Tag Archive | "aftermarket"

TENNECO ACQUIRES FEDERAL MOGUL

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TENNECO ACQUIRES FEDERAL MOGUL


Emission parts firm Tenneco has acquired Federal Mogul from Icahn Enterprises in a deal valued at $5.4B.

Following the acquisition, Tenneco has also announced its intention to separate the combined businesses into two independent, publicly traded companies through a tax-free spin-off to shareholders; establishing,  ‘Aftermarket & Ride Performance Company’ and ‘Powertrain Technology Company’. The agreement is expected to complete in the second half of 2018, subject to regulatory and shareholder approvals with the separation taking place in late 2019.

Brian Kesseler, CEO of Tenneco, said: “Federal-Mogul brings strong brands, products and capabilities that are complementary to Tenneco’s portfolio and in line with our successful growth strategies. Unleashing two new product focused companies with even stronger portfolios will allow them to move faster in executing on their specific growth priorities.”

Carl C. Icahn, Chairman of Icahn Enterprises, added: “Icahn Enterprises acquired majority control of Federal-Mogul in 2008 when we saw an out-of-favor market opportunity for a great company. I am very proud of the business we have built at Federal-Mogul and agree with Tenneco regarding the tremendous value in the business combination and separation into two companies. We expect to be meaningful stockholders of Tenneco going forward and are excited about the prospects for additional value creation,” he concluded.

Posted in Exhausts, Factor & Supplier News, Garage News, Latest News, News, Retailer News, Shock AbsorbersComments (0)

EURO CAR PARTS ACQUIRES NEW WAREHOUSES

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EURO CAR PARTS ACQUIRES NEW WAREHOUSES


Two sites, similar to this, have been acquired by ECP

Factor chain Euro Car Parts has acquired trade counters in Scarborough and Normanton, Wakefield. The acquisition was completed on behalf of American commercial real estate broker Cushman & Wakefield; however, terms of the deal were not disclosed.

The Scarborough site is now open on Seamer Rd between Howdens and Toolstation, housing 17 staff and six delivery vans within its 3,356 sq ft warehouse. Meanwhile, the Wakefield branch will open in due course on Good Hope Close, located off Pontefract Rd near Junction 31 of the M62 motorway.

“We are delighted to have been able to secure both these sites for ECP, allowing them to expand their presence and better service their ever- growing customer base”, notes Henry King of the Logistics & Industrial team at Cushman & Wakefield. “These new locations are the first of an ambitious 2018 expansion plan
and signify a purposeful and positive start to the year.”

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THE CHANGING FACE OF RETAIL

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THE CHANGING FACE OF RETAIL


After a grim few months on the High Street, we speak to retailers and suppliers in our sector to find how they have adapted

WMS shop floor

Let’s not beat about the bush here: 2018 has so far been a terrible year to be a High Street retailer. There have been numerous high profile casualties such as Toys R Us and electronics giant Maplins as well as clothing retailers such as New Look, Claire’s Accessories and Jones the Bootmaker either calling in the receivers or announcing drastic restructuring.

Even restaurants in the so-called ‘smart casual’ dining sector, which for a long time were lauded as saviours of dwindling town centre, seem to have hit bad times. Carluccios, Prezzo and pretty well all of the outlets in TV chef Jamie Oliver’s portfolio have announced drastic closure programmes. It isn’t ideal.

Nonetheless, traditional accessory shops have adapted as best as they can to the changing face of the retail environment: The days of Ray D’Ator (CAT’s longtime accessory shop owner turned columnist) scowling at people over the counter, and his attitude of ‘you don’t want it looking too smart, people will think they can’t afford it’ are well and truly over.

SHOP ENVIRONMENT
Indeed, it is the opinion of the accessory retailers we spoke to is that the environment has changed significantly over the last couple of years, leading them to revise their offering. “There’s a change in consumer behaviour due to cars being less easy to work on therefore fewer DIY mechanics to serve” noted Jonathan Rogers of Wrexham Motoring Supplies. “We do a lot of free fits now when it comes to bulbs, batteries, wipers etc and we have noticed a significant increase in this service. This is directly in line with inf lating garage hourly rates and people being forced into looking elsewhere for fitting.”

Richard Shortis, Managing Director of regional chain Wico, said: “The range of product has increased as a result of the changing marketplace. Gone are the days of two different headlight bulbs, now there are about 10 – and that’s not including all the different upgrade versions.” Shortis adds that a noticeable change in the key categories of bulbs and wipers is that (with the possible exception of high-output bulbs) the parts wear out more slowly, and need changing less frequently. However, more customers are asking for the bulbs and blades to be changed for them, which Wilco will do for a fee.

One retailer who feels the environment has not changed significantly is A1 founding member and accessory shop owner Joe Elliott. “Has the environment changed in the last two years? Not really, business has remained consistent,” he said. “It’s busy when its cold and its OK the rest of the time.”

Push bike sales in decline

Despite this, Elliott says that he has noticed more sales in touring equipment. “I think the increase in sales of roof bars and WMS shop floor boxes are due to development in the leisure market. More families these days take part in more leisure activities throughout the year,” he said. “Roof boxes, expensive as they can be, it can often be cheaper to buy one and all the malarky that goes with it (instead of renting one on multiple occasions or shelling out for a larger car).”

Despite the rise in sales, he describes the competition from online vendors in the leisure category as ‘absolutely tremendous’ and he counters it by offering good service and free fitting. Indeed, it is the fitting offer to which Elliott attributes the company’s ‘edge’. “Apart from one very brief period, at Elliots, we have always offered free fitting on any accessory, whether that is bulbs, wipers or roof boxes. This policy has bought us a tremendous amount of kudos within the city. When we tried charging, we lost our edge. We have seen sales dramatically increase since we went back to free fitting.”

PUSH BIKE SALES
One area that appears to be in decline, or at least not as profitable as everyone hoped, is the sale of push bikes. “We did dip our toes into the cycle side a few years ago but quickly realised how saturated the market was,” explained Jon Rogers, adding that there is more to cycle retailing than simply stocking a few bikes. “We are clearing out of push bikes,” concurred Joe Elliott. “We went to a lot of trouble and expense setting up as a cycle repair shop, but for some reason it just hasn’t worked.”

“The other issue is that the Push bike sales in decline venture capitalist have come into the cycle industry… and we all know how they were when they went into the motor factor side of our trade,” said Richard Shortis, adding that pedal-electric bikes were a growing segment, albeit one that was growing from a very low base.

So the message from the market is adapt fast and respond to new trends – and don’t be afraid to try something new. Just be prepared that not every new trend (particularly in our sector) is going to fly.

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OIL SUPPLIERS STRIKE DEALS

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OIL SUPPLIERS STRIKE DEALS


Lucas Oil MD Les Downey

CV factor Digraph has inked a deal with lubricant firm Millers Oil. The move follows the factor chain’s expansion plans .

“As we continue to support the CV market, we were keen to partner with a company that has an innovative roadmap for growth”, notes Andy Black, Platform Business Manager at Millers Oil. “Digraph has exciting development plans and is recognised for its service and support. We are looking forward to driving innovation together”.

Elsewhere, France-based lube supplier Motul has done a deal with Automotive Brands to distribute it’s passenger car oil range in the UK.

Gunter Steven, Head of BU Sales Export for Motul, said, “To also have the opportunity to work with Automotive Brands to expand our presence in the UK Aftermarket sector was an  exciting opportunity for us both. We are delighted to work together”

Motul was already a sponsor of Automotive Brands’ Power Maxed Racing and prior to the distribution deal had renewed sponsorship of PMR’s Astra touring cars for the new season.

On a similar note, A1 Motor Stores now distributes Lucas Oil products, after the latter received ‘Approved Supplier’ status from the group.

Commenting on this partnership, Lucas Oil MD Les Downey, said: “It’s an exciting time for us. It is a terrific opportunity for us and for A1 members, too”.
He added: “We will be working directly with them to increase product awareness and to boost sales”.

Meanwhile, garage aggregator WhoCanFixMyCar has arranged a partnership with Shell. The website and the oil major will share stand space at the upcoming Automechanika Birmingham. Al Preston, co-founder of WhoCanFixMyCar. com, said, “We’re excited to be returning to Automechanika Birmingham. I’m sure it’ll be better than ever, especially as we’re partnering with Shell”.

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PUTTING A CAP ON EMISSIONS

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PUTTING A CAP ON EMISSIONS


There are plenty of filters out there, but how are suppliers helping garages with their selection?

TPS anti allegen dust and pollen filter

It’s hardly news that emissions are hot on the VMs’ agenda, notably with the ongoing initiatives encouraging customers to swap out their older diesel vehicles for cash to put towards a newer model. Whilst scrappage schemes have been widely adopted by the former, suppliers are also playing their part in filtering out contaminants that would otherwise cause engine damage and discomfort for motorists if left unattended.

AIR/CABIN AIR FILTERS
Jonathan Walker, Managing Director of manufacturer Mahle Aftermarket UK, says that as a general rule of thumb, technicians should be replacing cabin air filters at regular service intervals as a clogged filter is still a major contributing factor for under performance of the A/C system and losses in engine power. He also mentions that the installation procedure is not always plain sailing: “Fitting cabin filters is increasingly complex and garages spend a lot of time locating and removing other components to ensure a correct fit”, he replied, “Fixed price service has arguably had a negative impact as the time spent on replacing cabin filters becomes more pressurised. It all equates to the biggest contributor of failure, which is a clogged cabin filter.”

To assist workshops with these practices, Walker highlights that Mahle’s CareMetix cabin filters have played a crucial role in communicating these messages whilst offering improved health and wellbeing benefits for end- users. He elaborated: “Our Caremetix range comprises of a five-layer cabin filter specially designed to improve passenger health and wellbeing by removing nasty odours and harmful contaminants from vehicle cabins.” He continued. “Garages can offer customers a tangible difference as the innovative range provides five- layer protection against allergens, brake dust, diesel soot, fine particulates and tyre debris that is proven to enter a car from exhaust fumes.”

Attempting to achieve a similar goal is Hella Hengst, a distribution partnership between Hella and filtration brand Hengst which launched last year. “The focus is to support workshops with point of sale material and marketing strategies that help inform the end user of products being fitted”, said Mark Adams, Product Manager at the firm. “The company also takes extra steps to include fitting instructions/ location guides for its cabin filters, which reduces time and allows workshops to maximise profit.” Adding that the supplied content points out the ‘benefits of premium quality products against the dangers of using those of an inferior design’.

ENVIRONMENT
Michelle Smith, Marketing Manager at TPS, explains that the organisation is economising through its Genuine Parts Range, with new pleated technologies. “In terms of materials, the filter media contains cellulose fibers which protects it against moisture, oil and fuel vapours. Depending on the application, fully synthetic filter media with a multilayer structure or with an additional nanofiber coating are used”. Smith noted, “Our Genuine Air Filters incorporate the latest materials and pleat technology to ensure that both performance and fuel economy are maintained throughout service life. In addition, our pleat technology has the ability to absorb dirt and dust particles whilst maintaining the optimum air f low into the engine for efficient combustion”.

HELLA Hengst portfolio

Sogefi’s Sales Manager, Jonathan Brooke said “Car drivers are not enough aware of the benefits of changing the cabin filters for their well-being. “The garages should more systematically inform their customers of these benefits. One good reason for doing it is that the end users can really feel the improvement: less dust and odours, better ventilation and defogging. These are strong selling points, that the customer will appreciate. In many cases the fact of showing the used filter – full of dirt and pollution- is the best selling argument.

THE FUTURE OF FILTERS
Touching back on the diesel market, UFI Filters Sales Manager Karl Ridings says the firm is armed and ready to service the next generation of vehicles complying with Euro Six and Seven standards. Speaking about this in more depth, he
said: “Thanks to the investments in R&D we supply filters like the Gen2Plus diesel filter”. He added: “Based on the availability of these technologies, UFI looks very confident in the future of diesel filter sales”.

Miten Parikh, General Manager at Comline, concurs and builds on Ridings statement, outlining that this ecological- type filter is becoming a more desirable choice among VMs particularly for their air modules. “As vehicle manufacturers become ever- more environmentally conscious the ecological-type filter is becoming more prevalent”, he continued. “Manufactured entirely from recyclable materials, many modern applications use this type of air filter and this trend seems likely to continue. Comline has in its range a number of fuel filter references with built-in water separators and sensors”.

With the multiple filter options available, workshops will certainly not be left starved of products that will result in repeat business and happy customers bearing in mind they follow the procedures outlined in this article.

Posted in CAT Features, Factor & Supplier News, Filters, Garage News, News, Retailer NewsComments (0)

AUTOMECHANIKA BIRMINGHAM WINS INDUSTRY AWARDS

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AUTOMECHANIKA BIRMINGHAM WINS INDUSTRY AWARDS


PROMOTION ARTICE ON BEHALF OF AUTOMECHANIKA BIRMINGHAM

Automechanika Birmingham team

Automechanika Birmingham has won two industry awards for the hugely successful second edition of the UK’s leading exhibition for the automotive aftermarket and vehicle production industry.

The Automechanika Birmingham team proudly took to the stage to collect two awards on Friday 23rd March for Best Trade Show and the Best Independent Organiser in 2017 at the prestigious Exhibition News Awards.

The 2017 exhibition sold a staggering 5,000 square metres before the 2016 exhibition had even taken place and achieved a 45% increase in the number of exhibitors overall. The exhibition welcomed over 12,000 visitors through the doors to see over 800 exhibitors from the aftermarket and vehicle production sector.

Simon Albert, Event Director said “Now in our third year of Automechanika Birmingham, the team and I are grateful for the support of our exhibitors, visitors, partners in helping to making the industry’s event a huge success. We are now only 10 weeks away from the 2018 event – we have introduced a raft of new initiatives to suit the entire automotive industry. New elements include a dedicated hall for garage businesses as well as areas for retailers and free business advice, a meeting’s programme to encourage business conversations on exhibitor stands, new live demonstrations and free training from the experts! We look forward to welcoming everyone from 5-7 June 2018 at the NEC”

The two awards follow a further four accolades that the team at Automechanika Birmingham have achieved across the previous two years.

Visitors can register free at www.automechanika-birmingham.com

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PARTS ALLIANCE OPENS NEW BRANCHES

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PARTS ALLIANCE OPENS NEW BRANCHES


SCMF Croydon

The Parts Alliance has opened a new branch under its SCMF brand in Croydon and another one through its SAS Autoparts division in Newcastle. The move comes as part of the company’s growth strategy to reach more garages and suppliers across the country.

The Croydon store will help to serve garages and suppliers in the South East and Greater London areas within its 4,500 sq ft facility, housing 12 staff, two delivery vans and four motorcycles. William Barrett has been hired as Branch Manager who also possesses over 20 years of experience in the aftermarket.

“We’re delighted to continue our branch expansion to establish a true national footprint with a combination of company store owners and a commitment to members and service partners,” said, Peter Sephton, Parts Alliance CEO. “We welcome all our new team members to our culture of systemised entrepreneurship and look forward to giving our customers increased choice and better service driven by our people, culture and technology platform”.

Meanwhile, the Newcastle SAS Autoparts site is headed up by Dave Watts who spent 15 years at Andrew Page’s Brough Parkfossway depot, which is still operating as normal. He is assisted by six members of staff with plans to recruit more employees in due course.

Sephton added: “The opening of two new locations is an opportunity to expand the group’s presence nationally and aligns with our strategic plan to grow in key markets”. Henry Buckley, President and Uni- Select CEO, concluded: “This continues our commitment to have the best customer coverage in the UK through both owned stores and members”.

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THE PART WITHOUT THE SURCHARGE

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THE PART WITHOUT THE SURCHARGE


Nick Hood shows us that returning old units isn’t always the core of the business at Autoelectro.

D&V testing rig

This isn’t the first time that we’ve been to Nimalec House in Bradford, home to remanufacturer Autoelectro. However, there’s a special announcement today, so we are keen to hear what it is.

Before that happens, we are given a guided tour of the complex. ‘Complex’ is the correct term for the sprawling mass of buildings, as the original was bought soon after the business was founded in the late 1980s and has been extended several times since. In fact, if you don’t know your way around it is quite hard to keep track of where you are, as the building twists and turns and is set over several levels.

Fortunately, brothers Nicky, Tony and Paul Bhogal are on hand to show us around, as is Sales Manager Nick Hood. There are all the things you might expect in a modern remanufacturing business and warehouse, such as a busy sales office, various well-ordered stockrooms (the facility is ISO14001 accredited) and a large reman workshop. There’s also a few things that you might not: For example, there is a complex photo studio hidden away which is set up so the subject can be pictured through 360 degrees, meaning visitors to the firm’s website can virtually turn an item around on screen – the idea being that users can see if a unit is directly comparable to an item being pulled from a vehicle.

The testing facilities are also impressive. Nicky Bhogal, who is an electrical engineer by profession, worked with Canada- based D&V Electronics to develop testing rigs that could not only test a wide variety of alternators, but just as importantly, were easy to set up for each piece being tested. This means every alternator leaving the building gets properly calibrated and has a full test report along with traceability.

However, the real business of the day is the launch – and that is the news that from March, more than 2,000 references will have their surcharge charges cut.

The 10 bestselling and half of the 100 fastest-moving part numbers within its sales pareto will be surcharge-free, following months of stockpiling core behind the scenes.

Nick Hood explained that ironically, the deal was possible because of the proliferation of cheap imported units in the market. “Most people fitting these new units will still keep the old core and sell it by the basket load to a core dealer, so we are looking at a proliferation of part numbers in broader terms.” he explained, adding that dealers would usually take these crates of mixed core as they came rather than picking through them. The result, perhaps predictably, is an increase in the number of the most common part numbers.

The new no-exchange offering will be sold in the same red Autoelectro boxes as the rest of the range, albeit marked ‘NEX’. An entirely new sub-brand had been considered, but after a lot of what the Bhogals described as ‘soul searching’ they decided to keep it under the same label. “We’re proud of what we do and we don’t want to step away from that” explained Tony Bhogal.

“What we are offering is not a budget product, so it won’t be as cheap as some of the Chinese units” he explained. “But it won’t be much more expensive, which allows us to compete at that end of the market, and with smaller factors that don’t want to deal with core”. On the subject of core, Hood is keen to put one myth to rest. “We are well aware that some people think we make huge money on core, and I can tell you categorically that we don’t” he said, adding that collecting, identifying and processing core is a complex, but vital part of the business and will continue to be so.

There’s more announcements to come as well. From the beginning of April, the remanufactuter will be introducing
a ‘surcharge transparency’ tool, which will assist in securing maximum profits from stock on the shelf, something we’ll be interested to know more about in due course.

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FORGE GARAGE FACES ‘UNCERTAIN’ FUTURE

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FORGE GARAGE FACES ‘UNCERTAIN’ FUTURE


Forge Garage site

A family-run garage in Kidlington faces an ‘uncertain’ future, after the Oxfordshire County Council announced plans to build six new homes over its premises in an area known to be difficult to re-site businesses.

The Forge Garage has been repairing and servicing vehicles in the village for more than six decades and was established by Fred Beckley of whom was a technician for the RAF in Burma during the Second World War. Now in its third generation, Beckley’s son Alun and grandson Mark are at the helm and have said they’ll continue business as normal despite these challenging times.

Speaking to the Oxford Mail newspaper, Alun said: “We’re not sure what is happening, but we will carry on for as long as he we can”. Readers online have also commented on the newspaper’s article expressing their concerns and support for the workshop. One person under the username, ‘Vocman’ said: “They may have difficulty relocating. I understand many industrial estates refuse to let to ‘mucky’ enterprises such as motor mechanics.”

Meanwhile another user called ‘RJ’, wrote: “That’s rough. I had assumed there was a buyout, no idea the garage was on tenterhooks waiting to see what would happen. I hope any development allows them to keep going or find a better site. Best of luck, gentlemen.”

The firm may have a reprieve as the council had planned to use the now-defunct construction firm Carillion.

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FILLING GAPS IN THE MARKET

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FILLING GAPS IN THE MARKET


Sean (L) and son Daniel (R)

Sean Brown shows CAT around Brown & Geeson in Wickford, Essex

Today we are Essex-bound visiting Brown & Geeson – a parts supplier and manufacturer that’s had a strong presence in the motorsport sector since its inception over 50 years ago.

BACKSTORY
In fact, the company first started out as an accessory shop in Chadwell Heath, set up by father and son duo Ray Brown and Arthur Geeson, which saw the integration of B-G aftermarket accessories in the form of fuel pumps, seat covers and wheel trims among various other components. However, the turning point in business came when Ray discovered the importance of self-branding, as his son Sean explained: “At the time, my father realised that by buying something in, putting his name on it and in his own packaging, he could sell his products worldwide and that’s how the business started to grow”.

Following expansion plans, the business partners relocated to larger sites in Plaistow East London and Dagenham, Essex respectively, where bespoke production facilities were introduced for serving VMs, importers and parts manufacturers across the country and abroad. This eventually led to another desirable location in Wickford in the mid 90’s, however, there were plenty of major changes ahead: “The UK manufacturing industry back then was quite tough, so myself and my father Ray made a decision to sell all contracts, machinery, shutdown the company and start what was ‘Brown & Geeson Distribution’.” said Sean. “The decision was taken to come out of manufacturing and concentrate on buying and selling from where Brown & Geeson originally started” adding that the firm eventually reclaimed its original name and returned to manufacturing, that’s now outsourced overseas.

BRANDING
As it stands, Sean and son Daniel head-up the operation of whom have extensive experience in motosport both on and off track. They greeted and took us through to an office space displaying styling products such as the infamous Momo steering wheel and numerous accessories behind shiny glass cabinets, along with mannequins dressed head to toe in Team GB race wear.

Display bits and pieces aside, Sean was keen to get down to business and discuss the B-G Racing brand that is now in its sixth year. Speaking of how it came about, he said: “What we needed to do with Brown & Geeson was go back to the old days where we sold boxes with BG logos on it. I believe there are products not only for pit equipment but also for setup equipment.” He continued: “On travels around the world, I have visited paddocks in Europe and noticed gaps in the market for premium products. I thought I could create something similar and bring it to the masses, not only to ‘educate’ but give the top teams a quality product for an affordable price.” He adds that the BG platform has been well received so far as the organisation’s distribution base now stretches globally.

Barcoding system has proved effective

Daniel agrees and expands on his father’s sentiment: “The B-G Racing brand is growing steadily everyday. We target distributors in different countries so instead of selling directly to the public, we target trade and retail shops in France, Germany and many more countries. We try and offer them a whole catalogue solution so they can source all their necessary parts from one place to simplify the purchasing process”.

Sean notes that the team have recently released their Seventh Edition catalogue packed with vehicle, setup and pit equipment for motorsport and aftermarket companies. Some of the popular sells he notes include: lift jacks, work mats and hub stands, plus camber/ caster gauges and levelling trays for technicians whether they’re working in a garage or pit lane. In addition, the brand is a supplier of car components from Australian firm Aeroflow Performance and Mittler Bros Machine & Tool.

After a business insight, Daniel and Sean provided us with a tour of the facility. During our tour, the shop floor seemed well organised with Momo and B-G Racing wares stacked along the aisles in an orderly fashion as they await distribution. The top floor comprised of more styling accessories and an in-house studio where new products are photographed before being uploaded to the firm’s website. To speed up productivity, Daniel told CAT that a new barcoding system has recently been implemented to get the product logged, onto the shelves and out the door to reduce stock discrepancies with customer orders.
Of course, with any queries that may arise, the sales and admin department are on-hand and who were very busy on our arrival dealing with customer calls and queries both nationally and internationally.

Although the duo have acquired some new OEM and workshop projects, everything is being kept top secret until completion later this year.

But for now, Daniel and Sean’s main objective is spreading the BG footprint while continuing to produce products to help bridge gaps in the market. We look forward to catching up with the team very soon.

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