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TOTAL MAKES MAJOR ACQUISITION â€¢ GOLFERS RAISE MONEY IN B.C.

Jobber News Serving the Automotive Aftermarket Since 1931

Data is driving the auto industry

OCTOBER 2017

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Jobber News

contents | october 2017 » vol. 85 no. 08

Serving the Automotive Aftermarket Since 1931

news

COVER STORY

9 9

3rd Annual Tech Report IT’S ALL ABOUT THAT DATA Emissions won’t be the only thing being emitted by almost all cars in the next few years – there will also be plenty of data. And it’s valuable. But data ownership is in question and the answer is vital to the aftermarket. If kept in the hands of the OEs instead of consumers, the viability of the aftermarket is in jeopardy.

Consumers want to buy green vehicles, but not econoboxes. Automakers are providing bigger car options and drivers are responding positively.

UNDERHOOD PARTS |

Timing is everything 15

There’s no shortage of upselling when it comes to coolants, belts and hoses. When replacing one part, there’s a good chance that others will require replacement as well. After going through the rigours of summer, the fall is a good time to remind technicians to talk to their customers about being pro-active.

columns 5

Safety systems work

Studies from the IIHS show that blind spot monitoring and lane-keeping assist systems are doing their jobs. That’s a good thing since both are essential for autonomous vehicles.

Green vehicle sales up

in this issue

Golf tournaments

Two Vancouver area golf tournaments raised money for charity recently. In Coquitlam, the West Coast Classic drew 148 golfers to raise money for various charities, while the 18th Annual Sunday Monks for High Fives for Kids saw 48 golfers tee off.

UNDERCAR PARTS |

Redefining chassis and exhaust

Leading off Showdown looms again

30 New products The latest offerings

34 Social Media 101

Fuel efficiency is driving change to just about every area of the vehicle and the chassis and exhaust systems are key. However, that doesn’t mean parts are lasting longer. In fact, it’s the opposite, partly due to the increased use of aluminum parts.

Using Google Analytics to rev up online traffic

36 Money & Management In a cash crunch? Consider a different option

38 Business Management 34 Cover image: grandeduc, iStockphoto.com

Twitter: @JobberNews |

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

Push for better productivity, not discounts

www.facebook.com/JobberNews

LONG-TERM PERFORMANCE FOR THEM. LONG-TERM CUSTOMERS FOR YOU. PARTS THAT WORK 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.

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*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 ﬁtness 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.

Jobber News

leading off |

with adam malik, editor » adam@newcom.ca

FOUNDED 1931

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. Editor | Adam Malik (416) 510-6763 E-Mail: adam@newcom.ca Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Mark Borkowski, Bob Greenwood, Geoff Kirbyson, Donalee Moulton Art Director | Barbara Burrows Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Juan Diez (416) 510-5203 E-Mail: juan@newcom.ca Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Alicia Lerma (416) 442-5600 ext. 3588 E-Mail: alicia@newcom.ca Print Production Manager | Phyllis Wright (416) 510-6786 Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

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SHOWDOWN LOOMS AGAIN FOR THE AFTERMARKET ime will tell as to whether or not lessons were learned from the so-called ‘right to repair’ battle. The aftermarket fought to have equal access to information and special tools on repairing original equipment. Without such access, drivers would have been forced to take many of their vehicles’ issues to dealerships. Independent technicians would be unable to take on the work because they would be locked out of knowing what was wrong or wouldn’t have the tools required to do the job. Customers need to have the freedom to take their vehicle to For the any repair and service centre of their choice, the aftermarket aftermarket, argued. An arrangement with the OEs was necessary to however, maintain the aftermarket’s viability. In the end, an agreement was reached and the Canadian there’s more Automotive Service Information Standard was written. In a at stake. The industry is perfect world, that would have been the start of an open and amorous relationship between the OEs and the aftermarket. again fighting In reality, both need each other to be successful in order for for viability. a robust automotive industry. But that seminal moment may be nothing more than a distant memory as both sides dig in their heels for what Innova Electronics’ Mike Fitzgerald calls “right to repair on steroids” – the battle over data ownership. Embedded vehicle telematics are well on the way to the automotive world – and already here in some cases. The value of data generated by vehicles and drivers is immense. Retailers and merchants will pay handsomely for information about you – like what route you travel to work, where you like to buy coffee, how many kids are in the back seat and so much more – so they can get their marketing message directly in front of you as you drive your car. For the aftermarket, however, there’s more at stake. The industry is again fighting for viability. If OEs have control of the data generated by car owners – like tire pressure, braking activity, fluid levels and so on – consumers will again be facing a position where they have little to no choice about where to have their vehicles serviced and repaired. The independent aftermarket will be dealt a crushing blow. In the U.S., the Auto Care Association has a campaign around the slogan “Your Car. Your Data. Your choice.” in an effort to bring the consumer on board and understand the issues. The group’s research found 62 per cent of respondents hadn’t even heard of telematics. Half of them assumed that they have access to data produced by their vehicle. The Automotive Industries Association of Canada has found that consumers here, too, know little about the issue of telematics and data ownership. But when told, they are naturally concerned. Therein lies the greatest advantage for the aftermarket – the court of public opinion. It will come down to educating the consumer and using public pressure in order to ensure not only security of personal data, but the viability of the aftermarket. If holding on to telematics is a hill the OEs believe is worth dying on then it will appear as though they learned little from the right to repair debate. The aftermarket will need to strap in for a long and perhaps bruising battle, but one that should be won in the end. “Those who do not remember the past are condemned to repeat it,” said Spanish philosopher George Santayana. The OEs would be wise to heed that advice. JN

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over the counter | SQUIRES PICKED AS NEW APA CHAIRMAN Douglas Squires has been tapped to lead the Automotive Parts Associates. Its board of directors made the election of Squires to be its chairman on Aug. 15.

A pair of golf tournaments in British Columbia continued to raise money for charity. At the Vancouver Golf Club in Coquitlam, B.C. on August 14, automotive industry professionals hit the links for the West Coast Classic and is expected to have pulled in $125,000 for local charities. Lordco Auto Parts is the title sponsor with its chief executive officer Doug Coates a cochairman alongside Brian Kingshott of Carpak Packaging & Distributing. More than 90 other industry companies also sponsored the event. The 148 golfers on the day took part in a dinner banquet and prize table. The West Coast Classic was co-founded by the late Stan Kingshott in 1987 and is dedicated in his memory.

The day before, the 18th Annual Sunday Monks for High Fives for Kids was held at the Northview Golf and Country Club in Surrey, B.C. Held since 2005, 48 golfers teed off to raise money for the High Fives for Kids Foundation. An east coast version of the event was held earlier in the summer. Both events combined to raise about $8,000 for the charity, which provides grants and scholarships to children in need throughout Canada. The grants support local or national registered charities that have programs for the benefit of children and youth. The tournament is organized by Ken Coulter of Specialty Sales & Marketing and Dave Desmarais, national sales manager for Standard Motor Products. JN

AUTO SALES EYE TWO MILLION MARK

Vice chair Rob Jacobs stays in his seat on the executive committee. JN

million

Vehicle sales in Canada have a chance to break the two-million

barrier in what has been a record-setting year. DesRosiers Automotive Consultants reported that auto sales surged 6.9 per cent in August, continuing the year’s hot streak. The firm says that it’s possible Canada could see sales close to 2.05 million units. Through the first eight months of the year, more than 1.4 million vehicles have been sold. That’s a bump of 5.3 per cent compared to 2016. April is the only month this calendar year that did not set a new sales high. Just under 184,000 vehicles were sold in August alone, with the light truck segment continuing to show strong sales as it more than doubled car sales – 124,849 light trucks compared to 59,096 cars. Sales in the U.S., however, continued to decline. August was looking strong until Hurricane Harvey hit. However, experts said that flooded vehicles will need replacing, which could provide a much-needed sales boost. JN JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

Ben Yelowitz, chief ﬁnancial ofﬁcer and treasurer of POJA Warehouse in Philadelphia takes over Squires’ previous position of board treasurer.

For

more over the counter

news

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GOLFERS RAISE MONEY IN B.C. EVENTS

Squires is president and chief executive ofﬁcer of Colonial Auto Parts/A.P.M. Limited on the east coast and chairman of Bestbuy Distributors’ board. He replaces Mike Maloof, who resigned from his post due to the sale of his company, said Jim Holmquist, the APA board’s secretary.

over the counter | TOTAL BUYS MAERSK OIL FOR $7.45 BILLION Total announced that it has purchased Maersk Oil in a share and debt transaction totalling almost $7.5 billion. The acquisition includes Maersk receiving 97.5 million of Total’s shares valued at $4.95 billion, based on the average share price 20 business days prior to the deal’s signing date of Aug. 21. The shares represent less than 4 per cent of the enlarged share capital of Total. Total will also assume $2.5 billion of Maersk’s debt. The company has offered a seat on its board of directors to A.P. Møller Holding A/S, the main shareholder of Maersk’s parent company. It is expected that the deal will close officially sometime during the first quarter of 2018 with an effective date of July 1, 2017. “The combination with Maersk Oil

offers Total an exceptional overlap of upstream businesses globally which will enhance Total’s competitiveness and value in many core areas, in particular through some high quality growing assets and through the delivery of synergies,” the company said in a press release. “The combination of Maersk Oil’s North Western Europe businesses with our existing portfolio will position Total as the second operator in the North Sea with strong production profiles in U.K., Norway and Denmark, thus increasing exposure to conventional assets in OECD countries,” Total chairman and chief executive officer Patrick Pouyanne said in a statement. “We intend to build on the strong operational and technical competencies

of the Maersk Oil teams in the same way we managed to do it in Belgium with the teams of Petrofina in the refining and chemical businesses,” he added. Deal with Groupe Touchette Locally, Total announced a partnership with tire distributor Groupe Touchette. As part of the deal, Montreal-based Group Touchette will offer an array of Total lubricants to customers for oil changes. The range will include Total Quartz engine oils as well as transmission oils for the automotive market. JN

APPEAL OF NEW CARS GROWS ON CONSUMERS Manufacturers are making ever-higher quality vehicles, but this is not coming at the expense of performance, styling, utility or features.

Photo: JPWALLET, iStock.com

DAVE SARGENT, VICE PRESIDENT OF GLOBAL AUTOMOTIVE AT J.D. POWER

Carmakers are delivering what consumers want to see and that’s driving up satisfaction of new car purchases, says a new report from J.D. Power. The global market research company’s U.S. Automotive Performance, Execution and Layout (APEAL) Study found that the car owners’ love appeal with new vehicles is as strong as it has ever been, thanks to a nine-point increase in its APEAL index. Nine of 10 categories measured saw significant increases – led by HVAC, visibility and safety – and 19 of the 32 brands in the study made positive gains over last year. The score runs on a 1,000point scale and rose from 801 in 2016 to 810 this year – only one other time in the study’s 22-year history had there been that much of an increase. The study is based off 80,000 responses from car buyers and lessees of new vehicles on how

satisfying their vehicles were to own after the first 90 days. Attributes like call quality while using handsfree, transmission smoothness while shifting ease of voice recognition and the sound of the engine during rapid acceleration topped the list as having the greatest positive effect in the study. “Many automakers are getting better and better at giving consumers what they want in a vehicle,” Dave Sargent, vice president of global automotive at J.D. Power, said in a statement. “The industry is doing a very good job of creating vehicles customers like across every segment, and the APEAL study identifies why this is. One clear reason is that non-premium vehicles are increasingly offering technology and safety features found in premium vehicles.” The study found a narrowing gap between premium and mass-market brands. APEAL scores jumped for the non-premium segment (up to 804 points) while staying almost in line in the premium end (845 points). The gap of 41 points represents an all-time low. “Manufacturers are making ever-higher quality vehicles, but this is not coming at the expense of performance, styling, utility or features,” Sargent said. Porsche stayed on top for the 13th straight year with a score of 884, followed by Genesis (869 points) and BMW (855). Chrysler was the most improved brand, jumping up 41 points in 2016 to a score of 815. Volkswagen led the way with six model-level awards. JN

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

AUTOMATED SAFETY SYSTEMS ARE WORKING: STUDIES

A pair of recent studies has found that automated safety systems designed to help prevent crashes are delivering as promised Vehicles equipped with lane departure warning systems – some of which even move the car back into its lane automatically – and blind spot monitoring had lower crash rates than those without the features. This is crucial as both technologies are expected to play instrumental roles in future autonomous technology. One study that focused on lane-keeping technology found that the fatal crash rate was cut by 86 per cent. If all vehicles had been equipped with the safety feature in 2015, an estimated 85,000 police-reported crashes would have been prevented, according to the study. “Now we have evidence that this technology really can save lives and has the potential to prevent thousands of deaths once it’s on every vehicle,” Jessica Cicchino, the Insurance Institute for Highway Safety’s vice-president for research, told The Associated Press. The institute also studied the effect of blind spot monitoring systems. It found a 14-per-cent reduction of all lane-change crashes. If all passenger vehicles were equipped with the systems, according to the study, about 50,000 police-reported crashes a year could be prevented. However, the IIHS reports did raise concerns about the reduced vigilance of drivers as they rely on these systems or become distracted by dashboard displays that monitor system performance. “It’s still possible that there are some crashes that are happening that wouldn’t have happened before because people are now behaving in different ways,” Cicchino said. Further complicating the problem is that a June study from the institute found that lane-keeping systems are turned off by drivers nearly half of the time. Drivers claim to find the beeps associated with warnings to be irritating. Cicchino said that automakers have taken note of this and may move to warning systems that vibrate the steering wheel or even the driver’s seat instead. JN JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

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As automakers feel

Aluminum remains the fastest growing automotive material over competing materials… ABEY ABRAHAM, DUCKER WORLDWIDE

the pressure to cut down on vehicle weight to squeeze out a few more miles per gallon, a more expensive material is gaining in popularity. Over the next decade, according to a recent study, the adoption of high-strength, low-weight aluminum hit an alltime high for new car and truck construction. In 2015, total aluminum content sat at 397 pounds per vehicle (PPV). By 2028, that number is expected to hit 565 PPV, making up about 16 per cent of total vehicle weight. The Aluminum Content in North American Light Vehicles 2016 To 2028 study said that choosing aluminum for doors, hoods, bumpers, crash boxes and more will continue to be an emerging trend. “Aluminum remains the fastest growing automotive material over competing materials

and is entering its most unprecedented growth phase since we’ve been tracking the shifting mix of automotive materials,” said Abey Abraham of Ducker Worldwide, a research and consulting firm that conducted the survey on behalf of the Aluminum Association’s Aluminum Transportation Group. “To further improve fuel economy, battery range, safety and overall driving performance, automakers no longer default to a single material and instead are pursuing a multi-material design approach where the best material is chosen for the best application. This design evolution is what’s driving aluminum’s increased market penetration in the auto sector.” As automakers and suppliers move towards a multi-materials approach, that means continued growth for the aluminum market, a segment that has seen uninterrupted growth for 40 years, said Heidi Brock, president and CEO of the Aluminum Association. The shift to aluminum means there are more efficient and sustainable cars to choose from, she added. JN

Photo: ozgurdonmaz, iStock.com

ALUMINUM IN VEHICLES TO SEE ‘UNPRECEDENTED GROWTH’

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AAPEX booth # 34021 | JOBBER NEWS / OCTOBER 2017

YANG ANNOUNCES AAPEX PROGRAM

the Automotive Aftermarket Products Expo. YANG@AAPEX will be held Nov. 1 at the Las Vegas show and is open to all professionals in the aftermarket industry under the age of 40. From 10:30 a.m. to 3:30 p.m., YANG members can receive complimentary professional headshots in the Auto Care Association Member Center, Room 201-203. The YANG Town Hall will feature an executive panel from all channels of the auto care industry and will be moderated by YANG Advisory Council member, Dave Shapiro of SRS Marketing Company. Get in the Driver’s Seat: The 3 Keys to a Successful Auto Care Career will run for one hour starting at 3:45 p.m. in the Venetian Hotel, Marco Polo Room 706. Once that wraps up, the YANG sponsored happyhour will go until 6:30 p.m. at LAVO in the Palazzo. The group will also debut the YANG Mentor Pin

in an effort to boost conversations between willing mentors and young industry professionals. The pin will be a way to show that mentors are available and open to conversations with young members. “Getting the perspective of professionals with prior experience is extremely valuable, and our hope is that the YANG Mentor Pin will help YANG members identify auto care industry leaders willing to share their experiences,” said Thurston Adams of Heri Automotive and YANG council member. “Our goal is that mentorship relationships will be formed informally, based on mutual respect for the similar paths we are following throughout our careers in the auto care industry. “When someone is wearing a YANG Mentor Pin, YANG members can simply say hello and introduce themselves, pick their brain and ask them about their career. In life and in business, simple introductions often lead to great relationships.” JN

FIAT CHRYSLER JOINS AUTONOMOUS GROUP

OLD AGE WON’T STOP CANADIANS FROM DRIVING

Another carmaker has taken a step forward

towards developing autonomous technology for vehicles. Fiat Chrysler has signed up with Intel, Mobileye and the BMW Group to join them in developing a platform for selfdriving cars. The group’s platform is being designed to reach Level 5 automation, the highest SAE level for autonomous driving, and will be able to be utilized by automakers around the world. In an announcement, the groups say they will be able to leverage the individual strengths of each other to enhance technology, find efficiencies and reduce time to market. “In order to advance autonomous driving technology, it is vital to form partnerships among automakers, technology providers and suppliers,” said FCA chief executive officer Sergio Marchionne in a statement. “Joining this cooperation will enable FCA to directly benefit from the synergies and economies of scale that are possible when companies come together with a common vision and objective.” The group said that it is still on target to have 40 autonomous test vehicles on roads by the end of this year. JN

When someone is wearing a YANG Mentor Pin, YANG members can simply say hello and introduce themselves, pick their brain and ask them about their career.

If given the opportunity, Canadians will be reluctant

to hand over their car keys as they age. According to a recent survey from State Farm Canada, more than half of respondents said they want to keep driving well past their 80s. A quarter wanted to go beyond age 85. A larger potential consumer base could be good news for the aftermarket as more drivers means more cars on the road. State Farm cited a Transport Canada report from 2011 that said drivers aged 65 and over represent 17 per cent of fatalities even though they account for just 14 per cent of licensed drivers. And once beyond The biggest 75 years old, the rate of fatalities per distance reasons seniors travelled considerably increases. don’t give up According to research conducted by the Traffic their licence, Injury Research Foundation in 2016, drivers aged according to 65 and older are over-represented in crashes, State Farm, particularly those 80 and up. Drivers 65 and over is a loss of are also susceptible to age-related declines in independence. reaction time and mobility and can be affected by factors such as heart disease, visual impairment, dementia, and impairment due to prescription medication. The biggest reasons seniors don’t give up their licence, according to State Farm, is a loss of independence. Others include a lack of awareness about the warning signs of driving incapacity, lack of public transportation, and cost of taxis. State Farm surveyed almost 3,600 people of driving age across Canada. JN

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

Photo: Daisy-Daisy, iStock.com

Photo: 3D generator, iStock.com

The Auto Care Association’s Young Auto Care Network Group (YANG) announced its plans for

over the counter |

Green vehicle sales are on the rise, thanks to

carmakers providing more options. No longer are customers restricted to choosing smaller cars. Whether hybrid, hydrogen or electric, sales ticked up in 2017, according to car shopping site Edmunds. The biggest boost came from the light truck segment. Green vehicles sales are up 21.5 per cent compared to the first half of 2016, according to Edmunds. Sales of gas SUVs are strong for carmakers, keeping profits up as sales decline. As green varieties become available, it appears consumers are opting for larger options. This segment makes up 22.5 of the green vehicle market overall, up from just 5.2 per cent in 2012. “If automakers want car shoppers to adopt green technology, they can’t just offer

it exclusively in a little econobox,” said Jessica Caldwell, Edmunds executive director of industry analysis. “While the styling of the iconic Prius used to be trendy, consumers today don’t necessarily want a vehicle whose design screams ‘green car.’ And as tastes have taken a dramatic turn away from passenger cars, and battery technology improves, automakers have an opportunity to drive adoption forward by offering electric powertrains in vehicles shoppers actually want.” The company’s research also found that one out of every 100 cars sold came with a plug. Plug-ins sales have jumped 45 per cent year-over-year. However, Edmunds is skeptical of sales trending upwards as federal tax credits expire. These subsidies have provided a boost to the segment, the company said. People “tend to buy cars based on emotion,” said Caldwell. “If automakers can hone in on the right products that excite buyers without the carrot of government subsidies, EVs have a much better shot at going mainstream at a quicker pace.” JN

AAPEX FORUM TO COVER ALL THINGS TECH A Technology and Telematics Forum has been added to the AAPEX

MANN+HUMMEL ACQUIRES JACK FILTER German filtration company Mann+Hummel recently announced the acquisition of Jack Filter Lufttechnik and Jack Filter Hungaria. The move, the company said, will expand its offerings of HEPA filters. Jack Filter specializes in air filters for ventilation, air conditioning and cleanroom technology, with sales of around 10 million euros and 100 employees. Jack Filter managing partner Alexander Gaggl will move into a management role in Mann+Hummel’s global Intelligent Air Solutions business area. “This acquisition is a perfect fit for our corporate strategy. It gives us the opportunity for further growth in the non-automotive segment,” said Alfred Weber, Mann+Hummel president and CEO. The state-of-the-art production facilities and the expertise of the employees who work there will help us to continue to achieve Leadership in Filtration. We look forward to working with all Jack Filter employees.” Neither company provided financial terms of the deal. JN

calendar this fall. The forum will spotlight cybersecurity, vehicle-to-vehicle (V2V) communication, vehicle data and OE technology. It will be presented by the Auto Alliance and the Congress of Automotive Repair and Service – sponsored by the Automotive Service Association. Professionals from other automotive aftermarket segments will also take part. It will be held Nov. 2 from 9 a.m. to noon at The Venetian, in Las Vegas. It will discuss how attendees can protect their businesses, customers, employees and life from cyberattacks. Dr. Anuja Sonalker, founder of STEER Tech and cybersecurity expert, and with Donny Seyfer, co-owner of Seyfer Automotive, will provide information on cybersecurity and how to avoid being a victim. Bob Redding, the ASA’s Washington, D.C. representative, will lead a panel discussion on what’s coming to V2V and vehicle to infrastructure (V2I) communication. Bill Long, president of the Automotive Aftermarket Suppliers Association and Aaron Solomon, chief executive officer and owner of Mobile Devices Ingenierie in France, will address vehicle data, including who owns the data, who gets it and how auto repair professionals can use it. Seyfer will lead the discussion with a focus on the responsibilities and challenges of logging and sifting through the data of vehicles producing a terabyte or more of data per day. JN

Follow us on Get AutoServiceWorld. com news and more by Twitter following @JobberNews on Twitter. www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

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coolants, belts & hoses |

BY GEOFF KIRBYSON

WHEN IT COMES TO STAYING COOL,

timing IS EVERYTHING

Evolution of belts requires better attentiveness

Photo: MJ_Prototype, iStockphoto.com

f one part of a vehicle’s cooling system needs to be replaced, there’s a very good chance the remaining components do, too. Experts agree there’s no shortage of upselling opportunities for jobbers when it comes to coolants, belts and hoses at this time of year and while customers might not appreciate the unexpected charges at first, it should save them money down the road. If a technician is working on a vehicle’s cooling system and calls in to ask about a line of parts, Tom Lee, marketing manager at Continental Contitech, an Ohio-based manufacturer of automotive and industrial products, suggests jobbers ask them how the hoses are holding up. “If they’re replacing the water pump or

the thermostat, now is the perfect time because the system has been drained. That’s usually the inhibiting factor. Otherwise, the opportunity doesn’t present itself,” he said. In fact, if any one hose has failed, he said it’s more than likely that the others are ready to go as well. Most vehicles have hoses for the upper and lower radiator, the in-and-out heater and a

couple of small hoses that service the coolant overflow tank. “There are a lot of smaller ID hoses that should be looked at, at the same time. If the technician is asking about one hose, they should be asking for a whole set,” Lee said. If the coolant is in poor condition, there’s a good chance the entire cooling system is in the same shape, which is continues on page 16

“

If they’re replacing the water pump or the thermostat, now is the perfect time because the system has been drained. That’s usually the inhibiting factor. Otherwise, the opportunity doesn’t present itself.

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

”

– TOM LEE, CONTINENTAL CONTITECH

coolants, belts & hoses |

“

You’re looking at stress points. The highest ones are the high temperatures in the summer and the freezing temperatures in the winter.

”

– JAY BROWN, NISSENS

that stress point in temperatures, they’re going to hold up.” Considering the wide variety of fluids that combine to make a vehicle go, Brown said the most important one from a coolants, belts and hoses point of view is the most basic – water. He said it’s crucial that distilled water is used in cooling circuits; otherwise minerals from tap water can clog up the radiator, the

“

Now, most cars have the water pump, the power steering pump, the air conditioning compressor and the alternator on the same pump so as soon as that belt dies, all of those critical components are useless. – DAVID HIRSCHHORN, CRP AUTOMOTIVE

thermostat or the water pump. “Every component is dependant on the next component. The quality of the water is an essential part of that circuit. I think that’s well known but we still see people using tap water,” he said.

”

have fluid all over the ground and there’s no way to limp home.” David Hirschhorn, New Jersey-based director of brand management at CRP Automotive, agrees and recommends continues on page 18

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: CHBD, Banks Photos, iStockphoto.com

another reason to re-evaluate the hoses. If the engine has overheated at some point, it could have shortened the life of the hoses, Lee said. “If a hose has been removed, it should be replaced, too. The twisting and turning and stretching usually damages the reinforcement inside. You’ve broken any kind of seal the hose had on the vehicle to begin with and it’s hard to get that seal back,” he said. High mileage is another good indicator. Lee recommended that hoses be looked at as part of regular maintenance starting at 60,000 miles or about 96,000 km. That includes commercial vehicles, such as taxis or delivery trucks. “They have a lot of idling and a lot of heat, which means a lot of wear and tear on the rubber products,” he said. Speaking of heat, motorists who have made it through the summer without replacing their coolants, belts or hoses might want to get them looked at once the leaves start to turn colour. Jobbers should be advising service shops about this opportunity since vehicles have just endured their most stressful period, according to Jay Brown, general manager of Nissens, a Fort Worth, Texas-based manufacturer of radiators and engine cooling solutions. “In the fall, you’re going to test the coolant itself to make sure it has the right freeze reduction properties [before winter],” he said. “You’re looking at stress points. The highest ones are the high temperatures in the summer and the freezing temperatures in the winter. “In the spring, you’re going into the driving season. You have families driving across the country for summer vacations. You want to make sure the belts are in good condition so that when they get to

Just how much damage could occur depends on your local water source. “If you go into your shower and you see white crusty stuff on the shower head, those same minerals are in your radiator. If it’s hard water, the minerals are very robust and it will start to clog up more quickly,” Brown said. The more jobbers can get across the message to technicians about the importance of inspection procedures, the fewer panicked phone calls will be put in to mechanics, Lee said. “There are all kinds of signs of failure on rubber products, both visual and touch. When they fail, it’s catastrophic. Any one of these products could leave you on the side of the road. Cars don’t run without coolants and belts,” Lee said. “A spark plug can misfire but you can get the vehicle home. If a hose blows, you’ll

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coolants, belts & hoses |

You won’t have a cooling system necessarily and certainly not the way we have them today. You’re not going to have water pumps or belt drives. – TOM LEE, CONTINENTAL CONTITECH

“

Every component is dependant on the next component. The quality of the water is an essential part of that circuit. I think that’s well known but we still see people using tap water.

”

– JAY BROWN, NISSENS

is going to cause failures down the line,” Hirschhorn said. The ongoing efforts by vehicle manufacturers to cut as much weight as possible to improve fuel efficiency has an impact with coolants, belts and hoses, too. Hirschhorn said a growing number of cars have gone from having two or three drive belts on the engine to just one, leaving no margin for error. “The air conditioning would have its own belt and if that failed, you could still

“

A spark plug can misfire but you can get the vehicle home. If a hose blows, you’ll have fluid all over the ground and there’s no way to limp home.

”

– TOM LEE, CONTINENTAL CONTITECH

get to wherever you were going. Now, most cars have the water pump, the power steering pump, the air conditioning compressor and the alternator on the same pump so as soon as that belt dies, all of those critical components are useless. Preventive maintenance is very important,” he said. Lee thinks the biggest change in this repair area won’t be from cutting weight but instead the move to electric and hybrid vehicles. In fact, he believes the rubber and hose category will likely “disappear” altogether. “You won’t have a cooling system necessarily and certainly not the way we have them today. You’re not going to have water pumps or belt drives. It probably changes the scope of rubber products under the hood,” he said. Brown agrees, saying the industry is in the “Model T” stage with electric cars. “It’s an interesting process that we’re still learning about. There is more unknown about them than what is known,” he said. JN

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: druvo, iStockphoto.com

jobbers help repair shops do the whole job. When changing a serpentine belt, for example, it’s a good idea to replace components that ride on it, too, such as idlers, tensioners and water pumps. The challenge is belts are lasting twice as long as they did 10 or 15 years ago but the durability of many related parts has remained the same. “All of these components (used to last) 80,000 miles. Do you really expect them to last 160,000 miles? If you’re going out for a three-hour drive, do you want to risk one of those components failing and your car is on the side of the road?” he said. The evolution of belts requires repair shops to be on their toes, too. When natural rubber was the predominant material, technicians would simply flip the belt over and check the number of cracks. If there were only one or two, it was fine, but it there were more, it would need to be replaced. With more technologically-advanced rubber, which performs much better against heat, oils and greases, there aren’t nearly the same number of cracks on belts today. “A technician who isn’t used to seeing these new belts will think they’re fine. The grooves wear deeper so [the belt] loses friction against the pulleys. That will lead to heat and all of those components, like the air conditioning compressor, the water pump and the power steering pump, not working efficiently. That heat

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cover feature | 3rd annual tech report

Auto industry is now a data business I

magine driving down the road and the ‘check engine’ light suddenly comes on. You don’t know what’s wrong. Is it serious enough that you need to pull over? Maybe it’s nothing major and you can continue driving for a while? The truth is that you don’t know. But your car 20

does. It knows you can keep driving for the next couple of days, but the problem needs to be resolved sooner rather than later. It has already communicated with your preferred service and repair shop to find a time to get your car in. Your car has checked your calendar and sees that you are free at 1 p.m. on Thursday and www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

BY ADAM MALIK

BUT A FIGHT LOOMS OVER

the shop has an opening at that time. A voice comes through the speakers – your car is talking to you. It’s asking to confirm if you’d like to drop your car off at that time. You confirm and the appointment is made and a note is added to your calendar. Oh, and your car has fired off all diagnostic codes to the shop. Someone will

Photo: skodonnell, gorbachlena, iStockphotos.com

WHO WILL OWN THAT INFORMATION soon be in touch with your jobber store to get the necessary parts. Don’t scoff at that scenario. The widespread ability for consumers to make service appointments from behind the wheel – and many other tasks – could be here sooner than you think. continued on page 22

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

cover feature | 3rd annual tech report

Basically, it’s pretty simple. The independent aftermarket needs the tools and data.

Greg Potter, executive manager of the Equipment and Tool Institute, figures that by 2020, “every vehicle will have some sort of connectivity to it.” Since it’s the desire of many to be connected with each other in spaces like social media, there’s a strong push to meet that demand in the automotive world, said Bob Stewart, aftermarket service support at General Motors. “Everything is about a connection today,” he told attendees of the recent Business Outlook Conference at NACE Automechankia in Chicago. OnStar, GM’s connected car tool, is an example of keeping the customer informed about what is happening in their car in addition to being able to ask for directions. Stewart said seven million diagnostic reports are sent to OnStar customers each month. “It’s a high-level sheet” that shows tire pressure information, oil levels, battery performance and more. “All of this is based on trying to make the customer feel like they’re more secured.” Who owns the data, anyway? But with all of this information comes the question of ownership. As part of a panel that discussed telematics and connectivity, which included Stewart and Potter, Mike Fitzgerald of Innova Electronics pressed the need that drivers need to hold ownership of the data. Further, the aftermarket needs access to the data in order to remain viable. As long as it remains in the hands of the automakers, they will hold a significant advantage. “Basically, it’s pretty simple,” he said. “The independent aftermarket needs the tools and data.” It’s a position Jean-Francois Champagne agrees with. The president of the Automotive Industries Association of Canada told Jobber News that his group is working closely with a number of trade associations across north America to discuss the evolution of telematics and ensuring the aftermarket is not an afterthought. Champagne and France Daviault, the AIA’s senior director of stakeholder relations, recently made representations to the Senate Standing Committee on Transport and Communications where they expressed concern about the aftermarket being locked out of key information. “There cannot be sweeping changes in the very type of vehicles that Canadians drive without there being accompanying changes in the aftermarket,” Daviault told the committee. “Vehicle manufacturing cannot enter the 22nd century while the aftermarket remains in the 21st century.” The challenge, then, is to figure out a way to get the carmakers to agree to relinquish control of such valuable 22

information. Pack some patience, Fitzgerald warned. He equated the issue to right to repair and brought up the example of a referendum that was held in Massachusetts where 86 per cent of voters said they wanted to be able to take their car wherever they wanted. It was a strong message to OEs that the two sides needed to come together for a solution. So if the aftermarket and OEs could come to an agreement on right to repair then surely they could figure something out here, right? Well, not exactly. In the case of telematics and vehicle data ownership, Fitzgerald said, the stakes are higher. “I like to refer to it as right to repair on steroids because this is a much, much bigger issue with much more impact than the original right to repair bill.” Champagne agrees. “I’m very much subscribed to the whole aspect that telematics is in fact the evolution of right to repair,” he said. “The complexities and the various changes telematics bring are far more complex than the traditional right to repair battles that we fought eight, nine, 10 years ago.” The amount of information available in connected vehicles is extremely valuable to whoever owns it. Personal driving habits, for example, are invaluable to both the aftermarket and OEs. “Once a repair shop gets [that information], now he’s on a level playing field with the OE guys,” Fitzgerald said. “Maintenance is the repair shop’s biggest opportunity in telematics.” How so? A shop can know exactly when a car’s maintenance is due. If they know the customer wants his oil changed every 3,000 miles, a reminder can be sent as that number approaches. The shop can offer coupons and send other marketing information. Shops can schedule upcoming and past-due maintenance while being able to schedule appointments for other needs. “This keeps the repair shop competitive.” It’s all about fair access, Champagne said. The aftermarket needs the same tools, technology, training and data that automakers make available to their dealership network. If not, Champagne will probably find himself back in front of the government to push for regulation that ensures “data remains in the hands of consumers and that they have the capacity to direct that data to their repair [shop] of choice, be it a dealership network or the aftermarket.” But the likelihood of some sort of agreement between OEs and the aftermarket doesn’t look promising to some. “So far, there’s been very little movement between the aftermarket and OEs on coming together for a solution for telematics,” Fitzgerald said. “There’s a wide spectrum of opinion as to whether or not continued on page 24

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: Frank Ramspott, iStockphotos.com

– MIKE FITZGERALD, INNOVA ELECTRONICS

cover feature | 3rd annual tech report The complexities and the various changes telematics bring are far more complex than the traditional right to repair battles that we fought eight, nine, 10 years ago.

we’ll be able to be successful in doing this in a conciliatory and negotiated way,” Champagne added. Even from a legal perspective, ownership is “not welldefined,” Potter said. “Yes, you can clear out all the data in the car if you want to.” But as for what has been sent out of the car to a cloud server, “it’s debatable who really has ownership at that stage of the game.” Stewart raised another consideration: Car owners need to be diligent about making sure they’re protecting their data. Let’s say it’s eventually determined that the data belongs to the car owner. In the event of a vehicle involved in a total-loss collision, the vehicle is signed off to the insurance company. When the insurance company becomes owner of the vehicle, they then become owner of the data in the car. Think about when you rent a car, Stewart told conference attendees. You don’t own the car, but you put data into that vehicle. “How many of you rent a car today, sync your cellphone to that rental car and remember to clean it out when you park that car and walk away from it?” Stewart asked. The same idea applies to leased vehicles. Since the car is not owned by the driver, they may not actually own the data they generate in the vehicle. Marketing potential But the OEs have even more reason to hang on as tightly as they can to vehicle and driver data. It’s simple: money. The amount

that they can profit from selling advertising is immeasurable. “It is about marketing,” Potter said, adding that companies are going to pay to be able to put their product in front of consumers while they’re behind the wheel. “It’s about money, it’s about marketing and I think that’s what everyone is worried about. Everyone wants in on that revenue.” The auto industry is changing, no doubt. “It’s a data business,” said Dan Ricci, Global Automotive Industry Cognitive Solutions Leader, IBM Corporation. Speaking at a different session of the same conference, Ricci gave the following example: If there’s a traffic jam ahead, you may get a notification in your car about it from Starbucks. They’ll invite you to get off the highway at the next exit and go to their store two blocks up the road. They will meet you curbside with your favourite drink and have you back on the road in three minutes instead of the normal 10 minutes it would take to go in, wait in line and get your order. “Maybe now I’m more compelled to get something,” he said. “These are instances where merchants and retailers will start to fund a connected vehicle platform. OEMs have struggled with getting people to actually pay for [services]. What usually happens is they offer a service for free for a period of time and then, as soon as the free trial runs out, those people just cancel the service. How do you keep engaging the customer at that level without them having to necessarily pay for it? The realization is: there are those who want access to those

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www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: FrankRamspott, iStockphotos.com

–JEAN-FRANCOIS CHAMPAGNE, AIA CANADA

customers to provide services, so merchants and retailers are willing to pay to get to those customers.” The auto business is moving in a similar direction as the phone industry. It’s not entirely about its physical capabilities – it’s more about being a “platform” for greater reach. Just look at the way apps have revolutionized the way a mobile device is used. Ten years ago, Ricci said, the BlackBerry smartphone was king. What changed? “BlackBerry missed the app curve. They were really good at doing what they did. Their e-mail was reliable, it was a good device and it had a keypad,” Ricci said. “But Apple knew (the smartphone) was a platform to open up apps and provide those experiences. We see the automotive industry embracing the same philosophy.” By doing so, automakers will be opening up their vehicles to retailers and other merchants to driver and, potentially, occupant information. Then the marketing opportunities Potter mentioned start to take shape. To make it happen more easily, however, better technology is needed through the development of next-generation 5G wireless connectivity. “4G was a step change – we could watch videos and watch Netflix and things like that. 5G takes us to the next level,” Ricci said, adding that the biggest challenge will be the cost to roll out the technology. When it does, “we really see 5G as an enormous enabler for the automotive industry.” Data mining Big data was a popular buzzword years ago and is going to play a significant role in automotive in the coming years. Data centers are being set up to mine through everything that’s being delivered. Those that can analyze it effectively will be the big winners. “[Automakers] get that information and knowledge is a valuable asset. They can’t confine themselves just to their traditional bases,” Ricci said. “What this really is, is a challenge to harness this information. The way of traditionally analyzing data doesn’t really work anymore with this type of scale.” Big data has already played a role in a number of auto-related issues, primarily in safety. For example, the National Highway Traffic Safety Administration in the U.S. made almost three times as many recalls in 2014 as in 2013. It’s not that carmakers suddenly got sloppy, but instead because the organization was able to mine through big data to find issues that they otherwise would have never found or taken much longer to discover.

These problems “had been there all along, but they just hadn’t been able to see them because they had never had the ability to bring all this information together,” Ricci said. Another example is GM’s ignition switch issue from 2014 where faulty switches could shut off the engine during driving, preventing airbags from inflating. The company recalled 15 million vehicles over a few months because they were able to mine the data, Ricci said. “They could find these patterns that identified the vehicles that were at risk, and help them find root causes for failures and issue recalls.” Toyota did the same when it had an ABS problem in 2011. It originally thought issues stemmed from a sticky gas pedal or problematic floor mats. But once the company analyzed the complaints and found specific key words and phrases, then they realized that the problem was actually with their ABS. “They were able to see the correlations and root cause of that problem,” Ricci explained. That’s why data is important to both OEs and consumers. Automakers see dollar signs while consumers see privacy concerns. Your data, your choice In the U.S., the Auto Care Association has pushed a campaign with the slogan “Your Car. Your data. Your Choice.” By bringing the fight to involve the end-customer, the hope is that enough pressure is mounted, similar to the force of right to repair, Fitzgerald told attendees of the conference. The AIA is “very much aligned” with the position of their American peers. Whether or not a similar campaign will take place here has not yet been determined. However, there is a lack of understanding among Canadians about telematics and data ownership, Champagne told Jobber News. Once it is explained to them, the response is robust. “A very large majority of Canadians feel very strongly that it is their data and they should have ownership of that data,” he said. “So we know there is a strong sentiment by Canadians that they should have ownership and control to where they want that data to go. We know that.” While no agreement appears to be in sight in the near term, Champagne did acknowledge that the clock is ticking. New technology is always ahead of regulations and the industry can’t fall far behind, he warned. “There is a certain sense of urgency and I wouldn’t necessarily put a date on it but we know that connectivity around vehicles is accelerating rapidly.” JN

It’s about money, it’s about marketing and I think that’s what everyone is worried about. Everyone wants in on that revenue. –GREG POTTER, EQUIPMENT AND TOOL INSTITUTE

JOBBER NEWS / OCTOBER 2017

|www.autoserviceworld.com

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Encouraging students in the Canadian Automotive Industry

chassis & exhaust |

BY DONALEE MOULTON

Innovation REDEFINING CHASSIS

& EXHAUST SYSTEMS

Opportunities abound as chassis lifespan not what it used to be

Photo: nikamata, Oktay Ortakcioglu, iStockphoto.com

hassis are changing rapidly. Driving that change is lightweight suspensions at the OE level. It’s creating a whole new environment within the aftermarket and technicians are no longer seeing the same types of vehicles come into their shops as they did five years ago. Manufacturers are continuing to design lighter weight suspension systems, which is a boon to fuel efficiency and a means to reduce emissions. But it has also changed the life cycle of vehicles, according to experts, which, in turn, forces jobbers to ensure their inventory levels are keeping pace. Therefore, it will be important for jobbers to partner with manufacturers that are taking the experience of the technician into account, since some parts that once were popular may no longer serve the needs of customers today. Take Ford as an example. Last year, the Detroit-based

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

automaker announced its off-roading edition of the F-150 pickup, the Raptor, would join its line of aluminum-bodied pickups. That effectively means all of the car giant’s pickups now have steel frames and aluminum bodies. It’s another signal of a changing market by using materials that traditionally were only found on sports cars. Ford was back at it again this year. In partnership with Magna International Inc., the automaker unveiled a prototype carbon fibre composite subframe that reduces mass by 34 per cent compared to a stamped steel equivalent. The prototype replaced 45 steel parts with two molded and four metallic parts, so there is an 87 per cent reduction in the total number of parts in the subframe. The prototype has “the potential to really move the needle continues on page 28

chassis & exhaust |

“

The mobility of the future will continue to be based on mechanical systems, but equipped with intelligent systems that are comprehensively networked.

”

in terms of aggressive lightweighting without sacrificing styling or performance,” Grahame Burrow, global president of Magna Exteriors, said at JEC World 2017, a conference of composite material professionals in Paris. Component and vehicle testing on the prototype is now underway. This phase will evaluate corrosion, stone chipping and bolt load retention. And the changes continue. This year, the ZF Group unveiled its intelligent rolling chassis (IRC) for urban electric vehicles. The platform combines an axle-integrated electric drive, an agile chassis with an advanced steering system and an electronic control unit that co-ordinates all chassis functions. According to ZF, these networked mechanical systems have equipped the IRC for autonomous city driving in the future. At the same time, the completely flat floor between the front and rear axles accommodates almost any body design. “The mobility of the future will continue to be based on mechanical systems, but equipped with intelligent systems that are comprehensively networked,” said ZF’s chief executive officer Stefan Sommer. Specifically, the electric twist beam installed on the rear axle ensures driving with zero local emissions. The front axle is based on a dual-control-arm independent suspension design. It is the main mechanical requirement for increasing the steering angle up to 75 degrees. Standard front axles allow for a maximum turning angle of 50 degrees. Maneuvering, whether on turns or for parking, becomes easier with an improved steering angle. ‘Bunch of opportunities’ New advances in chassis also create new issues for jobbers and their clients. One of those is lifespan. As vehicles move from having steel suspension systems to aluminum and more synthetic options, life of those parts also changes. “They just don’t take the pounding that they used to,” said Scott Stone, executive vice president of sales and marketing with Mevotech in Toronto, of modern suspension systems. Combine that with often rough road conditions, deteriorating infrastructure, including ever-deepening potholes, and replacement times shift significantly. “You have a whole bunch 28

of opportunities,” said Stone. But when one area is affected, others will need attention as well. The same goes for suspension, and parts makers are looking to lessen the workload caused by the ripple effects that happen when one part wears out. Last year, for example, Wulf Gaertner Autoparts made further additions to its range of MEYLE-HD control arm kits to fit BMW and Mini applications. The service kit enables repairers to replace all worn components at once, saving repair shops extra trouble and customers costly subsequent repairs. That kind of modular maintenance is becoming standard, said Stone. “The last thing a technician wants is to replace a main component and find out other parts are also required.” He points to emerging markets in control arms, bushings, lateral links and trailing arms. Often, the aftermarket parts are better than the original. “That is a realistic expectation for chassis,” said Stone. “Jobbers need to inform technicians they are on top of this,” he added. “Technicians have to know the local guy understands their world.” There is also no shortage of information about exhaust systems. Tenneco, for example, has expanded the technical flier series it sends to service and repair professionals and counter pros. The free monthly flier training library launched last year now boasts a wide array of service and product topics that provide additional insight into frequently asked questions. Jobbers will want to be on the distribution list to better understand what confounds their customers. “Monroe and Walker Servicegrams were designed to help provide critical technical information at precisely the right time to expedite a repair process, answer a common technical concern or help to troubleshoot a repair,” said Tenneco brand manager Denise Hanefeld in Toledo, Ohio. “We’re in constant contact with our Technical Resource Center, our field sales force and our industry partners to determine the best topics to publish monthly.” Emissions and implications New exhaust systems, as with chassis, are routinely entering the market. The most powerful production Honda ever sold in www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: mattjeacock, iStockphoto.com

– STEFAN SOMMER, ZF GROUP

TOTAL QUARTZ HIGH TECHNOLOGY FOR YOUR ENGINE Long-lasting Canada, the 2017 Honda Civic Type R, went on sale this summer. It sports a high-flow exhaust system with three centre-mounted exhaust outlets and a comprehensive aerodynamic package that delivers a balance of high-speed stability and low drag. Reducing emissions – and ensuring compliance with Canadian and U.S. standards – are pushing car manufacturers to rethink and redesign exhaust systems and parts. That has significant implications for the aftermarket. Earlier this year, Toyota Motor Corporation announced the commercial availability of a new, smaller catalytic converter that uses 20 per cent less precious metal in approximately 20 per cent less volume while maintaining the same exhaust gas purification performance. The design is the world’s first integrally molded flow-adjustable design (commonly referred to as FLAD) cell substrate with a different cell cross-sectional area at the inner portion compared to that at the outer portion. Innovative design and manufacturing technologies have allowed for the mass production of the catalyst, which will gradually be installed in new vehicle models, starting with the Lexus LC500h later this year. Now, global automotive supplier Denso Corporation and electronics and ceramics company Ibiden Co., Ltd. have come together to develop the next-generation vehicle exhaust system. This will combine ceramic materials to create high-performance yet simple and low-cost vehicle exhaust systems. Jobbers will also want to listen carefully when it comes to exhaust systems. Sound matters to many customers and there is growing interest in enhancing exhaust systems on original equipment. Infiniti, for instance, now offers a new sport exhaust kit for its 2017 Q60 sports coupe and 2016-2017 Q50 sedans. These kits have two jobs: improve the exhaust note and reduce overall vehicle weight. Many drivers are looking for improves performance, said Andrew Speaker, director of Infiniti aftersales in Nashville. As always, therein lies an opportunity for jobbers. When the repair shop calls for an exhaust kit, a premium sporty option may be a way to boost sales. And with the amount of change already here or on the horizon, there doesn’t appear to be any shortage of ways to increase profit. JN JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

Performance Reduced costs Easier start-ups Savings and reliability

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new products |

Stantâ€™s new catalogue

Permatex gasket maker Permatex announced a new line of gaskets aimed at maximum performance when under high stress and extreme temperatures. The Optimum Grey Gasket Maker is capable of withstanding high torque loads and vibration while offering maximum temperature resistance up to +700 F. It is resistant to oils, cooling fluids and shop chemicals and is sensor safe, low odour and non-corrosive. It can be used on intake manifold end seals, valve covers, oil pans, timing covers, among others. The Optimum Black Gasket Maker is for lighter, more flexible engine components. It can withstand dynamic changes in assemblies with dissimilar metals, thinner, lightweight alloys, and wider spread bolt patterns. It is resistant to shop fluids and oils. Key applications include valve covers, oil pans, intake manifold seals, and timing gear covers. Both are available in 3.35 oz. carded tube and come with an extra nozzle. Permatex www.permatex.com

Stant Corporation has introduced a new catalogue for replacement caps and thermostats. The catalogue is available in both printed form and online and features applications for passenger cars and light trucks. To view the new 2017 Stant Cap and Thermostat Catalog, visit www. stant.com or contact your representative to request a printed copy. It is available in three languages. The company also offers a complete line of green and yellow fuel caps for diesel and flex fuel vehicles. Its thermostats are completely manufactured by Stant and thoroughly tested to ensure performance and reliability. Stant www.stant.com

Transmission fluid service kits CRP Automotive has developed three new special service kits. These are designed for fluid service on Audi, BMW and VW vehicles. CRP brought two of its brands together to develop the kits: Pentosin OE approved fluid (ATF1) and Rein Automotive. Pentosin Kit #1058206-KIT-1 (Audi/VW) includes five Pentosin ATF1 (1L) (OE Part #G052162A2) and one Rein Filter Kit (OE Part #01V-398-429). Pentosin Kit #1058206-KIT2 (VW) includes five Pentosin ATF1 (1L) (OE Part #G055025A2) and one Rein Filter Kit (OE Part #09G-325-429-A). Pentosin Kit #1058206-KIT-3 (BMW) includes six Pentosin ATF1 (1L) (OE Part #83-22-2-220-442) and one Rein Filter Kit (OE Part #24-11-7-557-070). CRP Automotive www.crpautomotive.com

LOOKING FOR MORE? Visit www.autoserviceworld.com/ products to stay on top of the latest product announcements.

EZ Oil Drain Valve A new oil drain valve has been introduced that uses a lever to open up, rather than having technicians look for a tool when they need to complete an oil change. A lift and quarter turn of the lever of the nickel-plated brass EZ Oil Drain Valve is all that is needed to open and drain oil. When done, technicians return the lever to its original position to close. An optional screw on the hose end is sold separately to drain oil to a remote receptacle. The valve is available for all engines with 30 different sizes to fit cars, pickups, vans, motor homes, heavy duty trucks and more. EZ Oil Drain Valve | www.EZoildrain.ca

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Explosion proof light

TRW Corner Module ZF Aftermarket has introduced a range extension for its TRW branded Corner Module. There are now 185 new SKUs with 181 of them in chassis and the remaining four in braking. Chassis parts include: stabilizer link for Honda CR-Z (2011-2015) and tie rod ends for Ford F450 Super Duty (2011-2015) and F250 Super Duty (2015). It also offers braking parts for: Audi A4 (2017) and Hyundai Tuscan (2016). The parts are designed and developed to work in harmony within the systems situated in the corner of the vehicle, which then transfers the power safely and evenly to the road. ZF has introduced almost 500 new SKUs for the year. TRW www.trwaftermarket.com

Larson Electronics introduced an explosionproof LED drop light that is Class 1 Division 1 and 2, and Class 2 Division 1 and 2 approved. It is suitable for areas where petrochemical vapors and hazardous dust are present and for general activities in hazardous locations. The EHLLED-7W-200-EPPP has a 200-foot cord that is 16/3 chemical and abrasionresistant and is equipped with an explosion proof cord. It has a 6000k colour temperature with 1050 lumens of bright white light. Because it is LED, the lamp housing is cool to the touch. The light is engineered with no ballast and a non-sparking aluminum housing to make it lightweight and portable. Larson Electronics www.larsonelectronics.com

continues on page 32

No matter what kind of vehicle comes into your shop, rest assured you’re not just getting the right ﬁt, but also the best quality. Keep your customers’ cars running longer, stronger with NAPA KNOW HOW. JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

866-GET-NAPA | NAPACANADA.COM 31

new products |

LED creeper cart Larson Electronics unveiled a new LED creeper cart to help illuminate areas that traditional light fixtures can’t fit. The WAL-CC-48-160W-LED-25 features a low profile and powerful illumination for automotive work. It provides a bright white light in a 160-degree wide flood beam with a 60,000-hour lifespan. Thanks to LED bulbs, no ballast box is needed, reducing weight and allowing for a slimmer profile. It is made with an aluminum housing and a shatter-resistant polycarbonate lens, which allows it to withstand the rigours of a repair and service shop. The creeper has a 25-foot 16/3 chemical and abrasion resistant SOOW cord. Larson Electronics www.larsonelectronics.com

Intake manifold actuator repair kit ÜRO Parts has introduced the Intake Manifold Repair Kit to fix and upgrade the troublesome OE variable intake manifold mechanism found on 4.2L Audi and Volkswagen engines. The original manifold is notorious for vacuum actuator and linkage failure and subsequent stumbling, power loss and poor mileage. The ÜRO Premium kit consists of an improved actuator equipped with a durable, high-temperature silicone diaphragm, and a thicker, high-strength Delrin linkage. The actuator is covered by a lifetime warranty. ÜRO Parts www.uroparts.com

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Milwaukee ratchets Milwaukee Tool is introducing new cordless ratchets that offers power and size to replace pneumatic options. The M12 Fuel Cordless Ratchets offer up to 60 ft-lbs of torque with a compact head design for access into tight spots. It also has a brushless motor. Milawaukee designed the rachets to eliminate the need for hoses, cords or compressors. The ratchets are available as a bare tool or with compact battery packs, charger and carrying case. Milwaukee Tool www.milwaukeetool.com

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

AutoConnect — from hiring headaches to attracting the best! What’s in it for you?

The Challenge: Hiring and retaining the right people is difficult. Where can you find good employees; how much should you pay; and what skills are in demand — data that’s hard to come by. Lack of information on skilled workforce is one of the biggest challenges of the Canadian automotive aftermarket industry. The Solution: We get it. That’s why AIA Canada is building AutoConnect — a website for the automotive aftermarket industry that will show: • labour shortages and surpluses; • compensation data; • skills level and training; • demographic projections of data • and much more.

Being familiar with current employment conditions allows you to plan your hiring strategies effectively and respond rapidly to opportunities. AutoConnect keeps you updated with latest industry standards and best practices. It provides real-time information by province and occupation — so you can hire the best people for the job from anywhere in Canada.

autoconnect hiring the right way - now!

www.aiacanada.com/autoconnect/ Contact: Nermin Ibrahim, Project Coordinator nermin.ibrahim@aiacanada.com

Funded by the Government of Canada's Sectoral Initiatives Program

/AIAOFCANADA @AIAOFCANADA

social media 101 |

rev up

ust as you need to know who your customers are in your brick-andmortar business, knowing whoâ€™s engaging with your website is crucial to maximizing your returns, not just in your social media marketing but your overall online marketing as well. There are numerous data-analysis programs available, some costing hundreds of dollars, that will crunch your online traffic numbers and generate extremely detailed reports. As your business becomes more focused on the online sector, these might be worth 34

But one of the most useful tools for generating the basic stats most businesses need is easy to use, already at your fingertips, and absolutely free. looking into. But one of the most useful tools for generating the basic stats most businesses need is easy to use, already at

your fingertips, and absolutely free. Itâ€™s Google Analytics. Google Analytics analyzes your website traffic in somewhat the same way that Facebook Insights analyzes your Facebook traffic; but it can do a lot more, and in a lot more detail. (And keep in mind, the end goal of all your social media marketing is to drive traffic to your website.) In fact, thereâ€™s a paid version that generates results that rival many more expensive programs. But the free version is a great place to start, since it instantly provides critical

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: SIphotography, iStockphotos.com

Using Google Analytics to

BY LUCIANA NECHITA, AIA CANADA DIRECTOR, PUBLIC AFFAIRS, AND MARTHA UNIACKE BREEN

information about who’s visiting your site: where they live, their demographic makeup, how they arrived at your site and on what devices, and how they engaged with your site once they got there. All of these can give you direct insights into how to build, and retain, traffic. To sign up, you need a Gmail address; if you don’t have one, it’s easy (and also free) to create one. Go to www.google. com/analytics, click Sign In, and create an account. You’ll receive a short line of code called a tracking ID, which you then add to each page of your website. (This is the key that Google uses to measure activity on that page.) When you log in to your Google Analytics account, you’ll see a dashboard, a one-page summary containing graphs and charts of basic data pertaining to your site. It also provides links to more specific types of data that allow you to drill down further. Even the free version of Google Analytics provides a variety of useful and detailed data; in fact, it’s worthwhile to consider taking an online course (along with Google Analytics’ own tutorial, lynda. com offers a good one, as do several others) to fully understand all that this powerhouse tool offers. But we’ll zero in on just three of the most useful analyses you’ll be checking regularly. Audience: This summarizes your visitors and their engagement over the past week, month, or any other time period you specify. It lists age, gender, and location (allowing you to zoom in from country to state/province, city, or region). This is crucial to help you tailor your content to the audience that is following you. For instance, if your audience is primarily Boomers, they won’t appreciate or understand hip references that attract Millennials. If they’re primarily urban customers, a sale on truck or farm accessories might not interest them much.

If one or more of your page results indicate visitors are consistently leaving a page after just a few seconds, it might not merely be because it’s boring – it could indicate a technical problem. Acquisition: This indicates how visitors found your site, pointing you to what’s working to drive traffic to your site and what isn’t. Visitors might find you directly from your Facebook or other social media presence, by referral from other sites, through articles you’ve written (or have been written about you), or simply by word of mouth. But the primary source is usually search engines. Google is the granddaddy of them all and likely to stay that way, though Siri uses Apple’s proprietary search engine, Spotlight, and there’s also Bing, Yahoo, Ask.com, as well as a few others. The goal is to place your web address as high as possible in searchresult rankings. One of the prime ways to achieve this, of course, is by using keywords, so this area shows which words were used to find you, in order of importance. Focus on these words in your content, and voilà, you’ll get better results. Of course, it’s not quite that simple. You might notice that simpler words and phrases (auto repair parts; aftermarket; discount) produce stronger results than technical words or jargon. On the other hand, if you want to pinpoint customers who are interested in a specific item (paintless dent repair; catalytic converters), then use these words more prominently.

JOBBER NEWS / OCTOBER 2017 |www.autoserviceworld.com

Behaviour: This details what visitors do once they’re on your site. Ideally, you want them to stay, surf around your site,

read the information and click on your various pages and tabs, instead of leaving after just a few seconds. (The rate at which they do this is your “bounce rate.”) Behaviour shows exactly which pages are generating the most interest (and what is flatlining), by indicating how often an individual page was clicked, and how long the visitor stayed on it. If one or more of your page results indicate visitors are consistently leaving a page after just a few seconds, it might not merely be because it’s boring – it could indicate a technical problem. Most visitors won’t wait for long seconds while a photo-heavy page loads in, for example; perhaps the page needs redesigning to speed it up. Or if your site has a lot of information, you might need to install a search box to help visitors find what they need, instead of clicking all over your site to ferret it out. To these crucial analyses, you might add another stat: Devices. In 2015, Google announced that it would favour mobilefriendly sites in its search results over desktop-oriented ones. If your site isn’t as easy to use on a tablet or phone as it is on a desktop computer, it’s time for a redesign. These are just a few of the things this marvellous tool can do. More detailed analyses can uncover buying behaviour, income, and a rainbow of other data. But even if you just use it for basic feedback on your site, it’s a gold mine for insights on what’s working in your online marketing – and what isn’t. JN Luciana Nechita is director of public affairs with AIA Canada; Martha Uniacke Breen is contributing editor of Jobber News.

money & management |

IN A CASH CRUNCH? CONSIDER A DIFFERENT OPTION hen conventional financing is not available, it’s time to consider your alternatives. Since the automotive aftermarket is filled with small and medium-sized businesses, it’s not out of the ordinary for a jobber to be in need of a little extra cash from time to time. Conventional sources of financing rely on the borrower’s history (how long in business), their general financial health including profitability, positive cash flow and debt service coverage. If any one of these items does not meet the bank’s criteria, then it’s unlikely that conventional financing will be available. However, options like asset-based lending and purchase order financing are available when you’re in need. Bob Blades is the principal of Liquid Capital Corporate Finance Inc. and has helped entrepreneurial companies that are unable to obtain the financing they need for growth, turnaround, leveraged buyouts and management buyout. Even when a business is on a positive cycle, it may be difficult to get conventional financing. “You have the assets, the accounts receivable and inventory, but the bank will not increase your line of credit as your equity base is insufficient to keep your leverage ratio within the bank covenant,” Blades explained. But if your company has assets to leverage, such as accounts receivable, inventory, equipment and real estate, an asset-based lender can help, he said. If the assets are adequate and can be appraised to determine value, such a lender will provide the needed working capital. They will advance funds against the value of the assets taken as collateral thus providing the working capital needed to grow. Now look at a negative situation. Blades used the example of the loss of a major customer representing 30 per cent of your annual revenues in a situation beyond your control. You have infrastructure, staffing costs and other overhead costs in place for the higher volume that now no longer exists. It’s not feasible to shrink those costs fast enough before operating losses pile up. Now your EBITDA is in the negative and the bank’s covenants view you as offside. Again, consider an asset-based lender. “They look at your financing needs differently.

When financing with an assetbased lender, reporting requirements are usually more stringent than conventional lending.

More due diligence on asset values is determined before they enter into a commitment,” Blades explained. “The liquidation values of assets are determined and an in-depth understanding of the financial position of the company is completed to understand the present circumstances. Losses and red ink are tolerated as long as the asset values cover the loans outstanding on a formula basis.” Furthermore, he added, the lender puts significant emphasis on the jobber’s management ability to overcome the current crisis and return to profitability. When financing with an asset-based lender, reporting requirements are usually more stringent than conventional lending. Industry standards on working capital advances require a borrowing-base certificate to be completed on a weekly basis as a minimum to include margin advances up to 85 per cent of eligible account receivable under 90 days and up to 85 per cent of eligible net orderly liquidation value of inventory. In managing the cash cycle, the borrower deposits all daily accounts receivable collections in a blocked bank account at any chartered bank in Canada controlled by the asset-based lender who sweeps this account daily and applies proceeds to your loan to keep the daily balance at its minimum. As new invoices are generated and inventory is received, a borrowing-base certificate is completed for the asset-based lender to provide fresh cash back to you. The more rigorous reporting actually disciplines borrowers into managing their cash requirements more effectively. This most often creates a better managed company. JN

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A brokerage firm. Contact: mercantilemergersacquisitions.com

BY MARK BORKOWSKI

www.autoserviceworld.com | JOBBER NEWS / OCTOBER 2017

Photo: erhui1979, iStockphoto

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