September 2013

Tire Dealer Study 4&15&.#&3

Auxiliary Lighting PHILIPS

Motor City’s recovery could

attract aftermarket manufacturing Brakes FEDERAL MOGUL

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Fuel Pumps DOMESTIC: INTERNATIONAL: AIRTEX *OEVTUSZ/FXT *OUFSOBUJPOBM/FXT )PU"VUP1SPEVDUT (MPCBM&WFOUT t%JTUSJCVUJPOt$PMMJTJPO3FQBJSt4FSWJDF3FQBJSt5FDIOJDJBOT 0QJOJPO$PNNFOUBSZ &WFOUT$PWFSBHF 4QFDJBM3FQPSUT *NQPSU&YQPSU(VJEF Got something to say? Go to workshop.searchautoparts.com. Analysis by market Opinion REPLACEMENT Tire Vendors: Motor City’s recovery can attract Donny Seyfer Dealer Blaming your supplier aftermarket manufacturing. Study EMERGING Technology: Mevotech boosts efficiency. INTERNATIONAL Vendors: Inspired by the market, auto industry inaugurates innovations in Brazil. AASA’s OAC Auxiliary Getting the most CUSTOMERS Lighting from AAPEX PHILIPS Dealerships: Vehicle sales, dealer revenues continue to climb in 2012.

Research Tire Dealer Study: This year’s survey of Bob Moore tire dealers shows that they are reaching out Brakes Shapes of things to FEDERAL to advertise to customers through their web come MOGUL sites, direct email and social media.

n 2001, Goldman Sachs, the U.S. Online Special Reports multinational investment banking firm, coined the acronym “BRIC” FROST & SULLIVAN to describe the four countries Tires: After a slow start, the demand for tire Mark Smith I Insurance and Chassis of Brazil, Russia, India and China purchases through digital platforms seems RAYBESTOS spaghetti sauce who, it predicted, would rank in the to be growing, and prospects for continued PHOTO COURTESY: THINKSTOCK PHOTO COURTESY: world’s top six economies by 2032. growth of online sales appear bright. As if to confirm this prediction it was announced in early 2012 that Brazil

had overtaken the UK to become the AFTERMARKET BUSINESS WORLD (Digital ISSN 1938-0593) is published 12 times yearly by Advanstar Communications Inc., 131 W First St., Duluth MN Brazil’s high import duties, low-cost suppliers 55802-2065. Subscription rates: digital only $65 for 1 year. ©2013 Advanstar Communications Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any world’s sixth largest economy. means, electronic or mechanical including by photocopy, recording, or information storage and retrieval without permission in writing from the publisher. Authorization to photocopy items for internal/educational or personal use, or the internal/educational or personal use of specific clients is granted by create challenges for U.S. aftermarket Advanstar Communications Inc. for libraries and other users registered with the Copyright Clearance Center, 222 Rosewood Dr. Danvers, MA 01923, Stephen Barlas 978-750-8400 fax 978-646-8700 or visit http://www.copyright.com online. For uses beyond those listed above, please direct your written request to Permission Dept. fax 440-756-5255 or email: [email protected]. EPA balks at Fuel Pumps Advanstar Communications Inc. provides certain customer contact data (such as customers name, addresses, phone numbers, and e-mail addresses) to third parties who wish to promote relevant products, services, and other opportunities that may be of interest to you. If you do not want Advanstar Communications updating catalytic AIRTEX BY ANDY ADAMS | Contributor t$MJDLPODFUP[PPNJO Inc. to make your contact information available to third parties for marketing purposes, simply call toll-free 866-529-2922 between the hours of 7:30 a.m. and 5 p.m. CST and a customer service representative will assist you in removing your name from Advanstar’s lists. Outside the US, please phone 218-740-6477. converter standard Aftermarket Business World does not verify any claims or other information appearing in any of the advertisements contained in the publication, and t$MJDLIPMEUPNPWFQBHFBSPVOE cannot take any responsibility for any losses or other damages incurred by readers in reliance on such content. Aftermarket Business World welcomes unsolicited articles, manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. To subscribe, call toll-free 877-527-7008. Outside the U.S. call 218-740-6477.

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Tire Dealer Study Brazil’s import tariffs on auto parts can range from 14 percent to 20 percent.

Despite its relentless economic growth, Brazil’s In July 2013 the top four selling brands of average per capita income of $11,000 per cars in Brazil were 1- Fiat, 2- Chevrolet, 3- Volkswagen, 4- Ford. Luxury car sales have annum still remains less than one third that of the Auxiliary UK’s. However, even this disparity is gradually grown rapidly with the country’s southeast Lighting PHILIPS being eroded by an ever-increasing middle class dominating in terms of automobile fleet and with greater spending power. As of November new vehicle registrations. Sao Paulo is the lead- 2012 the Brazilian middle class was estimated at ing state in the region and has the greatest 52 percent of the total population. number of vehicles. With the largest economy in South America, The most popular types of vehicles are those Brazil looked set to cement its high status on with flex fuel systems with their multi choice Brakes the world stage with its hosting of the football of refuelling options. This popularity is encour- FEDERAL MOGUL world cup in 2014 and the Olympics in 2016. aged by the Brazilian government’s support for However, this good news for the country’s biofuel usage. economy has been marred in recent months In 2011 Brazil overtook Germany to become by widespread riots, which resulted in an 11.1 the fourth largest vehicle market in the world percent drop in the sales of new vehicles com- with sales of some 3.6 million cars and light pared to the same time last year. trucks. Aftermarket sales, however, have not While a major percentage of Brazil’s output grown in proportion. Chassis RAYBESTOS For repairs that are right the ﬁrst time, your best bet is an is focused on agriculture and the processing Brazil has the fifth largest population in the original equipment part. NTK Oxygen Sensors are original equipment on more vehicles worldwide than any other brand. of foodstuffs, its most important manufactured world with an expanding wealthier middle class For details, go to NGKsparkplugs.com items are automobiles. Some of the world’s with increased spending power and a grow- major automobile manufacturers including ing passion for classic cars, off road racing and Volkswagen, Ford, Fiat, Honda and Toyota

have large manufacturing plants in Brazil. Become a fan on Facebook t$MJDLPODFUP[PPNJO facebook.com/NGKSparkplugs The World Leader Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX

Industry News Hot Auto Products 05 International Trends 09 Technology Solutions 13 Bob Moore Sign up for weekly Distribution e-newsletters SEPTEMBER Join our Community Contact Us 07 Vendor Market Trends 11 Dealership Market Trends 16 Mark Smith 2013

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Tire Dealer Study hot rods. This interest in vehicle customization U.S., Colombia, Germany, Japan, Argentina, is offset by Brazil’s various vague restrictive China, Canada and the UK. In terms of trading laws governing vehicle modification. Despite position, China ranks at number one, account- the many restrictions in force, vehicle custom- ing for some 14 percent of Brazil’s trade flows. ization continues to grow in popularity in Brazil While Brazil’s main exports to China are iron with aftermarket products most in demand ore, soybeans and crude oil, manufactured items are China’s main imports into Brazil. This being, tires, wheels, audio systems, suspen- Auxiliary sion parts, performance items, turbochargers, has led to Brazil’s local manufacturing industry Lighting PHILIPS high flow air filters, ECU reprogramming and struggling to compete with China’s low produc- exhaust systems. tion costs advantage. With China’s advantage Car ownership in Brazil stands at 297 vehi- of cheaper production costs it can offset the cles per 1,000 people compared to 797 per Brazilian import taxes and tariffs, which make 1,000 in the US. With new car prices up to a U.S. auto parts expensive and practically unaf- third more expensive in Brazil compared to a fordable for the average Brazilian motorist. Brakes similar model in Europe, most of the car own- Import tariffs on auto parts can range from FEDERAL MOGUL ing public has to resort to the used car market. 14 percent to 20 percent with a further series Even though many of the second hand cars of taxes and import fees on top. With its vast, are in poor condition they are still a source of low salaried workforce, China can produce great pride for their owners. inexpensive quality aftermarket parts, often Music is a very important part of Brazilian with whole areas focused on the production of culture. Taken to the extreme, motorcycles one genre of item. often can be seen that have been retrofit- In order to overcome Brazil’s high import Chassis RAYBESTOS ted with stereo systems complete with large duties, some exporters to the country work speakers strapped to the vehicle. Despite this around these restrictions by bringing their prod- love of music, in 2011 70 percent of new vehi- ucts into Brazil via the Free Zone in Uruguay as cles were sold without a factory fitted in-car part of the Mercosor economic and entertainment system. ...CONTINUE READING ◽ Brazil’s main world trading partners are the t$MJDLPODFUP[PPNJO Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX

4 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com International markets VENDORS HOW THE WORLD IS WIRED Tire Dealer *OTQJSFECZNBSLFU BVUPJOEVTUSZ Study JOBVHVSBUFTJOOPWBUJPOTJO#SB[JM

BY JAMES E. GUYETTE News Correspondent Vendor Newsmaker Auxiliary ith a rising middle class driving Q&A Lighting PHILIPS an accelerated pace of auto- MAX MOSLEY motive demand, Brazil’s gov- Chairman, Global New Car W ernment has enacted a series Assessment Programme of regulations, incentives and tax policies designed to put the brakes on vehicle imports How would you rate the Factory-installed Separator Clips and increase domestic production while push- effectiveness of occupant safety Brakes ing for cars that emit fewer pollutants. systems on vehicles sold in Matching Boots FEDERAL Q MOGUL emerging auto markets? Numbered Leads TRENDS & MARKET Analysis What did Mosley say? Continue Patented Hi-Gloss Clear Coat A reading online. “The new automotive regime will promote Protective Loom Read full interview Factory installed upgrades are green technology, help Brazilian consumers speciﬁc to vehicle make and model by significantly improving the fuel efficiency ® of light vehicles and, in the process, make Production Line of Automotive Vehicles” pro- The Intermotor brand has built its reputation by engineering and distributing a full line of genuine import parts – parts Chassis that are unrivalled for quality, original look, ﬁt, form and function. But we don’t stop there. Our goal is to achieve excellence RAYBESTOS Brazilian vehicles technically competitive with gram will steer development of key systems by pushing for the “plus” – the extra details that set our products above the rest and ensure complete satisfaction. those in Europe, the U.S. and Asia,” says such as direct injection, turbo- and super- Add unmatched coverage for ALL import nameplates, and we can safely say:

Paulo Cardamone, managing director of IHS charging, stop/start, advanced multi-speed ® Automotive’s Brazilian operations. transmissions, rolling resistant tires, light- Known as INOVAR-AUTO, the nation’s The world has met its match. “Incentive of Technological Innovation of the t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by JAMES E. GUYETTE RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

5 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com International markets VENDORS

Tire Dealer Study By 2015 Brazil could overtake Japan to become the world’s third-largest car market.

weighting and other related Citing the impact of INOVAR- AUTO, BorgWarner reports that technologies. Auxiliary “These innovations will lead it is “ideally positioned to support Lighting PHILIPS to a rapid improvement in the car manufacturers in complying automotive industry and, more with the new regulations” with a importantly, the lives of every day new production facility and engi- Brazilians – whether they drive a neering center. The company car or not – as this will be a huge expects to benefit from the sharp contributor to reduced pollu- rise in production in Brazil and Brakes tion levels in Brazil,” notes Paul strengthen its local market posi- FEDERAL MOGUL Haelterman, vice president of IHS tion as a leading supplier of envi- Automotive Consulting. ronmentally friendly technologies, According to forecasting such as gasoline and diesel tur- from Roland Berger Strategy bochargers, dual-clutch transmis- Consultants, by 2015 Brazil could sion technology, engine timing overtake Japan to become the systems and emissions products world’s third-largest car market for cars and commercial vehicles. Chassis RAYBESTOS after China and the U.S., reach- “The increasing demand for our ing 6.6 million vehicles by 2020. fuel-efficient powertrain solutions Growth of 8 percent per year in is driving significant growth commercial vehicles between ...CONTINUE READING ◽ now and 2018 is also possible.

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6 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com The replacement markets VENDORS Tire Dealer .PUPS$JUZTSFDPWFSZDBOBUUSBDU Study BGUFSNBSLFUNBOVGBDUVSJOH

BY JAMES E. GUYETTE Vendor Newsmaker News Correspondent Q&A Auxiliary olks toiling in the coal mines called it Lighting PHILIPS the “Hillbilly Highway.” Gravel roads MIKE GAFFNEY easing into asphalt as they headed Vice president of sales and Fnorthbound from Appalachia and marketing at NAPA Rayloc other points south up to Detroit – often pro- What should the aftermarket do nounced as DEE-troit – delivering on the prom- to reduce noise-related customer ise of a solid middle class lifestyle born of complaints and comebacks Brakes work in an auto plant. The Motor City that for Q FEDERAL about new brakes? MOGUL so long served as the pinnacle of the nation’s automotive, industrial and economic might A What did Gaffney say? Continue may present opportunities for aftermarket reading online. manufacturing sites upon completion of the Read full interview city’s bankruptcy proceedings. University and the University of the Aftermarket TRENDS & MARKET Analysis in Midland, Mich. Chassis RAYBESTOS “The problems Detroit has have been 60 Once known as the “Paris of the Midwest” for years in the making,” says Nash. Previously its leafy boulevards and architectural splendor, America’s richest city, the population has plum- “Detroit has more abandoned buildings than meted from a peak of 1.8 million to 700,000. the entire area of Paris, France,” according to economist Dr. Timothy G. Nash at Northwood t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by JAMES E. GUYETTE RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

7 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com The replacement market VENDORS

Tire Dealer Study The political climate seems ice-cold concerning any type of bailout for the city.

Businesses and residents have fled, leav- comes out of Detroit (regarding what the OEMs are producing throughout the entire ing behind a decimated tax base, scant- Auxiliary to-nonexistent city services and massive region), but the automakers are a step or Lighting PHILIPS financial debt. two ahead in terms of revitalization and Apparently the immediate ramifications getting their affairs in order,” he explains. of the Chapter 9 bankruptcy proceedings “Their bad times are behind them, but the on the aftermarket and auto industry in city is still reeling from the financial crisis.” general are…not much. “Most of the Michigan-based factories 0QFOGPSCVTJOFTT Brakes are outside of Detroit,” Nash says. “The January’s North American International FEDERAL MOGUL thing to remember is that there’s only one Auto Show (NAIAS) in Detroit will go on as of the Big 3 with a headquarters in Detroit, scheduled, reports Executive Director Rod and that’s General Motors.” Alberts. “We will continue, as planned, to Both the Automotive Aftermarket work side-by-side with international auto Industry Association (AAIA) and the manufacturers, which continue to rely on Specialty Equipment Market Association Detroit’s stage to make their worldwide (SEMA) report having “only a handful” of product introductions.” Chassis RAYBESTOS member companies within the city limits. Cobo Center remains independent of “We really don’t anticipate a significant Detroit’s local government and is operated impact on those members or the member- by a regional authority. ship at-large,” says Peter MacGillivray, ...CONTINUE READING ◽ The right parts. The right place. The right time. Auto Value and Bumper to Bumper parts stores deliver the products you need

SEMA’s vice president of events and ® with the service you deserve. Service is the Difference. We Get It! communications. “They rely a lot on what t$MJDLPODFUP[PPNJO ©2012 Aftermarket Auto Parts Alliance, Inc. 2706 Treble Creek, San Antonio, TX 78258. Auto Value and Bumper to Bumper are all registered trademarks of Aftermarket Auto Parts Alliance, Inc. Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX

8 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com The emerging markets Serious professionals trust INNOVA® expert Designed diagnostic tools to help them make fast, TECHNOLOGY SOLUTIONS accurate and profitable repair decisions. ASE-certified technicians help design Tire with the INNOVA® tools with the needs of pros in mind Dealer Study .FWPUFDICPPTUTFGGJDJFODZ Professional INNOVA® scan tools allow fast retrieval of vital diagnostic information, helping technicians efficiently complete This Polk Inventory Award winner has slashed inventory by 20 percent in mind more repairs All tools come with shop management software reports to manage vehicle diagnostics BY BRIAN ALBRIGHT Technology Newsmaker ® Contributor RepairSolutions with extended diagnostic support available Auxiliary Q&A Designed for heavy shop use hen it comes to improving Lighting PHILIPS BLAIR CURRIE 3-color LED display ASE bilingual technical support inventory efficiency, manufac- for state emissions for professionals available On-screen definitions in readiness check turers have a dual challenge Vice president of marketing, English/Spanish/French Mon - Sat, 6am - 6pm PST. USA based in both forecasting how much Intelligent Mechatronic Systems W To learn how INNOVA® can save you time finished goods inventory they need (and where What are the biggest challenges (and make you money). it should be placed), and optimizing the flow of Large all-in-one display shows over 20 pieces of raw materials so that they don’t over or under- involved with adopting these diagnostic information Brakes produce against those forecasts. types of non-OEM telematics FEDERAL Q MOGUL solutions? Displays the Diagnostic Trouble Code (DTC) number www.pro.innova.com TRENDS & MARKET Analysis What did Currie say? Continue DTC definitions, A freeze frame and reading online. live data Mevotech has cut its inventory 20 percent Read full interview while increasing its sales thanks to a new ERP system, a paperless warehouse solution and a and global aftermarket practice leader at R.L. new forecasting tool. The supply chain solution Polk & Co. “They looked at increasing efficien- Chassis RAYBESTOS won this year’s Polk Inventory Efficiency Award cies and fill rates, lowering inventory levels over- in the manufacturer category. all, and really optimizing their inventory across “What the selection committee really respond- the entire chain, whether that was raw materials, ed to was that Mevotech really looked across work-in-process, or finished goods.” the entire supply chain,” says Mark Seng, vice president of aftermarket and commercial vehicle t$MJDLPODFUP[PPNJO EXPERT DIAGNOSTICS Fuel Pumps AIRTEX More articles by BRIAN ALBRIGHT RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

9 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com The emerging markets TECHNOLOGY SOLUTIONS “TechSmart® takes OE replacement to Tire Dealer the next level.” Study

That system manages how we generate pick – Lou Murante, Owner waves and has improved picking efficiency. Murante Auto Repair

Toronto-based Mevotech manufac- and ship product, and quickly followed Finding the right parts that deployment with a new enterprise turers chassis and suspension parts, doesn’t have to be hard. Auxiliary among other things, and manages 55,000 resource management (ERP) system. Both Lighting Smart technicians choose PHILIPS part numbers. The company wanted to the warehouse management and ERP ® improve efficiency, maintain an accurate system are part of the Pronto Xi suite from TechSmart because of our inventory and better manage its limited Pronto Software in Australia. commitment to engineering warehouse space. “We tore out the old system, and that real- quality parts that meet or ly launched us into a new era where we had “We have both internal and external exceed OE standards. challenges,” says Scott Stone, vice presi- new tools and new information, so we could Brakes dent of sales at Mevotech. “Customer make better choices,” Stone says. “That Join the thousands of FEDERAL MOGUL expectations and service level expecta- system manages how we generate pick technicians like Lou who

tions continue to grow, and we do a lot waves and has improved picking efficiency.” ® choose TechSmart Parts of private labeling. We also have a first- Mevotech then focused on developing to-market strategy, so we have quite a a master scheduling tool, which involved when they need to get few new applications that are raw in their creating analytics for forecasting. The the job done right. development state. We also have a global company also leveraged internal knowl- supply chain environment.” edge to create a new product lifecycle Chassis RAYBESTOS To better manage its supply chain, management (PLM) program. “That has the company launched its Excellence in allowed us to work with our factories on a Inventory Strategy (EXIST) in multiple stages. just-in-time delivery program, First, the company converted to an ...CONTINUE READING ◽ RF-based, paperless warehouse using Lou is TechSmart – Are You TechSmart? mobile bar code scanners to move, pick, Learn more about Lou and tell us what makes you TechSmart. t$MJDLPODFUP[PPNJO Go to www.TechSmartParts.com Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX

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BY BRIAN ALBRIGHT Contributor Dealer Newsmaker Auxiliary uoyed by a general improvement in Q&A Lighting PHILIPS the overall economy, U.S. automo- DAVE WINSLOW tive dealerships have continued to Chief digital strategist, Bincrease sales, increase employ- Dealer.com ment, and even expand the dealer footprint. The National Automobile Dealers Association What are some benefi ts to (NADA) released its annual state-of-the-indus- Dealer.com and its customers of Brakes try report this summer, showing that total deal- the recent JumpStart partnership FEDERAL Q MOGUL ership revenue reached $676 billion in 2012, announcement? up 9.8 percent from 2011. What did Winslow say? Continue A reading online. TRENDS & MARKET Analysis Read full interview

Service and parts revenues dipped slightly, from $81.46 billion in 2011 to $81.35 billion in of gross profit increased to 30.4 percent, up Chassis RAYBESTOS 2012 (a 0.1 percent decrease). from 28.8 percent in 2011. Dealers in the U.S. also added an average of Some of the largest dealer groups performed two employees last year, and average dealer even better. Penske Automotive Group saw an revenues were up by 9.2 percent. While gross 18.3 percent revenue increase in 2012 (reaching percentage margins in new vehicles fell, new vehicle department profitability as a percentage t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by BRIAN ALBRIGHT RELATED articles t$MJDLIPMEUPNPWFQBHFBSPVOE

11 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Customers DEALERSHIPS COMPLETE There was a net increase of 95 franchised COVERAGE Tire dealerships in the U.S., up to 17,635 in 2012. Dealer Study

$13.2 billion). AutoNation announced record its annual European Car Distribution Handbook, service and parts department fell to 44 percent MOOG’s comprehensive coverage provides the latest in foreign and domestic applications through its results in 2012, with total revenues of $15.7 bil- noted that main dealer sales networks in from 45.8 percent. broad range of Asia-Spec™, Euro-Spec and Problem Solver® steering and lion, a 13 percent improvement. Western Europe have shrunk by 3 percent since With sales increasing, the adoption of service suspension parts. Install MOOG® and restore like-new According to data from NADA and R.L. Polk 2011, although the size of service networks has contracts also has expanded. New vehicle ser- steering to the Asian, European and Auxiliary domestic vehicles you service. & Co., new light vehicle sales were up 13.4 remained stable and the number of sales agents vice contract penetration rates rose by 2.7 per- Lighting PHILIPS

percent (14.4 million, up from 12.7 million units has actually gone up by 2 percent. cent, and now stand at 42 percent of total new ASIA-SPEC™ in 2011). New medium and heavy- duty truck Auto industry consultancy HWB International, vehicle sales. sales were up 13 percent, and used vehicle meanwhile, chimed in that the UK and France Body shops are becoming even more sales were up 4.5 percent (40.5 million units in have seen a total dealer decline of 10 percent scarce at dealers, with the number of loca- 2012, up from 38.8 million in 2011). There are in the past four years. tions that had on-site body shops falling to now 251.5 million light vehicles on the road, 34 percent in 2012 (down from 36 percent in 4FSWJDFIPMETTUFBEZ Brakes with an average age of 11.4 years. 2011). Total autobody work performed at new EURO-SPEC FEDERAL MOGUL Total franchised dealership service, parts vehicle dealerships was stable at $6.9 billion. %FBMFSTIJQGPPUQSJOUFYQBOET and body shop sales exceeded $81 billion in Both AutoNation and Penske reported There is more good news for the market: 2012, although sales at the average dealer growth in the fixed operations segment, and There was a net increase of 95 franchised were down. Both labor and parts sales were expected that to continue moving forward. dealerships in the U.S., bringing the total up down for customer mechanical repairs, war- “We’re very pleased with the momentum of to 17,635 in 2012. Much of this growth came ranty work, wholesales parts sales, and sublet our customer care business and believe we THE PROBLEM SOLVER ® from the Western U.S., while the Eastern work. Sales from internal work rose 9.9 percent are well-positioned to capitalize as the units Chassis RAYBESTOS region actually saw a decline in the number for labor and 7.9 percent for parts. Net profits in operation base begins to grow again this of franchised dealers. The number of dealers remain high, although they fell 17.4 percent year,” said AutoNation president and COO

shrank significantly from 2009 through 2011, from the 2011 numbers. Michael Maroone. Visit moogproblemsolver.com with net losses totaling 2,470 dealerships. Average dealership service and parts sales ...CONTINUE READING ◽ to learn more

©2013 Federal - Mogul Corporation. MOOG, The Problem Solver and Asia - Spec are trademarks owned by Federal - Mogul For contrast, consider the situation in Europe. declined 0.7 percent, from $4.64 million to 4.61 Corporation, or one of its subsidiaries, in one or more countries. All rights reserved. A separate report issued by UK-based ICDP, in million. The share of gross profit held by the t$MJDLPODFUP[PPNJO Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX

12 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Bob Moore AHEAD OF THE CURVE

Tire Dealer TO COME The source of my techno-shock came from Study Shapes of things a tour of the new “SEMA Garage.”

he other day my 20-something son asked me Jointly operated by SEMA and the Auto Club, it has pro- This easier access may be the only way the small how to wire up a connection for his iPhone so vided SEMA members for the last decade with low-cost entrepreneurial concerns that have historically been the he could listen to it through the sound system in testing and CARB certifications for new products. backbone of SEMA can survive and prosper. T Auxiliary his car. As we were talking, I made some typical “old When the building’s major tenant recently decided to But it was some of that Lighting PHILIPS man” comment about how much things have changed relocate, SEMA was faced with a decision of curtailing “where we can go from here” since I was his age. I started reminiscing about when the emissions testing service, or stepping up. Stepping that blew my mind. an automotive sound system was an AM radio blast- up meant the association making a serious investment Mike took me into a photo ing through a single dashboard mounted speaker. He in technology and equipment to provide its members bay where I watched as wasn’t impressed. with the ability to continue to create cutting-edge per- a yet-to-be-introduced Technology has profoundly changed and reshaped formance and appearance products that comply with model of a sport Brakes many aspects of the automotive business. I have the ever-burgeoning legislative and regulatory man- crossover was being FEDERAL MOGUL always looked forward to and even enjoyed “keeping dates that are coming out of Washington. Thankfully, scanned. A techni- up” on developments on every front, from new vehicu- the decision was made to step up. cian maneu- lar systems to business and commerce automation. But Mike Spagnola, a stalwart of the performance indus- vered a scan- recently, I was so profoundly blown away by exposure try as everything from a racer to manufacturer to SEMA ning device to new developments, that I was as close to intimidated Director, was hired to run the operation. mounted on as I have even been in my career by technology. “It’s great to have this fantastic facility for emissions a tripod with rollers The source of my techno-shock came from a tour of the testing and dyno services. But we are really psyched ...CONTINUE READING ◽ Chassis RAYBESTOS new “SEMA Garage.” It’s a state-of-the-art technology about where we can go from here,” said Spagnola. center that recently opened in a building adjacent to the “We want this service to give our members easier BOB MOORE SEMA headquarters in Diamond Bar, Calif. The building access to more sophisticated testing and develop- President, Bob Moore & Partners was purpose-built 10 years ago with a full dyno lab. Its ment technology. Much of what is needed has histori- mission was to measure emissions output for compliance cally only been available to the OEMs or giant multi- with California Air Resources Board (CARB) regulations. national companies.” t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by BOB MOORE RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

13 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Automotive Aftermarket Suppliers Association Overseas Automotive Council

INTERNATIONAL INITIATIVES Tire Dealer AAPEX AAPEX is ideal to see thousands of products Study Getting the most from and meet with exhibitors and suppliers.

he global automotive aftermarket is all about services, and 1,190 accessories and custom products. [email protected] or call 708-226-1300. relationships – and one of the best opportuni- Another compelling reason buyers attend AAPEX is The AASA Overseas Automotive Council provides ties to foster existing relationships and forge to get answers to their important business questions. many services and amenities for its international mem- T Auxiliary new ones is at the annual Automotive Aftermarket AAPEX is the ideal venue to see thousands of prod- bers at AAPEX. The OAC Member Center in Sands 302 Lighting PHILIPS Products Expo (AAPEX), slated for Nov. 5 thru Nov. 7 ucts, meet with exhibitors and suppliers, and learn from is a global hub during AAPEX – a popular meeting spot at the Sands Expo Center in Las Vegas. other buyers throughout the event. Last year, buyers for international buyers and OAC’s full service suppliers. AAPEX represents the $395 billion global motor at AAPEX included 8,737 retailers of which 733 were Council news and information is available, as well as vehicle aftermarket and is jointly sponsored by the fleet buyers, 7,028 service and repair businesses, and details about joining the council. Through a special ser- Automotive Aftermarket Suppliers Association (AASA), 11,130 warehouse distributors (WDs). vice provided by OAC, international members can skip the parent association of the Overseas Automotive The AAPEX website, www.aapexshow.com, includes the long registration lines and pick up show credentials Brakes Council (OAC), and the Automotive Aftermarket many great tools for buyers. For example, the “Find at the council’s member center. FEDERAL MOGUL Industry Association (AAIA). Products & Exhibitors section” allows buyers to search Tickets for the OAC Global AAPEX is the No. 1 place to meet the right people in by product, exhibitor or brand. The AAPEX Mobile Reception, one of the premier the industry. It’s the place buyers and manufacturers Compass App allows buyers to take AAPEX with them international networking events come to talk in person with current vendors or custom- on the go – it can be downloaded at: tiny.cc/aapex_apps. during AAPEX, can be pur- ers, and to connect with new business associates. International buyers needing more information about Visa chased at the member center. The No. 1 reason buyers attend AAPEX is to see, applications can contact AAPEX Event Management, ...CONTINUE READING ◽ touch and compare what’s new in the global automo- Chassis RAYBESTOS tive aftermarket industry. For international buyers,

AAPEX is the ideal venue to source U.S. products. DAN PIKE At AAPEX 2012, 804 U.S.-based companies participat- Vice President, Membership and ed. On display at the 2012 event were 5,174 parts and Member Services, AASA components, 1,048 chemicals and car care products, 1,309 tools and equipment, 245 business products and t$MJDLPODFUP[PPNJO Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX More articles by DAN PIKE RELATED articles AUTHOR bio

14 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Stephen Barlas WASHINGTON INSIDER

Tire Dealer EPA balks at updating catalytic converter STANDARD Study

he decision of a House Appropriations was adopted in 1986, and has never been altered. It is reductions occur when catalysts fall outside of the war- Subcommittee in late July to prevent the EPA inferior to the requirements adopted by CARB in 2009 ranty period, the final Tier 3 regulation should from moving forward with its Tier III tailpipe which requires catalytic converters to meet a 50,000 include a more stringent aftermarket cata- T Auxiliary emission standards moves the agency’s proposed mile/5 year warranty and relies on a mass based stan- lytic converter policy as recommended Lighting PHILIPS rule on that subject to the Capital’s front burner. dard (i.e. grams of pollution/mile). The EPA require- previously by OTC.” In one sense, whether the proposal becomes final is ment is 25,000 miles/5 years. Instead of a “mass- The OTC has adopted numerous a non-issue for the aftermarket since its sulfur-in-gas- based” standard, the EPA uses a 70 percent hydro- resolutions over the past few years oline limit will not affect sales of aftermarket gasoline carbon, 70 percent carbon monoxide, and 30 percent pleading with the EPA to bring its additives, at least as the proposal is currently written. NOx emission reduction-based standard. aftermarket catalytic converter When used at the maximum recommended treatment What this means, if the House subcommittee can- policy into line with California’s. Brakes rate, aftermarket gasoline additives contribute less cellation of Tier III does not stand, is that there will not It did so again at its 2013 annual FEDERAL MOGUL than the proposed limit of 3 parts per million sulfur to be one, aligned federal aftermarket catalytic converter meeting. However, the OTC rec- the finished gasoline. policy. California and states that follow the CARB ommendation differs in one aspect But the proposal does raise some other aftermar- standard will have a stricter standard than the states from CARB’s: CARB would not allow ket concerns. It does not modernize the EPA’s dusty that adhere to the EPA standard. used original engine manufacturer aftermarket catalytic converter standard, which differs This doesn’t sit well with some major national clean (OEM) converters to be certified and from California’s. air organizations. One of the major proponents of an sold. The reuse of reconditioned con- The whole point of the Tier III proposal is to bring updated aftermarket catalytic converter policy is the verters is OK by the OTC. Chassis RAYBESTOS EPA standards for reducing carbon monoxide, nitrogen Ozone Transport Commission (OTC), a group of Eastern Mary Nichols, the oxide and hydrocarbon air pollution across the country states with among the biggest air pollution problems. In chairman of the CARB, STEPHEN BARLAS Washington to levels promoted by the California Air Resource Board comments to the EPA, the OTC said, “Without updat- calls the EPA Tier III Correspondent (CARB) LEV III program, which goes into effect in 2015. ing its policy, EPA would be allowing use of replacement proposal a “noteworthy However, the Tier III proposal omits any mention converters that will not guarantee emission reductions ...CONTINUE READING ◽ of the EPA’s aftermarket catalytic converter policy. It as long as the original converters. To ensure emission t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by STEPHEN BARLAS RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

15 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Mark Smith INDEPENDENT THINKING

Tire Dealer SPAGHETTI SAUCE You are not going to get anywhere near the Study Insurance and face value of your insurance policy.

famous tag line for a major brand of spaghetti ately be stressed out due to the lack thereof. Here’s my advice, if you can’t at least break-even, or sauce was, “It’s in there.” When it comes to This is where I made my first mistake, and before I you don’t have the financial reserve to spend a bunch of business interruption insurance, or loss of use continue, and if you pay no further attention to the other money out of pocket, which you will A Auxiliary coverage, it might be “in there,” but the recipe is a things I’m going to point out, stop! I repeat, stop! Halt. not be reimbursed for appropriately, Lighting PHILIPS closely guarded secret. Cease. Quit. Slow down. Whoa mule! I jumped through or the portion of your business that Business Interruption Insurance (BII) is designed and 1,000 hoops to try and set up an office, re-open our ser- you are reopening will amount marketed to cover the resultant issues that occur when vice center portion of our business, and in general, or I to 25 percent or greater of you lose the ability to operate your business due to thought, to be able to function. That’s noble reasoning your previous volume, tragic loss or damage. Before I continue, let it be under- in regards to customer service, retaining employees and remain closed until stood that the face value of your policy for this type of maintaining a presence in your market place. you are made whole. Brakes coverage will only make you feel good about the poten- There are three big reasons why you should think If someone had told FEDERAL MOGUL tial benefit, because you are certainly not going to get about this with a keen awareness, and steady mind me these things right that amount, or anywhere close to it. regarding what you are doing and how it will affect after the fire, I would have In my situation having lost our parts store and ware- you later on. dismissed it as a crazy notion. house to a fire on June 6, 2013, when I renew the policy (if 1. Will partially reopening provide an income that will It’s the very reason I should I get to renew with the same company, which is another allow you to break-even? have waited about two weeks upcoming article), it will certainly be for a lesser amount of 2. Do you have the resources to bankroll the cost of before making the first decision face value. Let me explain why. an immediate re-opening? It will cost several thousand ...CONTINUE READING ◽ Chassis RAYBESTOS When you lose your business or part of your busi- dollars for things like restoring power, new office equip-

ness as it were for me, the first thing that runs through ment, or renting an office trailer, and insurance settle- MARK SMITH your mind is how am I going to continue some sort of ments arrive slowly. President, semblance of what we used to have and how we used 3. Have you thought about how a “partial” reopening Wholesale Auto Parts to operate, and how quickly can I do it. Since this busi- will affect the calculations involved in arriving at a finan- ness is highly dependent on cash flow, you will immedi- cial amount for your BII settlement? t$MJDLPODFUP[PPNJO Fuel Pumps AIRTEX More articles by MARK SMITH RELATED articles AUTHOR bio t$MJDLIPMEUPNPWFQBHFBSPVOE

16 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com Donny Seyfer SHOP INSIGHT

Tire Dealer SUPPLIER Be willing to tell DIY customers who are way over Study Blaming your their head that they need professional help.

ave you read the book Atlas Shrugged by Ayn Then we have the situation where I do find a catalog, frankly poor advice. Have you ever been put on hold at Rand? It doesn’t matter if you agree with her I download it because it is not something I can look your own company? Do you like it? Change it. politics; she had amazing foresight into how at on the website and I find a part that will replace the How about this: have enough peo- H Auxiliary the world of the future would work back in 1947. damaged or worn out piece on my customer’s vehicle. ple to answer your phones or be Lighting PHILIPS One sub plot of the story was that many suppliers Now comes the fun part. I buy it, pay more for shipping able to return voice mails quickly. were failing to fulfill orders and blaming it on the suppli- than the part costs and wait for it to get out the door Be willing to tell DIY customers ers that they counted on. If you sense a corollary com- and onto a truck. who are way over their head that ing, you are right. I have written about the manufac- The part shows up and it is not correct for the appli- they need professional help or turer websites that have email addresses that are com- cation. When I call suggesting that a footnote that lets offer a professional support pletely unmonitored by employees, but from where I sit me know this part will not fit all of the vehicles it claims line staffed with guys who are Brakes there are much larger issues to fit the response is that catalog development is done at least as smart about your FEDERAL MOGUL COLUMNISTS brewing. Issues I hope the by an outside vendor and there is no way to let them products as I am about the Dan Pike eerily accurate Ms. Rand does know about the application error. vehicles I work on. Getting the most out of not get right. Now we move on to phone support. Why do paying When I am on hold and the AAPEX Let’s start with catalogs customers ever have to wait for someone to help them electronic voice tells me there Bob Moore because that is really where spend money? I have spent, in the last few days, at is one call in front of me and Shapes of things to come my first contact with most of least 40 minutes on order lines attempting to get infor- that call lasts 15 minutes your my suppliers begins. The vast mation to make a purchase. telephone room is dealing with Chassis Mark Smith RAYBESTOS majority of aftermarket sup- Look, I recognize that competent technical people someone who is not Insurance and spaghetti DONNY SEYFER sauce plier’s websites are painfully can be hard to find. Apparently finding people who competent enough Operations Manager silent when it comes to ways to know when to say they don’t know is even harder. I to use your product. Seyfer Automotive, Inc. Stephen Barlas look up their products. Often a had one customer call a performance company’s tech You would be money Updating aftermarket catalytic converter standard search for “catalog” leads me line three different times and get three completely dif- ahead to take that ◽ to another site altogether. ferent answers, all of which turned out to be wrong and ...CONTINUE READING t$MJDLPODFUP[PPNJO t$MJDLIPMEUPNPWF Fuel Pumps AIRTEX More articles by DONNY SEYFER RELATED articles AUTHOR bio QBHFBSPVOE

17 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com TIRE DEALER STUDY

Nearly six out of 10 dealers (57 percent) said they CONTENTS Tire Dealer are using their web sites, direct email and social 19 Auxiliary Lighting 20 Brakes Study media to promote their products and services to customers. Some 18 percent said they use newspapers, 21 Chassis 22 Fuel Pumps 5 percent radio and 3 percent television. Another 18 percent said they use a combination of all of those to reach customers. Nearly 75 percent of respondents said they are independent general repair shops. The next largest category Auxiliary Lighting was tire dealers who offer auto repair and maintenance PHILIPS services, followed by new or used car dealerships. When purchasing non-tire products, quality is the most important consideration for 46 percent, while OEM form, fit and function ranked at the top for 24 percent. Brand and price finished a distant third and Brakes fourth, respectively. FEDERAL Respondents are an optimistic lot as 53 percent MOGUL expect to order more parts in 2013 than in 2012. $ Some 44 percent say their sales will hold steady. Savings up to 125 When it comes to their expected 2013 gross margins, Legends last forever but these savings won’t. BY BRUCE ADAMS | Managing Editor 52 percent predict an increase and 44 percent say From September 1 to October 31, consumers can receive a mail-in rebate of 20% off the they will be the same as 2012. total purchase price of four qualifying Gabriel® products, up to $125. Their preferred suppliers for auto parts are auto parts Chassis See rebate pad or Gabriel.com for more details. RAYBESTOS retailers (35 percent), warehouse distributors (30 percent) and jobbers (21 percent). Shocks and struts affect Methodology: The Aftermarket Business world Tire stopping distance! Scan here ire dealers are increasingly turning to in-house Dealer Product Study was fielded to readers of sister to learn Telectronic channels to advertise their products publication Motor Age who sell tires in the aftermarket. more. and services, according to the results of the 2013 The study results are intended to show general market gabriel.com

PHOTO COURTESY: THINKSTOCK PHOTO COURTESY: Aftermarket Business World Tire Dealer Product Study. trends, not statistical certainties. Fuel Pumps AIRTEX

18 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com TIRE DEALERS STUDY

Tire Auxiliary Lighting Your ultimate choice Dealer Study for ahead Preferred supplier always38% take their tech’s the road recommendation advertise for buying the a auxiliary lighting they sell through Warehouse distributor 32% specific brand of shockdirect & strutemail to customers. Auto parts retailer 30% Jobber 24% Expected 2013 gross margins

Reason for supplier preference Auxiliary 46% Lighting Long-standing relationship 24% To Increase PHILIPS Offers quality product 23% 50% Philips Vision, VisionPlus and Availability 27% To Hold Steady X-tremeVision Headlight Bulbs 4% Philips halogen upgrade headlight bulbs deliver 30%, 60%, or even up to 2013 ordering expectations To Decrease 100% more light on the road. More light at night makes driving safer and more enjoyable. Give your customers the headlight that’s right for the way Brakes they drive – from Philips. FEDERAL 39% Most important product MOGUL Increase characteristics more more up more +30% light +60% light to 100% light 57% OEM form, fit, function 23% Hold Steady Price 7% 4% Quality 28% 52% Decrease Brand 3% DO NOT Chassis RAYBESTOS Sales tactics offer a “good,” “better” and Vision VisionPlus X-tremeVision implemented “best” selection of auxiliary lighting products. Bundle w/related products 60% 7% report that when customer maintenance/repair work is completed, MOST Unadvertised specials 20% OF THE TIME it leads to an auxiliary lighting Provide training 18% To learn more call 1-800-257-6054 sale through retail purchase or installation. www.philips.com/automotive Price breaks for loyalty 33% Fuel Pumps AIRTEX

19 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com TIRE DEALERS STUDY

NON-SOCKET STYLE Tire Brakes SWAY BAR LINK KIT Dealer VARIOUS VEHICLES Study

Preferred supplier always37% take their tech’s recommendation advertise for buying the brakesa they sell through direct email Warehouse distributor 33% specific brand of shock & tostrut customers. PROBLEM: SOLUTION: Auto parts retailer 40% Traditional Non-Socket Style MOOG® Problem Solver® Jobber 20% Expected 2013 gross margins Sway Bar Links Sway Bar Link Kit The sway bar link on affected vehicles comes in many styles. t MOOG® Problem Solver® design includes polyurethene Other suppliers may utilize a small-diameter bolt. This small bushings for enhanced durability and performance. Reason for supplier preference size makes the bolt susceptible to the damaging effects of t Barrel nut provides proper thread engagement Auxiliary 61% road shock and corrosion. In addition, the neoprene bushings for easier installation. used in many of these links do not stand up well to stress and Lighting Long-standing relationship 26% To Increase weather conditions. Also, other suppliers may use a rolled steel t Nested washers help keep bushings centered PHILIPS sleeve which can allow contaminants in, leading to corrosion during installation. Offers quality product 29% and failure. t Solid black anodized T6 aluminum hex spacer provides 36% NOTE BROKEN SWAY BAR LINK superior corrosion protection and provides easier removal. Availability 26% t Black oxide 3/8" Grade 8 bolt provides strength To Hold Steady and corrosion protection.

GRADE 8 BOLT 3% FOR STRENGTH 2013 ordering expectations To Decrease

Brakes FEDERAL SWAY BAR LINK KIT - BOLT AND BUSHING Most important product MOGUL 61% Applications MOOG p/n MOOG® PROBLEM SOLVER® characteristics Chrysler Neon 02-00; PT Cruiser 10-01; Dodge Neon 05-00; SX 2.0 05-03; K700525 POLYURETHANE MATERIAL Increase Plymouth Neon 01-00; Ford Focus 11-00; and more BUSHING WASHER LIP RESISTS OIL, HEAT AND CENTERS WASHER DURING OZONE, FOR LONGER LIFE Chevrolet Blazer 05-95; Cavalier 05-95; Classic 05-04; Malibu 03-97; S10 04-95; INSTALLATION. Dodge Neon 99; GMC Jimmy 01-95; Sonoma 04-95; Isuzu Hombre 00-98; Nissan Frontier 04-98; Oldsmobile Alero 04-99; Bravada 01-96; Cutlass 99-97; K700526 36% OEM form, fit, function 20% Plymouth Neon 99; Pontiac Grand Am 05-99 Buick Allure 08-05; Century 05-97; LaCrosse 08-05; Regal 04-97; Rendezvous 07-02; Hold Steady Terraza 06-05; Chevrolet Impala 11-00; Monte Carlo 07-00; Uplander 06-05; Venture 05-97; K700527 Price 4% Oldsmobile Intrigue 02-98; Silhouette 04-97; Pontiac Aztek 05-01; Grand Prix 03-97 ANODIZED FINISH FOR CORROSION RESISTANCE Buick LeSabre 05-00; Lucerne 10-06; Park Avenue 05-97; Riviera 99-95; Cadillac DeVille 05-00; K700529 3% DTS 10-06; Seville 04-98; Oldsmobile Aurora 03-95; Pontiac Bonneville 05-00 Quality 61% 35% Ford Expedition 02-97; F-150 04-97; F-150 Heritage 04; F-250 99-97; K700536 Decrease Lincoln Blackwood 02; Navigator 02-98 Chevrolet Express 1500 02-96; Express 2500 02-96; Express 3500 02-96; Chrysler Neon Brand 7% 02-00; Dodge Neon 05-00; SX 2.0 05-03; Ford Crown Victoria 11-92; Mustang 04-94; GMC K700537 DO NOT G3500 96; Savana 1500 02-96; Savana 2500 02-96; Savana 3500 02-96; Lincoln Town Car 11 Chassis Ford Explorer 10-06; Explorer Sport Trac 10-07; Mercury Mountaineer 10-06, RAYBESTOS Cadillac Escalade 06-99; Chevrolet Astro 05-90; Avalanche 1500 06-02; Avalanche 2500 06-02; K700539 Sales tactics Blazer 94-92; Express 1500 07-03; Express 2500 07-03; Express 3500 07-03; K1500 99-88; offer a “good,” “better” and K1500 Suburban 99-92; K2500 00-88; K2500 Suburban 99-92; K3500 00-88; Silverado

implemented “best” selection of brake Ford Explorer 05-02; Lincoln Aviator 05-03; Mercury Mountaineer 05-02 K700540 MOOG PROBLEM SOLVER BARREL NUT products. Ford Taurus 07-86; Lincoln Continental 91-84; Mark VII 92-84; Mercury Sable 05-86 K700541 WITH WASHER MAKES Dodge Ram 1500 01-94; Ram 2500 02-94; Ram 3500 02-94; Ford Explorer 10-95; INSTALLATION EASY. Explorer Sport Trac 10-01; Ranger 11-98; Mazda B2300 08-01; B2500 01-98; K700542 32% Bundle w/related products 44% B3000 07-98; B4000 08-98; Mercury Mountaineer 10-97 report that when customer (see www.FMe-cat.com for additional applications.) maintenance/repair work is completed, Run advertised specials 25% MOST OF THE TIME it leads to a brakes sale Unadvertised specials 32% For parts lookup, visit www.FMe-cat.com tech line: 1-800-325-8886 through retail purchase or installation. moogproblemsolver.com Price breaks for loyalty 48% ©2013 Federal-Mogul Corporation. MOOG and The Problem Solver are trademarks owned by Federal-Mogul Corporation, or one of its subsidiaries, in one or more countries. Fuel Pumps NASCAR and the NASCAR Performance logo are registered trademarks of the National Association for Stock Car Auto Racing, Inc. All rights reserved. AIRTEX

20 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com TIRE DEALERS STUDY ONE PART TOUGH GUY... ONE PART SMOOTH OPERATOR Tire Chassis Dealer Study HIGH LOAD CAPACITY always take their tech’s One Piece Metal Bearing Design Preferred supplier 37% Zero Side-to-Side Endplay recommendation advertise for buying the chassisa parts they sell through direct Warehouse distributor 27% specific brand of shockemail & strut to customers. Auto parts retailer 38% Jobber 20% Expected 2013 gross margins

Reason for supplier preference Auxiliary 59% Lighting Long-standing relationship 26% To Increase PHILIPS Offers quality product 26% 38% Availability 26% To Hold Steady

3% SMOOTH STEERING To Decrease Low-Friction Synthetic Bearing Design 2013 ordering expectations Improved Returnability

Brakes Most important product APPLICATION SPECIFIC FEDERAL 62% 2005 Chevy Astro MOGUL Increase characteristics Raybestos Idler Arm P/N 450-1102 *

Use your smart phone 33% OEM form, fit, function 23% and connect to: Hold Steady RaybestosChassis.com Price 8% 5% Quality 54% 46% Decrease Brand 9% DO NOT Chassis RAYBESTOS Sales tactics offer a “good,” “better” and implemented “best” selection of chassis products. ADVANCED TECHNOLOGY GUARANTEES THE BEST POSSIBLE PART FOR THE APPLICATION ® Bundle w/related products 44% When you need low friction on one end of an idler arm and high load capability on the other, choose a Raybestos Professional Grade® chassis part that matches the specific technology of that vehicle. The Advanced Technology double-duty design 26% report that when customer Run advertised specials 25% provides the smartest, most application-specific undercar solution … and with the best parts and labor guarantee in the maintenance/repair work is completed, MOST industry… you can install the choice in chassis™ with 100% confidence. OF THE TIME it leads to a chassis parts sale Provide training 29% Visit RaybestosChassis.com or call 800-323-3022 for more information. through retail purchase or installation. AVAILABLE AT Price breaks for loyalty 34% Fuel Pumps AIRTEX * Visit www.RaybestosChassis.com for full application listing.

21 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com TIRE DEALERS STUDY

Tire Fuel Pumps Dealer Study

Preferred supplier always27% take their tech’s recommendation advertise for buying the afuel pumps they sell through direct Warehouse distributor 28% specific brand of shockemail & strut to customers. Auto parts retailer 29% Jobber 22% Expected 2013 gross margins

Reason for supplier preference Auxiliary 43% Lighting Long-standing relationship 19% To Increase PHILIPS Offers quality product 32% 53% Availability 26% To Hold Steady

4% 2013 ordering expectations To Decrease

Brakes FEDERAL 42% Most important product MOGUL Increase characteristics

52% OEM form, fit, function 27% Hold Steady Price 5% 6% Quality 49% 71% Decrease Brand 12% DO NOT Chassis RAYBESTOS Sales tactics offer a “good,” “better” and implemented “best” selection of fuel pump products. Bundle w/related products 33% 11% report that when customer maintenance/repair work is completed, MOST Unadvertised specials 18% OF THE TIME it leads to a fuel pump sale Provide training 30% through retail purchase or installation. Price breaks for loyalty 37% Fuel Pumps AIRTEX

22 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com MARKETPLACE

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23 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com