first canadian autonomous street test • the … · 12/1/2017 · *24-month/unlimited-km limited...
TRANSCRIPT
Canada Post Canadian Publications Mail Sales Agreement No. 40063170
D E C E M B E R 2 0 1 7
FIRST CANADIAN AUTONOMOUS STREET TEST • THE DISTRACTION OF NEW TECHNOLOGY
Serving the Automotive Aftermarket Since 1931Serving ththe Automotive Affterma krket Since 119931
Jobber News
CATCHING UP ON
INDUSTRY WEEK
NAFTA TALKS
REACH BOILING
POINT
MARKET FACTS
CANADIAN MARKET INFO FROM J.D. POWER & ASSOCIATES
PLUS
Coming January 2018
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 3
13 J.D. POWER & ASSOCIATES |
Canadian Market Facts
Total Canadian market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Average repair bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Lube, oil and filter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Transmission service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Brake service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Suspension alignment service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Tire replacement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Battery replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Engine/fuel system service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Electrical work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Audio/entertainment repair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Heating, ventilation and air conditioning . . . . . . . . . . . . .29
news
columns
| Twitter: @JobberNews | www.facebook.com/JobberNews
6
7
Cover image: cosmin4000
5 Leading off Your car will look like your smartphone
31 New products The latest offerings
34 Social Media 101 A survey of social media polls
36 Money & Management There’s money to be found in your business
38 Business Management Pricing correctly for profit
in this issue
10
38
34
8
7
6 Street testCanada saw its first on-street
autonomous vehicle test as the car
made its way along a closed-off
road in Ottawa.
7 Distracting technologyDrivers are looking at as many
as 50 buttons when behind the
wheel, from controlling the
radio to being able to access
social media. The distraction is
dangerous, says the AAA.
8 NAFTA tensionsLeaders of Canada, Mexico and the
United States started to show some
signs of patience wearing thin
during negotiations to modernize
the North American Free Trade
Agreement. A deal before the end
of the year seems unlikely.
9 Push for free tradeWith uncertainty around free
trade, the MEMA came together
with the Europe-based CLEPA
to push for open borders and
harmonized standards to keep
parts manufacturing globally
competitive.
contents | december 2017 » vol. 85 no. 10 Jobber NewsServing the Automotive Aftermarket Since 1931
INDUSTRY WEEK IN LAS VEGAS
Upwards of 160,000 people were expected to descend upon Las Vegas for Automotive Aftermarket Industry Week. The focus at both AAPEX and SEMA was technology as companies showed off their latest and sessions provided insight on what jobbers and service technicians need to do to prepare.
*24-month/unlimited-km limited warranty applies to most car and light truck Genuine Ford/Motorcraft ® Parts and Ford Genuine Accessories, purchased from Ford or Ford Lincoln dealers that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for wholesale parts/accessories. Part and/or accessory failure due to: abuse, misuse, neglect, alteration, accident, racing; improper lubrication, repair, or installation; use in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited; cleaning, adjustment or replacement as a part of normal maintenance; or failures caused by non-Ford parts, are not covered under this warranty. See your local Ford Store for complete coverage details and limitations. ^36-month/unlimited-km limited warranty on New and Remanufactured Gas Engine Assemblies (6006, 6V012, SLGB, LGB) and Transmission Assemblies (7000, 7V000, 7002, 7003,TRM), purchased from Ford or Ford Lincoln dealers, that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for ‘over-the-counter’ parts/accessories; labour is covered for engines/transmission assemblies (max. of $150 does not apply). The warranty does not cover parts or accessories that fail due to abuse, misuse, neglect, alteration, accident or racing or which have been improperly lubricated or repaired, improperly installed, or used in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited, or are cleaned, adjusted or replaced as a part of normal maintenance or failures caused by non-Ford parts. In the Province of Quebec, none of the following limitations and exclusions will exclude or restrict the warranty provided for in sections 37 and 38 of the Quebec Consumer Protection Act. To the extent allowed by law, loss of time, inconvenience, loss of use of the vehicle, commercial loss, or special or consequential damages are not covered. There is no other express warranty, agreement or representation on Ford supplied replacement parts and accessories. Any implied warranty or condition as to merchantability or fi tness is limited to the duration of the written warranty. See your local Ford Store for complete coverage details and limitations. Motorcraft ® is a registered trademark of Ford Motor Company. ©2017 Ford Motor Company of Canada, Limited. All rights reserved.
LONG-TERM PERFORMANCE FOR THEM. LONG-TERM CUSTOMERS FOR YOU.
Ford and Motorcraft ® Parts will keep your customers coming back for more. They’re backed by our 2-year, unlimited distance warranty*, which includes covering labour reimbursement. Plus, our gas engines and transmissions are backed by an unlimited distance and labour warranty for up to 3 years^. Warranty-backed parts and long-term performance. That’s what we call a winning combination.
Learn more at ford.ca/wholesale.
PARTS THAT WORK FOR YOU.
INCLUDES LABOURDISTANCE
FORD PARTSWARRANTY^
3
JOBBER NEWS / DECEMBER 2017 | www.autoserviceworld.com 5
YOUR CAR WILL SOON LOOK MORE LIKE YOUR SMARTPHONE
leading off | with adam malik, editor » [email protected]
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Editor | Adam Malik (416) 510-6763 E-Mail: [email protected]
Contributing Editor | Martha Uniacke Breen E-Mail: [email protected]
Contributing Writers | Mark Borkowski, Bob Greenwood
Art Director | Barbara Burrows
Managing Director, Auto Div. & National Sales
Kathryn Swan (416) 510-5221 E-Mail: [email protected]
National Sales | Juan Diez (416) 510-5203 E-Mail: [email protected]
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Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: [email protected]
Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.
The theme at this year’s Automotive Aftermarket Products
Expo was pretty clear: if you’re not on the technology
curve, you might as well close up your business.
OK, that’s a bit harsh. But it’s not too far from the truth
either. The industry is changing and the aftermarket needs to
understand its future customer in order to thrive.
Over the event’s three main days, keynotes highlighted
the impact of technology that will be hitting the aftermarket.
Countless sessions focused on how technology would play
a role in helping jobbers do business better, how it would
impact the way we see vehicles in the future and how we
can all prepare to tackle it full on. Even for service and repair
shops, the need to be on top of technology will be essential
in not just the viability of the shop, but in attracting tech-savvy
technicians.
So it’s one thing to make sure your own jobber store is ready
to attract the future buyer, but another to make sure your shop
customers are doing what they can – and should – to ensure
they’re prepared for the future.
Everyone is in this together. From suppliers to jobbers to
technicians, everyone is facing challenges to prepare for a
future that isn’t quite well defined.
You can see the transformation taking place. The most
profound change looks to be coming from the top. It’s
interesting to see how automotive parts manufacturers are
morphing into technology companies. Walking around
the many booths at AAPEX during Automotive Aftermarket
Industry Week, it was clear that many of these companies are digging deep as they
develop new strategies for the future.
These companies are not focused on the business of making your typical automotive
parts anymore – they’re creating technology for the future of transportation. This future,
as murky as it may seem, is calling for advancements in sensors, software, safety systems
and so on.
So what, you may think. Car parts are still car parts. They’re just making different ones.
Why get so fancy with all this techno-blabber?
That’s because the future vehicle isn’t going be the same as ones we’re used to. It’s
not going to be a motorized steel or aluminum hub. It’s going to become a technological
device. We’re going to be moving around in a bigger version of what’s in your pocket,
the experts predict.
We’re going to get from place to place by way of a giant smartphone with wheels.
When we start to think of the future vehicle that way, we can start to imagine what it
may look like on the inside. Snapchat and Instagram, for instance, owe their existence
to the smartphone. These apps are worth tens of billions of dollars and wouldn’t exist
without their vehicle. What will the smartphone-on-wheels offer? And what will the
aftermarket need to be able to do in order to meet the needs and demands of the public?
My crystal ball is undergoing some repairs, but even it may not be able to give a
proper answer. To say we know exactly how things will play out is a fool’s errand.
The best thing the industry can do is listen to the customers. They will dictate what
they want, how they want it and when they want it.
It’ll be up to the aftermarket to respond accordingly. JN
These companies
are not focused on
the business of making
your typical automotive
parts anymore – they’re creating
technology for the future of
transportation.
Chairman and Founder | Jim Glionna
President | Joe Glionna
Vice President, Publishing | Melissa Summerfield
CFO | Peter Fryters
Director of Circulation | Pat Glionna
6 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
over the counter |
DORMAN PRODUCTS ACQUIRES MAS INDUSTRIESMontreal-based MAS Industries has been
acquired by Dorman Products.
MAS designs, engineers and produces chassis,
steering, suspension and alignment components
for the automotive aftermarket throughout
the U.S., Canada and Mexico. The company is
expecting net sales of $40 million in 2017.
The deal closed Oct. 27.
“The acquisition of MAS reflects Dorman’s
commitment to aftermarket leadership in the
chassis and suspension categories. I am excited
for the future opportunities presented by this
new partnership as Dorman will now offer
customers the most comprehensive chassis
offering in today’s aftermarket,” said Matt
Barton, Dorman’s president and chief executive
officer.
He added that MAS’s offerings of chassis and
control arms will complement Dorman’s our
product line. ■JN
The first on-street test of an autonomous vehicle
in Canada recently hit the streets in suburban
Ottawa.
The vehicle was equipped with a BlackBerry QNX
system. In the grey Lincoln MKZ was Ottawa Mayor
Jim Watson, councillor Marianne Wilkinson and
John Wall, general manager of BlackBerry QNX.
“Today is the first public fruits of what we’ve
been doing,” Wall said. BlackBerry QNX opened an
FIRST AUTONOMOUS STREET TEST IN CANADA HITS ROAD
A video still of a
demonstration of
BlackBerry’s QNX
operating system
UNI-SELECT PICKS SUPPLIER WINNERSCanadian suppliers were recognized by Uni-Select.
The Quebec-based group gathered in Toronto recently for a ceremony
to hand out the hardware to celebrate its suppliers and to show
appreciation.
The most prestigious prize, the Diamond Award, went to Brake Parts Inc. This
prize is in recognition of the quality of sales tools, fill rate, lead time, inventory
management, service and manpower support.
The Golden Ally is made of three prizes in sales and marketing. The award
for recognizing Sales Tools for Independent Jobbers and Installers went to
Tenneco. Mevotech was recognized for Marketing Campaign of the Year.
Dorman took home the prize for the third category, Training and Technical
Support.
The Tech-Savvy Award – New Technology went to Gates Canada.
The Achiever Award went to three suppliers whose sales growth
performances were the highest among all of Uni-Select’s suppliers in
their respective categories – Total (automotive parts category), PPG
Canada (paint and body equipment) and JET Equipment & Tools (tools
and equipment) ■JN
autonomous vehicle innovation centre in Ottawa
late last year.
The test took place on a closed-off street, but
it’s expected that it will soon be running alongside
real traffic and pedestrians in the near future.
Traffic lights in the test area were upgraded to be
equipped with transmitters to communicate with
the car, as well as repainted street lines and new
LED street lights. ■JN
▲
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JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 7
As more cars get more technology crammed into
their dashboards, primarily by way of infotainment
systems, drivers are being becoming increasingly
distracted, says an AAA study.
An “explosion of technology” has taken things
from bad to worse, says University of Utah professor
David Strayer. He’s been examining issues related
to infotainment and safety since 2013 for the AAA’s
Foundation for Traffic Safety.
Between the steering wheel and dashboard, drivers have
access to as many as 50 buttons in front of
them, allowing access to social media, texting and e-mail
through touch screens, voice commands, heads-up displays and more.
“It’s adding more and more layers of complexity and information at drivers’ fingertips without often
considering whether it’s a good idea to put it at their fingertips,” Strayer said.
Wade Newton, a spokesman for the Alliance of Automobile Manufacturers, told The Associated Press
that these systems are not much different than traditional knobs in previous models of cars.
These “are designed to be used in the driving environment and require driver attention that is
comparable to tuning the radio or adjusting climate controls, which have always been considered
baseline acceptable behaviours while driving,” he said.
The AAA tested drivers on all 30 of the 2017 model year cars and light trucks. It found that drivers
took their eyes off the road and hands off the wheel to use infotainment systems. The group said
drivers should use infotainment technologies “only for legitimate emergencies or urgent, driving-related
purposes.”
It also urged automakers to block drivers from inputting information to navigation systems or send
texts while driving. The AAA said the use of infotainment systems should not require any more attention
than listening to the radio. ■JN
TECHNOLOGY IS DISTRACTING DRIVERS
TECHNICIAN SENTENCED TO JAILAn Ontario technician
was sentenced to jail
for issuing a fraudulent
safety certificate to
a vehicle that ended
up in a fatal collision
in 2012.
Joe Ramono was
handed five months
in jail, followed by
two years of probation
and 48 hours of
community service
in Ontario Superior
court following a four-
week trial. He certified
that a 1995 Dodge
Ram pickup was safe
despite never seeing
the vehicle. The truck
had a corroded brake
line, a steering system
with excessive free play
and rusted and rotted
holes.
Abigail
MacNaughton, 27,
died when her car
was hit by the Ram on
a country road near
Peterborough, Ont.
The Akebono brake pad line has won the Best
Overall Import Aftermarket Product or Product
Line Award.
It’s the third year the company has taken
home the award, handed out by the Import
Vehicle Community, a segment of the Auto Care
Association. Akebono accepted the award while
at AAPEX 2017 in Las Vegas.
“We are gratified to receive this award for
our EURO brake pads for the third time,” said
Ken Selinger, director of aftermarket sales and
marketing at Akebono Brake Corporation. “The
win is a confirmation of the effectiveness of
Akebono Ceramic Technology and of our
best-in-class performance and control of
noise, vibration and harshness for European
applications.”
The Import Product and Marketing Awards
recognize innovative products and marketing
programs designed to serve the import aftermarket.
Winners are selected based on superiority in areas
of commercial success, quality of reputation,
market demand, distribution, presentation and
AKEBONO WINS IMPORT AWARD
packaging, and highest profit potential for the
distribution chain.
The Euro line is designed for European
vehicles. ■JN
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From left, Kirby Pruitt, Chantel Gifford, Jeff Lyvers,
Wilm Uhlenbecker (Akebono president and CEO),
Donna Mudd, Amanda Konja
8 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
over the counter |
Negotiations to modernize free trade on the continent haven’t
gone as well as some had hoped.
When leaders of Canada, Mexico and the United States were
together in late October, tensions erupted and it seemed all the
niceties had virtually evaporated following the fourth round of
talks around the North American Free Trade Agreement.
They all seemed to agree on one thing, however: a solution
won’t be reached by the end of the year, pushing the deadline
into 2018.
One of the pillars of dispute is the automotive industry. The
U.S. is making demands that both Canada and Mexico view
as non-starters. For example, the Americans want to institute,
essentially, a “Made in America” provision where 85 per cent
of vehicle contents are from North America, with 50 per cent
of it coming from the States. Currently, 62.5 per cent of vehicle
content has to come from the NAFTA region with no specific
amount from a particular country.
On top of that, car makers would have one year to comply
with the “Made in America” provision and two years for the
overall North American requirement. The phase-in period is
deemed to be so outrageous that some wonder if it’s meant to
be a way to sabotage talks.
“It just doesn’t make sense from a business perspective,”
Flavio Volpe, president of the Automotive Parts Manufacturers’
Association, told The Canadian Press.
Further, the States are also demanding a five-year sunset
clause – a provision that could terminate the deal unless all
parties agree to extend it. This worries many as long-term deals
may be impossible to sign if there is uncertainty ahead.
“Frankly I am surprised and disappointed by the resistance
to change from our negotiating partners,” U.S. Trade
Representative Robert Lighthizer said at a news conference with
Canadian and Mexican representatives following the fourth
round of talks.
“We have seen no indication that our partners are willing to
make any changes that will result in a rebalancing.”
“Vice-President Mike Pence (said this summer) that he
believed a win-win-win outcome would be achieved in these
negotiations. Canada believes that too,” said Canadian Foreign
Affairs Minister Chrystia Freeland.
“But that cannot be achieved with a winner-take-all mindset
or an approach that seeks to undermine NAFTA rather than
modernize it.”
Freeland slammed some of the requests being made.
“We have seen proposals that would turn back the clock on
23 years of predictability, openness and collaboration under
NAFTA. In some cases these proposals run counter to WTO
rules,” she said. This is troubling.”
The next round of talks were scheduled for Nov. 17. ■JN
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Schaeffler creates separate aftermarket groupA new automotive aftermarket division has been created within Schaeffler.
The company announced that its board decided to separate the automotive aftermarket from its automotive division, creating the new stand-alone group. The
move is effective January 1, 2018.
As a result, Schaeffler will have three divisions – automotive aftermarket, automotive OEM and industrial.
Michael Söding, pictured above, has been appointed to the company’s board of managing directors, effective the same date, and will oversee the aftermarket at the board level. He has been head of the aftermarket business under the automotive arm since 2009. The new division will be managed out of Langen, Germany, a suburb of Frankfurt.
“In the last years, Michael Söding has contributed significantly to successfully develop our automotive aftermarket business. With his experience and know-how across technological, operational and strategic issues he will enrich the executive board,” said Georg F. W. Schaeffler, chairman of the supervisory board at Schaeffler. ■JN
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 9
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PARTS SUPPLIERS PUSH FOR FREE TRADE
A pair of major supplier associations have come
together to put their support behind free trade and
harmonized standards.
The call from the U.S.-based Motor & Equipment
Manufacturers Association (MEMA) and the
European Association of Automotive Suppliers
(CLEPA) comes amid talks of protectionism
and threats to free trade
agreements.
Free trade, access to raw
and finished materials and
harmonized safety and
environmental standards
are essential for vehicle
parts manufacturers
to remain globally
competitive, the groups
said in a joint statement.
“Illegal regional or
national subsidies on goods
or production, restrictive
non-tariff barriers to trade
(including testing and
marking requirements),
and lack of participation
in the world market limits both the domestic and
global competitiveness of all suppliers,” the said.
The groups want trade policies that address
trade distortions and support open markets in addi-
tion to maintaining and improving existing trade
agreements. The two also want to see a mutual rec-
ognition between the U.S. and the European Union
for vehicle safety and emissions regulations, and to
work within the framework of the United Nations’
World Forum for Harmonization of Vehicle Regula-
tions (WP.29) to set up safety and environmental
global technical regulations.
Having harmonized standards in place will
help reduce costs and promote technological
advancement, the groups said.
ROBERT BLANS, 73
The Jobber News
family mourned
the passing of
longtime editor Bob Blans.
He passed away on Feb. 12, 2017 at
the age of 73. He served as editor
of Jobber News for about 20 years
and was named editor emeritus
upon his departure.
Blans was a member of
aftermarket associations during his
tenure and was proud of his work
within the industry.
The family has asked that
donations, in lieu of flowers, be
made to the Ian Anderson House
Hospice in Oakville.
DON SKUCE, 68
The family of
Don Skuce sadly
announced his
passing at the age of 68 on Oct.
23, 2017.
Skuce was the former head of
Modern Sales Co-op, headquartered
in Barrie, Ont., where he spent 25
years with the company. He served
as president for 22 years and
general manager for three, leading
members from coast to coast.
In his memory, donations can be
made to the Barrie Minor Hockey
Association, the RVH Foundation
or the Heart and Stroke
Foundation.
IN MEMORIAM
“The international
motor vehicle parts supplier
industry is leading the way in technological
advances that will enable safer,
smarter, and more efficient
vehicles.”– MEMA PRESIDENT
AND CHIEF EXECUTIVE
OFFICER STEVE
HANDSCHUH
“The international motor vehicle parts supplier
industry is leading the way in technological
advances that will enable safer, smarter, and more
efficient vehicles,” said MEMA president and chief
executive officer Steve Handschuh. “We are at
the cusp of the biggest technological changes in
100 years. It is critical that free and open trade
facilitates our ability to innovate and compete in
the global marketplace.”
With parts crossing borders over and over
again, “Automotive suppliers need easy and fair
access to foreign markets to evolve competitively,
underpinning growth and employment around
the world,” said CLEPA secretary general Sigrid
de Vries. ■JN
10 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
The Automotive Aftermarket Industry
Week came and went with another
busy season.
At the Sands Expo in Las Vegas, the
Automotive Aftermarket Parts Expo
(AAPEX) was held Nov. 1-3. Down the
street, the the Specialty Equipment Market
Association Show was held at the Las
Vegas Convention Center and ran for
an extra day. Huge crowds gathered at
both events – upwards of 160,000 people
were expected – as visitors went booth to
booth to talk business and see the what
companies had to offer the aftermarket.
Some suppliers held press conferences
to showcase their latest products and
map out their direction as the industry
changes.
Technology was all the rage throughout
the event. Not only did many companies
show how they are preparing for the
electric car, autonomous technology
and the like, but session after session at
AAPEX highlighted the various challenges
and opportunities ahead as the
technological revolution deepens its roots
within the industry. Keynote sessions
were held each day that specifically went
over how change will hit the aftermarket
and how businesses need to prepare.
Bill Long, president and chief operating
officer of the Automotive Aftermarket
Suppliers Association, and Bill Hanvey,
president and chief executive officer of
the Auto Care Association, kicked off
the expo ahead of the first keynote by
welcoming attendees to the event. Their
message hammered home the importance
of technology in the auto industry and
how the aftermarket will need to adapt,
ranging from e-tailing to telematics to
service provider needs.
The pair also pushed attendees to
speak to government officials about
ownership of vehicle data. While the ACA
and AASA are doing their part, business
owners carry strong voices, they said, also
asking aftermarket members to attend
summits and get engaged on the political
side to ensure the industry has access to
telematic information.
Then it was time for the first keynote
of the week. Neil Ganguli gave a talk
entitled, The Future of the Vehicle: The
Future of Mobility and the Aftermarket. His
presentation took a look at what is likely
ahead as technology expands its reach
deeper into our everyday lives, including
the automobile.
“The question is when, not if,” he said
of the technological revolution in the
aftermarket.
He warned companies that feel
established enough in the industry to
withstand any obstacles that they will be
challenged by newcomers – specifically
technology companies that have a
history of disruption in other sectors. He
encouraged industry pros to think about
what they do now and what they will
need to do in the future. For example,
companies are going to need talented
people. Chances are, you’ll need to go
out and find them, Ganguli said.
The next day, John Kinsella, vice
president at e-commerce and consultancy
agency FitForCommerce, gave a peek at
what the buyer of the future wants when
it comes to shopping for car parts. He
pushed what he called an omnichannel
show report | AAPEX & SEMA
Industry Week WRAPS UP ANOTHER YEAR
(Photos from left) John Kinsella of
FitForCommerce delivered a keynote session
on the future of the parts-buying customer.
Gary O’Connor spoke at his surprise retirement
send-off the day before AAPEX got under way.
AIA Canada Night was another success as
attendees packed the room at Caesars Palace
for the annual event.
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 11
BY ADAM MALIK
approach. This involves understanding
customers, listening to them, learning
what they want and adapting. The point is
to be adaptive to customer needs so that
they are more loyal to you.
A jobber’s competition isn’t just the
other store down the street, it’s “anyone
offering a better experience than you,”
Kinsella said.
He encouraged participants to look at
what makes Amazon or Williams-Sonoma,
for example, so popular.
The auto industry is third in
e-commerce sales, Kinsella noted, behind
apparel and computers. That means
plenty of opportunities for the aftermarket
to capture dollars. But if the experience
online is a painful one, stores will lose
business because there are easier options
out there, he warned.
The third keynote focused on the
service and repair side of the industry as
a panel led by moderator Scott Shriber
of Counterman Magazine discussed
how shops need to be committed to
technology in order to attract talented
technicians. They also said that technical
skill can be taught, but finding someone
with the right attitude and drive should be
at the forefront of hiring decisions.
Farewell to Gary O’ConnorExecutives in the Canadian automotive
aftermarket gathered on Oct. 30 to bid
Uni-Select’s Gary O’Connor a happy
retirement.
A surprise send-off was held at The
Venetian hotel in Las Vegas, in advance
of AAPEX. Brent Windom, president
and chief operating officer of Uni-Select,
hosted the send-off party for O’Connor,
who called the recognition “a very
humbling moment.”
O’Connor started his career in the
automotive industry in 1983 and has held
posts at Dana, Affinia and, most recently,
Uni-Select.
Canada NightThe week wouldn’t be complete without
the biggest event of the year for Canadian
aftermarket professionals.
The Automotive Industries Association
of Canada held their annual Canada Night
celebration on Oct. 31. About 1,200 people
registered for the event at Caesars Palace,
which has been held annually since 1971.
The gathering is the largest for
Canadians, giving attendees the
opportunity to network and meet with
others within the aftermarket. JN
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cover feature | J.D. Power overall market facts 2018
2018MARKET FACTS
The total number of kilometres
driven is a strong indicator
of what types of services a
vehicle may need, along with
the average kilometres driven.
This year, the numbers look good for the
aftermarket. Across the industry, the average
reading on the odometer is almost 113,000
km, up just over 1 per cent from 2016.
Each category saw higher numbers except
independent repair shops. For the second
year in a row, the average kilometre reading
fell in this area. Quick lube facilities now lead
the way in average vehicle kilometres seen at
128,541 km.
The biggest gains were from branded
aftermarket shops where the average
odometer read about 2.6 per cent higher than
last year at 125,330 km.
Mean Kilometres on vehicles by customer’s visited facility
Illu
str
ati
on
: ilyast,
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ho
to.c
om
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 13
Dealerships
Branded Aftermarket
Quick Lube
Independent Repair Shops
INDUSTRY AVERAGE
30,000 60,000 90,000 120,000 150,000
2016: 100,355
2017: 125,330 2016: 123,001
2017: 129,638 2016: 126,603
2017: 128,541 2016: 129,664
2017: 112,976 2016: 111,621
2017: 102,948
We at Jobber News are proud to once again bring you the annual Market Facts Guide from J.D. Power & Associates.
This guide allows us to provide unique data on market share, vehicle information and numerous service categories. Broken down by region, this data allows Canadian aftermarket professionals to analyze trends in the market and plan accordingly for the year ahead, and beyond. Refer to this guide on a regular basis to ensure that your business is tracking the right path forward.
Share of service occasions performed by vehicle age (%)
4-7 yrs. 2017 2016
Total car dealers
Total branded aftermarket
Total quick lubes
Total independents
All other establishments
53.0 53.1
14.5 15.6
8.9 8.8
15.5 16.4
8.2 6.1
34.3 35.5
20.6 20.7
11.1 10.8
23.4 25.0
10.5 7.9
8-12 yrs. 2017 2016
industry avg. 2017 2016
44.0 44.4
17.5 18.1
9.9 9.8
19.4 20.7
9.3 7.0
Type of service performed by vehicle age
4-7 yrs. 2017 2016
LOF
Other scheduled maintenance
Brakes
Engine/fuel system
Alignment
Tires
Other services
28.3 42.3 45.3 4.6
5.1 7.8
8.6 2.9
4.1 4.1
5.6 21.1
21.9 17.0
52.5 40.2
25.1 3.9
3.0 8.6
6.4 4.0
3.3 4.4
3.6 20.8
12.7 18.2
8-12 yrs. 2017 2016
industry avg. 2017 2016
39.9 41.2 35.6 4.2
4.1 8.2
7.6 3.5
3.7 4.3 4.7 21.0
17.5 17.6
Lube, oil and filter service is no longer the most
frequent service in younger cars, a perhaps stunning
development as it used to be on top. The fallout of
shorter intervals is the likely cause in vehicles aged
between four and seven years as service dropped
to 28.3 per cent from 42.3 per cent in 2016.
Skyrocketing is other scheduled maintenance,
going from just 4.6 per cent last year to almost half
of all services performed at 45.3 per cent.
In older vehicles, lube oil and filter jumped to
52.5 per cent, with other scheduled maintenance
also taking a big leap to about 25 per cent.
Tire service, perhaps surprisingly, dropped
significantly to less than 5 per cent of performed
service.
As a whole, dealerships continued their
downward trend in 2017, though only slightly to
44 per cent.
That amount of movement was similar
throughout the branded aftermarket, but in the
opposite direction. It dropped in its share of
vehicles four-to-seven-years-old.
Quick lubes stayed essentially even throughout,
but independents saw a big drop in comparison
in both the four to seven and eight to 12 age
categories, dropping to 19.4 per cent overall.
Other establishments, though, picked up the
slack. It grew in both categories, continuing its
trend from last year, up 2.3 percentage points
overall from 2016 to 9.3 per cent overall.
14 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
cover feature | market facts
The average repair bill saw a jump across the
industry to $272, up 5 per cent from 2016.
Quick lubes were the only service providers to
see an overall drop, falling more than 41 per cent
in 2017.
Dealerships saw increases in both age categories,
up 7 per cent on average to $304 this year.
Branded aftermarket dropped in the age eight
to 12 category to $249, but rose in four to seven
by $10.
Individual repair shops dropped a few bucks in
newer cars, but jumped to $290 for older vehicles.
Average repair/service bill: customer paid ($) by vehicle age
4-7 yrs. 2017 2016
Dealerships
Branded aftermarket
Quick lubes
Individual repair shops
Industry average
269 253 248 238
106 168
242 245
247 238
359 331 249 278
112 203
290 263
298 281
8-12 yrs. 2017 2016
Industry avg. 2017 2016
304 284 248 261
110 187
272 256
272 259
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 15
Most recent customer paid repair/service bill
As a whole, the industry average suggests good things as $272 was spent most recently in 2017, compared to $259 in 2016.
But only dealerships and independents saw increases while branded aftermarket and quick lubes fell.
Customers paid $20 more at dealerships and $16 more at independents repair shops. At branded aftermarket shops, $13 less
was spent and customers spent $77 less at quick lube facilities.
Dealerships
2017 | 304
2016 | 284
Branded Aftermarket
2017 | 248
2016 | 261
Quick Lubes
2017 | 110
2016 | 187
IndependentRepair Shops
2017 | 272
2016 | 256
IndustryAverage
2017 | 272
2016 | 259
Is your customer experience driving maximum performance and retention?
We can help.
To gain more detailed information about your brand’s specifi c performance, please contact JD Ney directly at [email protected].
Inquire now about a full-set of industry-wide scorecards by visiting: jdpower.com/JobberNews
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cover feature | market facts
lube, oil, & filter service
There has been an ever-so-
slight shift in the lube, oil and
filter business. Dealers still
have the largest share at
50 per cent in 2017, building
on its increase from last year that put them
at 48 per cent.
The branded aftermarket stayed steady
at 15 per cent, with most of its business
coming from the older vehicle age class.
Quick lubes were up a point to 14 per
cent of the market compared to 2016.
Independents, however, dropped from
24 per cent in 2016 to 21 per cent in 2017.
Its biggest fall came from the age eight to
12 category, falling to 28 per cent from
32 per cent the previous year.
Establishment used for LOF work by region 2017
60
50
40
30
20
10
0
61 36 50
Dealerships
12 20 15
Branded Aftermarket
12 17 14
Quick Lubes Independent
16 28 21
Establishment used for LOF work by vehicle age 2017
4 to 7 years
8 to 12 years
Canada
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
60
50
40
30
20
10
0
59 34 48
Dealerships
12 19 15
Branded Aftermarket
12 15 13
Quick Lubes Independent
17 32 24
Establishment used for LOF work by vehicle age 2016
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
WEST W | CENTRAL C | EAST E | CANADA CAN
W 23
C 14
E 5
CAN 14
CAN 21
W 12
C 23
E 28
CAN 15
W 13W
53
C 16C
47E 17
E 50
CAN 50
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 17
cover feature | market facts
transmission service
Dealerships continue to
dominate the transmission
service category. They
stayed steady at holding
68 per cent of the market,
the first time they didn’t grow in the past
seven years. For vehicles aged four to
seven years, dealers added five points to
their share, but dropped 8 per cent in the
older category.
Quick lubes stayed the same overall while
branded aftermarket dropped a point.
A sizeable jump was made by independent
shops in the eight-to-12-years-old category
going up to 24 per cent, picking up the
majority of the drop from dealers. It doesn’t
quite take it back to 2015 levels of 27 per
cent, but regains some of the ground lost
in 2016. Independents still hold the highest
market share outside of the dealership
network.
Establishment used for transmission work by region 2017
60
50
40
30
20
10
0
56 68
Dealerships Branded Aftermarket
Quick Lubes Independent
9
Establishment used for transmission work by vehicle age 2017
4 to 7 years
8 to 12 years
Canada
79 8 13 10 4 8 6 24 16
70
80
Dealerships Branded Aftermarket
Quick Lubes Independent
16
Establishment used for transmission work by vehicle age 2016
74 63 68 7 14 11 7 5 6 12 19
60
50
40
30
20
10
0
70
80
18 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 6
C 8
E 2
CAN 6
CAN 16
W 7
C 20
E 18
CAN 10
W 10
W 77
C 10
C 61
E 9
E 71
CAN 69
brake service
In one of the most
important service categories
throughout this guide, brake
service essentially remained
steady for all providers.
Dealerships continued to win customers
by a wide margin, holding a market share of
52 per cent. It dominated the four-to-seven-
years-old category at 63 per cent in 2017 –
same as last year – and holds a 42 per cent
share in the eight to 12 age range.
Independent repair shops saw a drop of
two points overall, which were picked up by
the branded aftermarket and quick lubes,
which each rose a single point in 2017.
The branded aftermarket was the only
area to see gains in the age four to seven
category, moving up two points to 15
per cent, seemingly at the expense of
independents.
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
Establishment used for brake work by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
31
Establishment used for brake work by vehicle age 2016
63 40 52 13 19 16 1 1 1 23 39
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for brake work by vehicle age 2017
63 15 20 17 1 2 2 36 29
70
80
42 52 21
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
WEST W | CENTRAL C | EAST E | CANADA CAN
W 4
C 2
E 1
CAN 2 CAN
29
W 18
C 27
E 36
CAN 17
W 17
W 62
C 18C
54
E 17
E 46
CAN 52
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 19
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cover feature | market facts
suspension alignment service
The branded aftermarket
made some gains and
moved into second place in
the suspension alignment
category. Still, its 20 per cent
share is dwarfed by the dealership’s hold of
63 per cent.
Independents dropped four points and
fell to third in this category. Quick lubes
remained a distant fourth with just 2 per
cent of market share.
In the four to seven age category, dealers
got nearly three-quarters of customers,
and half of them in the eight to 12 age group.
In the older age class, branded aftermarket
came in at 27 per cent as independents held
21 per cent overall market share.
4 to 7 years
8 to 12 years
Canada
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
Establishment used for alignment work by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
20
Establishment used for alignment work by vehicle age 2016
70 51 61 15 21 17 1 2 2 14 26
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for alignment work by vehicle age 2017
74 13 27 20 2 2 2 21 16
70
80
50 63 11
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
WEST W | CENTRAL C | EAST E | CANADA CAN
W 3
C 3
E 1
CAN 2
CAN 16
W 11
C 17
E 17
CAN 20
W 21
W 66
C 18
C 62
E 21
E 61
CAN 63
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 21
22 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
cover feature | market facts
tire replacement
A growing category, tire
replacement has become big
business for the industry. It’s
among the most important
service categories.
All service providers more or less stayed
within a two-point change from 2016.
Dealerships come out on top again with
44 per cent of the market, up one point from
2016. That’s a less drastic of a jump from
2015 when it rose five points.
The branded aftermarket was up one point
overall to 28 per cent thanks to a five-point
jump in the older vehicle category to 35 per
cent. That helped make up for the two-point
drop in the four to seven age category.
Independents continued to drop, this
time down to 26 per cent in 2017. In 2015,
independent repair shops held a 36-per-cent
hold before falling to 28 per cent in 2016.
4 to 7 years
8 to 12 years
Canada
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
Establishment used for tire replacement by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
28
Establishment used for tire replacement by vehicle age 2016
50 34 43 25 30 27 2 3 2 23 33
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for tire replacement by vehicle age 2017
53 23 35 28 2 2 2 30 26
70
80
33 44 22
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
WEST W | CENTRAL C | EAST E | CANADA CAN
W 2
C 3
E 1
CAN 2
CAN 26
W 15
C 23
E 32
CAN 28 W
38
W 45
C 27
C 46
E 25E
42
CAN 44
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 23
Tire repair saw a bit more of
an even playing field in 2017.
Dealerships dipped a few
points from 45 per cent to
42 per cent. They saw drops
in both age categories to sit at 49 per cent
in four-to-seven-year-olds and 36 per cent in
the older category for 2017.
Independents also dropped off a bit, falling
three points to 22 per cent this year. The
younger age category fell one point, but the
eight to 12 age group dropped four points.
The gains were found by the branded
aftermarket, which saw a six-point jump to
32 per cent in 2017 from 26 per cent in 2016.
Both age categories saw boosts with a jump
of five points in the four to seven age group
and six points in the eight to 12 age group.
tire repair
Dealerships Branded Aftermarket
Quick Lubes Independent
22
Establishment used for tire repair by vehicle age 2017
49 36 42 29 34 32 3 5 4 20 25
60
50
40
30
20
10
0
70
80
Establishment used for tire repair by region 2017
Dealerships | West 45 | Central 44 | East 36 | Canada 42
Branded Aftermarket | West 39 | Central 28 | East 29 | Canada 32
Quick Lubes | West 5 | Central 5 | East 2 | Canada 4
Independent | West 11 | Central 23 | East 33 | Canada 22
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24 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
cover feature | market facts
4 to 7 years
8 to 12 years
Canada
Gains by dealers came at the expense
of independents in the tire maintenance
category.
Dealers moved up three points to 54 per
cent of market share, buoyed by gains in
both age categories. Independents suffered drops in the two
age groups and fell four points to 21 per cent overall.
The branded aftermarket stayed steady at 21 per cent.
They gained in the eight to 12 age group but dropped a
point in the younger class.
Quick lubes, though, made some gains. It doubled its
market share, going up two points to 4 per cent.
tire maintenance
Dealerships Branded Aftermarket
Quick Lubes Independent
21
Establishment used for tire maintenance by vehicle age 2017
64 40 54 16 29 21 3 4 4 17 27
60
50
40
30
20
10
0
70
80
Establishment used for tire maintenance by region 2017
Dealerships
West 60Central 56 East 46Canada 54
Independent
West 9Central 22East 31Canada 21
Branded Aftermarket
West 25Central 19East 21Canada 21
Quick Lubes
West 5Central 4East 2Canada 4
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battery replacement
This is another category in
which dealerships hold the
lead. They have 51 per cent
of market share, though
that’s a three-point drop
compared to 2016. Their biggest fall came
in the eight-to-12-year-old group which saw
its share shrink to 40 per cent in 2017 from
46 per cent the previous year. Market share
also fell two points in the age four to seven
class to 63 per cent.
Making gains was the branded
aftermarket, up four points in 2017 to
23 per cent market share. They saw a six-
point boost in the older age group to push
it forward. That helped overcome a drop
of two points in the four-to-seven-year-old
class.
The independent shops stayed basically
the same, though they did suffer a one-
point drop to 23 per cent overall.
Quick lubes were steady at 3 per cent
overall.
Establishment used for battery replacement work by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
24
Establishment used for battery replacement work by vehicle age 2016
65 46 54 16 21 19 2 3 3 17 30
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for battery replacement work by vehicle age 2017
63 18 27 23 3 3 3 30 23
70
80
40 51 16
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 4
C 4
E 1
CAN 3
CAN 24
W 18
C 22
E 29
CAN 23
W 21
W 56
C 22C
52E
25
E 45
CAN 51
WEST W | CENTRAL C | EAST E | CANADA CAN
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 25
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
26 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
cover feature | market facts
4 to 7 years
8 to 12 years
Canada
Dealerships continue to
dominate this category,
which may not be a surprise.
But it’s worth taking note
of the continued drop by
independents.
With one-quarter of market share in 2015,
independents slipped a bit to 23 per cent
in 2016 and fell to 17 per cent in 2017. The
number of newer models independents
serviced is more or less steady at 12 per
cent, compared to 13 in 2016. But the older
vehicle category has dropped to 22 per
cent of market share for this group.
Dealers hold nearly two-thirds of the
market at 64 per cent, making gains in both
vehicle age categories.
Branded aftermarket made gains, moving
up four points to 13 per cent in 2017,
compared to less than 10 in 2016. A boost
to the eight to 12 age group helped here.
The engine/fuel system service category
is an area that the industry has seen
challenges as vehicle technology has
increased the difficulty level for technicians
if they don’t have the same training or tools
to perform repairs.
engine/fuel system service
Establishment used for engine/fuel work by region 2017
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 8
C 7
E 1
CAN 6
CAN 17
W 13
C 18
E 22
CAN 13
W 12
W 68
C 12C
63E
14
E 45
CAN 64
Dealerships Branded Aftermarket
Quick Lubes Independent
23
Establishment used for engine/fuel work by vehicle age 2016
75 50 62 7 12 9 5 6 6 13 33
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for engine/fuel work by vehicle age 2017
76 8 17 13 4 8 6 22 17
70
80
53 64 12
electrical work
There was little movement
in the electrical work
category.
Dealerships maintained
their stronghold in this area,
owning two-thirds of market share. They
did suffer a dip in the eight to 12 age group
of vehicles, down five points to 54 per
cent, but made up for it in the newer model
category, jumping to 84 per cent in 2017,
compared to 75 per cent in 2016.
Independent shops lost two points of
market share to drop to 20 per cent. It lost
in the four to seven age category but did
make gains with older vehicles, moving to
30 per cent market share.
The branded aftermarket was up two
points, thanks as well to the older model
age group. Overall, they have 12 per cent of
the market.
Quick lubes held just a single per cent of
market share overall in 2017.
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
Establishment used for electrical work by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
22
Establishment used for electrical work by vehicle age 2016
75 59 66 7 12 10 3 1 2 15 28
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for electrical work by vehicle age 2017
84 7 15 12 1 2 1 30 20
70
80
54 66 8
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 2
C 2
E 0
CAN 1 CAN
20W 16
C 20
E 25
CAN 12
W 11W
72
C 11C
67E
15
E 60
CAN 66
WEST W | CENTRAL C | EAST E | CANADA CAN
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 27
4 to 7 years
8 to 12 years
Canada
28 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
cover feature | market facts
audio/entertainment system repair
A category that was
heavily dominated by the
dealerships in 2016 was
slightly less so in 2017.
Granted, dealerships still
own the lion’s share of the audio market
with 73 per cent. But that’s a drop of nine
points from last year, with falls in both
vehicle age groups.
The branded aftermarket seemed to pick
up the slack, going from just 7 per cent
market share to 16 per cent in 2017. They
saw gains in both age groups.
Independents stayed relatively steady,
gaining one point overall to 9 per cent
market share.
Quick lubes saw a gain in the eight to 12
age group, from 3 per cent to 6 per cent
market share in 2017, but still only have a
2 per cent hold on the market.
Establishment used for audio/entertainment work by region 2017
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for audio/entertainment work by vehicle age 2017
78 16 14 16 1 6 2 13 9
70
80
67 73 6
Dealerships Branded Aftermarket
Quick Lubes Independent
8
Establishment used for audio/entertainment work by vehicle age 2016
88 76 82 6 7 2 3 2 4 12
60
50
40
30
20
10
0
70
80
10
90
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 6
C 2
E 1
CAN 2 CAN
9
W 7
C 9E
9
CAN 16
W 9
W 78
C 20
C 69 E
15E
74
CAN 73
heating, ventilation, and a/c
Dealerships have fallen back
a bit in the HVAC category.
After a nine-point jump from
2015 to 2016, they dropped
their market share by six
points to 60 per cent. The biggest fall came
in the older model group, dropping five
points.
The branded aftermarket returned to
and went beyond its 2015 numbers. Now
at 15 per cent market share, it grew four
points from 11 per cent in 2016, when it
dropped from 14 per cent in 2015.
Independents gained back some of their
losses overall. In 2015, they had 26 per cent
market share before falling to 20 per cent in
2016. In 2017, independent shops climbed to
22 per cent overall.
Quick lubes were up a point overall to
4 per cent.
Establishment used for HVAC work by region 2017
Dealerships Branded Aftermarket
Quick Lubes Independent
20
Establishment used for HVAC work by vehicle age 2016
77 53 66 8 15 11 3 5 3 13 28
60
50
40
30
20
10
0
70
80
60
50
40
30
20
10
0Dealerships Branded
AftermarketQuick Lubes Independent
Establishment used for HVAC work by vehicle age 2017
72
70
80
46 60
Dealerships Branded Aftermarket
QuickLubes
IndependentRepair Shops
W 3
C 6
E 1
CAN 4
CAN 22
W 17
C 22
E 28
CAN 15
W 13W
67
C 13
C 59
E 19
E 52
CAN 59
12 18 15 2 5 4 13 31 22
Data & Analysis supplied by:
130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 CanadaPhone 416.507.3255 | Fax 416.507.3263
WEST W | CENTRAL C | EAST E | CANADA CAN
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 29
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 31
new products |
continues on page 32
Monroe expansionMonroe’s Quick-Strut
line has expanded
once again. An
additional 46 strut
assembly part
numbers are now
available, covering
more than 5.3 million
vehicles. More than
half of the part
numbers are the
first available for
their respective
applications from a
major ride control
manufacturer. So far
this year, Tenneco
has added 255 part
numbers, covering
almost 60 million
strut replacement
opportunities. Some
of the applications
covered by the
include: 2012-2015
Buick Verano 2.4L
(front); 2011-2012
Chevrolet Cruze 1.4
& 1.8L (front); 2012
Honda Civic Sedan,
Coupe, Coupe DX &
LX (front); 2011-2013
Hyundai Elantra Sedan
GLS & Limited (front);
2010-2012 Subaru
Outback 2.5L (front);
and 2012-2014
Toyota Yaris (front).
www.monroe.com
TTX line expansionMevotech’s Over-Built chassis line, TTX: Terrain
Tough Xtreme, is getting an expansion. The
company’s TTX unitized control arms, tie rod
ends, and stabilizer links include Mevotech’s
newest innovation, the patented locking boot.
It provides an optimized factory seal on the
integrated ball joints. The Over-Built line features
thicker, forged materials and patented ball joint
internals. The TTX line offers all joints, OCC
stabilizer links, ball in socket stabilizer links,
control arms and tie rod ends.
Mevotech
www.mevotech.com
New Total motor oilsTotal Canada has introduced new mineral engine
oils: Total Quartz 5000 Future XT and Total
Quartz 5000 SN. These will replace old versions,
the Total Classic SN/GF-5 and SN. Total Quartz
5000 will offer two types of products in various
grades: Total Quartz 5000 Future XT 5W-20,
5W-30 and 10W-30; and Total Quartz 5000 SN
10W-40 and 20W-50 The Future XT range will
offer a mineral oil formulated with the same fuel
economy technology as other Quartz products.
Total Canada
www.total-canada.ca
New Carter part numbersCarter Fuel Systems has
introduced 19 new part
numbers, covering a series
of model year applications
ranging from 1998 to 2017.
Included are 12 fuel pump
module assemblies, three
direct injection high pressure
fuel pumps, three fuel
pump tank lock rings and
one fuel tank sender
assembly. The new part
numbers fit popular domestic
models such as the Dodge Ram, Chevrolet
Silverado, Chrysler 200 and Buick Allure,
coverage that reaches 3.2 million additional
passenger vehicles. The introduction of these
new numbers expands coverage to fit commonly
driven foreign-manufactured models, including
the Nissan Cube, Volvo S70, Honda CRV, and
Toyota Prius.
Carter Fuel Systems
www.carterfuelsystems.com
Philips Ultinon LEDsLumileds has introduced Philips Ultinon LED
lights, a new and advanced generation of LED
lighting options for the automotive aftermarket.
The lights are available in four colour options:
cool blue, intense red, intense amber, and
6000K bright white. They are designed as direct
replacements for conventional bulbs in stop
lights, turn signal lights, backup lights, taillights,
position lights, hazard lights, trunk lights, glove
compartment lights and interior floor lights. The
lights include a CANbus adapter for trouble-free
installation.
Lumileds
www.lumileds.com
32 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
new products |
Discover this exclusive collection of premium quality tools and equipment, available in select
Bumper to Bumper and Auto Parts Plus stores, at
WWW.GOMAKTIG.COM
Mäktig is a trademark of Uni-Select Inc. All rights reserved.
MÄXIMUMPOWER
Liqui Moly oil for PorscheLiqui Moly has released an
oil made specifically for
Porsche vehicles. Synthoil
Energy A40 0W-40 is
designed for the type of
engine power Porsche
vehicles demand from their
motor oil. The new product
from Liqui Moly is officially
approved by Porsche for
all vehicles that require an
oil with the company’s A40
standard. That means pretty
much every Porsche with
a gasoline motor. The oil is not meant for use in your typical
vehicle, only sports cars. It is a newly developed synthetic
motor oil from Liqui Moly. With a 0W-40 rating, its viscosity
is greater than many conventional oils.
Liqui Moly
www.liqui-moly.com
Rancho ‘Level It’ suspension systemRancho announced that its
‘Level It’ Suspension System
is available for 2004-2008
Ford F-150 trucks. It’s a two-
inch suspension system (part
no. RS66502R7) to deliver
on- and off-road performance
benefits while eliminating rake.
Included in each suspension
kit is a set of Rancho quicklift
RS7000 monotube struts.
These are engineered
specifically for light trucks and
sport utility vehicles with a
higher centre of gravity. The
units feature application-specific valving and a high-pressure
nitrogen gas charge and are designed to reduce body roll for
increased ride performance and stability. The kits include a
set of sway bar drop brackets to ensure optimal engineering
angles for roll and sway, improving ride precision. The
suspension system is designed to accommodate tires up to
35 inches in size, with minor trimming required, as well as
transfer of the stock factory spring and top mount.
Rancho
www.GoRancho.com
Looking for more? Visit www.autoserviceworld.com/products to
stay on top of the latest product announcements.
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Oil Pumps Oil Control ValvesManual Transmissions Timing Chain Covers
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Form-In-Place Gaskets Automatic TransmissionFluids
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Free Wheel Hubs Shift ActuatorsClutCluClutClutch Hch Hch HHydraydradradraaulics ABS AAA SpeeSpe dSensS orsrs
Ride HeightSensors
Oil Pumps Oil Control ValvesVVManual TransmissionsTT Timiing Cn hain Covverse
Variable VVV alveVVTiming Gears
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Vacuum SwitchingVVValvesVV
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Form-In-Place Gaskets Automatitic TTTransmissionTTFluids
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www.aisinaftermarket.com
Mahle Original gasket catalogueThe 2017 gasket catalogue from Mahle Aftermarket is now available. It covers domestic,
European and Asian applications in North America. The Mahle Original catalogue has
6,871 SKUs with 1,314 new part numbers. Plus, another 1,151 part numbers are exclusive
to Mahle. More than one million applications are covered by the new catalogue, which
represents more than 35 million vehicles in operation in North America. The catalog can
be downloaded in PDF format from
the company’s website and through
an e-catalogue at catalog.mahle-
aftermarket.com/na. Users can search
by product, vehicle make and engine.
It’s available in three languages: English,
French and Spanish.
Mahle Aftermarket
www.mahle-aftermarket.com
Walker part number expansionThe Walker emissions control line has
been expanded to cover an additional
21 million passenger vehicles. Tenneco
announced that there are 103 new part
numbers for various Walker products,
covering direct-fit catalytic converter,
premium muffler/muffler assembly,
pipe, resonator and hardware part
numbers. Included in the new parts
are: 27 new direct-fit Walker CalCat
catalytic converters that are compliant
with the California Air Resources Board;
23 Environmental Protection Agency-
compliant direct-fit Walker Wultra
converters; and 29 premium, stainless-
steel Walker Quiet-Flow SS mufflers/
muffler assemblies. For a list of vehicles
covered by the expansion, visit the
products page at autoserviceworld.com.
Walker Emissions Control
www.walkerexhaust.com
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 33
34 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
social media 101 |
demographic information, including such
basic info as gender, age, occupation and
location, all of which you can use in a
variety of useful ways. You can quickly
ascertain, for example, whether your
followers are mostly under 35, come from
outside your local area or are primarily
independent jobber store owners or auto
repair shops. All of this can help you see
who’s following you and what engages
them most.
Social media polls are especially good
for quick, straight-from-the-hip info on
what followers want from your business,
both generally or in precise ways, such as
gauging the effectiveness of a particular
marketing or sales campaign. Say you’ve
As a business, you should naturally
welcome feedback at every
opportunity. Actually, one of the easiest
and fastest ways you can generate it is –
literally – right at your fingertips.
Along with your regular social media
activities, try sending out occasional polls
now and then. Even though the results
may not be as scientific as more elaborate
methods of surveying your customer
population, social media polls are pure
gold for pulling in quick answers while
providing other benefits as well.
Social media polls can add value
to many aspects of your social media
marketing – and for that matter, your
overall marketing plan. They’re great Ph
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for taking the pulse of your followers
on new products and services, specific
aspects of your business, and even the
nature of your social media activities
themselves. Soliciting feedback from your
followers can help you understand what
information is most engaging to them, and
can help you fine-tune your posts to keep
them interested.
Polls are also great for helping you get
a handle on who’s reading your social
media marketing, especially those who
are engaged enough to respond, since
answering polls requires some action on
their part.
The polling feature on major social
media platforms automatically tabulates
A SURVEY OF SOCIAL MEDIA POLLS
JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 35
just done a promotion that’s tied in with
a particular event, such as your founder’s
birthday. Did customers hear about it?
Did they take advantage of it? What would
they like to see in future promos?
You can also ask, in advance of it, what
your customers might prefer – would they
rather have a 20 per cent discount on
batteries or on motor oil? Questions like
this not only help increase the success of
a given promotion, but demonstrate that
your customers’ opinions are important
to you.
Social media polls don’t always
have to be about business subjects just
because you have a business account.
This is where the power of social media
has a way of putting a human face on
your business and can be very effective.
Remember to be careful and keep things
light and in good taste. No matter how
casual your poll may be, it still represents
your business.
Along with regular business polls,
you might occasionally send out a
lighter query. On Grey Cup weekend, for
example, ask followers who they think
will win. On Valentine’s Day, ask whether
your followers are buying flowers or
candy for their sweethearts.
Among the major social media
platforms, Twitter’s polling feature is
perhaps the most popular, simply because
its polls are easy to create and even easier
to respond to. To create a Twitter poll,
click on “Compose Tweet,” then “Add
Poll.” A handy template comes up that
allows you to pose your question and
choose multiple-choice or short written
responses. Then specify a time limit to
gather responses.
Facebook just rolled out a brand-new,
updated polling feature last month. As
with Instagram Stories, yet another online
polling tool, its polls are limited to two
answer options. To draw attention to your
Facebook polls, you can attach GIFs and
photos. You can track vote counts as well
as those who cast the votes.
With all the major polling tools, you can
specify whether to send the poll out right
away or at a later time – the first day of
a show, for example. Don’t just set it and
forget it, though. As with any time-delayed
marketing, there’s always a chance the
BY LUCIANA NECHITA, DIRECTOR OF PUBLIC AFFAIRS AT AIA CANADA; MARTHA UNIACKE BREEN, CONTRIBUTING EDITOR OF JOBBER NEWS.
timing may turn out to be sensitive. Just
ask the airline that reserved a full-page
newspaper ad in advance, which ran on
the same day as a major plane crash.
Don’t look to social media polls as
a way of gleaning comprehensive and
highly accurate marketing data on your
audience. For that, you might consider
more formal surveys, online services such
as Survey Monkey, or professional market
research companies (or tap into AIA’s
authoritative data analytics resources).
But as a tool for generating quick-and-
easy answers to questions, engaging your
followers, and adding a bit of fun to your
web presence, a social media poll can’t
be beat. And the results may, from time to
time, even surprise you. JN
Social media polls can add value to many aspects of your social media
marketing – and for that matter, your overall marketing plan.
As a global leader in OE brake systems, ATE delivers leading-edge technology and unmatched quality. Now, the aftermarket once again has access to the brand that has set the standard for brakes in Europe and around the globe.
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GOT AN IDEA OR QUESTION ABOUT SOCIAL MEDIA MARKETING? We’d love to hear from you. Drop us a line at [email protected], tweet us @JobberNews, or visit our Facebook page at facebook.com/JobberNews.
THERE’S MONEY TO BE FOUND IN YOUR BUSINESS
The challenges of running a business today
are daunting.
Managing rising raw materials costs, a multi-
generational workforce, disruptive technologies
and changing consumer expectations put
enormous pressure on business owners to protect
margins, remain competitive and sustain profitable
growth.
If you had the opportunity to get the leg up
on your competition, wouldn’t you take it? But
investing in innovation, expansion or new talent
all cost money, which you probably think you
don’t have.
But what if I told you there’s money to be found –
if you look in the right places.
Felix Gelt, a principal in the performance
improvement practice at Farber Financial Group,
believes that most businesses can unleash cash
by looking closely at their internal sales, general
and administrative (SG&A) expenses. These areas
are often overlooked because they’re deemed
insignificant, or business owners don’t have the
time to examine and address them effectively.
However, doing a thorough analysis of SG&A
expenses on a regular basis – through an expense
reduction analysis (ERA) – can yield anywhere
from 5 to 30 percent savings in operating costs.
The increase in cash flow can help mid-market
organizations address the ongoing squeeze they
continually face, where suppliers want to increase
their prices, while customers demand lower costs.
The added profitability can be used to fund
growth opportunities, so it’s well worth the effort.
Gelt says there could be up to 100 indirect
expenses that a business can incur from
operations. Some of the most common ones that
businesses can target for savings include insurance,
merchant fees, freight, print, telecommunications
and internet service, travel and entertainment
expense management, and waste management.
An ERA examines the largest of these areas
and studies your contracts (if applicable) to
ensure they provide the best possible services and
performance from your vendors. Next, it analyzes
your expense reports and invoices to ensure you’re
not overspending, under-utilizing resources or
experiencing billing errors.
If any of these issues appear, ERA specialists
can: quantify your potential savings; renegotiate
your contracts; speak with your vendors to fix and
reconcile any billing errors; adjust any orders so
you’re only spending on the services and products
you need to operate your business efficiently;
and outline a project plan so you can see exactly
where and when your savings will hit your income
statement in the months ahead.
A key reason businesses have increasing
challenges with their SG&A expenses is from a lack
of contracts with vendors. Many entrepreneurial
organizations rely on a verbal agreement or a
handshake, neglecting to get the details of their
agreement down on paper and signed by both
parties.
A contract not only outlines terms and
conditions, but it can also be used to document
discounts, incentives for paying early and service
level agreements, Gelt says. Review your contracts
on a regular basis to ensure your vendor is meeting
its obligations and the service levels you want.
Does your company overspend and waste
resources? Have few, if any, contracts with
suppliers? Those are just a couple of reasons why
an ERA could benefit your business.
Whenever you’re buying more than you
need, spending more than you have to or not
taking advantage of optimized vendor contracts,
you’re negatively impacting your cash flow and
profitability.
And it may be the reason you’ve put off
opportunities for growth. JN
money & management |
BY MARK BORKOWSKIMark Borkowski, Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A brokerage firm.
Contact: www.mercantilemergersacquisitions.com
36 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
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JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com 37
Do you have news to share?
An upcoming event? A letter to the editor?
Send it to [email protected].
GET THE FULL AFTERMARKET PICTURE!MORE NEWS, MORE PRODUCTS, MORE FEATURES
Get tips from Bob Greenwoodwith “Greenwood’s Garage”See the latest in the “EyeSpy” Seriesnarrated by Allan Janssen, editor of CARS
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ProMax Auto Parts Depot . . 2www.autopartsdepot.ca
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JD Power . . . . . . . . . . . . . . . . . . . . 15www.jdpower.com/ JobberNews
Maktig . . . . . . . . . . . . . . . . . . . . . . . 32www.gomaktig.com
Uline . . . . . . . . . . . . . . . . . . . . . . . . . . 8www.uline.ca
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Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . 4www.ford.ca/wholesale
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38 www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017
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THE IMPORTANCE OF PRICING CORRECTLY FOR PROFIT
In the service shop business, there’s always some-
one who wants to cut prices.
They figure that if business is good, a lower
price will help capture an even greater share of the
market. And if business is bad, the reason for cut-
ting prices is to help retain the existing share of the
market.
Make this clear to your shop customers: they
cannot cut prices without cutting service or qual-
ity. Doing so has a dramatic impact on the shop’s
credibility, which is everything when it comes to
building trust.
Most shops do not charge enough for their prod-
ucts or services. When things are good, businesses
need cash to fuel growth. That cash could be gen-
erated by higher margins. When business is bad,
cutting prices often makes matters worse because
sales will need to increase significantly to recover
the dollars lost by the cuts. You work harder
instead of smarter.
Charging too little can have a disastrous effect
on your business. For example, suppose that you
sell 100 units of an item a month at $1.00 each.
They cost you 55 cents each giving you a gross
profit of $45 and a gross profit margin of 45 per
cent. If you cut your price by 15 per cent and your
unit volume stayed the same, your sales would
drop to $85, your gross profit to $30, and your gross
profit margin to 35 per cent.
But if you want to maintain your original $45
gross profit after the price cut, you will have to
increase your monthly sales by 50 per cent. You
would now need to sell 150 units to maintain the
same dollar gross profit you were making when
you were selling the 100 units.
It would make more sense to have a price hike.
If you raised it by 15 per cent, and your unit vol-
ume stayed the same, your sales would now go up
to $115 and your gross profit to $60.
Even if there was a drop off in sales, as long
as your unit volume does not go below 75 units
(25 per cent less volume), you are making more
money. The price increase would improve your
gross profit from the original $45 even with a sales
drop. The math proves that you can sell less vol-
ume and make more money.
In the aftermarket,
selling less volume
and making more
gives the business new
found time to spend
with the customers
to educate, enhance
credibility, explain the
value they bring to the
table for the customer
and build the trust
that is required. Now
you’re working smarter
instead of harder.
Calculate the
changes you would need to see in sales volume
to maintain gross profits after a price increase or
decrease. This exercise should be a must before
any service shop lowers its prices or has a sale.
Price cuts mean the shop has to generate unit
volume increases at a rate that is often impossible
to reach. On the other hand, price increases can
sustain large decreases in unit volume and still
improve gross profit.
And improved gross profit means improved net
profit. JN
business management |
When business is bad, cutting prices often makes matters worse because sales will need to increase significantly to recover the dollars lost by the cuts.
BY BOB GREENWOOD
Bob Greenwood, AMAM (accredited master automotive manager), is president and CEO of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). He has over 40 years of business management experience within the independent sector of the automotive aftermarket industry in North America.
FRAM Group IP LLC 2017
*FRAM Fresh Breeze® removes up to 98% of dirt, dust and allergens1, the only cabin air filter that uses the natural deodorizing qualities of Arm & Hammer ® approved baking soda.
*FRAM ExtraGuard Air filter lets through 2x less dirt2 than the average of leading brands.
1 Road dust and pollen particles ranging in size from 5-100 microns.2 Vs. average of leading standard retail brands. Based on FRAM Group testing of air filter efficiency of models CA4309, 8755A, 8039, 326 and 6479, and their standard retail brand equivalents, under ISO5011.The Arm & Hammer logo is a registered trademark of Church & Dwight Co. and is used under license.
Vehicle Maintenance Done Right.
GET THE MOST OUT OF YOUR AIR*.
Cabin Air Filter Engine Air Filter
PROFITABILITY IS ESSENTIAL.
REACH FOR AKEBONO.
✓ Increase profits
✓ Eliminate warranty issues
✓ Stop comebacks
✓ Use OE-validated friction
✓ Increase bay utilization
✓ 100% made in the USA
THE ESSENCE OF BRAKING.®
Akebono Pro-ACT®, EURO® and Performance® Ultra-Premium brake pads are the best replacement brakes for your customers and your business. Clean, quiet and smooth braking. OEMs choose Akebono; you should too!
akebonobrakes.com
350FACTORY INSTALLED
OEM BRAND OF CHOICEM O D E L S
Best Overall AFTERMARKET
IMPORT PRODUCT
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