Leaders in the sale of quality Mopar Parts.
Sept - Oct 2014 In This Issue President Rick Cutaia ............................... 2 MMG Vendor Committee Meets with Dealer Tire .............................................. 4-5 Success in Accessory Selling .................. 6 Sell more Dodges, Get more Hellcats .. 7 Electronic Parts Procurement............ 8-9 MMG Supporting Vendors .............10-11 ADP ......................................................12-13 Elite Extra...........................................14-15 Mopar Service Drive Store ...................16 Rousseau ....................................................17
Mark Your Calendars! Make Your Plans! The MMG Meets in San Francisco this January 2015 for their Annual Event at NADA 2015 See Page 3
FenderBender/Ratchet+Wrench.........18 Katzkin .......................................................19 Autobody News........................................20 Reynolds & Reynolds..............................21 OEConnection ....................................22-23 UPS .............................................................24 Fiat to Source Midsize Truck...............25 There is nothing that compares like Tailgating the Allred Way! .............26-27 Seven Auto Parts Execs Indicted for Conspiracy to Fix Prices .................28-29 2014 MMG Committee..........................30
The exchange of information by like size dealers in a non-competitive environment.
Mopar Masters Guild
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Sept - Oct 2014
From the Desk of MMG President Rick Cutaia Managing a Parts Department, While Managing a Home As parts managers, we have a huge responsibility. We manage employees, inventories, and customers. We have outside sales, so we have to make sure shipping and receiving is doing their job. It’s an endless cycle of wants and needs and something always needs your a en on. We do what we need to do to keep our departments profitable, while keeping our dealerships in business. Our responsibili es come with a lot of stress. You survive the daily grind- and then you go home. I am happily married to Erica, my wife of 14 years. We have two children- Haley is 13 years old and Christopher is 11 years old. Modern parenthood is no joke. The process of raising kids in today’s world is hard, and more importantly, SCARY. Aside from that, once we leave the workplace, we have an even more important job to fulfill- husband and father (or some mes, wife/mother). As a parent, we do not have a job descrip on or a protocol binder to refer to. It’s a learning process, no ma er how long you’ve been on the job. So how do we combine the importance of running a successful parts department and maintaining a loving and happy home life? I have found that for me and my home, it’s having a suppor ve spouse. My wife and I are a team. My role is to be the provider and protector, and she cares for the children and house. Having a support system at home, allows me to come home a er a day in the office and know when I take the manager’s mask off, I can relax and enjoy my children and they know that Daddy’s focus is on them and their mother. You can take a lot of experiences at work and apply them at home, and vice versa. Life is about balance, and once you find that balance, you find peace. I encourage everyone to find their balance. If you’re unhappy at home, you’re not going to make a successful parts manager. If you’re unhappy at work, you’re not going to make a very good parent or spouse. Find the balance. Sincerely, Rick Cutaia MMG President Rick.cutaia@hendrickauto.com
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NADA 2015 is Right around the Corner! It’s that me of the year again when the Mopar Masters Guild begins its prepara ons for our Annual Mee ngs at NADA 2015 which this year is being held in San Francisco, California! MMG Members must NOW register on their own, and book your room before these also sell out. You must first register as a NADA aƩending member then choose the hotels below so we can all be together. Many of the MMG members have already booked Pier 2620 Fisherman›s Wharf – Room Rate is $225.00 +tax per night, which is our first choice of hotels. 1.
Pier 2620 Fisherman’s Wharf
$225.00
2620 Jones Street, San Francisco
2.
Holiday Inn Fisherman’s Wharf
$209.00
1300 Columbus Ave, San Francisco
3.
Holiday Inn Express Fisherman’s Wharf
$249.00
550 North Point Street, San Francisco
4.
Argonaut
$269.00
495 Jefferson Street at Hyde, San Francisco
5.
Sheraton at Fisherman’s Wharf
$199.00
2500 Mason St, San Francisco
Please choose one of the first three which share a corner. Number 4 & 5 should only be chosen if the first 3 are sold out. Remember the MMG will reimburse you for ½ of the NADA registra on. You can register for NADA 2015 AND book your room by calling 800-974-3084. They will walk you through the process which is very simple.
There will not be a Performance 20 Group at NADA this year. The following is a tenta ve agenda - All mes TBD. Friday & Saturday events depend on Mopar’s availability
Wednesday January 21
Arrive in San Francisco Welcome RecpeƟon
Thursday January 22
MMG MeeƟng featuring industry leading guest speakers MMG Cocktail RecepƟon - California Super Yacht
Friday January 23rd
MMG Visits Tier 1 Vendors at NADA
Saturday January 24th
MMG MeeƟng with Mopar
Sunday January 25th
Depart for home
Our MMG meetings will be at an offsite location to be determined. As soon as that information is available I will send it to everyone!
Full i nerary will follow! Please watch your email for more up-to-date informa on! The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
Mopar Masters Guild Committee meets with Dealer Tire SubmiƩed by: Susan McDaniel Our MMG Vendor Commi ee truly enjoyed a visit with Dealer Tire during our trip to Phoenix and Sedona! On Sunday morning, September 14, Susan McDaniel (Bill Luke CJDR – Phoenix, AZ), Gerry Oakes (Baxter CJD – Omaha, NE), Marvin Windham (Benchmark CJD – Birmingham, AL), Mark Skinner (our long me member now with Courtesy Chevrolet – Phoenix, AZ) and John Bellissimo, Director of Sales, Dealer Tire headed for beau ful Red Rock Sedona to take an awesome Pink Jeep Tour. Our tour guide and chauffeur for our journey was Chris Ceballos – Outside Sales Manager at Bill Luke CJDR. AKA James. We had a fun-filled journey on the hour and a half drive there. We discussed recent business changes, Mark’s new posi on at Courtesy Chevrolet and our new networking venture, res and even made up a new song about a faux adobe with Chinese drywall double wide on Broken Arrow Chapel Rock Lane on the Vortex of Sedona that Ginger Skinner is sure to one day sell Gerry and Lyne e Oakes. Our Pink Jeep Tour was fabulous! Dave was the best Tour Guide ever! He was very knowledgeable about all of the different kinds of desert life, vegeta on and rock forma ons. We were well-schooled by the end of the tour. Unfortunately, we did not see any ra le snakes, scorpions, or tarantulas…sorry guys..I know this was disappoin ng. A er the tour we had dinner on the upper deck of the Oaxaca Mexican Restaurant and watched the beau ful majes c Sedona sun set. On Monday morning we met at the Lookout Mountain Golf Course at Tapa o Cliffs where Gerry was able to redeem himself from the day before when he lost to Marvin. On Monday a ernoon we all (managers from 10 local Chrysler Dealers 2 Chrysler Areas Managers, 1 local Chrysler Marke ng Director and our local Dealer Tire Rep.) met at Bill Luke CJDR where John Bellissimo and Steve Howder (Dealer Tire) gave an outstanding presenta on. KEY POINTS Changes in the Industry : In the 1980’s - 14 Tire Sizes covering 85% of vehicles vs. 600 today. With 600 sizes needed to cover 85% of the market… Tire stores can’t stock them all
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Continued from Page 4 Dealerships are star ng to have the “upper-hand” in terms of having the right product at the right me! The 3 re manufacturers that make up approximately 43% of the re replacement market are Michelin, Bridgestone, and Goodyear Research con nues to show that consumers do NOT want the “cheap” private label res Training informa on Studies show that re training increases knowledge of re concepts by 18% and results in almost 100% knowledge reten on and impacts applica on behavior by 38%, along with increasing re sales at nearly 70% of dealerships trained Selling Points such as The Dynamic Retail Selling Guide and Dealer Sites ARO Tire Expansion and Availability 24 Month Road Hazard Returns – Calibrated Inventory and Quarterly Adjustments Dealer incen ves: Earn Triple Points on Yokohama and General Tires in September and MSER Price Match Marke ng now available The value of a Tire purchaser vs. a non- re purchaser – the re purchaser is likely to spend 2 ½ mes more over their ownership cycle KEY THOUGHTS Inventory – Having the right re at the right me Inspec on – Consistent Process Selling – Crea ng awareness and making effec ve recommenda ons Let’s face it… Our Service Departments actually need to be three different Service Departments in one to accommodate the tech shortage and to create the customer convenience our customers demand. The bo om line is if you want to make more money ASK FOR THE SALE! Best line ever: No one ever gets into an accident and says, “Oh shoot! , I should have go en a flush yesterday”! Ask for the sale! -John Bellissimo These guys (Dealer Tire) are a Class Act and truly available and approachable to answer any ques ons or concerns we have about our Dealer Tire Program. We ended the evening at The Blue Water Grill Seafood Restaurant. A good me was had by all!
A big “Thank You” for your conƟnued support of our Mopar Masters Guild Dealer Tire!
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Sept - Oct 2014
Success in Accessory Selling It is me to take advantage of the Sales traffic in your store by engaging in an Accessory process that puts a Parts Advisor in the showroom. Thanks to the idea brought forward by Rick Cutaia a couple of years ago at one of our Performance Group mee ngs. We have just passed our 2 year anniversary of adding close to a $500.00 parts and labor preload to every new vehicle. The myth buster is that we are selling more vehicles than ever and it has not affected sales! Share this with your General Manager! Now we wanted to take it to the next level. I put together and got approval for a business plan to insert one of my Parts Advisors into an office on the showroom floor at the end of May. We partnered with Insignia, which we had already had been subscribing to their Accessory Catalog, with an enhancement where they come in and assist in se ng up processes and training our employees. This includes a follow up visit with remedial training every month for 12 months. This system provides sales tracking, installa on tracking, as well as marke ng tools besides the catalog. We have calculated a sales person incen ve of 5% and a 2% sales manager override incen ve of the total sale to enhance buy in. We then secured an office which we painted and furnished to allow a pleasant environment for our customers to review all of the op ons where they can “Personalize their vehicle”! We have increased our Accessory sales over $ 50,000 per month since beginning this In June! For more details you can login on to our performance group website www.chrysler20group.com. It should be posted under the Idea Sec on. I had used this as my idea sharing topic at our 20 group mee ng in August held in Auburn Hills. Submi ed by, Paul Allred Parts Director Stateline CJDRF
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Sell more Dodges, get more Hellcats, brand tells dealers Plan may curb big Challenger markups Larry P. VellequeƩe AutomoƟve News DETROIT - Dodge, shi ing its normal alloca on methods, will give more new 2015 Challenger SRT Hellcats to dealers who sell more other Dodge vehicles. Dealer ordering for the 707-hp muscle car started last week. Challenger SRT Hellcat alloca on is based on the total of Dodge vehicles that a dealer sold in the previous 180 days, brand head Tim Kuniskis said. In December, a second alloca on calcula on will be made based on sales in the previous 90 days as well as a tradi onal 30-day inventory turn. The alloca on rewards dealers who “are selling the Dodge brand,” Kuniskis said. “You sell a lot of Darts for me, Journeys for me, Durangos for me, I’m going to give you the rights to this one, too, because this is a halo of the brand.” A er the ini al alloca on, Dodge will measure the number of days that Challenger SRT Hellcats sit on a dealer’s lot. The number will help determine the number of Challenger SRT Hellcats that the dealer gets, Kuniskis said. So dealers who add markups to the vehicle, say, $10,000 or $20,000, could be penalized with lower alloca ons if the markups slow sales. Alloca on ed to days on the lot “is the right thing to do,” Kuniskis said. He said that he has no issue with market pricing, adding that dealers have a right to do so. The 2015 Challenger SRT Hellcat is due in Chrysler dealerships in the third quarter. The vehicle, with a supercharged V-8, is the most powerful produc on car Chrysler has ever built. For comparison, it has 7 more horsepower than the $400,000 Lamborghini Aventador. “If you want to market-adjust the car, that’s your right. But if your days on lot goes above what the other guys that are selling them at MSRP is, they will end up earning the alloca on because their days on lot will be lower. They’re turning the inventory,” Kuniskis said. “Some dealers are going to have heartburn with that.” He said, “I want this car out in the marketplace so that somebody is sharing it with 50 of their friends and eleva ng the brand. That’s what I want, not si ng in your showroom with a rope around it. I want people driving these cars, talking about them, revving the engine and having everybody go, ‘I want one of those.’ That’s why you build a halo car.” Kuniskis called the Challenger SRT Hellcat’s s cker price, $60,990 including shipping, a ainable, adding, “but that all goes out the window if this car ends up with $20,000 market adjustments on it.”
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Sept - Oct 2014
Electronic Parts Procurement on the Rise Use of electronic parts procurement strategies is growing among repairers As more and more shops look to move away from phone, email and fax in their parts ordering processes, repairers na onwide are turning to voluntary electronic procurement methods to improve the accuracy and efficiency of their parts deliveries. Use of electronic parts procurement methods are on the rise among collision repair shops, says Jim O’Leary, vice president of product management and repair solu ons for Mitchell Interna onal. The technology has been available for years, but more shops are just jumping onboard. In fact, nearly 50 percent of Mitchell’s RepairCenter shop management customers signed up to use the company’s electronic ordering func on through its ToolStore portal by the third quarter of 2013, up from 7 percent in the second quarter of 2012. “Shops are becoming more comfortable with the technology, and are considering it to be more part of life,” O’Leary says. “Smart applica on of technology can lead to higher profits, more effec veness and less waste in the system. The part-ordering process is absolutely part of that cycle.” Several other providers of electronic parts solu ons are witnessing increased interest among shop operators, too. Michael Quinn, vice president of uParts Inc., says the company now has 300 Southern California users in its database—a “15-fold” increase since April 2013. And the company has plans to expand na onwide this year. David Boden, vice president of CCC Informa on Services’ parts services group, reports weekly increases of shops signing up for its online parts portal. “If you look at fundamental flaws in shops, one of the biggest offenders is parts solu ons due to mistyping or miscommunica on. Electronic systems are integrated directly with shop systems, so there is no chance for data transla on errors. We’ve already seen improvements in reduced returns,” Boden says. “We see more [users] every day. Week over week, there is a constant increase in the number of parts ordered electronically versus ones that aren’t.” It’s a trend that O’Leary, Quinn and Boden all believe will con nue to increase moving forward. And it’s one that shop operators na onwide must pay a en on to as the need to efficiently monitor quan ta ve business metrics and supplier performance increases in the industry. The Shop Perspec ve Randy Stabler, president of Pride Collision Centers Inc. in California, says using the phone, email or fax does not allow your shop to measure supplier fill rates, order accuracies, return rates or delivery cycle mes—all of which significantly affect repair quality, efficiency and cycle mes for repairers. “We need to be able to track data to expand our businesses so that we can build replicable models that don’t get out of hand,” Stabler says. Stabler implemented an electronic ordering process through uParts in April 2012. He says the ordering system now provides him with metrics on every supplier key performance indicator (KPI). “It’s all about having the most efficient system to get the right parts as quickly as possible,” Stabler says. “We are now collec ng data on the efficiency of our suppliers, and have be er data to manage our suppliers.” Continued on Page 9
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts Continued from Page 8
Stabler says the ability to track supplier KPIs will give him more freedom to source parts from suppliers of his choice. When insurance companies make requests to purchase parts from a specific non-preferred supplier, he has specific data to prove why it could be more costly in the end due to performance issues. In addi on, Stabler says his shop is now receiving more accurate price quotes up front, fewer communicaon errors, and reduc ons in accoun ng and administra ve parts func ons due to the ordering system’s direct integra on with the shop and dealer management systems. The PartsTrader Effect The concept of electronic parts procurement isn’t anything new. Both Mitchell and CCC have provided the services for years, in addi on to other tools such as APU Solu ons, OPS Trax, PartsCheck Live and OEConnec on. S ll, the idea wasn’t a prominent topic of discussion un l State Farm Insurance mandated its PartsTrader ini a ve in April 2012. Although PartsTrader has sparked heated debate around several sensi ve business issues, O’Leary says the a en on it has received could ul mately prove to be a good thing to move the industry forward. “For all of the animosity generated among industry par cipants, it has go en people to think about ordering parts electronically, being more in control of their parts process, and having be er visibility to that,” O’Leary says.
Pushing Online Procurement Forward O’Leary acknowledges that every shop has its own set of habits, preferred vendors and personal business rela onships, which can cause reluctance to accept and adopt a new ordering process. But it will eventually become the main strategy the industry uses for parts acquisi on, he says. “It’s not a ques on of if, it’s a ques on of when,” O’Leary says, no ng he expects the next genera on of shop owners, managers and es mators to widely accept the technology. “As the next genera on con nues to enter the industry, they will expect to be able to order these things online because they do everything else online.” Even if your shop has great ordering processes in place right now, Stabler says this is a concept that every shop operator should start inves ga ng and tes ng. He believes the industry will soon see a wider adopon of electronic parts procurement requirements among several insurance partners. “We had be er understand it. This is part of evolu on. The future is going to be different from the past. The more you embrace the future, the more you can set yourself up for success rather than becoming ex nct,” Stabler says. “It’s funky and it slows you down a bit to learn, just like when you first went from pen and paper to computer. But in the long run, it’s progress. It’s going to be a more efficient, holis c method.” Reprinted with permission from FenderBender/Ratchet+Wrench Ar cle wri en by Andrew Johnson Visit FenderBender at www.fenderbender.com
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Our Supporting Vendors: Support those who support you.
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Sept - Oct 2014
Mopar Masters Guild Magazine
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Our Supporting Vendors: Support those who support you. The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
Let’s From now on, ADP Dealer Services will be CDK Global. This is just the next step in our journey. And part of our ongoing commitment to drive success for our clients around the world. Our commitment is to never stop. Never stop simplifying our products so your job is easier. Never stop innovating new ways to connect you with your customers. Never stop serving you as a trusted partner. Never stop delivering business insights you can act upon. Never stop.
Join us as we drive the industry faster forward. CDKGlobal.com/neverstop
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
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THERE’S CASH IN THAT OLD INVENTORY.
LET US HELP YOU SELL IT! After 12 months, chances are, you won’t sell those parts for a profit. And the longer those aging parts stay in your inventory, the less chance they will ever sell. Since 2005, Cash Discovery Program has helped dealers buy and sell over $185M in parts. We help dealers turn idle inventory into cash and increase their parts department revenue by finding them quick-turning inventory at a discount.
Put those parts to work today. Go to www.SellMyIdleStock.com or call 866-598-4077
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Sept - Oct 2014
A Better W ay to Delive r
We have been working closely with several partners and clients to develop EXTRA CRM to meet the needs of our clients who DUH ZLWKRXW D WUXH &50 VROXWLRQ %XLOW VSHFL多FDOO\ IRU (;75$ users, EXTRA CRM will be unveiled at AAPEX in November. EXTRA CRM takes customer relationship management to the next level, taking you from spreadsheets and word documents to a CRM tool that is fully integrated with our Elite EXTRA dispatch management solution, giving you a robust way to do business. EXTRA CRM makes it very easy for our clients to track and manage sales, customer service activity, target areas for business development, grow leads into clients, and even has PRELOH IXQFWLRQDOLW\ IRU WKRVH RXW LQ WKH 多HOG
A huge thank you to our piloting clients we are appreciative of the feedback and excited to begin rolling it out to other customers this fall.
www.EliteEXTRA.com
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
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Elite EXTRA welcomes MMG back to Eau Claire, Wis. October 2-5. We are excited to have our annual meeting with MMG Members. A few of the hot topics on this year’s agenda will be: EXTRA Parts CRM releasing Nov. 1 (Joe McBeth piloting) eCommerce ideas and posting ETAs from EXTRA Integrating telematics and dispatch
2985 58th Street | Eau Claire, WI 54703 | 715.874.2985
1.888.484.8729
www.EliteEXTRA.com The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
FALL IS THE SEASON FOR SERVICE All Makes POS Materials
Pole Banners
Promote Your Dedication to Serving All Makes and Models.
Show Them What You’ve Got.
Magneti Marelli All Makes POS materials make it easy to display your service capabilities for nearly any vehicle, whether purchased from you or somewhere else. Your customers will see you have experts they can trust Ì ÊÃiÀÛ ViÊ ÌÊ ÞÊ ÀÞÃ iÀÊ À Õ«ÊÛi V iÃÊLÕÌÊ> Ã ÊLÀ> `ÃÊÃÕV Ê>ÃÊ À`]Ê GM, Honda and Toyota. Install a horizontal banner, a set of display panels, indoor/outdoor signs and mirror danglers. Order your “All Makes” POS materials from the Service Drive Store today!
These two-sided, durable pole banners show the world — or at least those driving by — that in addition to offering a wide variety of services, your service department also sells tires. Remind customers and commuters that your dealership uses specially trained technicians for all their vehicle service needs. Pole banners are available with several messages to reach a variety of customers.
GET THE RIGHT TIRES, RIGHT AWAY.
We Service Nearly All Makes & Models
Now servicing nearly every make and model! That’s right. We’ll service it, even if we didn’t sell it.
Visit for these services.
VISIT OUR Vehicle Checkup SERVICEBatteries AND TIRE CENTER Wiper Blades
Oil & Filter Change Tires Brakes
We service these brands and more. General Motors Ford Toyota Kia Hummer Hyundai
Honda Nissan Saab Suzuki Volvo And more!
(FOFSBM .PUPST t 'PSE t )ZVOEBJ )POEB t 5PZPUB t .BOZ .PSF ©2013 Chrysler Canada Inc. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC or Chrysler Canada Inc., used under license. Magneti Marelli is a registered trademark of Magneti Marelli S.p.A.
©2013 Chrysler Canada Inc. Chrysler, Jeep, Dodge, Ram, SRT and Mopar are registered trademarks of Chrysler Group LLC or Chrysler Canada Inc., used under license. Magneti Marelli is a registered trademark of Magneti Marelli S.p.A.
We Service e All Makes & Models (FOFSBM .PUPST t 'PSE t )ZVOEBJ )POEB t 5PZPUB t .BOZ .PSF See Service Advisor for more information. n.
Vehicle Checkup Package
High Wind Pole Banner Hardware
Everyone Needs a Vehicle Checkup. Be Prepared.
Don’t Blow It! Secure Your Banner.
This is the perfect time to initiate the full checkup program and provide even greater assistance to your customers. Offering a vehicle checkup to every customer can be very profitable. Save over 20% when you purchase a Vehicle Checkup Package to give your checkup program a boost. Choose from two money-saving offers, which include:
This new pole banner hardware is specially designed for use in areas where severe weather and wind speeds up to 70 mph can occur. This hardware is intended for use with 3’ x 8’ Service Drive Store pole banners. Includes the hardware needed to install two banners per light pole.
UÊÊxääÊ6i V iÊ iV Õ«Ê À à UÊÊxääÊ6i V iÊ iV Õ«Ê*> « iÌà iÌà UÊÊ£Ê6i V iÊ iV Õ«Ê* ÃÌiÀ UÊÊ£Ê6i V iÊ iV Õ«Ê «L >À`
©2014 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram and Mopar are registered trademarks of Chrysler Group LLC. Magneti Marelli is a registered trademark of Magneti Marelli S.p.A.
Visit the Service Drive Store at www.dealers-mopar.com > Retail Tab > Service Drive Store to order your materials.
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The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
B63 >3@431B 47B 4=@ G=C@ ;=>/@ >/@BA 0CA7<3AA WE CAN HELP YOU SELL MORE MOPAR PARTS AD PROGRAMS START AT $150 AND ARE 100% REIMBURSABLE Chris Messer, Publisher |
651.224.6207 ext. 14 |
e
cmesser@10missions.com
E3 /@3 / >@=C2 AC>>=@B3@ =4 B63 ;=>/@ ;/AB3@A 5C7:2 – " /:: @756BA @3A3@D32
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The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
Mopar Masters Guild Magazine
Leaders in the Sale of Quality Mopar Parts
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Accessories
Made Easy
Experience Accessories 9 out of 10 drivers buy some kind of accessory and most do so within 90 days of the vehicle purchase. 75% of consumers prefer to buy those accessories at the dealership and 60% spend more than $1,500.1
Current Reality 0U [OL H]LYHNL NYVZZ WYVÄ[ VM H UL^ JHY ZHSL ^HZ HIV\[ Today, it is less than 4%2 7YVÄ[ WV[LU[PHS JVU[PU\LZ [V KLJSPUL THRPUN UV^ [OL [PTL MVY KLHSLYZOPWZ [V PTWSLTLU[ H UL^ WYVÄ[ center. Auto accessories is a $40 billion industry. Currently dealerships only represent about 5% of the market. Isn’t it time you grabbed a bigger piece of the pie?
Market Pressures 4VZ[ JVUZ\TLYZ HYL \UH^HYL KLHSLYZOPWZ ZLSS HJJLZZVYPLZ ZPUJL they are usually not presented at the time of vehicle purchase. Most WLVWSL KV UV[ L]LU RUV^ ^OH[ VW[PVUZ HYL H]HPSHISL MVY [OLPY ]LOPJSL Accessory manufacturers lack the ability or the market access to THRL JVUZ\TLYZ H^HYL 0UMVYTH[PVU ZOHYLK IL[^LLU Z\WWSPLYZ distributors, and dealers is minimal or non-existent leaving dealers
www.reyrey.com
PU [OL KHYR VU ^OH[ [VVSZ HUK WYVJLZZLZ [OL` ULLK [V PUJVYWVYH[L accessories into their business yet. Over 90% of drivers buy accessories for their vehicles, and most do so within 90 days. This three-month period is crucial and could mean 50% more WYVÄ[ for the parts department.
The Future of Accessories - AddOnAuto Dealerships using AddOnAuto are experiencing an average of $475 additional revenue per vehicle sale. AddOnAuto uses a ]PZ\HS JVUÄN\YH[VY LUHISPUN J\Z[VTLYZ [V ]PY[\HSS` HKK VY YLTV]L HJJLZZVYPLZ HUK PUZ[HU[S` ]PL^ [OLT VU [OLPY ]LOPJSL 0U HKKP[PVU AddOnAuto connects dealers to a vast, constantly updated vendor KH[HIHZL VM HJJLZZVYPLZ NP]PUN [OLT [OL ZHSLZ WV^LY ^P[OV\[ [OL L_WLUZL (KK6U(\[V PZ [OL ^VYSK»Z ÄYZ[ KPNP[HS KLHSLY Z\WWSPLY UL[^VYR MVY YLHS [PTL JH[HSVN WYPJPUN HUK WYVK\J[ \WKH[LZ HSS VU one platform. Accessories are no longer an afterthought. They are an integral PUJVTL NLULYH[PUN I\ZPULZZ MVY [OL KLHSLYZOPW ^P[OV\[ JH\ZPUN the parts department any additional headaches of maintaining a physical inventory.
© 2014 The Reynolds and Reynolds Company. 1SEMA 2NADA. All rights reserved. Printed in the U.S.A. 1056957
10/14
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Sept - Oct 2014
WE’R RE GOING TO LET YOU IN ON A LITTLE SECRET… It’s EASY to sell parts online! MarketplaceDirect® is a simple solution to sell your parts on eBay.
4 REASONS TO SIGN UP FOR MARKETPLACEDIRECT TODAY: 1.
Chrysler dealers using MarketplaceDirect have already sold over $500,000 in parts this year! (35 total dealers)
2.
Upload multiple parts lists and create custom pricing for each list
3.
Flexible shipping options to help maximize profits
4.
Opens your parts inventory up to millions of buyers
CALL US! 888-776-5792, EXT. 3
Mopar Masters Guild Magazine
OR VISIT OECONNECTION.COM/MPD
Leaders in the Sale of Quality Mopar Parts
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CollisionLink速 Shop is getting a facelift! Reach out to your shops today and encourage them to migrate to the new web-based and user-friendly CollisionLink Shop interFACE.
For more information visit marketing.oeconnection. com/newCLshopdealers
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70% of Shoppers Prefer Buying Auto Parts Online Are they buying from you? UPS can help Chrysler dealers tap into this expanding channel for greater e-commerce growth and profits. Provide a better customer experience with UPS delivery and returns options. Customers can reroute or reschedule their home parts deliveries with UPS My Choice® and experience faster and more convenient returns with preprinted return labels. Keep efficiency up and costs down with UPS services. UPS delivers earlier to more businesses and ZIP Codes than any carrier and can match transport mode to delivery need to help save you money. One UPS driver for all deliveries and pickups also minimizes interruptions in your day. Increase productivity with UPS technology solutions. Customize shipping labels to promote offers, build brand and reduce marketing spend. Process more parts shipments in less time with automated data input. And help manage customer expectations through end-to-end visibility and email alerts.
Learn about our new residential rates Visit us at the Mopar Parts & Services conferences in Atlantic City, Orlando and Las Vegas
Source: UPS Pulse of the Online Shopper™, A Customer Experience Study: Automotive Parts & Accessories Buyers, October 2013 © 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
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9/12/14 8:10 PM
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Fiat will source a midsize truck from Mitsubishi Fiat Chrysler will source a new midsize pickup for Europe and La n America from Mitsubishi Motors star ng in 2016. The truck will be based on the next-genera on Mitsubishi L200 model, Fiat and Mitsubishi said in a statement. The deal is supposed to help boost the Italian carmaker’s commercial vehicle sales and raise output at the Japanese company’s plant in Thailand. Mitsubishi is set to start manufacturing a re-designed L200, also known as the Triton, at its Thai plant later this year. In early 2016, it will start producing a Fiat-dedicated line of the L200, which will be rebadged and sold under the Fiat brand, said Mitsubishi spokesman Tetsuji Inoue. “This is beneficial for both companies because Mitsubishi Motors will boost produc on and Fiat will strengthen its product lineup,” Inoue said. Mitsubishi is expected to supply Fiat with 150,000-170,000 trucks over six years, although the figures have yet to be finalized, Inoue said, adding that the two companies were not considering any further coopera on. The automakers said they have signed a non-binding memorandum of understanding to develop and manufacture the truck. AutomoƟve News Europe reported in May that the pickup will be sold by the Fiat Professional light commercial vehicle brand in Europe and LaƟn America. Fiat Chrysler’s new five-year plan, unveiled in May, has a pickup for Europe and La n America debu ng in 2016. Fiat’s current lineup includes the Strada, a front-wheel-drive-only unibody small pickup built in Brazil and sold in Europe and La n America. The Strada was Fiat Professional’s top seller last year with a volume of 134,000 units. Broadening Fiat Professional’s lineup is a crucial element of Fiat Chrysler CEO Sergio Marchionne’s plan to make the automaker’s European business profitable again. Fiat has lost 2.15 billion euros ($2.93 billion) in the region in the past three years, but aims to end losses by 2016. “The Fiat Professional unit is likely already making be er margins then the average for the Fiat group and if the two companies share development and produc on costs, this should help that further,” said a Milanbased analyst who asked not to be named. Long-promised truck Marchionne first promised a large pickup with a 1-ton loading capacity in his 2006 business plan. The pickup was due to arrive in 2008 from Fiat’s plant in Argen na sharing underpinnings with Tata Motors’ Xenon, but Fiat decided not to build its own version of the model. Plans for a pickup reappeared in Marchionne’s 2010 business strategy. It was supposed be a version of the Dodge Dakota pickup. That model was never built. Fiat is comple ng a merger with its U.S. unit Chrysler. The combined Fiat Chrysler Automobiles are expected to list in New York in the middle of next month as it seeks to boost the global clout of the world’s No. 7 carmaker. While the carmaker has denied talk it is pondering e-ups with Volkswagen and Peugeot, Marchionne said Fiat would consider coopera on with other carmakers on very specific projects. Earlier this year, Fiat signed a deal with Renault for the French group to supply the Italian carmaker with a light commercial vehicle based on a Renault pla orm. Friday’s coopera on announcement with Mitsubishi is the second between the two auto groups this year a er Chrysler, wholly owned by Fiat, agreed to sell a rebadged Mitsubishi compact sedan in Mexico. This car is also made at Mitsubishi’s hard-hit plant in Thailand. Mitsubishi’s produc on dropped 11.4 percent in April-July to 93,000 vehicles in Thailand, where the company is facing a drop in sales and produc on due to a poli cal crisis and declining demand for cars. Source: Automo ve News
The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
There is nothing that compares to an autumn day under a Carolina blue sky than tailgating in Clemson, South Carolina! In the Southeast, College football is king! Some say it is because there were not as many NFL teams down south and in the Carolinas and we went for decades without an NFL team. But for me it has always been about the game being played by student athletes with the tradi ons and the family atmosphere that surrounds and makes up my percep on of college football. It began for me as a young boy being invited along with several other boys from the rural neighborhood I grew up at in upstate South Carolina to attend games at Clemson University. We would pile up in a Rambler sta on wagon along with a picnic lunch and make the 2 hour trip to watch a college football game. This was in the days before huge upper decks in stadiums and the big TV network deals. You could catch a radio broadcast if it was a big game and you were lucky if you didn’t see it live. It was a more simple me. It was also more than just going to watch a football game. In the open areas around where we parked there would be pickup football games comprised of kids of families that traveled there as we did. As we made many trips there over the years, the experience built a sense of family. All of this developed into a love for Clemson University and college football plus injected the “orange blood” that con nues to flow through my veins today.
My plans were always to a end Clemson but in the summer a er I graduated high school I decided to a end a university closer to home. I s ll made it to some games through the 70’s and early 80’s that included the na onal championship year in 1981. That all changed in 1984 when I began taking my family with a young son to games at Clemson. We began by buying ckets at random but in 1985 I joined the athle c support group “IPTAY” (I Pay Ten A Year which started 75 years ago and it cost a lot more than that today) and began buying season ckets. Continued on Page 27
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Continued from Page 26 I have not missed a home game in over 25 years! The running joke in my extended family is “don’t plan a wedding or a funeral on a Clemson home game if you expect Paul to show up!” This brings me to subject of tailga ng. For the close friends that know me, I love to cook, especially outside, and know that this part of the College football experience is a large part of the fun. Heck, some mes it is bigger than the game depending who we play! We started with a card table out of the trunk of a car and usually a bucket of KFC arriving a couple of hours before the game. That has evolved into ge ng in my tailgate spot by 6am under 100 year old oak trees and hanging out all day. This holds true even if a major network has the game slo ed at night. For years I would pack up my Ram 2500 bed with all of my gear looking far worse than the “Allstate Mayhem” commercials. Two years ago I bought one of our re red parts delivery Sprinters and created my “Tiger Tailgate Ride”. It has been painted Clemson colors with graphics added. It was ou i ed with shelving for all of the cooking/ serving equipment, a rack for the flat screen TV plus satellite dish, racks for the tables/chairs/tents, a 2000 wa generator, storage for the Astro-Turf plus a private “women’s po y”! Our women will not use a porta-jon! The day consists of cooking, ea ng, socializing, telling folk lore/half-truths, being an arm chair quarterback or coach, watching Gameday, watching other games, playing corn hole, walking around campus viewing special events, more cooking, and more ea ng. Add to all of this in the middle or at the end we go watch a football game yelling for the home team! For seven home games per year this is more than a hobby. It has become a way of life! As I have go en older I have added to my bucket list to visit all ACC schools at least once and experience firsthand what other folks do. But as I started and I bet I will be correct in saying: There is nothing that compares to an autumn day under a Carolina blue sky than tailgaƟng in Clemson, S.C.! Sumi ed by Paul Allred - Stateline CJDRF
The exchange of information by like sized dealers in a non-competitive environment.
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Sept - Oct 2014
Seven Auto Parts Executives Indicted for Role in Conspiracy to Fix Prices Including these seven, a total of 43 individuals have been charged in the government’s ongoing inves ga on into price fixing and bid rigging in the auto parts industry. A federal grand jury in Detroit returned two separate indictments against seven execu ves from two Japanese manufacturers of automo ve parts for their par cipa on in a conspiracy to fix prices of certain automo ve parts, the Department of Jus ce announced. A three-count indictment was filed in the U.S. District Court for the Eastern District of Michigan. Count one charges Atsushi Ueda, Minoru Kurisaki, and Hideyuki Saito of Mitsubishi Electric Corp. (MELCO) with conspiring to fix the prices of certain automo ve products, including starter motors, alternators and igni on coils, sold to Ford Motor Company, General Motors LLC, Chrysler Group LLC, Fuji Heavy Industries Ltd., Nissan Motor Company Ltd., and Honda Motor Company Ltd. in the United States and elsewhere. Count two charges Kurisaki and Saito with knowingly conspiring to obstruct jus ce by destroying documents and corruptly persuading, and a emp ng to persuade others, to destroy documents. Count three charges Saito with knowingly and corruptly persuading, and a emp ng to persuade, execu ves to destroy documents and delete electronic data that may contain evidence of an trust crimes in the United States and elsewhere. Ueda and Kurisaki served as President and General Manager, respec vely, in the Automo ve Equipment Group. They are no longer employed by MELCO. Saito currently serves as a high-level manager within the Automo ve Equipment Group at MELCO. A one-count indictment, also filed in the U.S. District Court for the Eastern District of Michigan, charges Takashi Toyokuni, Ken Funasaki, Kazunobu Tsunekawa and Tomiya Itakura of Hitachi Automo ve Systems Ltd. with conspiring to fix the prices of various automo ve parts, including starter motors, alternators, air flow meters, valve ming control devices, fuel injec on systems, electronic thro le bodies, igni on coils and inverters and/ or motor generators sold to various automobile manufacturers such as, Ford Motor Co., General Motors LLC, Nissan Motor Co. Ltd., Toyota Motor Corp., and Honda Motor Co. Ltd., in the United States and elsewhere. Toyokuni, Funasaki, Tsunekawa, and Itakura all served as high-level managers in the Business Planning Department at Hitachi Automo ve during the charged conspiracy and currently serve in various senior management posi ons at the company. “Protec ng American consumers from an compe ve prac ces is our top priority,” said Brent Snyder, Deputy Assistant A orney General for the An trust Division’s criminal enforcement program. “The An trust Division will con nue to pursue the auto parts makers and execu ves who engaged in this blatant and harmful criminal scheme.” Continued on Page 29
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Continued from Page 28 Both indictments allege that the execu ves indicted par cipated directly in the conspiratorial conduct, and directed, authorized, and consented to their subordinates’ par cipa on. The execu ves are charged with parcipa ng in a conspiracy that existed from at least as early as January 2000 and con nued un l about February 2010. Among other things, the execu ves and their subordinates, according to the indictment, par cipated in mee ngs with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of certain automo ve parts sold to automobile manufacturers. MELCO is a corpora on headquartered in Tokyo, Japan. MELCO pleaded guilty on Nov. 6, 2013, for its involvement in this conspiracy, and was sentenced to pay a criminal fine of $190 million. Hitachi Automo ve is a corpora on headquartered in Tokyo, Japan. Hitachi Automo ve pleaded guilty on Nov. 6, 2013, for its involvement in this conspiracy, and was sentenced to pay a criminal fine of $195 million. Including Toyokuni, Funasaki, Tsunekawa, Itakura, Ueda, Kurisaki and Saito, 43 individuals have been charged in the government’s ongoing inves ga on into price fixing and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Addi onally, 28 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines. The seven defendants are charged with price fixing in viola on of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the vic ms of the crime, if either of those amounts is greater than the statutory maximum fine. The maximum penalty for obstruc on of jus ce is 20 years in prison and a $250,000 criminal fine for individuals. Source: Department of Jus ce Press Release – September 18, 2014 www.jus ce.gov
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Sept - Oct 2014
2014 M MMG MG C Com o m m itte i t t ees es President Vice President Treasurer Secretary
Rick Cutaia Andy Reed Susan McDaniel Susan McDaniel
Rick Hendrick DCJR - Charleston, SC Allen Samuels DCJ – North Richland Hills, TX Bill Luke CJD – Phoenix, AZ Bill Luke CJD – Phoenix, AZ
Marvin Windham Rick Monteiro Joe McBeth Paul Allred
Benchmark CJD – Birmingham, AL Jack Powell CJD – Escondido, CA Dallas DCJ – Dallas, TX Stateline CJD – Fort Mill, SC
Committees: Vendor Chairman
Paul Allred
Stateline CJD - Fort Mill, SC
Newsletter
Don Cushing
Bald Hill DCJ – Warwick, RI
Nada 2015 Planning
Tom Kellogg
Harold Zeigler CDJR - Grandeville, MI
Membership
TBA
Finance Committee
Steve Hofer Rick Cutaia Joe McBeth
Park CJ – Burnsville, MN Rick Hendrick DCJR - Charleston, SC Dallas DCJ – Dallas, TX
ADP
Gerry Oaks Paul Allred Andy Reed Rick Monteiro
Baxter CJD – Omaha, NE Stateline CJD – Fort Mill, SC Allen Samuels DCJ – North Richland Hills, TX Jack Powell CJD – Escondido, CA
R&R
Rick Cutaia Susan McDaniel Marvin Windham
Rick Hendrick DCJR – Charleston, SC Bill Luke CJD – Phoenix, AZ Benchmark CJD – Birmingham, AL
Dan Hutton Paul Allred Steve Hofer
Tom O’Brien CJD – Greenwood, IN Stateline CJD – Fort Mill, SC Park CJ – Burnsville, MN
Dealer Tire
Susan McDaniel Marvin Windham Joe McBeth
Bill Luke CJD – Phoenix, AZ Benchmark CJD – Birmingham, AL Dallas DCJ – Dallas, TX
Elite Extra
Rick Monteiro J.D. Ipsen Larry Morris
Jack Powell CJD – Escondido, CA Ken Garff West Valley CJDR - Wesy Valley City, UT Fred Beans CJDR - Doylestown, PA
UPS
Glen Hojnacki
Milosch’s Palace CJD – Lake Orion, MI
Tracy Industries
Mike Mulkins
Go Chrysler Jeep West - Golden, CO
GuidePoint
Mike Mulkins
Go Chrysler Jeep West - Golden, CO
Katzkin
Mike Gerber
Rairdon CDJ - Kirkland, WA
Executive Committee All of the above as well as:
Vendor Committees
OEConnection Snap-On
Mopar Masters Guild Magazine