Jobber News May 2018

BESTBUY CELEBRATES 65 YEARS • TENNECO BUYS FEDERAL-MOGUL

Jobber News Serving S Se Ser ving vin g the the Aut Automo Automotive omotiv tive e Afte A Aftermarket fterma rmarke rkett Sinc S Since ince inc e 11931 93

BIZ TECH

report AUTONOMOUS IS COMING, AND FAST

PLUS SPARK PLUGS UNDER PRESSURE BRAKE MAKERS RESPOND TO CHANGES

MAY 2018

Canada Post Canadian Publications Mail Sales Agreement No. 40063170

O E Q UA L I T Y

Clean, quiet, smooth braking. Assured by Melissa at Akebono. Each day Melissa ensures that every Akebono friction product produced delivers optimal braking performance that is clean, quiet and smooth – ensuring your customers’ satisfaction. Quality — yet another reason why Akebono Ultra-Premium Brake Pads are the best replacement pads for your customers and your business. OEMs demand Akebono, you should too! Get the Essence of Braking®. Proudly made in the USA. ,QFUHDVH SURÀWV 6WRS FRPHEDFNV (OLPLQDWH ZDUUDQW\ LVVXHV 8VH 2( YDOLGDWHG IULFWLRQ ,QFUHDVH ED\ XWLOL]DWLRQ

Melissa W. – Assuring quality in every part in Glasgow, KY.

FACTORY INSTALLED

350 MODELS

akebonobrakes.com

OEM BRAND OF CHOICE

Jobber News

contents | may 2018 » vol. 86 no. 04

Serving the Automotive Aftermarket Since 1931

news

7

20

7

COVER STORY |

Federal-Mogul sold

Tenneco has acquired FederalMogul in a US$5.4 billion deal. Tenneco, which supplies the Monroe and Walker brands, now adds the likes of Champion, Anco and Moog to its portfolio. The company will be split into two after the deal officially closes.

BIZ TECH REPORT

8

Changes just years away Automakers have plans to introduce self-driving vehicles in just a few years. While it will take a few more to really get ingrained in society, the technology will likely be first seen in ride-sharing and ride-hailing environments. This will allow consumers to gain comfort and trust. After that, expect business to pick up.

8

in this issue

18

16

Bestbuy AGM

Bestbuy Distributors celebrated 65 years at its annual general meeting. The group recognized long-time members and handed out hardware to key vendors that supported the group over the last year. It was topped off with a warehouse event the following day.

16

AIA hosts events

AIA Canada held its Young Executive Society Conference in Toronto recently, where the topics of mentorship and innovation took centre stage. The next day was its Knowledge Exchange Series where ‘right to repair’ was the focus for much of the event.

BRAKES |

Brake-ing news As consumers shift to light trucks – the segment represents about 70 per cent in sales in Canada these days – manufacturers of brake components are making the necessary adjustments to ensure their products are matching demand. 18

24

BIZ TECH REPORT |

Filling the void of combustion’s downfall What’s the future of internal combustion engines? What promise does fuel cell technology have? The former will still be dominant, but it will slowly become less common. As for alternatives, many are lining up.

columns

24

28

5 SPARK PLUGS |

Strengthening the spark

Leading off Demanding transparency

33 New products The latest offerings

Spark plugs are under greater duress than before. Forced induction and engine downsizing are creating a ‘severe’ environment, potentially reducing lifespan. That also pushes the need for jobbers to make sure what they’re selling matches the demands of customer vehicles.

36 Money & Management Economic turbulence ahead

38 Business Management 28

Too many playing hooky

Cover image:MarioGuti, iStockimages.com

|

Twitter: @JobberNews |

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

www.facebook.com/JobberNews

3

THE NUTS AND BOLTS OF PROTECTING WHAT MATTERS.

Havoline ProDS with Deposit Shield Technology is a full synthetic motor oil that proactively protects what matters most. ®

®

Proud sponsor of Everyday Drivers. Learn more at canada.havoline.com Proactively responds to the demands placed on modern engines.

EXTENDS engine life KEEPS cars at peak condition MAINTAINS fuel economy REDUCES carbon emissions

© 2018 Chevron Canada Limited. All rights reserved. All trademarks are the property of Chevron Intellectual Property LLC.

CHEVRON CANADA LIMITED 500-5th Ave. S.W. Calgary AB T2P 0L7 Toll Free: 1 (800) 822-5823 canada.havoline.com

CATALYS LUBRICANTS 7483 Progress Way Delta BC V4G 1E7 Toll Free: 1 (855) 946-4226 catalyslubricants.ca

NORTHERN METALIC SALES (GP) 9708-108 St. Grande Prairie AB T8V 4E2 Tel: (780) 539-9555 northernmetalic.com

UFA 4838 Richard Rd. S.W. Suite 700 Calgary AB T3E 6L1 Tel: (403) 570-4306 ufa.com

CHRIS PAGE & ASSOCIATES LTD 14435-124 Ave. Edmonton AB T5L 3B2 Tel: (780) 451-4373 chrispage.ca

RED-L DISTRIBUTORS LTD 9727-47 Ave. Edmonton AB T6E 5M7 Tel: (780) 437-2630 redl.com

49 NORTH LUBRICANTS 1429 Mountain Ave., Unit 2 Winnipeg MB R2X 2Y9 Tel: (204) 694-9100 Fax: (204) 775-0475 49northlubricants.com

CASE ’N DRUM OIL INC 3462 White Oak Road London ON N6E 2Z9 Toll Free: 1 (800) 265-7642 cndoil.ca

TRANSIT LUBRICANTS LTD 5 Hill St. Kitchener ON N2G 3X4 Tel: (519) 579-5330 transitpetroleum.com

LUBESOURCE 351 Caldari Rd. Vaughan ON L4K 4S9 Tel: (905) 695-0781 lubesource.ca

R. P. OIL LTD 1111 Burns St. East Unit 3 Whitby ON L1N 6A6 Tel: (905) 666-2313 rpoil.com

MACEWEN PETROLEUM INC 18 Adelaide St. Maxville ON K0C 1T0 Toll Free: 1 (800) 267-7175 macewen.ca

CREVIER LUBRIFIANTS 2320, Rue de la Métropole Longueuil (QC) J4G 1E6 Tél : (450) 679-8866 crevier.ca

NORTH ATLANTIC REFINING LTD 29 Pippy Place St. John’s NL A1B 3X2 Tel: (709) 570-5624 northatlantic.ca

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 Writers | Mark Borkowski, Bob Greenwood, Geoff Kirbyson, Donalee Moulton Art Director | Barbara Burrows Managing Director, Auto Group & Ntl. Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Peter Bulmer (416) 510-5203 E-Mail: peterb@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) 510-6845 E-Mail: alicia@newcom.ca Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom 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, 5353 Dundas Street West, Suite 400, Toronto, ON M9B 6H8 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Media Inc., 5353 Dundas Street West, Suite 400, Toronto, ON M9B 6H8 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.

MEDIA INC.

Chairman and Founder | Jim Glionna President | Joe Glionna Vice President, Publishing | Melissa Summerfield CFO | Peter Fryters Director of Circulation | Pat Glionna Corporate Offices 5353 Dundas Street West, Suite 400, Toronto, ON M9B 6H8 Phone: 416-614-2200 Fax: 416-614-8861

Association of Business Publishers 205 East 42nd Street New York, NY 10017

ISSN 0021-7050 Online 1923-3477

DEMAND ANSWERS IN WAKE OF TRAGEDY

I

t was bound to happen. Not that you wanted it to, but sooner or later a self-driving vehicle was going to be involved in a fatal collision. And it happened in March in Tempe, Ariz. A woman, Elaine Herzberg, was killed crossing a street at night by a self-driving Uber vehicle. Blame and accusations have been tossed around – the woman was outside of a crosswalk, the backup driver seemed to not be paying attention at the time of the crash – but none As a society, of this will really help anyone. Scrutiny must remain high on this technology but progreswe need sion can’t be halted. to demand It was a tragedy. Full stop. No argument. What is important, transparency however, is to learn from the incident as we move forward. from the Gary Silberg, partner at business advisory firm KPMG, investigation told attendees of the Automotive Aftermarket Suppliers following Association’s Vision Conference in Chicago just days after Herzberg’s Herzberg’s death that he had two key questions following death. the collision: Could a human have saved her life? And could the vehicle have saved her life? To the first question, we don’t know for sure. From the grainy dashcam footage, it appears not. Herzberg appears at the last moment out of the shadows and darkness. The city’s police chief said it would have been “difficult to avoid this collision.” Still, nothing conclusive says a human driver would or could have made the difference. As for the second, it appears to be a bit muddy. The vehicle’s lidar sensor is supposed to work well at night when it is dark, detecting objects from hundreds of feet away. Even if the sensors noticed her on the sidewalk, the system can’t anticipate if a pedestrian will suddenly cross outside of a designated zone. It’s clear that something went wrong somewhere. Unfortunately, it’s reasonable to say that this will not be the last incident of its kind. While Uber has suspended its road tests, General Motors, Ford, Google’s Waymo and Aptiv (formerly Delphi) are just some of the other active players in this space. So the doors are not closing on autonomy, nor is progress slowing. This is amazing technology. The benefits are great. Much of the appeal of self-driving vehicles is the technology’s ability to reduce pedestrian fatalities. As Silberg told conference attendees, too many die from vehiclerelated incidents where a human is behind the wheel. “If yesterday was an average day, around 110 people died from cars,” he said. “I want to put this accident in context … but I also grieve for the 100 people here and however many hundreds more around the world.” Car crashes happen far too regularly that involve drinking, drugs, texting and other distractions that impair human drivers behind the wheel. We are not infallible people. Autonomous technology can take these variables out of the equation. But if the right systems are not in place, are not good enough or are otherwise questionable, then what’s the point? As a society, we need to demand transparency from the investigation following Herzberg’s death. We need to demand transparency from the automakers and tech giants behind this technology to ensure that it is up to our standards. Don’t turn your back on autonomous technology but make sure your questions are being answered. By all indications, we’re just a few years away from it on our roads. JN

JOBBER NEWS / MAY 2018 | www.autoserviceworld.com

5

®

PRECISION ENGINEERING AND PERFORMANCE

BRAKE PADS

EUROMAX brake pads are formulated for import vehicles with outstanding durability and great performance. ECE R90 European Standards Approved Formulations for Audi, BMW, Jaguar, Land Rover, Mercedes-Benz, MINI, Porsche, Range Rover, SAAB, Volkswagen and Volvo. Over 160 SKU’s that covers 95% of North America European applications.

• ECE R90 European Standards Approved Formulations

• Chamfers Allow for Smooth Bedding In to Eliminate Vibration

• Formulation Designed Specifically for Comfortable European Performance

• Excellent Stopping and Braking Performance Level

• Positive Mold Manufacturing Technology • No Break-In Required

• Noise Free Meets AAA Noise Index • Wire Sensors and Clips (where applicable)

• Low Dust for Cleaner Wheels

®

www.autopartsdepot.ca

over the counter |

FEDERAL-MOGUL SOLD TO TENNECO

Photo: ugurhan, iStockphoto.com

A major shakeup has taken place in

the automotive world. Carl Icahn – an activist investor known for buying undervalued assets, improving their operations and then selling them for a profit – has sold Federal-Mogul to Tenneco in a US$5.4 billion deal. Federal-Mogul is the company behind Wagner Brakes, Moog, Anco, Champion and other automotive aftermarket brands. Monroe, Walker and Rancho fall under the Tenneco portfolio. “This is a landmark day for Tenneco with an acquisition that will transform the company by creating two strong leading global companies, each in an excellent position to capture

opportunities unique to their respective markets,” Tenneco CEO Brian Kesseler said in a release. Icahn, who also owns distributor Auto Plus and retail store Pep Boys, will have a combined 36 per cent of Tenneco’s voting and non-voting stock, according to a Tenneco presentation of the deal. He acquired control of Federal Mogul in 2008 and took it private in 2017. Following the acquisition, which is expected to close in the second half of this year, Tenneco will split the company in two – one focusing on aftermarket and ride control and the other a powertrain technology company, the latter of which Icahn will have a seat on its board. JN

AIA RELEASES LABOUR MARKET STUDY From the number of women to years of

experience to what’s important, the Automotive Industries Association of Canada has made key aftermarket information available in a first-of-itskind labour market report. The AIA, which partnered with DesRosiers Automotive Consultants on the study, expects the results to help aftermarket businesses and those working in the industry. Through four bilingual surveys that targeted frontline workers and managers in the collision and mechanical sectors, Labour Market Watch: Status of the Mechanical and Collision Sectors in Canada paints the picture of the workforce in the Canadian aftermarket. Of all 2,500 surveyed, a little over 1,200 were on the mechanical side with 392 of them in the jobber sector – 238 store managers, 62 counter people and 92 drivers. The majority are full-time employees with 65 per cent of managers, 77 per cent of counter staff and 59 per cent of respondents saying so. The vast majority are men – just 17 per cent of managers, 8 per cent of counterpeople and 6.5 per cent of drivers being women. Those in the jobber sector are well-experienced with 45 per cent having more than five years of experience. About four in 10 counter pros are as experienced and about 54 per cent of drivers have been in the industry for between one and five years. Labour Market Watch also includes specific

information on service technicians – which respondents said is the most difficult position to fill and is almost an all-male occupation – apprentices, service advisors, jobber store managers, counter staff, and drivers. Funded by the federal government’s Sectoral Initiatives Program, the data from Labour Market Watch will be put together in an online format called AutoConnect later this year. Announced last March, reports will be made available to find jobs across the country within the industry. Information will include which jobs expect to see growth and decline over the next five years, along with salary information. JN

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

NEW YES CHAIRMAN The Young Executive Society has a new chairman. Brad Cochrane, manager of sales operations at NAPA Canada, will take over from Mevotech’s Derek Chinn. Cochrane graduated from the business administration program at Brock University and was hired at Gates Canada as the marketing co-ordinator. He then was given an outside sales representative position. In 2013, Cochrane was moved up to be part of the sales operations team at NAPA’s Cambridge office, and was then promoted to the role of department manager. “As vehicles continue to become more complex and new players emerge within the industry, we’re in for some exciting but also challenging times ahead,” said Cochrane. “Ensuring that we attract the next generation of skilled technicians and future leaders to the aftermarket is crucial to our success. I’m excited to chair the YES Committee and work closely with others who share a passion about the future of our industry.” JN 7

over the counter | BESTBUY SALUTES BEST, CELEBRATES 65 YEARS Members and vendors gathered in Toronto in late March

Bestbuy donated another $25,000 to the Hospital for Sick Children (SickKids). (l-r) Jeff Van de Sande; Rob Dow (Director); Scott Anderson; Andre Dimopoulos; Gary Thibault; Doug Wilson; Dr. Robert Hamilton; Brad Nahorney; Dr. Mike Seed; Douglas Squires; Dale Devlin. Missing is Gino Morelli.

The Horace J. Pratt Award for Vendor of the Year went to ProMax (Auto Parts Depot). (l-r) Jeff Van de Sande; Doug Curliss; Manuela Vani; Jina Polus; Sam Yako; Faten Kaadan; Ramzi Yako; Douglas Squires; Andy Murphy.

The Bestbuy Partner Award went to Spectra Premium. (l-r) Jeff Van de Sande; Kerry Best Jr.; Jeff Lee; Douglas Squires; Andy Murphy.

8

for Bestbuy Distributors’ annual general meeting. The group is celebrating its 65th anniversary and once again honoured milestones and top achievers. “At Bestbuy, we have great respect and admiration for the relationship we have with our vendors. We believe our vendors are a fundamental component of our success,” said Douglas Squires, Bestbuy chairman, at the evening event. To show this appreciation, the group introduced three new awards last year with another added this year. The Horace J. Pratt Award for Vendor of the Year saw familiar faces return to the front of the room to accept the award. ProMax (Auto Parts Depot) took home the recognition for the fourth straight year. “This vendor has strong category management support, great product assortments, is always introducing new applications, works tirelessly towards furthering the sales of the members and consistently exhibits hard work and dedication,” said Squires. Spectra Premium won a new vendor honour, the Bestbuy Partner Award, which is determined by the Bestbuy management team. The Marketing Partner Award, which went to Mevotech, goes to a vendor that shows support for Bestbuy and its members in marketing and promotion. “In addition, the knowledge and experience of their field reps is one of the best in the market. They think outside the box to achieve desired results and are very satisfactiondriven when dealing with installers,” Squires said. The Rising Star Partner Award recognizes business partners that show leadership in the aftermarket and commitment to Bestbuy and its members, Squires said. The winner was Baldwin Filters. The Cornerstone Award went to Dorman Products. “I believe this vendor has taken a pro-distribution stance and it is important other vendors act in a similar manner and minimize the circumventing of program distribution, which is undermining the aftermarket industry,” Squires said. A special award for the company, the William Elton Outstanding Support Award, was also announced by Squires. This award is open to members, individuals and vendors in recognition of dedicated support, loyalty and contribution and friendship. It was presented jointly to Brad Shaddick and FederalMogul Motorparts. Bestbuy also continued its annual contribution to the SickKids Family Heart Centre with another $25,000 presented to Dr. Robert Hamilton and Dr. Mike Seed. More than $800,000 has been donated to date. Attendees were then treated to a musical performance by the Painchaud family, a group that wowed the crowd with its ability to play multiple instruments – even on fire at one point – and songs from multiple generations. The festivities wrapped up the next day at Bestbuy’s warehouse where members took in the latest from vendors who showed off new offerings. JN www.autoserviceworld.com | JOBBER NEWS / MAY 2018

August 8 – 10, 2018 Georgia World Congress Center Atlanta, GA

The Marketing Partner Award went to Mevotech. (l-r) Jeff Van de Sande; Scott Stone; Ezer Mevorach; Derek Chinn; Douglas Squires; Andy Murphy.

YOUR FUTURE.

YOUR BUSINESS. YOUR TIME. DISCOVER INNOVATIONS TECHNOLOGY & EQUIPMENT

GET TRAINED BY EXPERTS TRENDS & TECHNIQUES

MAKE NEW CONTACTS The Rising Star Award went to Baldwin Filters, (l-r) Jeff Van de Sande; Chris Endicott; Douglas Squires; Andy Murphy.

CONNECT & NETWORK

REGISTER TODAY! NACEAutomechanika.com/ads11

The Cornerstone Award went to Dorman Products. (l-r) Jeff Van de Sande; AJ Alvarez; Jason Robinson; Mark Nasra; Mark Stermer; Derek Suen; David Robinson; Andrew Connor; Douglas Squires; Andy Murphy

Stay Connected! @AutomechanikaUS @NACEAutomechanika

The William Elton Award went to Brad Shaddick and Federal-Mogul Motorparts. (l-r) Jeff Van de Sande; Gerry Leaman; Sharon Leaman; Andy Murphy; Andre Dimopoulos; Don Ullman; Marcy Ross; Gilles Lecompte; Angie Shaddick; Brad Shaddick; Jim Miller; Steve Chan; Doug Wilson; Douglas Squires.

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

9

over the counter |

MEMA WANTS GREATER CONSUMER FREEDOM FOR AUTO REPAIR the United States as American shops are at risk of contravening copyright laws when working on vehicles and restricting customers when seeking auto repair, according to the Motor & Equipment Manufacturers Association. The MEMA and two of its divisions – the Automotive Aftermarket Suppliers Association and the Motor & Equipment Remanufacturers Association – say the changes are will also help protect consumer freedom and choice when in need of automotive service and repair. At issue is the Digital Millennium Copyright Act, commonly referred to as DMCA. The parties are asking for exemptions in order for independent repair facilities to access and service software on behalf of customers. The MEMA submitted comments recently to the U.S. Copyright Office expressing its concerns, saying the current “narrowlytailored exemption” – which states that only authorized owners of the vehicle are allowed to get around copyright concerns – are inadequate. With today’s technology and ageing population, it’s increasingly difficult for people to work on their own cars.

This forces a trip to see a professional. However, shops may have to turn away the work for fear of DMCA, forcing car owners to visit a dealer’s repair centre. “Under the existing exemption for vehicle diagnosis, repair, and modification, the Copyright Office has made it impossible for independent service providers to circumvent access controls on vehicle [engine control units] without risk of DMCA liability, even when acting with express instructions from a vehicle owner,” it wrote. Consumer freedom is at risk, said Bill Long, AASA president and chief operating officer and executive vice president, government affairs at MEMA. “This is an important issue for MEMA, AASA and MERA, striking at the heart of consumers’ freedom to choose where their vehicles are maintained and how they are repaired,” he said in a statement. “We will continue to work with the U.S. Copyright Office to ensure that the voice of automotive aftermarket suppliers is heard on this issue.” JN

AIA PARTNERS WITH CFIB

π STOCK YOUR WAREHOUSE

ORDER BY 6 PM FOR SAME DAY SHIPPING

COMPLETE CATALOG

1-800-295-5510 10

Members of the Automotive Industries Association of Canada will see new benefits following the announcement of a new partnership with the Canadian Federation of Independent Business (CFIB). The two have come together to provide a better rate for membership in CFIB, allowing access to CFIB’s business resources and savings programs. The benefits for AIA members include having business counsellors in every province to answer questions from human resources to regulatory compliance. The members will also be provided with savings around $5,000 or more a year on services they use for their business including credit card agreements. Recently, the CFIB negotiated with both MasterCard and American Express for deals for its members that involve payment processing, shipping and payroll services. “CFIB’s ability to represent the small to medium business community and achieve major victories working with governments of all political parties, alongside AIA Canada’s own lobbying impacts and its commitment to the growth and prosperity of the aftermarket, makes for an excellent working relationship between the two associations,” said Jean-François Champagne, president at AIA Canada. “This strategic partnership combines the power of CFIB with the expertise of AIA,” said CFIB president Dan Kelly. “With more than 45 years of experience and 110,000 members, CFIB understands the challenges small and medium-sized businesses face and has the resources to help them succeed. This complements AIA’s unmatched understanding of issues facing business owners in the automotive sector and brings tremendous value to their members.” JN

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

Photo: da-kuk, iStockphoto.com

Changes are being called for in

Seems simple enough ...

If it’s not in a MOOG box, it’s not MOOG. ®

Professional technicians know there’s only one MOOG. They also know the only place you’ll ever find MOOG parts, is in a MOOG box. If someone tries to tell you otherwise, they’re no angel.

Do be tempted by empty promises. Don’t Watch and learn why at moogparts.ca W moogparts.ca

#ijustwantmymoog

IT’S WHAT’S &+0&"ß…

As a wholesale distributor, you are the lifeblood of the businesses you serve. RÐ .#6 ÐWMS¦JJÐ˿LBÐ?JJÐRFCÐAPGRGA?JÐAMKNMLCLRQÐWMSÐLCCBÐRMÐFCJNÐICCNÐWMSPÐ ASQRMKCPQÐF?NNW Ð$PMKÐRMMJQÐ?LBÐRCAFLMJMEWÐRMÐ@SQGLCQQÐQRP?RCEGCQÐ?LBÐ K?PICRGLEÐRCAFLGOSCQ Ð .#6ÐUGJJÐCLQSPCÐWMSÐBML¦RÐKGQQÐ?Ð@C?R

,!1, ß/à ͽạ̀à+,3ß* ß/à à ͽ àà *?QÐ4CE?Q Ð,4ÐÐZÐÐ1?LBQÐ#VNMÐÐ !,*ßà0ßßà4% 1¨0à&+0&"ß

REGISTER

TODAY

|

aapexshow.com

DORVAL AUTO PARTS CELEBRATES 10 YEARS OF WALKATHONS This past September, Quebec-based

Dorval Auto Parts celebrated their 10th anniversary walkathon on behalf of Hope & Cope’s cancer exercise program. Alex Trichas, co-owner at Dorval Auto Parts, and cousins Nick, Chris and Andre Dimopoulos, along with friend Gus Anagnostaras created the event to raise awareness of cancer patients and survivors, and give other people the chance to be a part of the cause. Over 200 people come to the From left, Alex Trichas, Chris Dimopoulos, Nick Dimopoulos, Andre walkathon every year where they can Dimopoulos and Gus Anagnostaras present a cheque to Hope & enjoy being with family and take a Cope’s board of directors following Dorval Auto Parts’ walkathon 7 km walk for the cause, followed last fall. by a barbeque and raffle prizes. The event takes place at Parc St-Maxime in Chomedey, Laval. and Gus were able to present a $69,000 cheque to “We always tell people, ‘You don’t even have Hope & Cope’s board of directors. to finish the walk – just come and enjoy yourself,” “Speaking on behalf of the entire Hope & Cope Chris said. “While people come for the family family, we thank you for your outstanding and atmosphere and the free food, after so many years, sustained commitment to our cause,” said Suzanne they are familiar with Hope & Cope and pleased to O’Brien, chair of Hope & Copes’ board of directors. support the cause.” The next Dorval Auto Parts walkathon will be After hosting the walk, Alex, Nick, Chris, Andre September 9, 2018. JN

SERVICE AWARDS Uni-Select Atlantic handed out a pair of Member Service Award recently. (left photo, l-r), Keith Farrell, Uni-Select business development manager, presents a 15-year service award to Craig Russell with D & L Russell in Blaketown, Nfld. (right photo, l-r) Jeff Austin, Uni-Select business development manager, presents a 25-year service award to Jonathan Brown with Northside Auto in Fredericton, N.B.

WINHERE NABS GREEN MANUFACTURERS AWARD Winhere Auto-Part Manufacturing Co., Ltd. was named as one of the winners of the National Green Manufacturers Award by China’s Ministry of Industry and Information Technology. Only 409 winners were named out of several million companies in the country. China’s Industrial Green Development Plan’s goal is to improve energy efficiency and technical capabilities while also attempting to reduce pollution.

CORRECTION

In the April 2018 issue of Jobber News, a quote was attributed to the wrong person. The quote, “The aftermarket vehicle with 60,000 kilometres on it isn’t the same vehicle that rolled off the dealer’s lot. (Wear and tear) in chassis and suspensions will change the performance and impact other parts of the vehicle. For example, if the springs start to sag, they’ll change the ride height of the vehicle. As the parts age, they can also start to accelerate the failures of other parts,” was made by Gord Paton of Mevotech.

Time to focus on FEAD! INA sets new repair benchmark. Perfectly tailored to each respective vehicle, the INA Front End Accessory Drive KIT contains everything you need for a sustainable repair. Nothing more, but nothing less. Further information: www.repxpert.ca JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

13

www.bestbuydistributors.ca

Bestbuy Distributors

THE GROUP FOR INDEPENDENTS or John Brunelle, owner of Spruce

F

behind the counter over summers and

years among them – an impressive record,

Grove, Alta.-based Part-Stop, the

after school. After earning a B.Comm. in

and a great resource for both commercial

best thing about Bestbuy member-

accounting at the University of Alberta, he

and retail “partners,” as he prefers to call

ship is exactly what sets it apart from other

worked with Price Waterhouse, but came

Part-Stop’s customers.

chains and buying groups: it offers the sup-

home and took over the business when his

port and resources that help the indepen-

parents retired in 1999. But over the next

being part of an association was a logical

dent jobber stay in the driver’s seat.

few years, he began to notice a shift.

next step. But he wasn’t interested in the

Born and raised just outside Spruce

“Because cars are so much more

As the company grew, he realized that

kind of chain that dictates product mix,

Grove, John grew up in the family business,

complicated today, they’re more difficult

marketing and even how you paint your

which was founded by his dad in the mid-

for DIYers to fix on their own. So I

store, from a detached, disconnected and

seventies. “My dad was always handy,

began looking for a more consistent

centralized head office that is situated

always a fixer-upper,” he recalls. “There

revenue stream, and set out to grow the

provinces away.

was always an old car or two around our

commercial side of the business. But we

yard that he was working on.”

have never turned our backs on the walk-in

pendent distributor and take pride in that

customer; they are truly the heart and soul

fact. But there are certain advantages to

of our business, without question.”

association. So originally, we became part

For many years, his dad’s interest in fixing up old cars made Part-Stop the go-to place

“We are a small, western Canadian inde-

of a regional association called Indepen-

for do-it-yourselfers, he says. “We were kind

John says with pride that his sales and

of the oddballs in the business back then. A

office team add up to a total of 210 years of

dent Distributors Ltd.” Brunelle went on to

typical jobber might be 70-75% commercial

experience, not including his 40-plus years:

become president, and as its membership

garage business, with the rest retail and

sales team members Arnold Gabel and

increased, he says, “We were looking at

DIY, but we were the exact opposite. The

Bruce Krysa have been aboard for some 33

how we could continue to grow, while still

walk-in customer has always been very

years, and he speaks with special respect

remaining western Canada-based. The

important to us, and we have the expertise

for longtime office manager Lorie Ocloo (26

options were to either join a larger group or

to help the DIYer who is changing an

years), who recruited her sister Lisa Murphy

partner with a warehouse distributor.”

alternator or timing belt for themselves.”

and eventually, niece Mikayla Murphy, to

They talked to several buying groups,

work with her in the office. Commercial

but knew immediately when they met with

owned business, sweeping floors and

sales team members John Boudreau, Steve

Bestbuy Distributors that they’d found what

stocking shelves, then moved up to working

Woloszyn and Dave Willis add another 44

they were looking for. “The fit, the entire

He started out as a typical kid in a family-

make-up of Bestbuy was perfect for us; it was like meeting long-lost friends.” Bestbuy prides itself on working in partnership with its members, rather than controlling business functions and decisions from a central head office, a philosophy that suits jobbers who are accustomed to making decisions that suit their own local markets.

John Brunelle, owner of Part-Stop in Spruce Grove, Alta.

ADVERTISEMENT

The team at Part-Stop. (back row, l-r) Josh Zilke, Fred Sharrun, Steve Woloszyn, David Willis. (fourth row, l-r) John Boudreau, Brett Fairs, Arnold Gabel. (third row, l-r) Bruce Krysa, Lorie Ocloo, Lisa Murphy. (second row, l-r): Angie Peters, Mikayla Murphy. (front) John Brunelle.

One area that had been of particular

ment team, as it began to conduct research

success we currently enjoy without them.

interest to many IDL members was having

into, and eventually opened, Bestbuy’s own

access to a regional warehouse, rather

western Canadian DC in Edmonton. The

best business advantage of being part

than importing parts from as far away as

result is that its membership in western

of Bestbuy Distributors. To be honest, if

Ontario or Quebec. They also wanted to

Canada has continued to grow.

you want a lot of guidance and direction

retain some autonomy in their product mix,

“Bestbuy is not autocratic or ‘ivory tower’

“Flexibility and autonomy is really the

on how to run things, Bestbuy might not

with the freedom to carry multiple brands

about the way they run things; everything

be the right group for you. But for the

and products that suited each store’s

that was done out here was done in

independent thinker who wants to stay

unique clientele.

consultation with us. I keep referencing

themselves, while taking advantage of

back to the ‘family’ idea of how they do

the marketing power and expertise of a

diately swelled Bestbuy’s western Canadian

The infusion of the entire IDL group imme-

business; instead of pushing ideas down on

national buying group, Bestbuy offers the

presence considerably, and demonstrates

us, they work with us. And for our part, we

best and most diverse set of tools to help

the flexibility of the buying group’s manage-

wouldn’t have anywhere near the level of

your business prosper and do better.”

| AIA YES & KES

BY ADAM MALIK

SEEK A MENTOR, BUT ALSO BE ONE

S

usan Hitchon remembered walking into a room at an industry event and the feeling that comes with not knowing a single person. Around her were 300 people. “I was by myself and I went, ‘Oh my god, what am I doing here?’” recalled the head of global new business development, special markets at Schrader International. “I was so intimidated. I was frightened. And not a single person introduced themselves to me.” Hitchon told her story at the latest Young Executive Society Conference held in late March near Toronto. She was the industry mentor and pushed the idea of not just seeking out a mentor, but to be one as well. Going back to her story, she told more than 60 attendees about how she learned to walk up to people and introduce herself. What would have (from left) Susan Hitchon of Schrader spoke about mentorship at the Young Executive Society helped was to have a mentor-type Conference in Toronto recently. Ted Graham from GM was the keynote speaker. person who could help make those connections. Of course, having a mentor for yourself is important. But don’t stop at just He encouraged attendees to think I was by myself and one – having a few guides is not just ideal, about innovation. It doesn’t matter if your I went ‘Oh my god, but also imperative, she said. company is big or small when it comes what am I doing here?’ I “I think it’s really important to have multo thinking about the next big idea. A big was so intimidated. I was tiple mentors and that your mentors are company with more resources doesn’t frightened” different for the different aspects of your mean it can be more or less innovative life,” Hitchon said, adding that mentors than a small company that may be more – SUSAN HITCHON, SCHRADER INTERNATIONAL should also include someone in a similar agile and able to adapt to change. age range. “It’s something we have to do together,” “We typically think of mentors being Graham said. “It’s a matter of being able to make inroads in vehicle reprogramming. older than us, wiser than us,” she said. collaborate in order to actually have great He said banner programs and buying “But I really think there’s value in peers impact.” groups that purchased large reprogramyour own age who are living through the ming bundles for a discount would have same things you are.” Right to repair at KES a market advantage and the cash-flow to The day also included a talk from Ted The following day, more than 100 industry offer technical support. Graham, head of open innovation at Genpros gathered for the AIA’s Ontario Knowl“We already get a discount on OEM eral Motors. He shared his experience of edge Exchange Series where “right to parts. Update files are OEM parts as well. driving for Uber where he gained insights repair” was a primary focus. It makes no sense to have to fight to buy into what it means when a company Attendees heard from a series of speakthese parts if we could be the OEMs’ bigclaims to be “the Uber of” something. ers stressing the importance of taking the gest customers,” he said. “We could drive What the ride-hailing company excels at Canadian Automotive Service Information this market.” is customer service. It strives to make sure Standard (CASIS) to the next level. He called for an industry-wide IT soluthat passengers are well taken care of. The Perhaps the most provocative idea tion – mirroring what the OEMs have in company disrupted the taxi industry, not came from Quebec diagnostician and place for their own technicians. dissimilar to how the automotive industry entrepreneur Michel Julien, principal at “This is the direction I think we need is facing its own challenges from outside Team Xtreme Tech. He said the aftermarto go,” he said. “The turning point is right players. ket needs to use its size to its advantage to now. We can’t wait any longer.” JN

‘‘

16

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

Need Premium Foreign Nameplate Parts?

CHECK WITH BECK Anyone can sell you replacement parts. But Beck/Arnley parts meet foreign nameplate OE specifications for form, fit and function. Our product specialists work with a network of global sourcing partners so you can install the right part with confidence. With 24,000 parts that cover 80 makes and nearly 1,800 models — if it has to be a match for your foreign nameplate vehicle, Check with Beck.

Braking | Engine: Electrical | Engine: Mechanical | Fluids | Steering/Suspension/Driveline

BeckArnley.com

market tracker | brakes

PASSENGER CARS GIVING WAY TO LIGHT TRUCKS AND SUPPLIERS ARE KEEPING UP

T

here is a universal truth when it comes to cars: SUVs and crossovers own the road. Globally they represent the fastest-growing segments in the auto industry. In Canada, there are more light trucks than passenger cars. This reality is reshaping aftermarket parts and sales. When it comes to avoiding an abrupt halt, suppliers are developing calipers and brake systems to perform as well for this segment as any non-SUV segment, said Dan Caciolo, head of product management for Continental Independent Aftermarket North America Powertrain and Brake Systems in Allentown, Penn. “Performance attributes such as good brake pedal feel, modulation, dust, roughness, and noise are being developed to perform as well as other vehicle segments where a high level of braking satisfaction is required and expected,” he said. The devil is in the details for drivers and their aftermarket suppliers. But it starts with the manufacturers, said Brian Kowalski, vice president of branded sales with Brake Parts Inc., in Vancouver. 18

“The small details in a pad make a difference when it comes to CUVs, SUVs and trucks, so it is critical that load, driving situations and weight are all considered during the research and development process. To fully service all applications and platforms, a manufacturer needs to offer a wide array of friction formulas.” Friction formulations must be developed and selected based on the class of vehicle, the year and platform, and the type of driving that will be done with the vehicle. Great friction formulas are not necessarily great for all uses. “The platform may fit, but the use of the vehicle may require a different formula if it is to be used for commercial situations, under heavy loads, for frequent towing, or other high energy requirements,” noted Kowalski. In response to the new wave of vehicles hitting the road, vehicle manufacturers and their brake suppliers are designing braking systems that can meet the demands of multiple platforms. The OEs will typically develop a system to meet the

requirements of their full-size SUVs and then those technologies will trickle down to smaller platforms, such as crossovers and passenger cars, said Christopher Battershell in Southfield, Mich., director of braking product management in North America with Federal-Mogul Motorparts, supplier of the Wagner Brake brand. “As a result, many smaller late-model vehicles are equipped with more robust braking systems than they might have been in the past,” he said. Still, vehicle type is not the primary driver to brake design. Duty cycle and energy loading are the key vehicle parameters impacting vehicle brake design, notes Eric Roszman, vice president of research and development in North America for Akebono Brake Corporation in Farmington Hills, Mich. “Many crossovers and compact SUVs share the same foundation brake system as their sedan cousins. Because of the

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

BY DONALEE MOULTON

“

To fully service all applications and platforms, a manufacturer needs to offer a wide array of friction formulas.

”

– BRIAN KOWALSKI, BRAKE PARTS INC.

additional weight and additional weight transfer, because of the higher center of gravity, the front brakes may operate at higher temperatures.” Rotor size, dynamic weight transfer, vehicle weight, and foreseeable use of the vehicle are all critical factors in determining the correct brake formulation, he added. “Friction material should be closely matched to the energy load of the vehicle, not necessarily just to the size of the vehicle.” Ensuring the right brakes are installed in new vehicle classes goes beyond materials and manufacturer. Customer expectations need to be understood and met. “The type of friction material paired with a particular brake system arguably has as much to do with if not the most to do with meeting the expectations of the customers of each class of vehicle,” said Caciolo.

Someone driving an entry-level car often cares most about being able to stop predictably and noiselessly with low to moderate effort, he notes, while the performance sector cares about an extreme level of deceleration regardless of other factors. Somewhere in the middle are the luxury brand customers looking to achieve the best of both worlds: predictability, high deceleration, low dust, no noise, and more. Meeting expectations requires education. Jobbers need to look beyond suppliers’ marketing assertions, said Battershell. “It’s simply not enough to claim a brake pad ‘meets OE specifications,’ ‘reduces noise,’ or ‘offers longer life.’ Look for test results conducted to simulate real-world operating conditions.” Service for brakes is becoming an increasingly important competitive opportunity for service and repair shops. Consumers are sensitive to changes in braking characteristics after they’ve had a repair and both the brake pad design and friction formulation need to match each vehicle’s unique attributes, said Battershell. “Shops that get it right in selecting brake pads designed for today’s vehicles are more likely to gain and retain customers, while those that rely on older pads designed for older vehicles are likely to experience more comebacks.” As obvious as it sounds, not all brakes are made the same. Caciolo cautions jobbers not to discount the engineering and design time OEMs take to pair the proper formulation to the brake system and vehicle. “Due to a lack of braking standards in North America, you will find several very low-grade options disguised as viable options,” he warned. “Work with your suppliers to educate yourself on the quality of products they provide, if they are an OEM, and what they recommend for your customer base.” Presently, the focus is on one specific part of the braking system, noted Batter-

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

shell. “Where we’re seeing the greatest product differentiation is in the brake pad itself, where it is critical for manufacturers – both at the OE and replacement levels – to use sophisticated modeling technologies, laboratory analysis and on-vehicle testing to develop an ideal pad design and material for each application,” he said. Jobbers will also want to familiarize themselves with the new and emerging trends in brake pad designs and technologies. The next wave is toward copper-free friction materials. The trend on lighter SUV and CUVs has been ceramic pads. Now heavier vehicles are also coming equipped with ceramic brakes. “Ceramics can produce lower dust and quiet operation,” said Jerry Forystek, director of friction product development with Brake Parts Inc., in McHenry, Ill. “However, using ceramic on heavier vehicles that came OE with a semi-met may challenge vehicle braking performance.” Jobbers, technicians, and the aftermarket in general also need to be wary of copper-free friction materials that are not genuine ceramic materials, said Roszman, noting that, in some cases, older semimetallic friction formulations are being reconstituted. “These formulations, while copper free, will not have the noise, dust, and judderfree performance of a well-developed ceramic,” he said. “Government regulation,” Roszman added, “is also influencing basic brake design to enhance their environmental impact.” Another trend is cars that come equipped with higher-performance brake systems usually with fixed calipers. Electric parking brake calipers with motor gear unit integration allow parking functionality and are becoming the choice of many OEMs over the more traditional drum in hat style parking systems, noted Caciolo. JN 19

cover feature | Biz Tech Report

ADVANCEMENT OF AUTONOMOUS SET TO

accelerate Photo: chombosan, iStockphotos.com

But how will robots and humans co-exists on our roads?

I

n the next five or so years, most if not all major automakers plans to have a self-driving vehicle available for customers to purchase. But given the expected high price point combined with skepticism from the general public, drivers of today’s vehicles may not find themselves competing for road space with automated cars right away. 20

As with other highly-anticipated electronics – remember how expensive DVD players were when first introduced to the market? – as prices fall and trust builds, expect self-driving vehicles to be commonplace. How common? IHS Markit pegs the number at 33 million units by 2040. It may sound small in the grand scheme of things

but consider that the analyst firm expects just 51,000 units on the road in 2021. In 2025, one million self-driving vehicles are expected to be sold, it predicted. The key driver will be the shared mobility ecosystem as the “mobility-as-a-service system will first bring this technology to the masses before individual ownership of autonomous vehicles enters the pic-

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

BY ADAM MALIK

“

Autonomous mobility services can deliver newfound personal freedom to the young, old, disabled and others without reliable transportation for everyday needs but the benefits don’t have to stop there.

”

– JEREMY CARLSON, IHS MARKIT

ture,” IHS said in a report released earlier this year. In fact, trust is already growing amongst consumers. Deloitte, a professional advisory firm, asked Canadian consumers if they felt fully self-driving vehicles would be unsafe. In 2017, more than two thirds – 69 per cent – said yes. Fast-forward to 2018 and that number dropped to 44 per cent, according to the firms’ 2018 Global Automotive Consumer Study. And that’s a pretty consistent occurrence around the world. In Germany, the number of fearful consumers dropped from 72 per cent to 45 per cent. The

United Kingdom went from 73 per cent to 48 per cent. The number of concerned Italian consumers dropped from 66 per cent to just 30 per cent. “However, even though the survey results suggest a positive directional trend for autonomous vehicles, it still leaves almost half of consumers in most markets doubting the safety of this technology,” Craig A. Giffi, Joseph Vitale, Jr., Thomas Schiller and Ryan Robinson, automotive group leaders at Deloitte, co-wrote in the report, adding that they expect “acceptance of autonomous vehicle technology to grow more favorable with real-world positive experiences.” Global market research company Ipsos found that Canadians and Americans are unique globally in their feelings towards the technology. A quarter of people in both countries said they were dead-set against self-driving cars, saying they opposed the technology and would never use it. In 28 other countries, that number was just 13 per cent. Only 18 per cent of Canadians are in favour, compared to 22 per cent in the U.S. and 30 per cent globally. The remainder said they were unsure. Still, the aftermarket should be preparing for the technology because it is indeed coming. The United States – where fears of automated technology fell from 73 per cent to 48 per cent, according to Deloitte – is expected to be the first to deploy the technology in the world as mobility service fleets are expected to ease concerns among doubtful consumers. The ability to see automated vehicles first hand, according to IHS, will help reduce concerns. It’s expected that 7.4 million units per year will be sold in 2040. “Mobility-as-a-Service is a boon to autonomous driving, and it will help prove and improve the technologies while allowing the industry to reimagine the relationship

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

between the car, the driver and the user experience,” said Jeremy Carlson, automotive analyst principal at IHS Markit. Once people get to experience the freedom the technology allows, plus the health benefits tied to better air quality thanks to electric vehicles, Carlson expects minds to change and investments to pay off. “Autonomous mobility services can deliver newfound personal freedom to the young, old, disabled and others without reliable transportation for everyday need. But the benefits don’t have to stop there,” he said. “Fleet operators in big cities who better understand the lower operational costs of battery electric vehicles are more likely to employ them to drive higher amounts of vehicle and passenger miles travelled.” Canada, along with Japan, South Korea and Australia, is expected to see self-driving cars as early as 2022, thanks to “favourable conditions” such as regulations and the strength of the local auto industry. Other global markets, however, “are expected to experience more roadblocks that bring late initial deployment and low adoption of autonomous driving overall.” Co-existing Business advisory firm KPMG surveyed 900 executives for its annual Global Automotive Executive Survey 2018. By 2020, they figure 40 per cent of all vehicles will be personally owned vehicles. By 2030, that number will drop to 35 per cent. In 2040, 30 per cent of vehicles will fall under this category, but it will still own the largest share. Mobility-as-a-service will be in the 20-22 per cent range over that time with personally owned autonomous vehicles in a similar range at 22-24 per cent. Mobility-as-a-service won’t be much different either, owning a 21 over cent share in 2020 and growing to 24 per cent continued on page 23 in 2040. 21

Ask for

WHEN IT COMES TO IGNITION, GO WITH THE BRAND YOU TRUST.

THE IGNITION SPECIALIST Find out more at ngksparkplugs.ca

TM

cover feature | Biz Tech Report

It still represents a changing reality. “The survey’s results indicate that different mobility concepts will co-exist and their progression will impact business models, infrastructure and social aspects,” KPMG’s report said. “For example, autonomous mobility-as-a-service would be nothing other than a different form of public transport, which could make parts of today’s conventional public transport systems obsolete.” One challenge that will face early adopters is how robot-operated vehicles will co-exist with human drivers. About three-quarters of the executives surveyed believe that mixing the two types of drivers will lead to severe safety issues. As a result, KPMG recommended secured spaces as a way to keep both parties separate. “Secured spaces for an interim time might be a solution to disconnect autonomous vehicles from the complexity of today’s car environment, making it nearly impossible to include every eventuality into an algorithm,” it said. “Starting by establishing exclusive car lanes for autonomous vehicles that are separated from the environment, those eventualities will be limited – if it works for trains why shouldn’t it work for cars?” Of course, that’s not without its challenges. Cities around the world are not currently built to accommodate this possibility. KPMG acknowledged this, saying, “City centres would have to change completely and the challenge would then be to co-ordinate totally different systems and infrastructures to simultaneously persist and communicate in traffic.” And, of course, there’s the question of money. “If the majority opinion of execs proves to be true, that a fully working and effective driving policy and regulations for autonomous vehicles will be set up by 2030 the latest and that mixed traffic is not possible, it is unlikely that fully autonomous vehicles and human drivers will use the same roads,” the report said. “As a result, we will see the trend of separation instead of integration and with it the implementation of new road concepts and traffic systems over the next 10 years.”

“

If the majority opinion of execs proves to be true … it is unlikely that fully autonomous vehicles and human drivers will use the same roads.

”

– GLOBAL AUTOMOTIVE EXECUTIVE SURVEY 2018

Still, according to IHS, it’ll take 20 years for society to see a decent number of self-driving cars, and only in certain parts of the world. The bulk of automated vehicles are expected to be found in the U.S., China and Europe, combining for 27.4 million units by 2040, IHS noted. As technological capabilities grow, so too will the reach of automated vehicles. “As operational areas expand, miles travelled and the business opportunity increase considerably. Business decisions – battery electric vehicle versus hybrid, how to deploy cybersecurity, data privacy and monetization – will become even bigger differentiators than they are today,” said Egil Juliussen, director of automotive technology research at IHS Markit. “The integration of technology and the driving experience is in full force as autonomous driving and collision avoidance are fast becoming the top technology focus points for original equipment manufacturers,” said Peter Hatges, KPMG Canada’s national automotive sector leader. “As these trends develop further, technology companies will continue to have a significant impact on the driving experience and driver safety.” Whom do you trust? But who can put out the best, safest options for our roads? Almost half of Canadians believe traditional car manufacturers are best suited, according to Deloitte’s study. One-third believe a new company will be best, while almost a quarter think an existing tech company can do the job. That’s more or less consistent with many other countries. Americans are a bit more trusting of traditional OEMs and less so of new players. In Japan, however, three-quarters believe automakers are most trustworthy, with just 10 per cent putting their faith in an existing tech company. On the other end of the spectrum, half of consumers in Southeast Asia believe in existing technology com-

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

panies and only 13 per cent trust OEMs. Deloitte noted the reason could be lack of strength of automotive brands in this market. But at the end of the day, the proof will be in the pudding: show consumers that automated technology is safe and reliable. So far, that’s a work in progress. There has already been one death linked to an autonomous vehicle. There was a fenderbender involving a self-driving shuttle in Las Vegas, as well. Whenever these incidents occur, “the result is similar: consumers who seriously question the readiness of the technology,” Deloitte’s Giffi, Vitale, Jr., Schiller and Robinson wrote, later adding “several companies, including some of the largest tech companies in the world, have been testing autonomous technology for many years with relatively few issues, but it only takes one negative incident to destroy much of the goodwill, faith, and interest built up around these long-term R&D experiments.” As for fears around hacking – 75 per cent of respondents to an American International Group poll listed vehicle hacking as an issue of concern – Deloitte found that the majority of consumers would feel more comfortable with this technology “if governments would implement standards and regulations to help ensure manufacturers are taking cybersecurity issues as seriously as possible.” There are reasons to believe full autonomous driving won’t be in most of Canada anytime soon – for example, snowcovered roads will cause problems – that doesn’t mean it can be ignored. “The safety improvements, potential cost-saving, and increased convenience might well prove a trifecta of benefits that can trump any sort of political discord,” said Clifford Young, U.S. president of Ipsos Public Affairs. “But social change on this scale does not happen without conflict, and those who do not plan for it will be the first to see their plans derailed by our age of uncertainty.” JN 23

cover feature | Biz Tech Report

“

Alongside the technical improvements in alternative powertrain technologies, we have seen a step-by-step consumer mind shift towards embracing new technologies in recent years.

”

– GLOBAL AUTOMOTIVE EXECUTIVE SURVEY 2018

FUTURE OF COMBUSTION, PROMISE OF FUEL CELL Reports of the death of traditional engines have been slightly exaggerated

Photo: James Brey, vladacanon, iStockphotos.com

I

nternal combustion engines are not going the way of the dodo any time soon. But that doesn’t mean anyone should be resting on their laurels – these engines that many grew up with are certainly going be far less common sooner rather than later. What will fill the void? According to the Global Automotive Executive Survey 2018 – an annual report from business advisory firm KPMG – it will be a combination of hybrids, battery electric vehicles and fuel cell electric vehicles sharing the road along with internal combustion engine. Of the 900-plus executives surveyed, more than three quarters – 77 per cent – of them believe traditional engines will 24

be more important than the other options “for a very long time.” Automakers were once – and perhaps still are – focused on reduced fuel consumption as a way to attract car buyers. But, the report said, reducing the carbon footprint may now be the driving force for new powertrain technologies. “Technological advancements were hardly used to reduce CO2 emission, but instead emissions and fuel consumption were kept on a fairly constant level, while OEMs produced larger cars leading to the growth of the SUV segment,” the survey said. “The technology agenda will therefore change – while in the past it concentrated

on consumption, in the future it will focus on the CO2 emission footprint.” There is a carbon neutral possibility to keep combustion engines at the forefront. “For ICEs, a game changer for the ecological footprint would be the economically beneficial production and use of synthetic fuels, which bind the carbon dioxide from the atmosphere during the production process, making them carbon neutral,” the report said. But if you were to ask consumers globally, they paint a different picture, according to the study. Almost 80 per cent said they’re already considering an alternative powertrain technology or a hybrid of some kind when they buy their next vehicles.

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

BY ADAM MALIK

“Alongside the technical improvements in alternative powertrain technologies, we have seen a step-by-step consumer mind shift towards embracing new technologies in recent years,” the study said. “Almost every second consumer already favours some type of hybrid car, outpacing ICEs, BEVs and FCEVs. This reveals a short-term mismatch between consumer preferences and executive key trend agendas, on which hybrid cars are only trailing in fourth place.” Furthermore, Craig A. Giffi, Joseph Vitale, Jr., Thomas Schiller and Ryan Robinson – automotive group leaders at professional services firm Deloitte – believe these hopes and dreams are a bit farther out of reach than most people think. “In fact, the current pace of investment in advanced vehicle technologies can be described as a game of high-stakes poker where the players are all in, and the outcome is largely undetermined, though unlikely to favour everyone at the table,”

“

Continuing failure to comply with ecological standards would continue to lower the social acceptance of diesel, which may not even be compensated for by economic benefits.

”

– GLOBAL AUTOMOTIVE EXECUTIVE SURVEY 2018

they wrote in the 2018 Global Automotive Consumer Study. Sure, electric vehicles are coming, but let’s sit back and think for a moment, they advised. “Optimists believe we are sitting on the edge of a revolution that is ready to play out in the next several years,” they said. “On the other hand, a more conservative view tempers this enthusiasm by taking into account several headwinds that, when combined, especially threaten traditional automakers.” One issue will be affordability. The price for new cars is at an all-time high, pushing more consumers to lease vehi-

cles rather than buy. Edmunds reported that leasing accounts for almost one-third of new vehicle transactions. Loans to buy new cars average almost 70 months. Offlease vehicles will mean a glut of affordable used options for car buyers. Given this, who will fork out more dough for an electric powertrain? People may want it but Deloitte found price premiums will keep buyers away. There are other challenges, according to Michelle Krebs, executive analyst for Autotrader. “There is still range anxiety about ‘How far can I go on a charge?’ Also, there continued on page 27

Perfect match know-how. Close enough isn't good enough. With nearly 500,000 parts, tools and products in stock, we have exactly what you need.

napacanada.com JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

25

ROLL . S L E MOD At Mopar®, we like things fast. Including the racers we sponsor. That’s why Andrew Ranger and Jordan Szoke are the ideal partners for our brand. They are champions with proven track records and a shared passion for performance. Jordan Szoke

Andrew Ranger

Service & Repair Parts

22695

Remanufactured Parts

Collision Parts

Accessories & Performance Parts

©2018 FCA Canada Inc. All Rights Reserved. Chrysler, Dodge, Jeep, Ram and Mopar are registered trademarks of FCA US LLC. FIAT is a registered trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.

cover feature | Biz Tech Report are concerns that the infrastructure isn’t coast-to-coast and you can’t just pop in and top it off – charging takes a long time,” she told global market research firm Ipsos, in its report, What the Future. In Canada, Deloitte found 71 per cent of consumers will consider an internal combustion engine when they go buy a new car, with 22 per cent considering hybrid electric and just 6 per cent going with a battery electric option. Only South Africa (85 per cent), the United States (80 per cent) and the United Kingdom (73 per cent) responded with higher preferences for traditional engines.

of crude oil. We therefore hypothesize that less demand for diesel fuel in mature and regulated markets will consequently lower the price for the fuel and spur higher demand for diesel vehicles in less mature and unregulated markets.” But can diesel survive the negativity? KPMG believes it can, so long at automakers don’t repeat mistakes. “We conclude that diesel has a good

Diesel-gate fallout Diesel just isn’t as popular as it used to be. Cities from London to Rome to Beijing to Paris to Mexico City have announced plans to either ban diesel vehicles on their roads entirely or implement restrictions. Perhaps blame can be laid at the feet of the diesel scandal of 2015 when it was uncovered that Volkswagen installed software in its vehicles that would cheat emissions tests by falsely improving performance. The automaker spent more than US$7 billion to rectify the issue by issuing recalls and retrofitting vehicles with the software, plus billions more in settlements and fines around the world, including $290.5 million here in Canada. The negative press may be the reason consumers are shying away from diesel options in their vehicles – 64 per cent of consumer respondents to KPMG’s survey said they were not planning on buying or keeping their diesel vehicles in the future. The vast majority of these folks would instead prefer to buy a hybrid or fully electric car. Those who want to buy or keep their diesel vehicle said they liked the low costs, the durability of the engine and trusted that newer engines are cleaner than before. And executives don’t figure that the technology will just disappear. “Firstly, diesel-fueled cars account for 20 per cent of global car production and they will not suddenly vanish from the OEMs production portfolio,” the report said. “Secondly, we will see a continuous supply of diesel fuel. Its production is linked directly to the production of gasoline; both originate in the processing JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

chance of surviving the current storm, but that there will be stronger regional and segment differentiation,” it said. “However, OEMs must take the appropriate actions and learn from the past. Continuing failure to comply with ecological standards would continue to lower the social acceptance of diesel, which may not even be compensated for by economic benefits.” JN

Premium Lines Brake Rotors & Drums Brake Pads & Shoes Hub & Bearing Radiators Chassis Parts Complete Strut Assemblies Brake Clean Refrigerant

Full Automotive Warehouse

Hotspot Auto Parts 939 Warden Ave Scarborough ON M1L 4C5 Info@hotspotAutoparts.com www.hotspotautoparts.com

27

market tracker | spark plugs

in severe environments MOVING AWAY FROM COPPER CAN BOOST MARGINS, REDUCE HEADACHES OF SPARK PLUGS

T

hese aren’t your grandfather’s spark plugs. While it might seem unlikely that such small and simple parts could be noticeably improved, changes in composition as well as improvements in technology mean the modern-day spark plug can greatly improve a vehicle’s performance. It used to be that copper plugs were at the top of the evolution chart but they have since been surpassed by ones made with iridium – a higher-grade metal – which enables the centre electrode to be much smaller and allows for better combustion and less voltage to fire. 28

With the advent of forced induction and engine downsizing, plugs are subject to a much more “severe” environment than they used to be, said Chris Harrison, Toronto-based North American product manager at NGK Spark Plugs Canada Ltd. With smaller boosted engines placing

“

If your vehicle came with the best (spark plugs), putting in good ones when they need to be replaced won’t give you the same amount of performance.

”

– CHRIS HARRISON, NGK SPARK PLUGS CANADA LTD.

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

Photos: AlexLMX, iStockphoto

spark p k Looking for a better

additional strain on spark plugs, some engine makers are recommending more frequent change intervals, such as every 60,000 miles, he said. “Engines that are running very hot are producing a lot of power in a very small displacement. The (automobile) manufacturers are trying to go to a lean burn mixture and improve fuel economies. They want the power of a V-8 engine with the fuel economy of a 4-cylinder,” he said. It’s hard to initiate a strong spark in a highly-pressurized combustion environment, said Michael Kollenberg, product manager of ignition products at Federal-Mogul Motorparts, which supplies Champion spark plugs to the North American aftermarket. Heat doesn’t causes the strain – spark plugs are designed to handle anticipated combustion temperatures – but the large volume of compressed air forced into the combustion chamber by a turbocharger or supercharger starts to act like an insulator between the centre electrode and the plug’s ground wire. “As boosted engines heighten cylinder pressures, the energy or voltage required to fire the plug usually ramps up to overcome the greater resistance of the pressurized air before it jumps the plug gap and creates the spark event,” he said. Another reason for spark plug wear is the use of blended or ethanol fuels, Kollenberg said, which can be quite corrosive. This introduces further design and performance considerations for engineers to consider in spark plug design. Other mechanical wear in the engine can cause spark plugs to wear out faster,

BY GEOFF KIRBYSON

“

Engines that are running very hot are producing a lot of power in a very small displacement.

”

– CHRIS HARRISON, NGK SPARK PLUGS CANADA

too, he said. This can include worn rings, burning oil, anti-freeze exposure, sloppy ignition timing, poor fuel quality, a compromised air and fuel mix, a dirty air filter or leaks in the air intake. Spark plug technology has had to adapt to combat the new reality and manufacturers are responding to requests from vehicle and engine makers by building a more robust product. Indeed, today’s spark plugs are smaller and have a thinner ceramic wall and metal shell than their predecessors. “We have to do more with less. They’re physically smaller, yet they need to perform better,” said Matt Otten, product marketing manager at NGK. Being able to recommend the ideal spark plug for a customer’s vehicle can go a long way towards boosting not only jobber sales and profits, but ultimately customer loyalty. “Spark plugs are largely seen as a commodity,” Harrison said. “Sometimes, people in the service industry may not fully understand how specialized some of these things are. They look the same, they have the same overall shape but the price points vary greatly. We’re talking about the person at the counter having the consumer understand the true value proposition of a $20 plug versus a $5 plug and managing that service level expectation and how your vehicle will run.” There’s no doubt you get what you pay for as higher-priced versions have superior make-up, less time between servicing and last longer, Harrison said. “If your vehicle came with the best (spark plugs), putting in good ones when they need to be replaced won’t give you the same amount of performance. You’ll notice less throttle response, less complete combustion of the fuel, fuel efficiency could go down and there will be less power when your foot is on the floor,” he said. Considering the labour required to

get at a vehicle’s spark plugs to change them, Harrison said it can become “pretty pricey.” “If you only have two or three spark plug changes in the life of a vehicle, you want to do it right when you’re in there,” he said. Jobbers need to understand the type of metallurgy that each vehicle rolls off the assembly line with and only offer that to the customer, said Jay Buckley, Michigan-based director of technical training at the Fram Group, which makes the Autolite brand of spark plugs. “You’re doing a great disservice to the end user when you push cheap copper core spark plugs over iridium. It’s never good to use a copper core spark plug in place of a precious metal plug,” he said. Prolonging their working life is simple, he added. “Use the right spark plug metallurgy or upgrade to iridium. You can expect 100,000-mile (160,000-km) performance with zero gap erosion,” he said. Buckley believes copper should comprise 20 per cent of the spark plug market, which would correspond with vehicle requirements, instead of the 60 per cent that it currently garners. “That shows us and all other plug companies that many consumers and technicians are replacing precious metal spark plugs with inexpensive copper core plugs,” he said. “The increased sales come from selling the right iridium spark plug that the car requires instead of pushing the copper core plug that has tiny margins and is usually wrong for the car.” Iridium spark plugs have 160,000 to 200,000-km change intervals on virtually all naturally-aspirated vehicles today while turbo and supercharged applications with direct injection still have a 100,000-km change interval, primarily due to vastly increased combustion pressure.

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

ALL-NEW FAST ORANGE ® GREASE X LAUNDRY DETERGENT

#25570 • ELIMINATES SHOP ODOURS AND LINGERING SMELLS • BUILT-IN PRE-TREATER FORMULATED TO TARGET AUTOMOTIVE STAINS • HELPS REPEL FUTURE STAINS • KEEPS WASHING MACHINES CLEAR OF RESIDUAL GREASE

continues on page 30

29

market tracker | spark plugs

“

You’re doing a great disservice to the end user when you push cheap copper core spark plugs over iridium. It’s never good to use a copper core spark plug in place of a precious metal plug.

”

– JAY BUCKLEY, FRAM GROUP

“In North American cars, we regularly see customers going up to 150,000 miles (240,000 km) before misfires due to wear,” Buckley said. Despite the push to quality, there are times when customers don’t necessarily need the top of the line product because of the vehicle they own and their plans for it, Otten said. If you’ve got a relatively new car or truck that you plan to keep for the next decade, high-end spark plugs are the way to go. But if you’re doing maintenance on a vehicle that you’re only intending to keep for six months to a year, copper plugs will do the trick in the short run. But high-end spark plugs aren’t a silver bullet for an engine’s mechanical problems if it hasn’t received proper maintenance. They also won’t fix improper timing or an oil or vacuum leak. “The stock-type plug in a boosted engine has been designed to contend with a specific type of operational environment, and while upgrading a plug on a boosted engine may extend overall service life, it won’t create any sort of other additional horsepower gain,” Kollenberg said. There are, however, benefits to upgrading plugs for motorists who have vehicles running on blended fuel. “Iridium is perfect for this; it’s an excellent conductor and is an incredibly hard raw metal material. Its natural toughness makes it ideal to resist normal wear-andtear. It is a terrific option to consider when the engine has to fight the highlycorrosive nature of blended gasoline,” he said. JN

Follow us on Twitter Get AutoServiceWorld.com news and more by following @JobberNews on Twitter. 30

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

new products | Cardone’s new parts

Driving Synergies 11 – 15. 9. 2018 Experience an unrivalled diversity of mobility solutions. In addition to equipment, parts, accessories, management and services, the tyre industry is also represented for the fi rst time in Frankfurt. Automechanika and REIFEN – two leading world trade fairs at Germany’s most international trade fair venue. Use the synergies of tyres and workshop business at the largest industry forum since Automechanika started!

Cardone has released new parts that cover throttle bodies, velocity drive axels, parking brake motors and premium coated calipers. The throttle bodies include a throttle position sensor and articulation for reliable and consistent performance. The CV drive axle can withstand high-temperatures and hightorque demands and is made to resist bellow stress and ozone cracking. It has a new axle nut supplied with every unit, boot clamps are pneumatically crimped for a seal between the boot and housing, and splines are rolled to ensure proper fit of axle into the mating hub and transmission. The parking brake motors include a hardware kit, iPlug connector and housing material, an ultrasonic sealed unit for prolonged life of internal components, and a universal fit for left or right-side on most applications. The ultra premium coated calipers have SAE specific rubber seals, new banjo bolts, trouble-free bleeding, a positive seal with new bleeder screws, and plastic cap plug-in brake port lines for protection in installation. Cardone | www.cardone.com

www.automechanika.com

Stant introduces new part numbers

Expanded Walker Coverage

25

th

Automecchanikka F ankfu Fr ur t

info@canada.messefrankfurt.com Tel. 905-824-5017

32

Tenneco has announced the expansion of its Walker Emissions Control Coverage for the North American aftermarket. The Walker line will offer exclusive aftermarket catalytic converter coverage for more than 26.6 million light trucks and SUVs certified to the U.S. LEV1 super ultra-low emissions vehicle classification. The expansion will include 27 new Walker Ultra EPA emissions-certified directfit replacement converters, 37 additional Walker CalCat converters for California, New York and other areas following CARB emissions standards, 34 new Walker Quiet-Flow SS and Quiet-Flow mufflers and assemblies and 58 new Walker resonator, pipe and hardware part numbers. Tenneco www.tenneco.com

Stant has added new part numbers to its SuperStat line of thermostats. The new products are applicable to nearly 100 per cent of vehicles on the roads. Features include a high-strength stainless steel flange used to obtain an ultra-smooth surface for corrosion resistance; wax motor that is used in heavy-duty trucks; up to 43 per cent thicker mounting flange; opening spring that is 50 per cent stronger than standard springs; and a lifetime warranty. Stant www.stant.com

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

READY TO ELEVATE

YOUR CAREER? JUNE 13-14 / TORONTO

The 2018 Women’s Leadership Conference will… • Provide you with knowledge on industry trends, technology and data to elevate your career. • kƥøŗ ıøťſĺŗĦĕıČ ĺŔŔĺŗťūıĕťĕøŜ ťĺ ŗÑĕŜø ƅĺūŗ ŔŗĺƧĩø êƅ ëŗøÑťĕıČ İøÑıĕıČċūĩ ŔŗĺċøŜŜĕĺıÑĩ connections. • ĺııøëť ƅĺū ſĕťđ ſĺİøı ċŗĺİ Ñĩĩ ŜøČİøıťŜ Ñıñ ĩøžøĩŜ ĺċ ťđø ÑċťøŗİÑŗĦøťǍ • kƥøŗ ƅĺū ıøſ ſÑƅŜ ťĺ øƄŔĩĺŗø Ñıñ Ñëđĕøžø ƅĺūŗ ŔŗĺċøŜŜĕĺıÑĩ ČĺÑĩŜ êƅ øƄŔÑıñĕıČ ƅĺūŗ ĕıƨūøıëø ÑëŗĺŜŜ êĺŗñøŗŜǍ

REGISTER TODAY www.aiacanada.com/event/2018-womens-conference/

PRESENTED BY

new products | Stant Heavy Duty catalogue Stant Heavy Duty has released a new catalogue with products for diesel, agriculture and small engines, and for the marine and aerospace markets. The catalogue has options for both heavy duty and light duty trucks. The applications can be used in on-road diesel engines and trucks, off-highway heavy duty equipment, diesel engines for all horsepower ranges, and construction/ agricultural equipment and engines.

New spark plug numbers NGK Spark Plugs Canada has released 96 new part numbers to the NGK spark plug, glow plug, and wire set programs. The part numbers will provide coverage to over 12 million Canadian vehicles in operation and late model vehicle applications. NGK Spark Plugs Canada www.ngksparkplugs.ca

Extra Guard Enhancement Fram has introduced an upgrade on its Extra Guard Spin-on Oil Filters. It now has a silicone antidrainback valve that can be used for all manufacturers’ recommended change intervals. The filters antidrainback valve remains flexible longer than nitrile, which provides more protection when starting up an engine and also gives protection against dry starts. The product is made from a blend of fibers and resin so that the filter can capture 95 per cent of dirt particles that are greater than 20 microns. Fram | www.fram.com

Spectra CAPA certified radiators

Looking for more? Visit www.autoserviceworld.com/ products to stay on top of the latest product announcements.

www.redi-sensor.com

REDI when you are. VDO and REDI-Sensor – Trademarks of the Continental Corporation

Spectra Premium has released its first ever CAPA certified radiators available with four new SKUs for vehicle applications. The SKUs are the CU2311CC, CU2323CC, CU2362CC and CU2479CC. The products are applicable for over 1.1 million domestic vehicles including Dodge Caravan, Chrysler Sebring, Dodge Neon and Dodge Ram. Other CAPA-Certified radiators will be released regularly on the market in the coming months. The radiators are produced at the company’s Laval, Que. plant. Spectra Premium www.spectrapremium.com

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

No need to wait for parts delivery when you have VDO REDI-Sensor. Our sensors replace over 200 OE sensors and need no programming, no cloning, and no dedicated programming tools. REDI-Sensor is ready to go, right out of the box.

35

money & management |

BUCKLE UP – ECONOMIC TURBULENCE AHEAD

A

We are in the early stages of a nasty recession. Both governments and consumers have little room to move.

Photo: akindo, iStockphoto

fter a meeting with an insolvency professional last summer, I was advised that he wasn’t busy. This was surprising given the reports of high consumer debt levels. He explained that when people approached him, they were able to get refinanced if they owned their home. House prices had risen so dramatically that even with all the fees associated with this refinancing, they were able to extract enough to pay all the consumer debt and still afford their existing mortgage. Generally, with all the burdensome consumer debt behind them, these people resumed their high spending. As we get closer to summer, things have changed dramatically. The rapid rise in house prices is now gone, replaced by price decreases since the winter peak. Compounding this are two more significant factors: a pair of Bank of Canada rate increases, which means increased monthly debt payments; and increased tests for mortgage approval as mandated by the Office of the Superintendent of Financial Institutions. This will make it harder to qualify for a mortgage. What all this means is that one of the main exit avenues for dealing with high consumer debt is now closed. The Canadian economy has been largely bolstered by an unsustainable run up in personal debt (now nearing $1.70 debt for every dollar of personal income) and a large run up of government debt at all levels. The Canadian Payroll Association annually sounds the alarm that an increasing number of Canadians are living paycheque to paycheque and unable to meet financial obligations if their pay was delayed by a week. Increased debt levels at both personal and government levels, low savings rates and no incentive to cut spending or increase saving. What could possibly go wrong? For jobbers, this is concerning. Whether you deal primarily with repair and service shops or have a strong DIY customer base, should the economy go sideways then the resulting drop in consumer spending will have an impact. Vehicle service and repair is a natural task for customers to ignore. The damage to the retail industry is already

being felt. Toys R Us in the U.S. shut its doors recently. In Canada, Sears is gone, and more are closing every day. Malls and free-standing outlets have increased vacancies – a new phenomenon. While most lay blame at online companies such as Amazon for this carnage, another large factor for this is the tapped-out consumer. New vehicle sales, however, are still strong, up almost 2 per cent compared to last year through April. However, the Ontario Motor Vehicle Industry Council notes that nearly 50 per cent of trade-ins have negative equity due to the extended loan terms. This is not sustainable and is setting up for trouble soon. We are in the early stages of a nasty recession. Both governments and consumers have little room to move. Rising interest rates, which central banks have either started or will soon, will only compound the problems. It is imperative to start the process now to improve balance sheet liquidity in order to ride out the anticipated downturns. Jobbers have enough red flags to take action now. This action should involve reviewing and reducing expenses, collecting receivables in a timely manner and restructuring loans to ease the outflow of available funds. All aspects should be reviewed to improve liquidity. Don’t wait until it is too late. JN

Mark Borkowski is president of Mercantile Mergers & Acquisitions, a mid-market mergers & acquisition brokerage. Contact: www.mercantilemergersacquisitions.com

36

BY MARK BORKOWSKI

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

advertiser index |

Do you have to share?

AAPEX . . .. . . . . . . . . . . . . . . . . . . . 12 www.aapexshow.com

news

AIA Canada . . . . . . . . . . . . . . . . 34 www.aiacanada.com/event/ 2018-womens-conference/

An upcoming event? A letter to the editor?

Akebono . . . . . . . . . . . . . . . . . . . . . 2 www.akebonobrakes.com

Send it to adam@newcom.ca.

Auto-Kool . . . . . . . . . . . . . . . . . . . 30 www.auto-kool.com Automechanika . . . . . . . . . . . . . 9 www.automechanika.com AutoServiceWorld . . . . . . . . . . 37 www.autoserviceworld.com Bestbuy Distributors . . . . 14,15 www.bestbuydistributors.ca Brake Parts Inc. Raybestos . . . . . . . . . . . . . . . . . . . 40 www.raybestos.com

GET THE FULL AFTERMARKET PICTURE! MORE NEWS, MORE PRODUCTS, MORE FEATURES

Chevron . . . . . . . . . . . . . . . . . . . . . . 4 www.canada.havoline.com Chrysler .. . . . . . . . . . . . . . . . . . . . 26 www.mopar.ca Federal-Mogul – Beck Arnley . . . . . . . . . . . . . . . . . 17 www.BeckArnley.com

AutoServiceWorld.com

Federal-Mogul – MOOG. . . 11 www.moogparts.ca FRAM . . . . . . . . . . . . . . . . . . . . . . . . 39 www.fram.com

VISIT OUR

VIDEO CHANNEL

Hotspot Auto Parts . . . . . . . . . 27 www.hotspotautoparts.com ITW Permatex . . . . . . . . . . . . . . 29 www.permatex.com Messe Frankfurt . . . . . . . . . . . . 32 www.automechanika.com NAPA . . . . . . . . . . . . . . . . . . . . . . . . 25 www.napacanada.com NGK Spark Plugs . . . . . . . . . . . 22 www.ngksparkplugs.ca

®

ProMax Auto Parts Depot . . 6 www.autopartsdepot.ca Redi-Sensor VDO . . . . . . . . . . . 35 www.redi-sensor.com Schaeffler . . . . . . . . . . . . . . . . . . . 13 www.repexpert.ca

SUBSCRIBE

TO OUR E-NEWSLETTER AND STAY CURRENT! DELIVERED TO YOUR INBOX 2X WEEK Watch Greenwood’s Garage a video series with business tips and advice for shop owners.

See our NEW EyeSpy video series featuring a collection of creative repairs sent in from our readers. Visit our Vehicle Technology and Innovation Knowledge Centre and stay current on market game-changes.

Sponsored by

Sponsored by

Sponsored by

Shads . . . .. . . . . . . . . . . . . . . . . . . . 33

Uline . . . . .. . . . . . . . . . . . . . . . . . . . 10 www.uline.ca

Follow us on Twitter and like us on Facebook

Uni-Select . . . . . . . . . . . . . . . . . . . 31 www.bumpertobumper.ca

JOBBER NEWS / MAY 2018 |www.autoserviceworld.com

37

business management |

TOO MANY PLAYING HOOKY FROM KEY EVENTS ’m disturbed by the lack of jobbers attending important industry events. These are designed to be informative and provide valuable information and necessary tools for jobbers to take back to their service shop clients. This information allows you to provide true value for the shop owner and assist them in moving their business forward and address today’s issues. When the ASP moves forward, you move forward. When the ASP is profitable, your potential to be profitable can increase dramatically. If you are one of the jobbers who come up with the typical excuses of cost, lack of time, feel you don’t need to be there or that you’ve seen it all before, you sound like your customers who use identical reasoning as to why they don’t participate in the activities you host. So, what is the real relationship between you and your shop clients, and where is your business going to be three years from now? By not attending industry events, you lose big time. It’s an error in judgement that could set you back a year. Maybe more. And that is time that no one in our industry can afford to lose these days. This is a new era in the shop business. This is the age of relationship building between you and shop owners where value is given to the client. Too many jobbers are not profitable enough, as their ASP customers are also not profitable themselves because both parties are running their business based on price. If you are not profitable, do the math. Your days are numbered. Many industry events address these issues and lay out a roadmap that will enhance a jobber’s and shop’s business. Clarity is given to the real issues. The ASP’s business is changing dramatically, and the next three years alone are going to be the most challenging years that a shop will face compared to the past five. It is also the same for the jobbing/ WD/manufacturing business. It will take working together and creating the net profit required to get through the challenges to ensure all parties are here in five years. If you do not understand how to build a professional relationship with your shop clients and bring them value, then the only thing you are relying on is price. Well, prices can’t go lower. In

38

Photo: kmlmtz66, iStockphoto

I

By not attending industry events, you lose big time. It’s an error in judgement that could set you back a year. Maybe more. And this is time that no one in our industry can afford to lose these days.

fact, they’re already too low as it is. Industry events provide a central, unbiased forum where the entire industry is literally in one room. The decision makers themselves are all there. They are at functions to learn about their industry and business, clearly defining issues, present and future. Those who understand its importance and are open to learning are there. Those who don’t and take the opposite view are missing in action. By being there, you can focus and understand the direction your business must take to survive. It’s also a forum where you can learn about ASP issues. Skipping these events means missing out on ways to help your ASP survive and prosper. And if they fail, who is right behind them? This is a responsibility you, the jobber, are taking far too lightly. These events are your continuing education courses, and too many of you are playing hooky from school. JN

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.

www.autoserviceworld.com | JOBBER NEWS / MAY 2018

Loren Gross LG Automotive Owner & Technician

Paid endorsement. We support voluntary professional certification through the National Institute for Automotive Service Excellence.

I’VE BEEN AROUND THE BLOCK. I CHOOSE AUTOLITE. “I’ve installed thousands of iridium spark plugs. I use Autolite’s Iridium enhanced plugs because their durability and ignitability give me the performance I demand for less than the pricier OE brands. Techs like me don’t care about a name. We only care about performance, and Autolite delivers.”

Fully warrantied premium plugs at an exceptional value. Autolite.com.

Check out our full line of premium plugs at Autolite.com REAL PERFORMANCE. REAL VALUE.

FRAM Group Canada Inc., 2430 Meadowpine Blvd., Unit 107 Mississauga ON L5N 6S2

B i i Bringing together t th iinnovation ti and d superior i engineering, i i Raybestos® R b t ® specifically ifi ll designed d i d these specialty disc pads with application specific formulas and full-line coverage for critical target categories. Differentiate your business with the Raybestos® Specialty line.

School Bus

Truck, Medium Duty & Air Disc

• Engineered for optimum safety and performance • Dependable, quiet, fade resistant braking

• Coverage through Class 8 • Stable friction performance over wide temperature range

R90 European

Police

• Optimized for vehicle specific performance and stopping power • Most parts in the product line meet the Regulation 90 standard of braking requirements

• Quiet, vibration free performance • High temperature, fade resistant operation

©2018 Brake Parts Inc LLC. All rights reserved. RAYBESTOS and THE BEST IN BRAKES are among the registered trademarks of BPI Holdings International, Inc.

www.raybestos.com