearly $300M in sales expanded its automotive arsenal by launching its own to the contrary. This has caused many investors to during the first two quarters of Engine Pro/ Engine Parts car research site and a parts marketplace, which allows reassess the market and look elsewhere for disruptors. 2017 alone, a growth of 20 per- Group shoppers to punch in their make and model to search After long overlooking its ability to compete in the auto- cent year over year. for the correct parts. This and other conveniences motive aftermarket, industry analysts are finally starting Beating out both replacement Federated Auto Parts reveal that the automotive aftermarket is not escap- to recognize Amazon as a serious player. parts categories is truck acces- ing Amazon’s notice and the impact of Amazon on the Two major trends in automotive aftermarket sales sories with $185M. Sales are market is already disruptive. are that owners of older cars exhibit desirable main- driven by towing accessories, NAPA tenance behaviors, while new car owners tend to making up over a third of the total NATHAN RIGBY 5IFOVNCFST National invest in appearance products. With the fleet of category sales and responsible Partner, One Click Retail Pronto In 2017 so far, specialty auto parts compa- vehicles on the road aging rapidly in the U.S., more ...CONTINUE READING ◽ Association nies such as O’Reilly Automotive, AutoZone and and more car owners are turning to Amazon for their t$MJDLPODFUP[PPNJO TruStar More articles by NATHAN RIGBY RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

Advance he proliferation of eCommerce and online mar- service centers or individual shops. The same report be continually reassured throughout the purchase pro- Auto Parts ketplaces have influenced all industries and found that fewer than 10 percent can receive online cess that they are transacting in a safe environment. sectors – including the auto parts industry. Car orders from individual consumers. Aftermarket T Auto Parts enthusiasts and professionals alike spend a lot of time As businesses and consumers continue to favor con- $IBSHFCBDLTJODIBSHF Alliance and energy finding the right parts at the best prices. venience by purchasing their auto parts online, there’s To meet consumer demand, some auto retailers have AIM But as with any online sector, it’s important to dis- ample opportunity for auto parts suppliers and manu- transitioned full steam ahead – without a fraud preven- Automotive tinguish the authentic from the fraudulent. Not only do facturers to boost their sales. They’re catching up now, tion strategy. Some companies have tried to increase Group

auto parts retailers need to confirm that the orders they but becoming a target for fraud along the way. their online offerings to entice consumers, but in the Automotive receive are legitimate, but consumers must also be vigi- According to the Financial Times, while U.S. auto process open themselves to greater vulnerabilities, Distribution Network lant to ensure they are buying from actual retailers, and sales grew only 1 percent per year over the previ- including expedited shipping, pick-up in-store, or loyal- not from shady shops selling counterfeit or stolen parts. ous decade, sales at the major aftermarket auto parts ty programs. These can result in significant initial sales, Automotive Parts The rise of fraud has outpaced regulations to combat chains grew 7 percent per year. The industry sees that, unbeknownst to the Associates it, especially within the auto parts industry, so it’s more high value orders with high shipping costs, and often retailer, are mired with fraudu- important than ever for auto parts manufacturers, retail- involves many hours of labor. lent orders and open the busi- Engine Pro/ Engine Parts ers, and auto parts suppliers to maintain their reputa- Where consumer demand goes, fraud follows. ness to more fraud. Group tions and ensure they have a means of authenticating According to Forbes, card-not-present fraud losses These merchants won’t transactions and protecting customers. total to just under $22 billion and automotive/power know that they were victims Federated Auto Parts sports accounts for approximately 1.5 percent of that, of higher fraud for several 4IJGUJOHGSPNCSJDLBOENPSUBSUPPOMJOF costing the automotive/power sports industry more months. By the time charge- While the auto parts industry is thriving, it’s still rela- than $300 million. This equates to almost 2 percent of backs get fully reported, NAPA tively slow to support online transactions. According total industry revenues that are lost. merchants are 60-90 days or SHANE WESTWOOD Marketing Program Manager, National to a report from Automotive Aftermarket Suppliers As auto parts retailers build-up their online offerings, more down the road. Kount Pronto Association and SAP, most auto parts manufacturers the customer experience becomes extremely important. ...CONTINUE READING ◽ Association aren’t yet equipped to accept online orders from repair With more options available to them, customers need to t$MJDLPODFUP[PPNJO TruStar More articles by SHANE WESTWOOD RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

Industry News Products 54 International Commitment Trendsto Training 97 Technology:Technology TrendsLogistics 1011 DonnyTechnology: Seyfer Telematics Sign up for weekly Distribution e-newsletters JANUARY Market Trends & Analysis Contact Us 57 DealershipInternational Market Trends Trends 109 Vendor Market Trends 12 MarkScott SmithLuckett 2018 17 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com ◽ Program Distribution Report DIRECTORY Program Distribution Group Report AIM Automotive Group Automotive Distribution Network Automotive Parts Associates Engine Pro/Engine Parts Group Inc.

General Manager: Group consists of: CEO/President: ASA, Modern Sales. Chairman of the Board: Committee appointed CEO/President: Group structure: Bill McConnell The AIM Automotive David Prater Group consists of: Douglas Squires by board of directors. Don Weber Equally owned by nine AAM Group Year established: 1990 Group consists of six Year established: 1977 Parts Plus, Auto Pride, Year established: 1973 Retail: 15% Year established: 1989 independent distributor integrated groups (AIM, members. WD members: 435 WD members: 165 IAPA, Parts Plus Mexico. WD members: 70 Wholesale: 85% WD members: 9 AIM Alliance, Auto Group structure: Retail: 0% Advance Member-owned Extra, DWC, Cygnus Member-owned Member-owned Private label: 10% Member-owned Auto Parts Shareholder members Wholesale: 100% warehouses: 455 and SDI) representing warehouses: NA warehouses: 100+ Major brands: 90% warehouses: 36 elect a nine-person Member-owned jobber 455 independent Total jobber stores: Member-owned jobber Member-owned jobber Private label: 15% Executive Committee. Programs: Aftermarket stores: 852 automotive parts 1,127 stores: 400+ Professionals’ Choice stores: 0 Major brands: 85% Auto Parts Retail: 10% Non-member owned distributors throughout Member-owned Total service centers: Service Center, Non-member owned Programs: Engine Alliance jobber stores: 1,292 the U.S. The combined service centers: 1,513 Wholesale: 90% 1,500+ Technology Suite: jobber stores: 9,000 Pro parts program group also represents Total jobber stores: States covered: Private label: 10% States covered: All 50, BI - Data Solutions, Total jobber stores: exclusive to members. AIM more than 200 National parts Automotive 2,144 All 50 plus Canada, Major brands: 90% Canada and Mexico. Product Information 9,000 Group suppliers. Management (PIM), ﬁ nder; motorsports Total service centers: Mexico and Puerto Rico Programs: Network Group structure: Total service centers Retail: 20% EDI/Virtual Inventory afﬁ liation; and other 242 Major members: ACI Intel, including EOP and Shareholders elect in the program group: Automotive Wholesale: 80% Cloud - Centralized sales, marketing and Parts Warehousing, eCommerce, WebShop, a board of directors zero Distribution States covered: All 50 Supplier Special promotional programs. Network Private label: 15% ASA, Big City, Car Network Products with staggered three- Major members: Ordering; marketing States covered: All 50 Major brands: 85% Parts Warehouse, Fast Warehouse, complete year terms. Product AIM, AIM Alliance, Auto programs - Harley- plus Australia. Automotive Undercar, The Parts pricing support, shop Committee and Extra, Cygnus, DWC Davidson Sportster Major members: Not Parts House, WM Automotive, CCC & ASE programs. Information Technology Associates and SDI Shop Promotion. provided

The group’s focus in 2018 is to strengthen its The Network’s main focus for 2018 is driving APA will focus on improving member profitability In 2018, Engine Pro aims to focus on continuing Engine Pro/ purchasing power to strategic vendors, making Engine Parts relationship with customers and manufacturing and efficiencies, establish COMAN distribution, to maximize profit margins and selling Group partners and constant development of its maximum use of data to drive sales, and targeting streamlining supplier programs, member sourcing opportunities for its shareholder. association with Auto Plus and all of its marketing efforts to reward both existing and new and enhancing the business intelligence interface. customers. Federated distribution centers and manufacturers. Auto Parts

NAPA

1155 ROBERTS BLVD. SUITE 175 3085 FOUNTAINSIDE DRIVE, SUITE 210 10551 LACKMAN ROAD 4891 INDEPENDENCE STREET, SUITE 205 National KENNESAW, GA 30144 GERMANTOWN, TN 38138 LENEXA, KS 66219 WHEAT RIDGE, CO 80033 Pronto Association (901) 490-5456 (901) 682-9090 (913) 310-9250 (303) 424-3200 FAX: Not provided FAX: (901) 682-9098 FAX: (913) 310-9255 FAX: (303) 424-4999 WWW.NETWORKHQ.ORG WWW.PROFESSIONALSCHOICE.COM WWW.THEAIMAUTOMOTIVEGROUP.COM WWW.ENGINEPRO.COM TruStar

CEO: Rusty Bishop Programs: Computerized CEO/President: Major brands: 10% CEO/President: States covered: 45 CEO/President: Group structure: President: Larry Pavey parts ordering, Dan Askey Programs: In- Bill Maggs plus Canada, Mexico Steve Upton Geographically diverse AAM Group proprietary catalog and Puerto Rico. members head the Year established: 1985 Year established: 1925 store design and Year established: 1978 Year established: 1987 system, Telematics merchandising; Major members: Visit steering and marketing WD members: 63 WD members: 1 WD members: 90 WD members: 62 initiative, obsolete parts counter personnel www.pronto-net.com committees. Advance Member-owned Member-owned Member-owned Member-owned program, inventory training/certiﬁ cation; for membership roster. Retail: 20% Auto Parts warehouses: 172 management, Enhance warehouses: 57 warehouses: 150 warehouses: 120 technology services; Group structure: North Wholesale: 80% Supply Chain initiative, Total jobber stores: Member-owned jobber Total jobber stores: 30 Total jobber stores: dealer merchandising American members Aftermarket Internet support, 6,000 stores: 750 Private label: 40% 4,200 programs; advertising; elect an executive Total service centers: Auto Parts Federated Car Care Major brands: 60% Alliance States covered: 50 plus Total service centers: inventory management; Non-member-owned board of directors. 36,000 Installer Program, credit Puerto Rico, Canada, 16,000 obsolescence jobber stores: 4,000 States covered: 47 Programs: TruStar card program, roadside Retail: 15% Mexico, Latin America. States covered: All 50 protection; preferential Total jobber stores: plus Canada & Mexico. Distribution Center, AIM assistance program, billing terms; specialty Wholesale: 85% TruStar Promotion Automotive Group structure: Board Major members: 4,750 Group consists of: Group national warranty items; employee Private label: 10% Calendar, Warehouse of directors are elected Genuine Parts Company Member-owned AB&S Warehouse, program, road hazard uniforms; market Distributor Trip to serve one-year terms. service centers: 0 Major brands: 90% Brown Distributing, Automotive warranty program, Group structure: Board research; seminars; Promotion; Member Programs: Pronto Smart Frank Supply, Full Line Distribution Retail: 20% shop layout/design, of directors extended product Non-member-owned Website Development Network Choice Service Center Exhaust, Henschel & Wholesale: 80% merchandising aids, Retail: 25% warranties; group service centers: Program, TruStar Graphic Marketing Program. Sons, Jobbers Exhaust, signage, POP displays, insurance plans, 78,000 Packaging, WD Flyers Automotive Private label: 15% Wholesale: 75% Peveto Co., Transbec Technician’s Diagnostic ﬁ nancial assistance/ Total service centers: and Line Cards, Monthly Parts Major brands: 85% Private label: 90% and Toys for Trucks Associates Hotline, natl. advertising. loans; among others. 78,000. E-news.

Federated’s 2018 focus continues to be supporting NAPA’s main focus is to drive business growth on the Pronto and its members’ challenges include growth TruStar’s focus for 2018 will be to develop new Engine Pro/ Engine Parts member growth in sales and profitability. retail and commercial segments of the aftermarket. and to stay profitable in an increasing and very supplier programs while creating additional Group Federated also will work to reduce administrative NAPA offers a complete suite of estimating, shop competitive market space. Members look to grow support for the current programs. Also, continue costs and improve supply chain efficiency through management and technical software tools to help organically with existing business units and through to increase support through the TruStar Distribution Center. Federated collaboration with supplier partners. installer customers profitably grow their businesses. new greenfield locations and acquisitions. Auto Parts

NAPA

P.O. BOX 2248 2999 WILDWOOD PARKWAY 2601 HERITAGE AVENUE 2404 S. GRAND BOULEVARD, SUITE 200 National STAUNTON, VA 24402 ATLANTA, GA 30339 GRAPEVINE, TX 76051 PEARLAND, TX 77581 Pronto Association (540) 885-8460 (678) 934-5000 (817) 430-9449 (281) 485-9908 FAX: (540) 885-7612 FAX: (770) 956-2201 FAX: (817) 430-9559 FAX: (281) 485-4101 WWW.FEDERATEDAUTOPARTS.COM WWW.NAPAONLINE.COM WWW.PRONTO-NET.COM WWW.TRUSTARINC.COM TruStar

automotive parts associates Program Automotive Parts Associates Strength Lies in the Distribution Unity of its Shareholders – Allies for Success Group Report ith over 40 years of service in the automotive programs designed to increase efficiency and the bottom line. aftermarket industry, Automotive Parts In 2016 APA launched the Professionals’ Choice Service Associates (APA) is one of the oldest Center to expand the relationship between shareholders and AAM Group W program distribution groups of its kind, and a customers. Features of the banner program include, marketing member-owned cooperative with 70 independent Warehouse materials, roadside assistance, nationwide warranty, optional Distributor (WD) shareholders in North America. road hazard warranty, in-shop labor and ASE certification As a nonprofit member-owned cooperative, all APA reimbursement programs, so shop owners can focus on Advance Auto Parts shareholders have equal voting rights and stake in the repairs and customer service instead of paperwork. organization, which is focused on member services and APA not only provides members with exclusive programs aggressive supplier programs. APA shareholders create designed to grow their business and increase the bottom Aftermarket a half-billion dollars of buying power annually resulting in line, the organization also rewards shareholders’ customers Auto Parts Alliance robust rebate returns back to the membership. APA is unique with loyalty programs, incentive trips to tropical locales and with no compliance requirements, promotions. In 2017, APA held a and rebates include full itemized contest for Professionals’ Choice AIM Automotive transparency relating to purchase Service Center shops, sent spring Group histories with patronage dividend promotion grand prize winners to payouts of remaining revenue to Las Vegas for an adrenaline-filled Automotive each member at the end of the year. weekend that included an exotic Distribution Automotive Parts Associates driving experience and helicopter Network is headquartered and centrally- trip through the Grand Canyon. In “BEING A MEMBER OF APA located in Lenexa, Kansas in the the fall, APA awarded a 2018 Automotive Kansas City metro area for its Harley-Davidson Sportster Parts HAS GIVEN ME THE OPPORTUNITY Associates diverse members that include motorcycle with a limited-edition Bestbuy Distributors Limited based tour of the production facility. In TO GROW AS A BUSINESSMAN Engine Pro/ in Canada and Society of Import 2018 APA members and their Engine Parts Parts Specialists (SIPS) buying customers will be rewarded with a AND LEADER.” Jim Holmquist, H&H Wholesale Parts Group groups. As an added benefit to members for global product sunny trip to Montego Bay, Jamaica. APA Member Since 2010 programs, APA is a founding shareholder of NEXUS North In addition to attending the APA Annual Shareholders’ and Federated America and member of NEXUS Automotive International Manufacturers’ Conference or other regional meetings for Auto Parts (N!) trade groups. In addition, APA is a member of the Auto networking and product training, shareholders are encouraged Care Association (formerly known as AAIA), Automotive to get involved by participating in the Product Committee for As a nonprofit member-owned cooperative we believe our strength lies International Association (AIA) and Automotive Warehouse supplier and product reviews, or the iSuccess Committee for in the unity of our membership and together, we are allies for success. NAPA Distributors Association (AWDA). evaluating technology initiatives, as well as serving on the APA member services include dynamic incentive programs Board of Directors. with top-tier name brand products as well as with the Automotive Parts Associates believes our strength lies in the National Professionals’ Choice private label brand. Members also unity of our membership and together, we are allies for success. Pronto have access to competitive and industry-leading business FOR MORE INFORMATION ABOUT AUTOMOTIVE PARTS ASSOCIATES MEMBER BENEFITS, VISIT OUR WEBSITE Association intelligence tools for inventory and pricing management www.ProfessionalsChoice.com/Joinus t$MJDLPODFUP[PPNJO #AlliesForSuccess TruStar t$MJDLIPMEUPNPWFQBHFBSPVOE

SOUTH AAM Group

Advance Auto Parts

The GLOBAL Aftermarket Resource for Auto Parts the Automotive Alliance Aftermarket Content Licensing for Every Marketing Strategy AIM Marketing solutions fit for: Automotive Group c information Get industry-speciﬁ t to help you build and expand Outdoor your business – EVERY MONTH! VTUSZ/FXT D*OUFSOBUJPOBM*OE Automotive R t%PNFTUJ t Direct Mail U&WFOUT E t(MPCBM"GUFSNBSLF Distribution S TFBSDI4UVEJFT O t*O%FQUI.POUIMZ3F U PSU(VJEF t R t*NQPSU&YQ Print Advertising Network ZGSPN*OEVTUSZ C 0QJOJPOT$PNNFOUBS t FS E MJLF.JUDI4DIOFJE S &YQFSUT t Tradeshow/ POP Displays Automotive NOW ON iPhone t Social Media Parts or iPad. Photo: Getty Images / Ian McKinnell (Globe) Download FREE from the Apple App Store Associates t Radio & Television Engine Pro/ Engine Parts Logo Licensing | Reprints | Eprints | Plaques Group Let Marketplace Advertising Federated Leverage branded content from Aftermarket Business (E-Zine) to create a more powerful and Auto Parts Work For YOU! sophisticated statement about your product, service, or company in your next marketing campaign. Contact Wright’s Media to find out more about how we can customize your NAPA Generate sales leads, maintain market presence, acknowledgements and recognitions to enhance your marketing strategies.

conduct market testing, promote existing lines, National Pronto introduce new products and services, or recruit the best. For more information, call Wright’s Media at 877.652.5295 or visit our Association website at www.wrightsmedia.com Contact Keith Havemann 310-857-7634 or email [email protected] TruStar