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Federal Mogul appoints new distributor

Federal Mogul appoints new distributor

Braking is a hot area for Federal Mogul

Braking is a hot area for Federal Mogul

Federal Mogul has reached a new distribution deal with Roadlink International to distribute its Ferodo brake products.

Federal Mogul says the agreement is part of a plan to give workshops better access to the Ferodo range.

The company says that it chose Roadlink to distribute the products because of Roadlink’s ties with the CV sector.

Roadlink has a braking range of more than 500 brake lining part numbers, with one of the widest coverages of the CV market.

Joint managing director of Roadlink International Keith Sedgley said: “Roadlink has been supplying Federal-Mogul products to customers since our inception in 1982. Adding Ferodo to our range will provide our distributors with a greater choice of brake products designed to keep their customers’ vehicles safer for longer.”

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RMI announces new chairman

RMI announces new chairman

RMI Logo Jpeg

The Retail Motor Industry Federation (RMI) has announced that Alec Murray has been appointed as chairman, effective from the beginning of this month.

Previously managing director of Ford Credit Britain and chief executive of Quicks Group, Alec held the position of NFDA chairman during the mid-nineties and also from 2005-2006. He also acted as RMI chairman from 2006-2008.

Commenting on his appointment Alec Murray said “I am delighted to be back as Chairman of the RMI and look forward to once again supporting the industry through the challenging times ahead. The RMI’s proposed restructure will ensure it represents its member’s views, concerns and interests at all levels and across all sectors.

“This is an ethos I fully support and will continue to promote this throughout the RMI in the future months.”

Colin Parlett, acting chairman said “I am extremely pleased that Alec has taken on the role, his previous knowledge of the RMI coupled with his wealth of experience in the motor industry will prove crucial in steering the federation in the future.

“All here at the RMI look forward to working closely with him again and seeing the RMI and all its associations move forward and thrive.”

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The road to digital radio starts here

The road to digital radio starts here

DAB sales are up 184%

DAB sales are up 184%

Figures from the SMMT show that the fitment of digital radios as original equipment in new cars is up by 184 percent.

compared to the same period in 2010, the first nine months of 2011 have seen a meteoric rise in the numbers of cars being sold with digital radios fitted as standard.

The SMMT now believes the drive to digital radio being a standard on new vehicles is well under way. The news comes as the BBC has announced that it will build digital coverage of its national radio stations to 97%, including better coverage on motorways.

SMMT chief executive Paul Everitt said: “Significant progress has been made in developing the content and coverage of digital radio, driving consumer demand in the new car market. The massive increase we’ve seen this year puts us well on the way towards delivering our commitment to fit all new cars with digital radio by the end of 2013.”

For the aftermarket the rise in digital radio sales could see retailers and stockists having to look into the new technology. Already there are numerous aftermarket products available for motorists wanting DAB radios. With more new cars than ever being sold with the equipment as standard, the DAB boom looks set to continue.

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Success for BM at Equip Auto

Success for BM at Equip Auto

BM did good business at Equip Auto

BM did good business at Equip Auto

As the Equip Auto show in Paris drew to a close, CAT took the opportunity to ask UK exhibitors what they thought of the event.

On the whole their response was positive. Some even managed to do a good deal of business at the show. One of those was BM Catalysts, whose stand was full to bursting for much of the show’s duration.

Sales and marketing director Mark Blinston said: “We have had a fantastic show. As a company, we have invested heavily in our presence which is notable by the size and location of our stand at this year’s show.

“As a result of  this investment, and the growing reputation and awareness of our brand, we have been incredibly busy with both existing and prospective customers. We have had record numbers visit our stand over the week and we are excited about the future business that this will bring us.”

What was your experience of Equip Auto? Email your thoughts and comments to darren.moss@haymarket.com

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Delphi pushes forward with diagnostics

Delphi pushes forward with diagnostics

Delphi's unit also offers TecDoc integration

Delphi's unit also offers TecDoc integration

Delphi has launched its own diagnostic tools platform for the aftermarket.

At the Equip Auto show in Paris this week, Delphi unveiled its Linked Diagnostics System. The company says its platform takes ‘being connected’ in the workshop to a whole new level.

Utilising TecDoc software, technicians can plug the unit into the universal connector in vehicles to get an immediate readout of technical errors. As well as determining fault codes the unit also guides technicians to the suspected fault.

Technicians then have the choice to order spare parts directly through TecDoc. Delphi says this will be the first unit to offer diagnostics and ordering through TecDoc in one step.

Delphi has also collaborated with TecDoc on another project, the WebCat – an internet-based catalogue detailing product applications and lines.

The past eighteen months has been very profitable for Delphi, as the company reports doing $35 billion worth of business.

The company’s Mike Rayne said: “As vehicles move from being the traditional mechanical model into a more electrically based unit, it represents a struggle for the technician. This is all about brining the technician along, it’s about Delphi participating in the natural evolution of the industry.”

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Nisshinbo holdings acquires TMD Friction

The sale is subject to approval by the competition authority

The sale is subject to approval by the competition authority

Japanese firm Nisshinbo Holdings has agreed to buy TMD Friction.

The friction materials manufacturer will continue to trade as TMD Friction, operating as an independent wholly owned subsidiary.

The combination of the two companies will create one of the world’s largest brake friction materials manufacturers, with a projected revenue of £1 billion and employing over 6,000 people worldwide.

The transaction is expected to be completed following approval from the competition authority.

TMD has grown rapidly over the past three years, presenting a 20 percent increase in sales in 2010 up to €637 million and proforma EBITDA earnings up 160 percent to €71 million.

TMD Friction will continue to be led by Derek Whitworth along with his management team. NISH board member Koji Nishihara will join TMD’s board of TMD.

TMD chief executive Derek Whitworth said: “I am delighted to be joining the Nisshinbo group of companies. This is a great opportunity for TMD to continue our development with a strong and successful partner.

“Their expertise, particularly in the markets where we are growing fastest will be invaluable as we seek to accelerate our expansion and continue to provide innovative and leading products to our customers.”

Koji Nishihara said: “TMD is a leading global brake friction manufacturer with strong brand recognition and established technology leadership dating back 100 years. The combination of NISB and TMD under the ownership of NISH creates the largest, most capable global automotive brake friction manufacturer in the world.”

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ECP sold to LKQ

ECP sold to LKQ

ECP has been sold for £225 million

ECP has been sold for £225 million

Euro Car Parts has been sold to American aftermarket firm LKQ Corporation for £225 million.

The sale comes as LKQ Corporation, which is one of the largest North American aftermarket companies, continues to make a round of investments. The acquisition of Euro Car Parts marks the company’s first investment outside of North America.

The current sale price could rise by a further £55 million if certain growth targets set by LKQ are achieved in 2012 and 2013.

ECP founder and managing director Sukhpal Singh Ahluwalia has said that he intends to remain at the company, as well as retaining a substantial financial interest in Euro Car Parts. Many of the current ECP board members also intend to remain with the company.

He said: “LKQ Corporation is arguably the most dynamic and successful company in the North American automotive aftermarket for collision parts. They have a dedicated and focused management team which has built an innovative company with a very strong work ethic. We feel very much in tune with this culture and with our new colleagues, all of whom have many years of experience in this business.”

“Under my leadership, this new partnership with LKQ Corporation will help the Euro Car Parts team continue our fast expansion in the UK parts aftermarket, in existing products and market sectors, but also in some new ones.”

LKQ Corporation’s President Robert Wagman said: “The acquisition of Euro Car Parts represents an important strategic step for LKQ Corporation.  It has always been our goal to acquire the best companies in their respective markets.  Euro Car Parts represents that type of a company in the UK market with its impressive track record of growth, excellent distribution network and strong management.

“Euro Car Parts provides an ideal launching point for our European entry. With this acquisition we will work with Euro Car Parts’ customers and suppliers to expand the use of alternative automotive parts in the UK.”

Singh recently said he saw no reason why his dedicated and energetic team shouldn’t continue the drive to create a company with a turnover of £1 billion and 10,000 employees across Europe.

Over the past twelve months ECP has opened a brand new 500,000 sq ft National Distribution Centre in Tamworth, as well as adding 9 Regional hubs and numerous new outlets.

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Auctioning old parts in aid of BEN

BEN Logo 3D Final

The National Clearence Centre has launched a scheme collecting and selling old or obsolete parts, with some of the profits being donated to the automotive industry charity, BEN.

The NCC, part of the Foray Motor Group says it will be working with dealers and other suppliers to collect and sell as many obsolete parts as possible.

The centre says it will be happy to arrange collection of parts from anywhere in the UK.

Foray’s parts director Howard Jenkins said: “These are parts which have sat on the shelf, gathering dust and taking up space and which in most cases have long since been written off.

“This is an ideal opportunity for dealers to clear space in an environmentally responsible way and support their industry’s charity – and of course while we are a Ford dealer group this scheme’s not just about Ford parts so we’re inviting businesses from all franchises to get involved.”

Dealers and other parts suppliers who would like to support this initiative and BEN should contact Gareth Taylor, National Clearance Centre manager on 07867 520268 or by emailing garetht@fmg-uk.com .

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It’s all change for oil

It’s all change for oil

Comma's range of oils cater for the vast majority of the UK car parc

Comma's range of oils cater for the vast majority of the UK car parc

Life isn’t getting any simpler, whether you’re talking about tax returns or the fluids that the UK’s millions of cars need to keep ticking over.

The days when one or two different viscosities of oil would do for most of the car parc are long gone. As tolerances, materials and technology develop and change, engines are putting ever more specific demands on their oils.

Gravesend-based Comma Oil and Chemicals says coolants are going through the same proliferation, so garages face even more potentially critical decisions. What used to be a simple swap of liquids at service time has become a minefield.

For the garages, factors and manufacturers that can keep pace with the times, however, there are great opportunities.

Comma, of course, is keen to take advantage, protecting and building on its 24 percent UK market share of oils and the 30 percent chunk of the market for other fluids. Sales and marketing director Mike Bewsey believes getting Comma’s message and advice down the line to the garage, helping them to sell the benefits to the consumer, will have the company’s cashtills ringing.

“The extended chain of communication is difficult, it can break down at any point if you’re not clear about it. It’s very difficult to get the quality message all the way down to the consumer,” he says.

Comma has been hard at work on a new programme to help get that message across. To help garages and factors identify the right fluids for the right cars, Comma has developed new features for its website and updated packaging and marketing material. The company did research to find out what the market wanted.

“Rather than do what we believed would be right, we did research on it to make sure it was right,” says Bewsey.

Comma's new site promises big business opportunities

Comma's new site promises big business opportunities

The new site, up and running now, features a vehicle registration look-up, as well as make and model dropdown menus, to display the appropriate liquids for a particular car.

Limitations with the information held on the DVLA database mean there isn’t always an immediately definitive answer, but in these cases the site asks the user questions to reach the right product. Is there a diesel particulate filter or catalytic converter fitted, for instance?

The results of the research that Comma did also means the site explicitly says when the company doesn’t have a suitable fluid – for the rear transaxle of a Ford Kuga, for instance – rather than leave a result field blank. After all, if there’s a gap, garages or factors might assume the fluid for a similar car will do.

It might, but it might not. It’s important not to underplay the difficulty in providing the information on which fluids to use, since it’s such a complex area. The website covers 98 percent of the car parc – more than 8500 different engine types.

Nearly half of these (48 percent if you want to be picky) are covered by 5W-30 oil. Not all 5W-30 oils are created equal, however. Comma has seven different blends, and the consequences of using the wrong one, or any other fluid, can be costly.

There’s the unfortunate case of one garage which fitted the recommended oil for a four-wheel drive 3.0-litre Audi to a two-wheel drive model. It ruined the continuously variable transmission and resulted in a bill running into the thousands.

Then there’s the different oil needed for Volkswagen Group cars on longlife service schedules rather than fixed intervals. Or unit injector engines versus common rail. Or delightful DPF differences on Renault Lagunas.

The 1.5-litre engine used in this model is available with and without exhaust after-treatment. Use the wrong oil, with too high a sulphated ash content, and you’ll clog the filter.

Bewsey says: “We’ve had two enquiries this year from factors over this model where the DPF has ended up broken when the guide wasn’t followed and a wrong oil was used. In each case, the factors ended up having to meet the cost of replacement systems, and they probably wouldn’t have got much change from £1,800.” Ouch.

These types of problems aren’t going to go away, either. In general the market trend towards smaller cars, with smaller-capacity engines with higher outputs than before, will drive the proliferation forward as tolerances get ever tighter and newer materials, such as magnesium alloy, are used.

Smaller and smaller engines are also using turbocharging technology, with the majority of failures in these systems being traced back to the incorrect fluids being used. They generate more heat, too, so coolants are having to do a lot more work to keep temperatures down.

Use the wrong coolant? It could cause erosion of the waterpump and turbocharger failure – not a cheap thing to put right if it goes wrong on your account.

“Modern day cooling systems are immensely sophisticated and even, most ‘basic’ are packed with different materials – aluminium, copper, brass, rubber seals, plastics and so on,” says Bewsey. “Finding a fluid that is compatible with, and crucially that prevents corrosion of these different materials isn’t that straightforward!”

If you happen to see a car within its warranty period, too, a manufacturer might well quibble over paying out if the wrong fluids have been used, even for an unrelated problem.

“The aftermarket did very well to retain the right to repair under Block Exemption. In this economic climate it’s a great opportunity for workshops to acquire new business as consumers trade out of franchised dealerships for better value servicing work.

“If workshops want to capitalise on that opportunity with 100 percent peace of mind, they need to get the right product – we can help them to do that.”

To keep in the game, Comma has invested heavily in its on-site laboratory in Gravesend. It tests deliveries of bulk oil, tests the different oil and chemical blends the company then mixes, tests fluids going down the production lines and then tests them again before they’re sent out.

Comma has also invested heavily in motorsport

Comma has also invested heavily in motorsport

Whether it’s oils, coolants or other fluids, the lab conducts more than 21,000 tests a year to ensure the blends exceed the tight ACEA specifications and perform exactly as they should. So far this year there have been only five instances were results were not immediately satisfactory and demanded further checks to confirm liquids conformed to the parameters.

Between the arrival of the raw materials and the dispatch of the goods, products go through a barrage of 30 tests to ensure they’re bang on the money.

It’s this work which backs up the company’s guarantee that a product is suitable. It aims to give garages the same peace of mind they’ll get with a Gates or Dayco timing belt promise, but the research Comma did into the new website and marketing revealed that many garages didn’t realise it even existed.

“The guarantee is what we put on as the ‘skin’ over all of those things, but if we didn’t have those tests underneath, the guarantee wouldn’t work at all. We couldn’t do it, and offer the guarantee, if we didn’t have the confidence in our product.

“In fairness, it isn’t new. We’ve offered our guarantee to the market place for some years, but what we are trying to do now is help distributors and workshops better leverage it.”

Bewsey believes there are plenty of ways to get that leverage and cement the relationship between consumer, garages and Comma other than price (see panel): “The UK is very price sensitive, although not as much as you might think. Price is there, but it’s not first or second – it’s around the sixth consideration.”

Besides the continual development and testing work at Gravesend, Comma spends a great deal of time on the road to reach the industry at shows like Mechanex. It says it has worked hands-on with 2000 technicians at TeckTalk Live events at shows last year and trained a further 3000 in partnership with factors like Camberley Auto Factors.

It also has 11,000 UK workshops signed up to its Professional Partner Programme, which it launched in 2001, all receiving the company’s printed application guide.

It’s not just about the UK for Comma anymore. Over the past eight years it’s enjoyed particularly steep growth in other markets. Export now accounts for 38 percent of the company’s turnover.

The company does particularly well in Iceland where there’s more Comma product in each car than in any other market. A shame for Comma, then, that the Icelandic car parc is 100th of the size of the UK’s, but the company’s still proud about the achievement.

It likes to think Icelanders go for its products because they have the confidence that they’ll continue to work no matter what the extremes of weather.

Wherever the market happens to be, though, it’s the 100 percent attention on the aftermarket that Comma also thinks gives it an added edge.

None of the growth in export has come at the expense of market share or service in the UK, Bewsey is quick to point out.

Comma has unrivalled access to base oils, to keep the UK demand fully met through peaks and troughs, and since the company is able to switch blends and make most of its own containers on site it can very quickly respond to changes in what the demand is for.

“We focus on the aftermarket, that’s what we’re about. If the aftermarket dies, we die with it,” says Bewsey.

As long as both stay on their toes, there doesn’t seem to be any danger of that happening to either, thankfully.

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Thumbs up for Autoelectro

aeheader2010

Rotating electrics remanufacturer Autoelectro is celebrating passing it’s annual ISO9000 inspection visit.

Autoelectro managing director Tony Bhogal believes the company is the only independent full-line remanufacturer of rotating electrics in the UK to have the standard.

ISO900 is awarded when companies are able to demonstrate efficient management which help to provide customers with excellent service, improve motivation amongst staff and reduce waste.

Established in 1986, Autoelectro has gained approval from leading buying groups this year and also recently completed a round of investment in more warehousing and stock.

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