Jobber Newsaugust 2016 Serving the Automotive Aftermarket Since 1931

SHAD’S 43RD ANNUAL GOLF TOURNAMENT RAISES $175,000 • HOSIE & BROWN HOLDS 40TH ANNIVERSARY OPEN HOUSE Jobber NewsAUGUST 2016 Serving the Automotive Aftermarket Since 1931

EMPLOYEEYEE MANAGEMENT WINNING THE TALENT WARSWARS

importTHE ISSUE DESIGN TRENDS HOW THE CONNECTED CAR WILL EXPAND BUSINESS HORIZONS

Canada Post Canadian Publications Mail Sales Agreement No. 40063170 The world demands them.

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FACTORY INSTALLED akebonobrakes.com 270270+ Find us on Facebook MODELS OEM BRAND OF CHOICE facebook.com/akebonobrakes contents | august 2016 » vol. 84 no. 8 Jobber News

Serving the Automotive Aftermarket Since 1931

regular features

6 OVER THE COUNTER Shad’s 43rd annual golf tournament raises $175,0000 for 6 Muscular Dystrophy; AIA Canada recognizes Randy Moore; Hosie & Brown holds 40th anniversary 18 open house; J.D. Power: U.S. new-vehicle quality makes largest improvement in seven years; COVER STORY Federal-Mogul Motorparts receives The import issue patent for design, construction of innovative Moog ball joints; Design trends – How the connected car will 7 Tesla to sell its electric cars at expand business horizons Nordstrom; FMSI announces new Over 50 billion devices are predicted to be connected board of directors for 2016-2017. to the Internet by 2020 – and the automobile is quickly becoming a key device in the Internet of Things (IoT). 22 COUNTER TALK in this issue The evolution of the brake job: Brake service 16 gets more complex Like many industries today, the automotive brake industry has experienced vast changes over 10 the last decade. Rapidly evolving technology, stricter friction material regulations, increasing environmental factors, and an 22 aging car park (10+ years), have all had a major effect on the EMPLOYEE MANAGEMENT brake industry. Winning the talent wars The real battle in business today is the battle for talent. 25 If we win that one, the battle for loyal customers and MARKET TRACKER healthy profitability is a lot easier. PC-11 The diesel engine oil 25 of the future 16 The American Petroleum Institute MARKET FEATURE departments (API), working with engine Making the battery sale manufacturers and oil makers, 4 UpFront is completely redesigning heavy- Advancing vehicle technologies are providing an How to hire the best duty engine oil specifications. unexpected upsell opportunity for battery sales. 28 New Products Jobbers just need to know how to identify that upsell opportunity. 29 Marketplace Advertisers 30 Index MONEY & MANAGEMENT

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JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 3 upfront | with steve pawlett, editor » [email protected] Jobber News FOUNDED 1931

Jobber News is Canada’s longest-established publication serving the distribution segment HOW TO HIRE THE BEST of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, sk any jobber and he/she will tell you that good and national accounts. employees are hard to find. Publisher & Editor in Chief | Andrew Ross It’s no secret that today’s job market is highly (416) 510-6763 E-Mail: [email protected] competitive. Millennials who are interested A Editor | Steve Pawlett in joining the automotive aftermarket workforce are (416) 510-6839 doing so with higher expectations than previous E-Mail: [email protected] Contributing Editor | Martha Uniacke Breen generations. And they are often looking for a quick E-Mail: [email protected] transition to other jobs within the industry, making it Contributing Writers | Andrew Brooks, even more challenging for employers to find and train Mark Borkowski, Tom Venetis Art Director | Barbara Burrows an employee who is willing stay and grow with them. So how do you keep on top of finding and keeping Managing Director, Auto Div. & National Sales Establishing the best talent for your business? Kathryn Swan (416) 510-5221 your E-Mail: [email protected] When planning to hire, be as clear and detailed National Sales | Juan Diez message as possible with your overall objectives. How many (416) 510-5203 E-Mail: [email protected] and employees do you need? What positions are you brand Quebec & Eastern Canada Sales Director will not only looking to fill, and when will you need them to start? Set Denis Arsenault, (514) 947-7228 attract top target timelines and be sure to include a contingency E-Mail: [email protected] Advertising Production Manager, Print/Digital talent specific plan for unforeseen issues that may arise during the Kimberly Collins (416) 510-6779 to your hiring process. E-Mail: [email protected] Be sure to include orientation and onboarding for any Print Production Manager | Phyllis Wright organization, (416) 510-6786 new employees. Neglecting this crucial step can result but also help Circulation Manager | Lilianna Kantor align staff with in a new hire’s early departure because they are feeling (416) 614-5815 lost, unsupported, or unappreciated. E-Mail: [email protected] your overall Similar to selling a brand name product, your Jobber News is published by Newcom Business business goals “employment brand” should stand out to potential talent. Media Inc. All rights reserved. Printed in Canada. and objectives. The contents of this publication may not be It’s important that your vision and values come through reproduced or transmitted in any form, either in your message, and that it be authentic. Establishing in part or full, including photocopying and your message and brand will not only attract top talent recording, without the written consent of the copyright owner. Nor may any part of this specific to your organization, but also help align staff with publication be stored in a retrieval system of any your overall business goals and objectives. nature without prior consent. Think about what constitutes your ideal employee. How do they align with Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 the vision and values of your business? What skills, knowledge, and abilities “Return Postage Guaranteed” Send change do they have, and how does that show up in business? Look at your top of address notices, undeliverable copies and employees and make a list of their skills. subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Next, put yourself in a potential candidate’s shoes. What are they looking for Jobber News Magazine (ISSN#0021-7050) is from an employer? What changes do you have to make in order to attract this published monthly by Newcom Business Media type of talent? Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 With a clear vision of your ideal employee, the next step is to find them. In From time to time we make our subscription list available to select companies and organizations the current job market, you have to be proactive. With so many avenues to whose product or service may interest you. If market your business, it provides an excellent opportunity to get creative and you do not wish your contact information to be stand out from other employers. Be bold. Think outside the box. made available, please contact us. Job boards and career pages have been around for almost two decades; however, technology is ever-changing. One current Web trend that is affecting recruitment is mobile optimization. With 63% of Web browsing now done President | Joe Glionna through a mobile device, having an optimized career page lends itself well to Chairman | Jim Glionna your employment brand. Take it one step further, and create a mobile-friendly Corporate Offices Regional Office process that is fast and easy to use to attract potential candidates from a Head Office 80 Valleybrook Dr., technology perspective. 451 Attwell Dr., Toronto ON M3B 2S9 Toronto ON M9W 5C4 Phone: 416-442-5600 It is important to have a clear, concise plan for your entire employee life Phone: 416-614-2200 Fax: 416-510-5169 cycle, right through to termination. Investing the time to not only find but keep Fax: 416-614-8861 the right people for your business will reduce turnover, and in turn, yield a “We acknowledge the financial support of the Government higher return on investment. of Canada through the Canada Periodical Fund of the Department of Canadian Heritage”. For more detailed advice and guidelines on hiring the best, turn to our ISSN 0021-7050 Association of Business Publishers feature, “Winning The Talent Wars,” by international business coach Donald 205 East 42nd Street New York, NY 10017 Online 1923-3477 Cooper on page 10. „JN

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SHAD’S 43RD ANNUAL GOLF TOURNAMENT RAISES $175,0000 FOR MUSCULAR DYSTROPHY

Cardone Receives 2016 Sales Representation Award Cardone was honoured by Federated Auto Parts with its Sales Representation Award in recognition of Cardone’s Shad’s has played an integral role for Muscular Dystrophy Canada since its inception, and this year excellent sales support was no exception. The 43rd annual golf tournament raised $175,000 for research into muscular across all Federated dystrophy, bringing the cumulative total to $4.7 million. membership. Shad’s annual golf tournament was started when a group of aftermarket professionals felt bad for “I am very proud of skipping off to play golf one day. Shad’s R&R (the R&R stands for “Remorse and Regret”) has become our sales division for one of the automotive aftermarket’s key fundraisers and has been making contributions to aid research its commitment to into muscular dystrophy since its inception. ensuring the ‘Voice of This year attendees had the pleasure of listening to a dynamic presentation by 12-year-old Owen the Customer’ is heard McGonigle, a spokesperson for Muscular Dystrophy. Owen has been dealing with muscular dystrophy within our company,” since he was 11 months old. A huge fan of the London Nights, Owen is an accomplished fundraiser for says Stan Gowisnock, muscular dystrophy, and an honourary fire chief in his hometown of London, Ontario. Cardone’s president and CEO. “Our salespeople are out in the trenches every day, serving customers in various HOSIE & BROWN HOLDS 40TH ANNIVERSARY capacities and making OPEN HOUSE sure their expectations are front and centre on Ottawa-based Hosie & Brown Auto Parts cel- to be more competitive with the people that sell our corporate radar. ebrated its 40th Anniversary with an open house. on price alone. We may not match it, but we are I am very grateful Along with excellent support from suppliers, more close. I have four daughters that aren’t interested to Federated for than 350 customers attended the event. in the business, and I am 57,” explains owner Rodd recognizing these Back in 1976, Hosie and Brown Auto Electric Brown, “and I don’t mind working the long hours, efforts.” started with five employees. Today the firm has over but if I want an escape plan, now I have one. My 40 staff, and is still doing business with its traditional family is still a 50% owner and Group Monaco owns approach to customer service. Hosie and Brown the other 50%.” has been an AC Delco distributorship since opening The main store is located in a small industrial and became a member of Group Monaco in 2008. area on Gosset Street, and houses over 9,000 sq. ft. “Our affinity for the Monaco group was a of usable space that, more often than not, is filled godsend. AC Delco is a great company too. They to capacity. “If we don’t have it on hand, nine out both back us up, no argument. We are now able of 10 times you’ll still get the part the same day, because we can draw from unlimited resources around the immediate Ottawa area,” adds Brown. Rodd took over the company after his father died in 1999, and is easily one of the more recognized and respected figures in the Ottawa area automotive market. The company’s second store is located in Nepean, Ontario. “The bottom line is, we believe we give the best service in this city. We have the best staff, with at least six employees who have been here for at least 25 years. “We went from two stores with under a million dollars in sales to two stores with about $4 million in sales.”

6 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 J.D. POWER: U.S. NEW-VEHICLE QUALITY MAKES LARGEST IMPROVEMENT IN SEVEN YEARS

ber of problems by 28 PP100 from 2015. General Motors receives seven model- level awards, followed by Toyota Motor Corporation with six and Hyundai Motor Company and Volkswagen AG, each with four. • General Motors models that rank New-vehicle quality has improved 6%, • For the first time since 2006, non- highest in their respective segments double the 3% rate of improvement in premium brands have fewer problems are the Buick Cascada; Chevrolet 2015 and the largest increase since 2009, (104 PP100) than premium brands Equinox; Chevrolet Silverado HD; according to the recently released J.D. (108 PP100). Chevrolet Silverado LD; Chevrolet Power 2016 U.S. Initial Quality Study (IQS). Spark; Chevrolet Tahoe; and GMC The study, now in its 30th year, • Expected reliability remains the most Terrain. examines problems experienced by important consideration when • Toyota Motor Corporation models that vehicle owners during the first 90 days of purchasing a new vehicle, cited 49% rank highest in their segment are the ownership. Initial quality is determined by of owners. J.D. Power has studied Lexus CT; Lexus GS; Scion tC; Toyota the number of problems experienced per consumer behaviour from when they Camry; Toyota Corolla; and Toyota 100 vehicles (PP100), with a lower score purchase or lease their new vehicle Highlander. reflecting higher quality. through when they are back in the • Hyundai Motor Company models Quality improves across all eight market for their next vehicle in order that rank highest in their segment are problem categories measured in the study, to measure the impact initial quality the Hyundai Accent; Hyundai Azera; with 21 of the 33 brands included in the has on brand loyalty. Among owners Kia Soul; and Kia Sportage. study improving their quality in 2016 and who experience no problems with • Volkswagen AG models that rank one remaining the same. their vehicle in the first 90 days, 54% highest in their segment are the Audi “Manufacturers are currently making stay with the same brand for their Q3, Audi TT, Porsche Macan, and some of the highest quality products we’ve next vehicle. Loyalty drops to 50% Porsche 911. ever seen,” says Renee Stephens, vice- among owners who experience one president of U.S. automotive quality at J.D. problem with their vehicle, and to 45% Plant Quality Awards Power. “Tracking our data over the past among those who experience three or Toyota Motor Corporation’s several years, it has become clear that more problems. Georgetown 3 (Kentucky) automakers are listening to the customer, plant, which produces the identifying pain points, and are focused “There is a direct correlation between the Lexus ES, and its Kyushu on continuous improvement. Even as they number of problems customers have with 2 (Japan) plant, which produces the add more content, including advanced their new vehicle and the decisions they Lexus ES and Lexus RX, each receive the technologies that have had a reputation make when it comes time to purchase or Platinum Plant Quality Award in a tie for for causing problems, overall quality lease their next car or truck,” says Stephens. producing models with the fewest defects continues to improve.” “While a small drop in actual loyalty may or malfunctions. Plant quality awards are not sound like much, a percentage point based solely on defects and malfunctions Following are some of the study’s drop in share can mean millions of dollars and exclude design-related problems. key findings: in lost revenue to an automaker.” Porsche’s Stuttgart (Germany) plant, • For just the second time in the which produces the Porsche 911 and 30-year history of the study, U.S. Highest-Ranked Nameplates and Models Porsche Boxster, receives the Gold Plant domestic brands collectively have Kia ranks highest in initial quality with a Quality Award in the Europe/Africa region. lower problem levels than all their score of 83 PP100, the first time in 27 years The 2016 U.S. Initial Quality Study is import counterparts combined. All that a non-premium brand has topped the based on responses from more than three U.S. domestic automakers post rankings. It is also the second consecutive 80,000 purchasers and lessees of new year-over-year quality improvements. year that Kia, which ranked second in 2016 model-year vehicles surveyed after The “Detroit Three” achieve a combined 2015, has led all non-premium makes in 90 days of ownership. The study is based average of 103 PP100, improving 10% initial quality. on a 233-question battery organized into from 2015, which is double the Porsche (84 PP100) ranks second eight problem categories designed to improvement rate of the import brands among nameplates, followed by Hyundai provide manufacturers with information at 106 PP100. The last time U.S. domestic (92 PP100), Toyota (93 PP100), and BMW to facilitate the identification of problems brands outpaced imports was in 2010, (94 PP100). and drive product improvement. The when they held a 1-PP100 advantage Chrysler and Jeep are the most study was fielded from February through

Photo: Ugurhan Betin – iStock.com (108 PP100 vs. 109 PP100, respectively). improved brands, each reducing the num- May 2016.

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 7 over the counter |

FEDERAL-MOGUL MOTORPARTS RECEIVES PATENT FOR DESIGN, CONSTRUCTION OF INNOVATIVE MOOG BALL JOINTS Federal-Mogul Motorparts has been awarded a many of these applications can bind – causing U.S. patent covering innovative improvements to potentially severe steering returnability issues – if the design and construction of the Moog brand’s proper torque sequences are not followed during Problem Solver ball joints for vehicles equipped installation. with compression-loaded suspensions. The Moog In addition to the technology covered by the Honda brand now holds 47 U.S. patents. latest patent in the Moog portfolio, Moog Problem Reveals “Innovation is a continuous process for Solver ball joints feature another innovative design Moog product engineers,” says Richard Harvey, that permits sufficient upper bearing movement Self-Driving engineering director, steering and suspension even in cases when fasteners are not torqued Vehicles products, Federal-Mogul Motorparts. “Our latest in proper sequence. Also unique to this patent ball joint design improves on a well-established pending design is a precisely engineered knurl Honda Motor Co. recently Moog technology that already outperformed OE on the outside of the ball joint housing that helps displayed its new self- equivalents. Our engineering team never stops correct for damage to the control arm or I-beam driving prototypes at its exploring new ways to help Moog customers mounting hole. An oversized or misshapen testing facility in California, extend their quality and performance advantage mounting hole – common in repair situations – saying the company is within the repair market.” can permit excessive movement of OE-style parts, already on its way to The new patent, U.S. 9,291,195 B1, covers a resulting in steering wander and/or abnormal offering semi-autonomous multi-piece bearing system that extends the life tire wear. This design helps ensure a secure, safety functions to the of Moog Problem Solver ball joints operating interference fit for precise steering and handling. mass market. under high rotational load conditions for many The new Moog Problem Solver ball joint also Although the automaker late-model light trucks, Jeeps, and SUVs equipped includes yet another unique patent pending feature, has been less vocal about with compression-loaded suspensions. These a pre-installed integral dust boot with an encapsu- its plans for self-driving vehicles utilize twin I-beam or solid axles. Original lated Belleville washer. This design helps maintain vehicles than some of its equipment-style upper and lower ball joints for an effective seal throughout the life of the part. competitors, Honda says it has been quietly building semi-autonomous features that are already being GM CANADA General Motors has announced that it will expand its Canadian engineering rolled out in model year TO EXPAND base at its Oshawa Tech Centre to focus on the development of shared, 2016 Acuras and Civics. autonomous, and connected cars. With the current roll-out TO 1,000 GM will expand the engineering base to reach a total of approximately 1,000 of semi-autonomous ENGINEERS positions at the facility over the next few years. This will exceed the capacity functions, which it says FOR of the Oshawa Tech Centre, prompting GM to soon open a centre in Markham, will pave the way for full AUTONOMOUS Ontario. autonomy on highways CARS “We selected Canada for this expansion because of its clear capacity by 2020, Honda says it for innovation, proven talent, and strong ecosystem of great universities, differs from rivals, whose startups, and innovative suppliers. With this expansion, GM Canada will self-driving efforts have play an important role in our evolution toward vehicles that are connected, centred on their luxury autonomous, shared, and electric,” says Mark Reuss, GM executive vice- models. president, global product development, purchasing and supply chain.

FriedrichF Fischer’s ideas are the inspirationi that keep our wheels turning. FromF it’s beginnings in Germany over 130 years ago, FAG has been a leader in thet roller bearing industry. Friedrich Fischer invented the steel ball grinding machinem in 1883, paving the way for the modern ball bearing. His company, FischerF AG, known today as FAG, continues to build on his tradition. WhenW you install FAG products, you get OE quality and more than 130 years ofo experience and manufacturing excellence. TRADITION!

8 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 TESLA TO SELL ITS ELECTRIC CARS FMSI ANNOUNCES NEW AT NORDSTROM BOARD OF DIRECTORS FOR 2016-2017 Tesla Motors, Elon Musk’s The Friction Materials Standards Palo Alto-based manufacturer Institute (FMSI) announced its new of electric vehicles, recently slate of officers and board of directors opened one of its “galleries” in at its annual meeting. Nordstrom at The Grove, the Los Jerry Forystek of Brake Parts, Angeles retail multiplex owned outgoing chairman, announced that by billionaire real-estate magnate Frank Oliveto of Util Canada is the Rick Caruso. Tesla featured its new chairman. Assisting Oliveto are Model X SUV inside the boutique- first vice-chairman Rafael DiBuono of ish, 400-sq.-foot outpost, and tried to entice Nordstrom shoppers with mix-and-match Fras-Le, and second vice-chairman Bill interior car panel displays, as well as on-site test drives with Tesla employees. Carney of FDP Virginia. Rick Jamieson The Tesla gallery was open at the Nordstrom location – which, among 38 other of ABS Friction remains treasurer and stores, serves as The Grove’s anchor – through the end of the year, during which Patrick Healey continues as president. time it will serve as a pilot to determine whether the companies want to expand their Forystek stated that the membership partnership. “We’re focused on listening to our customers and seeing how they respond had endorsed the following as the FMSI to this type of differentiated experience,” Nordstrom said in a statement. The upscale Board of Directors for 2016-2017: retailer operates 121 stores in the U.S. and Canada, in addition to 200 Nordstrom Racks. • Steve Bird, Util Canada “[We’re] bringing Nordstrom customers a Tesla experience, and I think for Nordstrom • Walt Britland, Federal Mogul Motorparts as well, it’s like, How can we target Tesla’s audience?” says Ganesh Srivats, the luxury • Bill Carney, FDP Virginia carmaker’s vice-president of North American sales. Srivats, a former retail exec at the • Cristina Casimiro, Friccion y Technologia British fashion house Burberry, had worked extensively with Nordstrom in the past and SA de CV played an instrumental role in setting up the initiative. • Rafael DiBuono, Fras-Le Tesla says it is currently in the process of obtaining a sales license for the gallery. • Jerry Forystek, Brake Parts Until then, if a customer expresses the desire to make a purchase, Tesla employees • Rick Jamieson, ABS Friction must arrange a call between the customer and an off-premises sales associate, direct • Tom Moalli, Tek-Motive the customer to the nearest licensed Tesla store (it’s California, so that’d only be five miles west), or to its website, where Tesla accepts a large chunk of its orders and • Bill Murray, NuCap Industries preorders. This process would not be unlike the current manoeuvring that Tesla does • Frank Oliveto, Util Canada in states such as Connecticut and Texas, where, due to decades-old franchising laws, its • Mark Phipps, Bosch Brake Components ability to build stores or sell directly to customers is constricted – or banned altogether. • Kirby Pruitt, Akebono America In that context, the Nordstrom partnership is a smart move, as Tesla’s founder and Founded in 1948, the Friction CEO recently surprised investors when he announced plans to sell 500,000 vehicles – Materials Standards Institute is a trade which will include its cheaper upcoming sedan, the Model 3 – by 2018. To meet that association of automotive aftermarket goal, Tesla, which has just 215 storefronts globally, will need to expand its infrastructure friction manufacturers. FMSI collects, for selling and delivering cars to potential buyers, many of whom are unfamiliar with characterizes, and disseminates to its the company’s still-nascent brand and all-electric vehicle technology. Acknowledging members the vehicle manufacturers’ the fact that there were a lot of moms and partners shopping at The Grove on Saturday original equipment service products (women play the leading role in 68% of new car purchases), in the larger scope of and other public-domain information. things Tesla could be offering a glimpse of what its future sales network might look like. These products are included in FMSI’s “This kind of innovation is just not going to be possible if we don’t have a direct sales standardized and trademarked part model,” Srivats says. “Because ultimately we’re going to be restricted by the dealerships numbering system for brakes and from engaging in the new playful ways that we’re able to do because we own our clutch facings. To learn more, visit business.” www.fmsi.org.

AIA Canada AIA Canada extends its deepest gratitude to Randy Moore, president and CEO of Mister Transmission and Recognizes engaged AIA volunteer and true automotive aftermarket ambassador. After many years serving as director on the board of the Automotive Business School of Canada at Randy Georgian College representing the automotive aftermarket and AIA, he has resigned his position and attended his last board meeting on June 3rd, 2016. A major contributor to ABSC, Randy was instrumental in facilitating the collaboration between the Canadian Moore Automobile Dealers Association, its provincial counterparts, and AIA in the creation of the Student Business Lounge at Georgian College, which includes a lounge area dedicated to the automotive aftermarket. AIA President Jean-François Champagne will be taking on the role of director on the Board of the ASBC. “I want to thank Randy for his tremendous contribution and can assure him that I will do my very best to continue his legacy,” says Champagne.

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 9 Employee Management |

WINNING THE talent wars

he real battle in business today is the battle for talent. If we win that one, the battle for loyal customers and healthy profitability is a lot easier. t Whether your business is large or small, not having the right people in every position carries a huge bottom-line cost in lost business, inefficiency, missed opportunity, and frustration. The talent crunch is real, and will last for decades. In less than 10 years’ time, we’ll see many businesses fail because they’re unable to find the talent they need. We become what we hire. You can’t build an extraordinary business by hiring ordinary people. So we need to attract and hire extraordinary talent, not ESSENTIAL just “bodies.” Then, we must train, inspire, empower, and engage them to wow our customers, achieve world-class8 operating efficiency, and grow our bottom line. STEPS TO Everyone on your team must be clear about your customer promise, your direction, and your values. ATTRACT, They must be committed to specific outcomes, be held accountable for their performance, and rewarded for their success. Then, non-performance must be dealt with LEAD, AND promptly and firmly. Lack of accountability and failure to deal with non-performance are two of the biggest ENGAGE problems in many businesses today. So, we must all manage smarter. A TOP- These eight steps to attracting, leading, and engaging a top-performing team deliver a clear and effective process that will make you a world-class recruiter, a world-class PERFORMING boss…and a world-class business. TEAM S Create clarity about six things. T As a business owner, leader, or manager, your first job is “clarity.” You hire people to E help you do something, and to become P something. So if you’re not clear about six specific1 things, you won’t know who you need to hire and how you need to train and develop them.

10 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 BY DONALD COOPER, MBA, CSP, HOF

We become what we hire. You can’t build an extraordinary“ business by hiring ordinary people. We need to attract and hire extraordinary talent, not just “bodies.” Then we must train, inspire, empower and engage them to wow our customers.”

As a business owner, leader, and manager, you must be clear about these six things: 1 Who your target customers are and the compelling value and experiences you commit to deliver; what your brand promise and brand personality are. 2 How you will communicate and promote your value story in a crowded and cynical marketplace. There’s no point being the best if you’re also the best-kept secret. 3 The extraordinary future that you commit to create: what, where, how big, and how different your business will be in three to five years (your vision). 4 How you’ll get there. Specifically, year by year, what action you will commit to take (your mission). 5 The extraordinary bottom line you commit to generate. 6 How you commit to behave along the way (your culture, values, ethics, and standards).

Simply put, you need to know who you are and what you commit to become. Most businesses lack this kind of clarity – and it’s killing them. Are you clear about these six things in your business?

S Take ownership of the problem. T Sadly, many business owners and managers have convinced themselves E that “You just can’t get good people P anymore.” They’re in denial and they’ve2 given up. The truth is that the best people have to work for somebody – it’s just that you have to deserve them. So take ownership of the problem and become the kind of business that the best people want to work for. Here’s a simple two-step process to make that happen that will take two pieces of paper and 40 minutes of your time. Photo: ferrantraitePhoto: iStockphoto –

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 11 Employee Management | winning the talent wars

Step #1 – 20 minutes: Sit down with a few of your best people Make sure that training and and describe on one piece of paper the kind of business in your development is an ongoing part industry, in your market, that the very best people would want to “ work for. How would that business recruit, pay, train, develop, of every job. You can’t grow your mentor, thank, reward, honour, and celebrate its people? What business without growing your kind of values, benefits, and culture would it create? How would people. it feel to work there?

Step #2 – 20 minutes: On a second piece of paper, write down ” all the things you need to get off your behind and do to become the kind of business that you just described on page 1. Then, determine specifically what will be done, by whom, by when, to potential. Coach them, challenge them, reward and encourage make it happen. them. On the other hand, you likely have some non-performers with S Document the specific skills, knowledge, no potential that you’re not dealing with. They’re dragging you T qualities, and experience required to do down, driving good people nuts, and hurting your bottom line. each job wonderfully – now and in the Deal with them. E future. Sit down and talk with each non-performer. Tell them P Finding great staff is like looking for a needle specifically what your concerns are and ask if something is in 3a haystack. But it’s much easier to find the needle if you know preventing them from doing the job as it needs to be done, or exactly what a needle looks like. from honouring the values and culture of the business. Get clear Create a job description for each position in your business. commitments as to how they’re going to improve and by when. Writing job descriptions is a pain, but you never really Document the commitments and follow up. Acknowledge understand a job until you go through this, just like you never progress and deal with failure to perform. know what shape your car is in until you get out a bucket of soapy water and wash your own car. You need to get up Looking outside for great people close and personal with every job in your business before Here are 10 tips to think about. you can effectively hire anyone to do it. For help in writing 1 Where are the people you need working or living right now? job descriptions, check out The Job Description Handbook by How can you reach out to them? Margaret Mader-Clark. 2 Get your existing staff to help. Good people know good On a scale of 1 – 10, use the tool below to determine the people. Offer a financial incentive for finding good employees importance of each of the “7 Key Success Factors” for each job who stay for a specific length of time. or position in your business. 3 What about former employees? Often good employees who 1 Talent. leave for some reason are even better when they return. 2 Knowledge, skills, and experience. 4 Internet job posting. 3 Positive attitude and personality. 5 Industry associations, newsletters, or magazines. 4 Judgment and maturity. 6 Ethnic or cultural associations with connections to people 5 Ambition. with specific backgrounds or skill sets. 6 Physical requirements. 7 Build special relationships with trade schools or colleges. 7 Fit with your culture, values, and standards. Speak at their Career Days. Serve on their Advisory Boards. Sponsor competitions or annual Awards for Excellence at Bonus thought: Hire for the future, not just for today. Think those schools. about how each job and the entire business will change in the 8 Are there job functions that could be outsourced? next five years. What different skills, knowledge, and experience 9 Traditional job placement bureaus. will be required? 10 Think outside the box.

S Where do you find people with the skills, Here are a few examples of “thinking outside the box.” A T knowledge, qualities, and experience Winnipeg sheet-metal manufacturer has been successful in you need? giving street people an opportunity. Facing a chronic shortage E The people you need are one of two places. of bike mechanics, a group of bike shops in Toronto partnered P They’re already working for you, or they’re with an organization committed to helping at-risk youth. Now someplace4 else. You may have talented people on your team each year, together, they train 70 street kids to be qualified bike right now that you’ve overlooked. They may be in the “wrong” mechanics. Dumar Industries, a company that makes parts for job and performing badly. They may have been overlooked for specialized armoured vehicles, hires military veterans. What some other reason. Age or gender biases may be clouding your might “outside the box” look like for your business? view of human potential. Identify your stars, and those with continued on page 14

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S Get the interview and screening process Businesses don’t die from a T right. Ask the right questions! single shot to the head. They die Screening out the people who are not a good “ E fit for the job or for your culture, while exciting slowly but surely from a thousand P great people about the opportunity, is uncompleted tasks. So when you a challenging5 task. Nobody much likes interviewing job assign a task, always ask, “By candidates. My suggestion is to create a script of 10 to 15 questions to find out if candidates have the talent, experience, when can we agree that this will attitudes, and values you need. be completed? After asking specific questions to determine if they have the required job-specific skills and knowledge, ask them a few general questions like: ” 1 What did you like and not like about your previous jobs? Why did you leave? Create a tailored training program for each new employee 2 What would you like to get out of this job? based on what what they already know and what they need 3 What would you like to get out of your career? What would to know. Then, make sure that training and development is an you like to be doing in three years? ongoing part of every job. You can’t grow your business without 4 What would make this a great working experience for you? growing your people. Communication is a two-way street. Sit with each employee Have a few of your top performers interview candidates. If at least twice a year to ask them how they think the job is your best people give them a thumbs down, pay attention. going, where they’d like to be in two or three years, and what Have candidates actually perform some of the tasks that the additional training and coaching they need to make that job requires to see if they can do it. We’ve all hired people who happen. Ask them what they want their life to look like in three are great talkers, but who can’t do the job. Screen them out now! years, and how you can help them achieve that. Ask for and check references. Yes, it takes time to do this, but Create quarterly “Idea Fests” in each area of the business, it can save you a lot of grief. Tell them the specific job that the where for a few hours each team member is responsible for candidate is applying for. Then, you can ask a number of specific delivering at least one idea to serve customers better, to be more questions about the candidate, or you can simply ask, “Would safe, more efficient or better communicators. Rewards should you hire this person back if they reapplied to your company?” If be given for ideas that work. they say “No,” ask them what their concerns would be. S Empowerment, urgency, and Bonus Tip: Never hire anyone after just one interview. That’s like T accountability asking someone to marry you on the first date. You don’t know Stop micro-managing your people. If you have them well enough yet. E to micro-manage them, it’s a sure sign that P either they’re the wrong people, or that you’re The right introduction – and ongoing an 7ineffective manager. You need to find great people, create S T training and communication clear expectations, then train, coach, reward, and encourage Get new people off to a good and welcoming them. Create a culture of joy, respect, and accountability – and E start. The week before a new person starts, then empower them to do their job. P an announcement should go to everyone in the And how do you create a culture of urgency and account- department6 saying who the new arrival is, what they’ll be doing ability? Work with your team to agree on clear and specific out- and a bit about their business background and who they are comes. Make sure they know why their role is important, and as a person. Invite everyone to welcome the newcomer. Then, then measure performance. Be open to and respect the ideas of have their workplace ready for them on day one. others. Remember that your way isn’t the only way. Of course, every business should have a “New Employee Businesses don’t die from a single shot to the head. They die Welcome Booklet” that describes the company’s history, awards slowly but surely from a thousand uncompleted tasks. So when won, special achievements, Statement of Purpose, Statement of you assign a task, always ask, “By when can we agree that this Values, list of rules, commitment to physical and psychological will be completed?” Document the commitment and always safety, and anything else that a newbie needs to know to hit the follow up. Reschedule dates when necessary, but never create ground running. Smart companies also assign a wonderful team “orphans.” An orphan is anything that you’ve asked someone to member to be a guide, to answer questions, and help the new do that doesn’t have a specific completion date attached to it. person navigate their new environment. Another way to improve accountability and urgency is to I believe strongly that every new employee should receive a stop talking about goals, targets, aims, and objectives in your tour of the entire business so they see the bigger picture and can business. These are all weak and wishy-washy words that leave better understand where their job fits into that picture – and, way too much wiggle room to not perform. Replace all of them therefore, why their job is important. with one powerful word: commitments. There’s a big difference

14 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 Visit us on the WEB! between a goal and a commitment. When we change our language, we change our culture. So create a culture of commitment.

S Acknowledge, T reward and celebrate E success. Recognize and reward Canada’s most trusted P top contributors, encourage8 and develop those with portal for fast-breaking potential, and invite poor performers to aftermarket news! move on. 1 Pay more and expect more. The best people never work for the least amount of money. 2 Create a culture of celebration. Celebrate birthdays, special occasions, and MORE MORE MORE achievements. Send a card to each news features products person on your team on the anniversary of his or her employment. Thank them for one more year of sharing the passion, www.AutoServiceWorld.com vision, and commitment of the business. Most people remember the day they started working for you, and they hate ADD US TO YOUR FAVORITES AND VISIT OFTEN! it when you don’t. • Visit the industry calendar of events 3 Honour individuals and the team with • titles, business cards, awards, dinners. See our digital edition and archives Look for reasons to celebrate. Create a • Take part in our Weekly Reader Poll culture that combines commitment, • Sign up for our twice weekly e-newsletter urgency, and joy.

So, there you have it. Eight clear steps to creating a top-performing team. Which part of the process do you need to work NEW! on first? Then, what will be next, and next after that? Remember, the real battle Vehicle Technology & in business today is the battle to attract, Innovation Knowledge Centre engage, and retain talent. If you win that one, the battle for loyal customers and a healthy bottom line is a lot easier. „JN Sponsored by Chevron, this one-stop channel International management speaker and business coach Donald Cooper has been in the trenches. focuses entirely on game-changing technologies. From humble beginnings, Cooper Sporting Featuring a seven-part custom series, we’ll be Goods became a global leader and a Canadian brand icon. Cooper Canada exported, imported, delivering information you need to stay current. opened an offshore factory, went public, bought competitors, and through it all attracted the top Don’t miss this must-read channel! talent in the industry. After selling Cooper Canada, Donald “accidentally” became a retailer of ladies’ fashions and gifts. He fundamentally reinvented the customer experience, for which he received seven awards of excellence, including being voted Canada’s “Outstanding Innovative Retailer” by the Follow us on Twitter and like us on Facebook Retail Council of Canada. Cooper speaks to and coaches over 20,000 business owners, leaders, and managers each year. http://www.donaldcooper.com/

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 15 market feature | battery technology batteryMAKING THE $ALE

dvancing vehicle technologies are Alan Simpson, president of Total Bat- while idling. This puts a tremendous Aproviding an unexpected upsell tery Group of Companies, agrees that the workload on the battery, so much that opportunity for battery sales. Jobbers just ever-increasing number of onboard elec- conventional flooded batteries cannot need to know how to identify that upsell tronics is driving the increased use of AGM withstand it.” opportunity. batteries. AGM batteries provide several These technological changes make for Perhaps it is best to begin by stating advantages over their older cousins. “The an easy upsell opportunity for jobbers something that may seem obvious, but is addition of electronic components and and their counter staff. When a battery not emphasized enough: today’s modern accessory devices is driving the market needs to be replaced on a vehicle, then vehicle is an energy hog. Because of this, to batteries with better reserve capacities, the counter staff needs to push for a battery makers are looking to pack more such as those found in AGM batteries,” higher-quality AGM-style battery. But power into modern automotive batteries. Simpson adds. “These sealed batteries this often does not happen. Why? One “The technology in vehicles today is have no free-flowing acid and are better factor is price. Many automotive service driving the need for more reserve capacity able to handle the additional loads that writers will too often focus on the cost from the battery,” says Richard Wrubel, are put on the battery due to all of these of the battery, instead of choosing a product program development manager, new electronic components, such as Blue- higher-quality battery that can provide General Motors Customer Care and tooth, on-board computers, and even gam- the needed power and reserve capacity. Aftersales Canada. “New vehicles today ing ports. Their construction allows [AGM But that focus on price alone can be have more electronics that draw more batteries] to be charged and discharged overcome, if jobbers and their staff use current per trip than in the past. These more often and to a deeper level, without it as an opportunity to educate service include modern navigation systems, affecting the battery as it would with a writers about choosing the right battery sophisticated radio systems like XM radio, conventional wet-flooded battery.” for the customer and their vehicle. video entertainment systems – and now Simpson adds that other vehicle “Ideally, if a consumer understands many vehicles include expanded auxiliary technologies are also pushing sales that today’s vehicles put an increased outlets for the use of accessories, and USB towards AGM battery technologies, such demand on batteries, they are more outlets for the use of external electronics. as the emergence of Start/Stop systems. likely to consider an upgraded battery These requirements are driving the need “Start/Stop is a new system whereby the technology,” says Justin Bakhsh, vice- for AGM (Absorbed Glass Matt) batteries vehicle will shut off when the vehicle is president of Magnacharge Battery Corp. that can stand up to the large discharge stopped at a traffic light and then restart “Jobbers should offer regular education cycles that are experienced in today’s once the accelerator pedal is pushed, in sessions to service providers in order for

vehicles.” order to save gas and [reduce] emissions them to understand the opportunities kenneth-cheung iStockphoto Photo: –

16 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 BY TOM VENETIS

to upgrade a consumer to a newer and right battery sizing. and the cure starts with the technician better battery technology. Doing so will “This means having a full understanding having sufficient knowledge and proper ensure that the consumer avoids an of the customer’s actual needs, versus diagnostic equipment,” says Canadian untimely [battery] failure.” what the part guide recommends,” Energy’s Anderson. “The 80-20 rule “Education is the greatest tool we Simpson explains. “Take two customers is usually the case here, that 20% of can offer,” Bakhsh continues. “A solid looking for a Jeep battery. One is using dealers will return 80% of all warranties. commitment from the battery supplier it in town as a commuter car; the other Unfortunately, I think much of it is a to its jobber partner will ensure strong is using it off-road and has a winch, a general reflection of today’s consumers communications to the service provider. CB, and a huge LED light bar. If your and how mass merchandisers deal with If the service provider has knowledge jobber just sizes [the battery] on the product returns, and this has filtered of available [battery] options and make and model of the Jeep as the part down into the automotive industry. battery trends, they can explain it to the guide recommends, this will not take into “Most returns are a result of parasite consumer with confidence. Consumers account all of the special requirements and off-key load discharging the battery with enough information can then make that the off-road Jeep owner requires. This to the point of No-Start,” Anderson an informed decision. So this type of is where jobber education is important. continues. “Often, the batteries are training and education will increase One needs to get more information about discharged to below the threshold where battery sale opportunities.” the vehicle’s application rather than just the average charger will recover it, and so “A jobber must be able to educate its make and model.” it gets written off as a battery defect.” his customer on new technologies in “Actual manufacturer defect warranties the battery market,” adds Total Battery’s Testing… Testing… Testing range in the 1% category of all battery Simpson. “In most cases, price is the One of the most important things a jobber returns, and in most cases when a single main denominator; however, a can do to increase sales and upsell oppor- customer returns a dead battery it is a low price normally means a poor-quality tunities is to encourage service operations result of some effect on the battery,” adds and even undersized battery for the to make battery testing a regular part of Total Battery’s Simpson. “In other words, application, which in the long run means each service visit. the cause is something else, but the effect frustration for the customer. If a customer “Whenever the vehicle is in for any is on the battery. There is no way to can be educated on the benefits of the service, the battery can be load-tested prevent this, as most of your jobbers will new technologies, it will give them the to determine the health of the battery,” agree that the customer will not disclose reason why they should invest in the says General Motors’ Wrubel. “This may the actual reason of what happened to superior technologies, even though the require the purchase of good load-testing the battery.” price may be substantially higher.” equipment, [and] the customer can be Simpson says that it really comes down Randy Anderson, technical sales and sold on the basis that their battery may to the relationship that the jobber has training manager with Canadian Energy, last the summer and fall, but it will not with the customer, and the jobber should suggests jobbers also focus on more be strong enough to get them through factor the percentage of “non-warranty granular monitoring of battery sales. “This another cold winter.” cost” into the pricing schedule to will give them a quick snapshot of what Testing will also help reduce another account for the occasional non-warranty areas or customers need help with a common problem, which is battery replacement. particular product segment. If they have misdiagnosis and returns of perfectly “The bottom line is that the customer the right partner as a battery supplier, good batteries. Too often, jobbers are will not want to wait for a warranty they can work together in the field with plagued by batteries being returned that decision and will always try to obtain a the service operator to increase sales.” service writers or technicians claim are warranty,” he adds. “However, if you can Simpson adds that having jobbers put a defective, but in fact are in fine shape. provide a compromise, then in most cases greater emphasis on education will also “Misdiagnosed battery returns are a that may solve the issue and you will have help service writers to understand what huge problem in the industry today, a loyal satisfied customer.” „JN kinds of questions they need to ask in order to make the correct battery choice. He gives the example of two customers coming into a service operation with the Ideally, if a consumer has understood the same make of vehicle. On the surface, it demands“ of their vehicle and understands that would seem that they would need exactly today’s vehicles have put an increased demand on the same battery. But a more important batteries, they are more likely to consider an question to ask is how these vehicles are upgraded battery technology. being used, as that will determine the – JUSTIN BAKHSH, VICE-PRESIDENT, MAGNACHARGE BATTERY CORP.”

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 17 cover feature | THE import DESIGN TRENDS HOW THE CONNECTED CAR WILL ISSUE EXPAND BUSINESS HORIZONS

ver 50 billion devices are predicted to be will no longer be just a transportation device. Oconnected to the Internet by 2020 – and the In addition, with the growing popularity of ride- automobile is quickly becoming a key device in sharing services such as Uber and the impending the Internet of Things (IoT). Most new cars come arrival of fully autonomous vehicles, it’s clear the equipped with multiple sensors and have the rate of car ownership will soon begin trending ability to connect to high-speed wireless networks. downward. OEMs have seen the writing on the They transmit streams of valuable data and wall, and have been busy forming partnerships facilitate a wide range of digital services. Just as the with ride-sharing firms. cellphone has evolved into a selfie-camera, video In the future, automakers could derive a large recorder, credit card, and digital lighter at concerts, chunk of their revenues from autonomous cars the automobile will evolve in a similar fashion; it offering rides and other mobility-linked services.

18 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 BY STEVE PAWLETT

Some Chinese firms even predict cars will be given investments in traditional car components are Free Cars? away free or at a very low cost; owners will simply shrinking. While the world debates when pay to use them, much like a mobile phone plan. According to PwC, over the next five years tech giants Apple and Alphabet From automobile manufacturers to software the industry will undergo fundamental change (Google’s parent company) will vendors to telecom operators to consumer as semi-autonomous driving emerges, followed actually develop autonomous electronics companies, everyone is excited about by an eventual shift to full autonomous driving. cars, Chinese rivals have been the connected vehicle phenomenon. With the Automakers that have always seen themselves as upfront with their intentions and power of 20 modern PCs, contemporary cars pack product suppliers will take on a new identity as have already started parading more punch than any another computing device. providers of mobility services. This will open the concepts, previewing their future They contain more than 100 million lines of code door to lucrative new digital revenue streams, plans. that can process up to 25G of data in an hour. especially as they begin to explore opportunities One of these is LeEco (formerly One factor that’s turning this concept into a in other digital areas such as entertainment, Letv), which rolled out the LeSee reality is ubiquitous connectivity. The rise of commerce, and monitoring a driver’s health and concept car at the 2016 Beijing 4G LTE and emerging 5G networks enable new fatigue level. Auto Show. The concept is in scenarios for connected vehicles. Of course, automakers aren’t the only ones the form of a sleek sedan and The scenario of connected pursuing these opportunities. Technology features an electric powertrain, vehicles is an ultimate use companies such as Apple and Google have autonomous capability, and a case of IoT, where multiple staked their own claims to the connected car and host of connectivity features. It vehicles interact with each other autonomous driving markets. Automakers will need also has a top speed of 130 mph. while coordinating with road new capabilities and cultural change to compete. LeEco is no fly-by-nighter. The infrastructure, such as traffic The annual Connected Car Study, conducted company describes itself as an signals, road construction, traffic by the strategy consulting team at PwC, tracks the Internet company and is well flow, and weather conditions. growth of connected car technologies and their known outside the United States According to the Economist, impact on pricing, sales, and innovation in the for its smartphones, televisions, automobiles are among the most auto industry. The 2015 study shows innovation and video streaming services. expensive investments people accelerating as more manufacturers develop smart It’s now making moves to enter make, but they sit idle 96% of the driving systems. Recent advances include BMW’s the U.S. and recently opened time. As it evolves, the connected remote parking valet, which autonomously parks local headquarters in San Jose, California. Around 300 employees autonomous car will improve a car after passengers exit, and Volkswagen’s are already located there. that number. Mobility-as-a-service Emergency Assist, which automatically stops a reduces the number of cars and car in an emergency. All OEMs are seeking a LeEco is headed by Chinese (therefore) congestion on the path for creating value in this digital arena. At billionaire Jia Yueting, and is the backer of American electric road, along with the number the high end, car companies and their suppliers car startup Faraday Future, of parking spaces required for are differentiating themselves by creating digital which earlier this year rolled transportation. It will encourage experiences that stand out in a crowded market. out a 1,000-horsepower electric cars that look different from Mass-market automakers are looking to incorporate supercar concept and this month the automobiles of today and basic digital capabilities on a cost-effective basis. started work on a car plant in challenge the way people think This may require them to join forces with outside Nevada. Instead of simply selling about cars. partners. cars, LeEco’s long-term vision is to The connected car is an Connected car developments currently centre on offer cars free of charge and then automobile designed with direct seven functional areas: make money through services, access to the Internet, enabling Q Autonomous driving: Operation of the vehicle in the same way the company automated links to all other connected objects, without a human driver at the controls, on a full- or currently makes money through including smartphones, tracking devices, traffic part-time basis. Examples include self-parking cars, some of its smartphones and lights, other motor vehicles, and even home motorway assistance, and the transportation of televisions. appliances. PricewaterhouseCoopers predicts goods by trucks on well-delineated routes. “Our cars’ pricing model will annual sales of connected car technologies will Q Safety: The ability to warn the driver of road be similar to pricing models for triple to $US178.5 billion by 2021. problems and automatically sense and prevent cellphones and TV sets we sell Both premium and volume automakers clearly potential collisions. Examples include danger today – one day our cars will be see connected car technologies as essential to warning signals and emergency call functions. free,” Yueting said during LeEco’s their futures. They also realize that overall, vehicle Q Entertainment: Functions that provide music press conference on the eve of prices aren’t rising as rapidly as the prices charged and video to passengers and the driver. Examples the Beijing Auto Show, Reuters for digital capabilities. This means return on include smartphone interfaces, WiFi or Local Area reports.

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 19 cover feature | the import issue

Network hotspots, access to social networks, and displays, displays of repair and service-related the “mobile office.” information, and the transfer of usage data. Q Well-being: Optimization of the driver’s health Q Home integration: Links to homes, offices, and and competence. Examples include electronic other buildings. Examples include the integration alerts that detect or mitigate fatigue, and other of the automobile into home alarms or energy forms of individual assistance. monitoring systems. Q Vehicle management: Support for minimizing operating cost and increasing comfort. Examples PwC expects connected car technologies to include remote control of car features, displays of generate $US58.7 billion in end-customer spending service and vehicle status, and the transmittal of next year. Safety and autonomous driving are the traffic data. largest categories, accounting for about 61% of Q Mobility management: Guidance on faster, the total. In the premium automobile segment, the safer, more economical, and more fuel-efficient spending on digital technology is expected to rise driving, based on data gathered for the vehicle. to 10% of total vehicle sales by 2021, more than Examples include real-time traffic information double the current level of 4%. „JN

GROWTH POTENTIAL OF CONNECTED CAR TECHNOLOGIES

1. Autonomous Driving over control points; OEMs must adapt to accelerated product maintenance monitoring and scheduling; remote software Market potential: 33% compound annual revenue development cycles of consumer electronics industry. upgrades and recall notification; car usage data tracked and growth to $US57.7 billion by 2021. Key Products: Numerous personal entertainment transmitted to insurance companies for usage-based pricing. Trends: This is the fastest-growing connected car feature. options available today including social media, music, Many technologies are developing faster than expected. movie downloads, restaurant recommendations; car as a 6. Mobility Management There is strong demand in China. mobile WiFi hotspot; mobile office with access to email, Market potential: 5% compound annual revenue conferencing, and other workplace capabilities. growth to $US8 billion by 2021. Challenges: Unclear legal and regulatory frameworks; liability issues. Trends: Rising traffic congestion and air pollution, driven 4. Well-being by urbanization, are sparking demand for tools that get Key Products: Autonomous parking and congestion 31% compound annual revenue vehicles to their destinations more efficiently. The growth navigation at low speeds available today; fully autonomous Market potential: growth to $US11 billion by 2021. potential is greatest in China and the U.S. This feature will long-range driving at highway speeds expected between allow OEMs to invest in integrated mobility management 2020 and 2025. Trends: The growing group of affluent older drivers will pay for technologies that monitor their well-being while systems that generate long-term incremental revenue. 2. Safety driving. There is significant potential to prevent accidents Challenges: Need for coordination among automobile, and save lives with systems that detect conditions that information technology, telecommunications, and petroleum Market potential: 27% compound annual revenue impair driving abilities. The underlying technologies are industries. growth to $US71.8 billion by 2021. well developed, setting the stage for product introductions Key Products: Navigation tools plan efficient routes Trends: Safety is a key selling point for connected cars. after 2016. based on real-time traffic information; head-up displays on China will drive global demand. Key Products: Fatigue detection systems warn driver windshield allow driver to see route plan without taking eyes Challenges: Limited commercialization potential for when in-car cameras discern signs of drowsiness; well-being off road; system recommends optimal speed based on traffic safety products as they become standardized and regulated. assistants change interior temperature, lighting, and other and roadway conditions, shows lowest-priced gas stations Key Products: Automatic emergency calling to first interior factors to enhance driver’s condition and driving along route, finds open parking spaces. responders in case of accidents; danger warning systems that ability; vital assistants warn driver when vital signs such as alert drivers to roadway hazards, obstacles, and blind spot heart rate indicate physical distress and trigger emergency 7. Home Integration incursions; collision protection systems that automatically braking systems to stop car when driver blacks out. Market potential: 20% compound annual revenue slow car or control steering to prevent accidents. growth to $US96 million by 2021. 5. Vehicle Management Trends: As the Internet of Things connects more 3. Entertainment Market potential: 15% compound annual revenue household appliances and systems to the Web, consumers Market potential: 18% compound annual revenue growth to $US10.3 billion by 2021. are embracing home automation, which in turn will drive growth to $US19.5 billion by 2021. Trends: A range of existing technologies can reduce demand for integration of these systems with the car. Trends: Consumers, especially in Asia, consider connected operating costs and increase ease of use for drivers and fleet Key Products: Integration tools allow driver to control entertainment a basic automotive function. They expect owners. Demand is driven by rental car companies, car- home and building functions such as heating and cooling easy, flawless integration of their personal devices, such sharing services, and Internet companies in partnerships with and security systems; connection between vehicle and home as smartphones and wearables. Digital development hubs auto manufacturers. infrastructure for safety, mobility management, comfort, facilitate coordination and integration across industry lines. Key Products: Smartphone-based remote control of and entertainment functions; home energy package with Challenges: Lack of standardization processes; struggle car functions; vehicle tracking and performance monitoring; e-vehicle as energy storage system.

20 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 #AAPEX16 22 L running diagnostics, andprescribingto a vehicle’sdoctor, lookingatsymptoms, evolved fromreplacingpartsto becoming job. Anautomotivetechnician’s jobhas habitual approachtodoingacomplete stand anddevelopaconsistent, precise, same, aslongtimeistakento under- a house.Ithasremainedessentially the similar tolayingasolidfoundationfor on thebrakeindustry. (10+ years),haveallhadamajoreffect ronmental factors,andanagingcarpark tion materialregulations,increasingenvi- Rapidly evolvingtechnology,stricterfric- enced vast Performing abrakejobis,basically, motive brakeindustryhasexperi- ike manyindustriestoday,theauto- counter talk

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v brake technology Overthe lastfiveyearswehave Changing Road Chemicals ceramic materialbehaviour. split intotwoparts:roadchemicals and a brakejobistheenvironment. This is increased thetimerequiredtocomplete on abrakejob. The firstfactorthathas influenced thecomplexityandtimespent fit thetypeofdrivingtheydo. choices, sotheyunderstandwhichparts to thecustomerdifferencesinparts also requiresthetechniciantoexplain to runefficientlyagain.Thisprescription the customerwhattheirvehiclewillneed seenan increaseinthe useof winter road chemicals. Inaddi- There arethreemainfactorsthathave o lu t www.autoserviceworld.com i on

elements. Thiscan leadtoanincreasein the brakesystem ismoreexposedtothe instead ofasteelwheelwith hubcap, cles transitioningtoanopen-wheel design a longerperiodoftime.Withmost vehi- salts, andtheytendtostick vehicles for road muchlongerthanconventional rosion. Theyaredesignedtostay onthe have acouplingeffectthatincreasescor- as otherelementsthat,whencombined, and calciummagnesiumacetate,aswell magnesium chloride,calcium tor. Differentbrinesolutionscaninclude municipality andcontractortocontrac- chemicals canvaryfrommunicipalityto solutions inwideuse.Thesedifferent ride roadsalt,therearenowliquidbrine tion totheconventionalsodiumchlo- o f t COMPLEX MORE GETS SERVICE BRAKE he brake job

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JOBBER NEWS / AUGUST 2016

Photo: Michael Bodmann – iStockphoto BY NICK VIVIEROS

brake pads binding in brackets, caliper The second factor that leads to an Lubrication piston damage, and rotor failure. New increase in time spent on the brake You need to remove all old parts like coated rotors, coated calipers, service is the additional need for lubrication, greases, and other and synthetic lubes have been introduced meticulous cleaning and lubrication of the chemicals that were used to help reduce the effect of these new brake system. There has been an increase previously. It is recommended to use a chemicals. in different product options that are being synthetic silicone-based lube with a high The second part of the environmental used in the brake system, with some not temperature rating on the caliper bracket affect of salt use is the increased potential working as well over the life of the brake where your abutment clips sit, as well for ceramic material to transfer to rust replacement, to synthetic lubricants that as on the abutment clips where the pad jack on the rotor, leading to flaking. can handle temperatures of over 2000 slides and on the back of each brake Ceramic brake pads stop or slow a degrees F. After you have completed your pad shim, as well as the sliders/pins. Be vehicle down by adhesion, by laying test drive to verify a brake problem, the careful not to put any lubricant on the a layer of friction material on the rotor next step is to take off the wheels and friction or rotor surface. It is imperative surface. When salt water migrates onto “read” the parts. not to use any petroleum-based products the rotor, it can creep within the ceramic Get your doctor coat on and see how on rubber components, as it will lead friction material and cause corrosion to the caliper slides, check if the pads are to swelling. Also, do not forget to check start. This can cause the friction material unevenly worn or tapered, check rotor the brake fluid for moisture content and and corroded rotor material to flake off thickness, and look for the beginnings of copper content. the rotor surface, as the pad is trying to any hydraulic leaks. Identify what really Always recommend a brake system lay more film on the rotor surface. In most caused the vehicle to be in your shop. flush to your customer. The brake lines situations, this occurs on the inboard Once the parts have been read, cleaning on a vehicle are the veins of the car, and of the rotor due to the aerodynamics of begins using tools that will remove not just we need to make sure they are clean of vehicles, allowing the front/outboard surface rust but scaled rust, which is what debris, especially with any vehicle that side on open wheels to get more airflow we are now seeing on vehicles. Corrosion has ABS, ESC, and/or TCS, which have than the inboard side (See Image 1). The needs to be removed not only from the valves that are designed to open and industry has introduced coated rotors to caliper bracket but also the piston surface, close in milliseconds. help with this environmental impact on the outboard side caliper that touches the Most modern brake pads use a noise- the brake rotors to extend the life of the brake pad, hub surface, and inboard side insulating shim design that can vary from brake rotor (See Image 3). of the wheel. It is important, after cleaning a single layer to a multi-layer/constrained The first regulations for brake pads all these surfaces, to ensure that they are layer viscoelastic rubber metal combi- started in California and Washington in truly clean and not just polished rust. continued on page 24 2014 to reduce the uses of hazardous materials like cadmium, chromium, lead, mercury, and asbestos. (Yes, those materi- als are still used by some manufacturers). 2 3 There is also a reduction of copper con- tent that affects primarily ceramic pads, which means manufacturers have to find new, alternative formulas for their friction material by 2021, and be copper-free by 2025. Think of brake pad friction mate- rial like a recipe for apple pie: it can be altered by a different crust or different kinds of apples. Ceramic pads from one manufacturer to another work the same way – they are all different from each other and, when you reduce the amount 1 of flour, or in this case, copper in a rec- ipe, you need to adapt the recipe.

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 23 counter talk | brake technology

An automotive technician’s job has evolved from replacing parts to becoming a vehicle’s doctor,“ looking at symptoms, running diagnostics, and prescribing to the customer what their vehicle will need to run efficiently again.” nation that is also engineered to evenly Brake Rotor Tolerance torque wrench while the vehicle is on the distribute and control temperature across Over the years, tolerance on ground to double-check your work. the pad. These shims are made of differ- brake rotors has been reduced Components in and around the brake ent grades of metal to help absorb and to the point where most vehicle system are changing in addition to dampen vibrational noise, which can be specs for lateral runout are .002-.004 inch, being made of different materials like heard audibly as a high-pitched squeal with some vehicles much less. This is less aluminum, which reduces weight but from the brake system. Many of these dry than half the thickness of printer paper. doesn’t absorb vibration as well. For shims are clipped on to the brake pad Checking lateral runout on machined example, GM introduced ferritic nitro- steel plate; it is recommended to put a and new rotors has started to become carburized rotors on select vehicles in thin layer of high-temperature synthetic a normal practice in repair shops – as 2009, with 80-90% of GM vehicles fitted silicone-based lubrication on the back of torqueing lug nuts was years ago – due to with these rotors by 2016. They are also the shim, where the caliper will be mak- the fact that if your rotor or hub displays in the process of introducing a Coulomb ing contact to it. This will keep that shim higher than specified lateral runout, it friction-damped brake rotor. We are from being pushed or moved during its will lead to future thickness variation and also starting to see new components on life, as well as dampen vibration when pulsation. Today, this is the main cause OEM brake systems like low frequency brakes are applied (See images 2 & 3 on of most pulsation that now occurs, not dampeners, low drag brake hardware/ previous page of shim failure). a “warped rotor.” It takes time for the clips, brake pad electronic sensors, and There are many chemicals today that thickness variation to increase, as that magneto resistive wheel speed sensors. are marketed to technicians that are rotor rotates through the caliper area, Understanding how these components outdated or inappropriate to use on making a high spot and low spot more work within the brake system can extend today’s brake systems. Many vehicles over pronounced. This can be easily checked the life, improve performance, and the last five years have introduced torque with a dial indicator, which many of reduce noise in the brake system. to yield bolts in the brake system or bolts us have collecting dust in our toolbox. With increased competition based requiring thread locker, so these bolts As mentioned earlier, with corrosion on price, not all brake parts are made can’t have any anti-seize applied. Also, a developing through different road with the same process, materials, and torque angle wrench or gauge will need chemicals, your parallel rotor and hub standards as OE brake systems. OE brake to be added to your arsenal of tools. can have a small amount of rust between systems need to pass specific testing The third factor is increasing tolerances them causing this issue. Checking lateral procedures, called FMVSS 105, 126 and and new components. Modern vehicle runout as part of a brake job adds less 135 testing standards, while aftermarket brake systems are designed not only to than a minute per wheel, so spending brake pads/rotors are not required to stop or slow a vehicle down, but also that time can save you hours in the pass any specific testing procedure. Some make sure they aren’t causing the slightest future and prevent a frustrated customer companies market their product as being drag when the brakes aren’t applied, comeback. OE or better, but when asked to show as this can reduce fuel mileage. Newer After you have made sure everything is independent testing data, there is either electronic systems like electronic stability clean and within specification, make sure none against an OE sample or they fail control, brake assist, and autonomous the wheel surface that touches the brake to perform the same way. Inferior brake braking are engineered to work with the rotor hat is free of corrosion and debris. shims, inexpensive friction material, easily vehicle’s traction control as well as the After your parts are all installed with corroding steel plates, and lightweight or antilock brake system. These systems brake pads moving finger-tight along the poorly machined brake rotors can affect require the brake system to be ready and abutment clips in the caliper bracket and the vehicle’s performance, safety, and precise at all times to reduce potential the caliper sliders functioning properly, create noise. At the same time, not doing collisions. These also require technicians you need to install the wheels by a complete brake job can do the same to do additional diagnosis when there is torqueing the lug nuts with a torque stick or worse, which we as technicians can an issue. while the vehicle is in the air. Then use a control. „JN

Nick Vivieros is Business Development Manager OE/OES for Brake Parts Inc.

24 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 market tracker | diesel oil BY STEVE PAWLETT

PC-11 THE DIESEL ENGINE OIL OF THE FUTURE

he American Petroleum Institute (API), working with Tengine manufacturers and oil makers, are completely redesigning heavy-duty engine oil specifications. It’s been nearly a decade since the last API diesel engine oil category, CJ-4, was developed. “The current CJ-4 standard has lasted well beyond the life of the typical engine category. Some of the engine tests required to qualify an oil are no longer available or no longer relevant to next- generation engines,” says Dan Arcy, chair, new category development team, API, and Global OEM technical manager, Shell Lubricants.

continued on page 26 Photo: wild pixel – iStockphoto – pixel wild Photo:

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 25 market tracker | diesel oil

“These new engine oil requirements, especially “These new engine oil requirements, for PC-11B, are a major change in the industry’s especially for PC-11B, are a major change in the industry’s approach to heavy-duty approach to heavy-duty oil specifications.” oil specifications. Oil producers will – DAN ARCY, CHAIR, NEW CATEGORY DEVELOPMENT TEAM, API, AND GLOBAL OEM TECHNICAL MANAGER, need to continue to deliver excellent SHELL LUBRICANTS wear protection and cleanliness – two factors that help to drive down customers’ maintenance costs and prolong engine “Oil technology and engine technology Defining the category life,” adds Arcy. go hand in hand. Changing regulatory Engines have changed considerably since limits challenge engine manufacturers CJ-4 was introduced. They have improved New and updated tests to reduce emissions. As engine manufac- fuel consumption and increased power A major part of designing an oil turers begin to create a new generation outputs. New EPA and NHTSA emission specification is defining a set of rigorous of cleaner, more fuel-efficient diesel legislation, scheduled for diesel-powered tests that each oil formulation must engines, they need a new generation of commercial transport vehicles in 2017, pass before it goes on sale. PC-11 higher-performing diesel engine oils to requires significant improvements in fuel specifications will continue to use many protect them,” explains Arcy. consumption that will help to reduce of the current tests, but some of these carbon dioxide emissions. These fuel tests will have more stringent limits. Two Evolution to revolution consumption improvements depend on new tests will be introduced to ensure Heavy-duty diesel engine designs have vehicle class, type, and size, and include that next-generation oils can cope with evolved substantially over the last 40 years. specific improvements for medium and the oxidation stability and aeration This evolution has been driven by emis- heavy-duty engines. This has created control needs of modern technology. sion legislation and customers’ require- the need for a new category of lubricant Both tests are designed to ensure that ments for efficiency and reliability. There specifications, collectively called the new oils will be able to protect new has been significant progress. For exam- Proposed Category 11 (PC-11). and older engines operating under more ple, high pressure, common-rail injection These oils, targeted for licensing in severe conditions. systems are now widely used to improve December 2016, will eventually replace Shell Lubricants is playing a role in the combustion efficiency; advances in the current CJ-4 heavy-duty oils. The API development and testing of the next gen- turbocharger technology have increased will introduce two types of heavy-duty eration of low-viscosity oils through more specific power output; and exhaust gas diesel oil as part of PC-11: than 20 million miles of real-world testing, recirculation and after-treatment devices, and has demonstrated the performance of such as diesel particulate filters and selec- 6 PC-11A (CK-4) oils will replace its next-generation, low-viscosity oil formu- tive catalytic reduction, have curbed today’s lubricants and will be completely lation technology. harmful emissions of oxides of nitrogen backwards-compatible with all current and particulate matter (i.e., soot). vehicles. They will be designed with What PC-11 may mean for your Despite this progress, recent regulations improved oxidation resistance, shear vehicles and equipment coupled with customers’ desires to reduce stability, and aeration control. (The name With on-highway diesel emission legisla- the total cost of ownership are making fuel API CK-4 is the current proposed name tion generally leading off-highway require- economy the most critical driver for engine for the category.) ments by several years, on-highway manufacturers. Advanced technologies and engines are generally used to develop materials, and new operating conditions 6 PC-11B (FA-4) oils will meet these new engine tests. However, API-licensed oils such as higher operating temperatures, requirements and include lower viscosity are used for both on- and off-highway continue to improve engine efficiency. grades designed for next-generation applications. The same goes for PC-11 “Engine changes place more stress diesel engines, to help maximize fuel oils, as they will be valid for transport, on the oil, which has to lubricate, cool, economy without sacrificing engine agriculture, construction, mining, and clean, and protect over long oil-drain protection. These oils will have limited even diesel pickup applications. Engine intervals. The vehicle industry is start- backwards compatibility because some manufacturers are still determining ing to recognize that oil can help to older engines were not designed to whether off-highway engines will use achieve an engine’s full potential for fuel operate with lower viscosity grades. (The PC-11B oils. You will be able to expect economy without compromising hard- name API FA-4 is the current proposed improved protection and performance, ware durability. As engine manufacturers name for the category. The term FA-4 will even with the tough terrain and harsh create cleaner, more fuel-efficient diesel differentiate them from API CK-4 oils. The conditions your off-highway vehicles face engines, they will need a new generation names API CK-4 and API FA-4 could still on a daily basis. of higher-performing diesel engine oils to change, depending on comments from New PC-11 oils should be available in protect them,” explains Arcy. the API Lubricants Group.) late 2016. „JN

26 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 ADVERTORIAL

AAPEX 2016 TO INCREASE FOCUS ON TECHNOLOGY

With more than 2,200 exhibitors, AAPEX 2016 is your one-stop source for aftermarket replacement parts and the latest tools and equipment. But this year, there’s even more reason to attend AAPEX, as the event is increasing its focus on technology to keep you ahead of the curve.

On the expo floor, an all-new Automo- tive Technology section will make its debut to showcase the many technology products and services that are having an impact on your business and through- out the auto care industry. This new area will spotlight vehicle telematics solu- tions, mobile payments and automated warehouse solutions to name a few.

To complement the new section, AAPEX 2016 is launching “Let’s Tech,” short 20-minute or less presentations to take place in the expanded AAPEX TV studio, sponsored by ZF TRW. Topics will Consulting LLP and AAPEXedu 2015 To register, visit: www.aapexshow.com/ focus on technology-related products or speaker. “The speed at which supply chain advert. From now through Friday, Oct. tools, a new or favorite mobile app for your innovation is being adopted -- coupled with 14, online attendee registration is only business, or an innovative development rising customer expectations for anytime, $40 (US). The fee for AAPEX registration pertaining to new vehicle technology. anywhere service -- is stressing traditional via fax or mail is $65 (US) through Oct. supply chains almost to the breaking point. 14. Registration includes the AAPEX The 2016AAPEXedu program also will of- This is especially relevant in the automotive trade show, access to all sessions in the fer free sessions on OE technology, disrup- aftermarket parts industry where high AAPEXedu 2016 program, networking tive technology and the technology used volumes, increasing SKU complexity, with 45,000 targeted buyers and entry into the to operate a business. Sessions will cover erratic demand, short lifecycles, and SEMA Show, a separate event taking place in both the opportunities and uncertainties of complex webs of value-chain networks are Las Vegas the same week as AAPEX. telematics, big data, “connected cars,” and the norm. Every link in the automotive online ordering and e-commerce to name value chain must learn to adopt, innovate AAPEX represents the $328.2 billion global a few. The future of shipping and delivery, and integrate to keep up with the aftermarket auto parts industry. It is co- plus changes in the supply chain also will increasing pace of change." owned by the Auto Care Association and be part of the AAPEXedu 2016 program. the Automotive Aftermarket Suppliers AAPEX 2016 will be held Tuesday, Nov. Association (AASA), the light vehicle "According to a recent study by Deloitte 1 through Thursday, Nov. 3, at the Sands aftermarket division of the Motor & Equip- and MHI, traditional supply chains will Expo in Las Vegas, with AAPEXedu ses- ment Manufacturers Association (MEMA). radically change over the next 5 to 10 sions starting on Monday, Oct. 31. years as a result of new technologies, competition and customer demands. The The event is expected to feature more convergence of big data, fast and cheaper than 2,200 exhibitors and 45,000 targeted computer power, and increasing demands buyers. Approximately 160,000 automotive of customers will accelerate the adoption aftermarket professionals from more than of innovative products and services,” 140 countries are projected to be in Las said Scott Sopher, principal at Deloitte Vegas during AAPEX. www.aapexshow.com/advert. new products |

Stainless Steel Positive Locking Spectra Premium Releases 156 New SKUs Tie Kit Spectra Premium’s latest product release includes Design Engineering’s Stainless Steel 156 new SKUs, of which 21 are first-to-market parts Positive Locking Ties are the ideal way to and aftermarket exclusive to Spectra Premium. These tighten wrap for automotive applications, new Cooling, Engine Management and Fuel products especially for high heat applications such cover over 86 million vehicles on the road today. as exhaust wrap. DEI’s Positive Locking The line extension includes seven camshaft position Ties are made of 316 stainless steel in sensors, covering domestic and import models such a ladder-style design with a ratchet as Buick, Chevrolet, Acura, Kia, and BMW; seven tightening system and low profile clasp. ignition coils for popular and import models such as Made for high heat applications, the ties can withstand heat in excess Mitsubishi, Hyundai, Chevrolet, Chrysler, and Mazda; of 2500° F. Resistant to abrasive chemicals, the ties also can be used nine charger air coolers for heavy-duty trucks such to secure electrical wires, cables, hoses and fluid lines. DEI now offers as Isuzu, Hino, Navistar, Blue Bird and Motor Coach; a free Locking Tie Tool with the purchase of its Positive Locking Tie Kit. 42 cooling fan assemblies covering over 26 million The kit includes eight 9” x 8mm and four 14” x 8mm stainless steel ties vehicles; and many more. and one Tie Tool. Spectra Premium Design Engineering Inc. www.spectrapremium.com www.DesignEngineering.com

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28 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 advertiser index |

Wagner Extends Brake Category AAPEX...... 21,27 Wagner has expanded its application coverage advantage www.aapexshow.com/adv on 464 brake rotor, drum and hydraulic part numbers for a combined total of nearly 160 million registered vehicles. A brand of global original equipment and aftermarket brake manufacturer Federal-Mogul Motorparts, enhanced rotor ACI-Agri-cover Inc ...... 28 coverage is attributed to 84 premium Wagner E-Shield brake www.accesscover.com rotors covering more than 41 million vehicles in operation. Wagner E-Shield protective coating technology prevents unsightly corrosion and inhibits the rotor from corroding to the hub, providing easier removal of the rotor for service. Akebono Brake Corporation ...... 2 With these part numbers, exclusive Wagner E-Shield premium www.akebonobrakes.com rotors represent 98% of the brand’s rotor sales. Wagner Brake www.wagnerbrake.com AutoServiceWorld.com ...... 15 www.autoserviceworld.com Fine Wire Double Iridium Sparkark PlugsPlugs Robert Bosch LLC introduces Boschsch Double Iridium to its OE Fine Wirere Spark Plug series. Its ultra-fine wireire Brake Parts Inc/Raybestos ...... 32 design and laser-welded tapered www.raybestosbuild.com ground electrode help deliver increased performance, while thee iridium firing pin and ground electrode inlay provide four times longer service life compared Federal-Mogul Motorparts/ Ferodo ...... 13 to standard copper core plugs. Bosch Double Iridium Spark www.ferodo.com Plugs feature a unique design employing an iridium centre electrode tip and iridium-platinum alloy ground electrode inlay to create a precise spark; exclusive 360° continuous laser weld that fuses corrosion-resistant precious metal firing pin to FRAM Group(Canada) ...... IBC base; fine wire firing pin for better ignitability and maximized www.fram.com durability; OE-matched spark position for compatibility with new GDI technology; and more. Bosch Auto Parts www.BoschAutoParts.com ® Promax Auto Parts ...... 5 www.autopartsdepot.ca

Asian Coverage Added for TechPro Diagnostic Scan Tool Mahle Service Solutions has added coverage for Mazda and Schaeffler Group USA Inc ...... 8 Nissan vehicles for its TechPro diagnostic scan tool. Software www.Schaeffler-Aftermarket.us updates cover all Mazda vehicles from 2007 to 2014, plus a majority of 2003 to 2006 vehicles. Nissan coverage includes complete coverage of 2007 to 2014 vehicles. The TechPro diagnostic scan tool was designed for busy technicians by making it easy to use and quick to launch. TechPro can decode a vehicle identification number in seconds with one click. A scan of vehicle wide diagnostic trouble codes on all modules Follow us on Twitter. takes 30 seconds or less with the Bluetooth-enabled vehicle communication interface. Get AutoServiceWorld.com news Mahle Service Solutions and more by following JobberNews on Twitter. www.mahle.com

JOBBER NEWS / AUGUST 2016 |www.autoserviceworld.com 29 money & management |

SOLVING THE “PROBLEM” OF RAPID GROWTH

hen it comes to identifying a company’s their receivables at the Wproblems, rapid growth rarely makes the last minute, ensuring list. That being said, I would like to share this story they never experienced told to me by Deborah and Peter Browning of a cash flow shortfall. Liquid Capital Bancorp Inc., a commercial finance Despite the benefits, company (www.liquidcapitalbancorp.com). they did have an early The issue began when the Liquid Capital client concern: they were was formed through the acquisition of selected uncomfortable with the assets of an electronics contract manufacturer. idea of giving Liquid After renaming the company, the new owners Capital’s collections began the laborious attempt to fill the previous group access to their company’s huge backlog of orders – which was customers. With A/R hovering at almost $1 million. Despite having factoring, Liquid Capital buys its clients’ invoices, booked orders, they did not have the funds to which means it needed to contact the manufac- buy the supplies they needed to manufacture the turer’s customers to let them know to pay Liquid ordered product. Capital directly. Understandably, they wanted Because the company was considered a new assurances that their customers would be treated entity, rather than an already-operating company, professionally. it didn’t qualify for traditional bank financing. And “You work really hard to get customers. If you the owners were not willing to give up equity to collect a payable from them in a mean way, you attract additional capital. That left them to con- can lose in five minutes what might have taken sider alternative forms of financing; after consider- you five months to win,” the new company’s presi- able research, they decided factoring was the best dent remarked. way to go. “Fortunately, Liquid Capital’s approach to As the electronics manufacturer explains, “Once customers is demonstrably respectable and kind. we decided we needed to factor, we looked at sev- If you’re thinking of factoring, you need to under- eral factoring companies. I admit we started with a stand who will be talking to your customer. If company other than Liquid Capital, but after only you don’t want a hard push, check out what their one day it was clear we’d made the wrong choice. message is and ask how they handle it if someone So we asked Liquid Capital to step in. To this day, can’t pay on time. This was really important to us, that’s one of the best business decisions we’ve and I’m pleased to say that the people handling ever made.” Liquid Capital’s collections are genuinely nice.”

Closing the cash flow gap Funding future growth With a strong portfolio of creditworthy business-to- As a company that provides services and supplies business invoices, the electronics contract manu- products to major contractors, health care device facturer was a prime candidate for Liquid Capital’s manufacturers, and the entertainment and A/R factoring solution. In an attempt to maximize consumer electronics industries, the manufacturer their steady cash flow, the company principals expects to remain on a high growth trajectory for decided to run every receivable they could years to come. They also expect Liquid Capital to through Liquid Capital. That translated to between continue playing a pivotal role. $85,000 and $125,000 of funding each month. “I can’t imagine a time when factoring won’t While the majority of the financing went to pay make sense,” says the electronics company presi- suppliers to deliver on their orders, they also used dent. “Growing companies consume capital vora- the funds for payroll, which they had committed to ciously. Anything that delivers more capital to fund delivering to their manufacturing facility employ- future growth is good, and tying that capital to ees at noon every Wednesday. Liquid Capital’s increasing revenues is not only more predictable, flexibility meant they could often get advances on but it’s a healthier business choice as well.” „JN

For further information, contact Peter H. Browning, CPA, CA at [email protected], or Deborah Browning, BA, Bed., at [email protected]. BY MARK Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile is a mid market M&A BORKOWSKI brokerage firm. Contact: www.mercantilemergersacquisitions.com DNY59Photo: iStockphoto –

30 www.autoserviceworld.com | JOBBER NEWS / AUGUST 2016 Choose the right oil filter.

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