Thu, 05/31/2007 - 00:00

Audiobahn promoted Doug Parks to director of marketing. Parks will be in charge of the company's marketing initiatives related to advertising, branding, shows and events, web, licensing, sponsorship, public relations and cross-promotional opportunities. Prior to this promotion, he was vice president of sales for Xsite In-Car Entertainment and directed all of Audiobahn's consumer and trade shows. In addition to Audiobahn, Parks will also oversee the marketing operations for Alphasonik, Swiss Audio, Xsite and Ichibahn.

John Moulton was appointed vice president and general manger, North American operations for Johnson Controls Automotive Experience business. Moulton has been with Robert Bosch since 1978, most recently serving as executive vice president, engineering and manufacturing, Bosch North America and general manager, diesel systems division, North America.

Accuride Corp. hired Joel Mow as vice president and general manager of its Bostrom Seating business unit. Mow most recently served as vice president and general manager, control systems division, Europe, automotive sShifter systems, cables and stamped and machined products for Dura Automotive Systems.

The Wally Parks NHRA Motorsports Museum, presented by Automobile Club of Southern California, shipped the Mickey Thompson Challenger to England for the Goodwood Festival of Speed, June 22–24. Mickey Thompson's Challenger, the first American automobile to go 400 mph will be part of a display in the festival's cricket pitch. The Challenger will be returned to the Parks Museum as the centerpiece of its land-speed racing exhibit set for Wednesday, November 7. The display will celebrate the 70th anniversary of the forming of the Southern California Timing Association.

Creative Material Technologies Ltd. President, John C. Becker IV, delivered a second presentation to the Occupational Safety & Health Administration (OSHA) at the organization's Regional Consultants Meeting in May. His presentation included the market conditions for the growing spray-on bedliner market sector, which is presently gaining market share 20 times faster than drop-ins; and 72% of spray-on bed liners are aftermarket installed. The numbers add to a growing health and safety concern, which, in turn, increases OSHA's attention and focus to address this health issue. For information on the OSHA Regional Consultants Meeting or the Consultancy Program, visit http://www.clearbedliner.com/news.

KICKER announced that factory training and certification are now available online for all authorized KICKER Car Audio dealers. While the new exclusive online format will serve a growing segment of authorized dealers, sales staffs, and installers, KICKER will continue its live trainings across the country.

Thule Inc. announced that Quality Magazine ranked the company fourth in its recent Quality Leadership 100 report, a ranking position that bested more than 800 companies that participated in the survey. The survey was based on criteria such as scrap and rework as a percentage of sales, warranty costs as a percentage of sales, rejected parts per million shipped and contribution of quality to profitability and shareholder value. The top 100 companies were listed in the publication's March issue.



 

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Thu, 05/31/2007 - 00:00

A panel of industry experts, including Steve Frazier of Amazon.com, will look at "eMarketing 2.0" during the 2007 Aftermarket eForum, July 16-18 at the Hyatt Regency O'Hare in Chicago, Illinois. Frazier, vice president of U.S. Hardlines Category Management for Amazon, oversees the automotive retail group. He provided the keynote address for the 2006 eForum.

The panel discussion on eMarketing will provide attendees with expertise on how to design an eMarketing campaign that will produce a positive return on investment. The seminar will look in-depth at localized eMarketing, social network sites and bookmarking sites. The session is being facilitated by Dan Jondron of Advanced Digital Strategies and Alan Dicker of SEMA. Other panelists include Luanne Brown of eTool Developers and Gigi Ho of Digital Performance.

"Thousands of companies of all sizes are using the Internet to effectively increase sales and lower costs," commented Jondron. "Yet surveys of the aftermarket show that we are still lagging in our efforts to take advantage of what is arguably the most important technology to impact business in the past decade."

"eMarketing 2.0" is one of three concurrent seminar sessions that will be held on the first day of the eForum, Monday, July 16, from 1 p.m.–4:30 p.m. Other sessions include "Is Outsourcing for Manufacturers" and "Pursuing Excellence in Data Management."

The early-bird discount registration deadline for the 2007 Aftermarket eForum is Friday, June 1. For more information and to register, visit www.AftermarketeForum.com, or contact Barbara Clark of AAIA at 301/654-6664.

 

Thu, 05/31/2007 - 00:00
Thu, 05/31/2007 - 00:00

SEMA-members companies have posted several new listings for job opportunities at www.sema.org/classifieds. Working for a SEMA-member company has many advantages. In addition to working for a company that supports and contributes to the success of the overall industry, being employed by a SEMA-member company enable the employee to participate in webinars, access free market research, join SEMA committees and more. The newest classified listings posted under Positions Available include:

  • Technical Sales/Support, Torrance, California

  • COO - Chief Operating Officer, Kansas City, Missouri

  • CAD Modeler, Newport Beach, California

  • In-house Advertising Agent, Scottsdale/Phoenix, Arizona

SEMA members: Have a job opening that you need filled? Members are invited to post classified ads on www.sema.org/classifieds free of charge. Categories include Positions Available, Positions Wanted, Rep Opportunities, WD Opportunities, For Sale, Items Wanted, Business Opportunities and Internships. Visit the site for details.

 

Thu, 05/31/2007 - 00:00


The market for in-vehicle global positioning systems (GPS) is growing, with sales forecasted to exceed 3.3 million units this year, according to a recent Wall Street Journal report. The Consumer Electronics Association (CEA), meanwhile, says that sales of aftermarket personal navigation devices experienced triple-digit growth in 2006, with over 2.2 million new units sold.

If CEA's online survey is any indication of what 2007 sales hold, U.S. consumers could spend substantially more than that. Nearly one-quarter (24%) of online consumers are planning to purchase a GPS device within the next year, spending an average of $410, which could result in sales reaching $4.1 billion in 2007, according to the company's latest survey of online consumers.

"Navigation remains one of the fastest-growing technology products, behind maybe only LCD televisions," Ross Rubin, director of industry analysis for the consumer marketing research firm The NPD Group, told the Wall Street Journal.

GPS systems are offered as an option by automakers for many new vehicles. Navigation systems were offered in 7.3% (1,229,523) of the 2006 model-year vehicles sold in the United States, according to Ward's Auto data. But sales of portable devices will likely outnumber sales of built-in units by more than two to one in 2007, says Phil Magney, president of the Telematics Research Group. The reason? Prices have fallen on portable GPS devices-from roughly $550 in 2003 to $396 a unit last year, according to CEA-a result of reduced production cost from economies of scale. Manufacturers are now targeting a wider demographic of consumers by lowering prices.

The article further explains that an influx of new GPS systems have entered the market from many well-known brands. These include Alpine, Audiovox, Clarion, JVC, Panasonic and Sony. In addition, new units with added features-such as weather information, cell-phone Bluetooth connectivity and MP3 playback-are being introduced from established market leaders Garmin, TomTom and Magellan.

"Convergence has spread GPS across multiple product segments, resulting in greater consumer awareness and budding adoption of the technology," says Steve Koenig, CEA's senior manager of industry analysis. "The availability of new services like real-time traffic information will continue to drive this segment forward in the coming years."

Sources: Vella, Matt. (May 16, 2007). "Finding Your Way in the GPS Market." Wall Street Journal. Accessed May 22 from www.wsj.com; Consumer Electronics Association (CEA). (April 9 2007). "Consumer Demand for GPS Headed in the Right Direction, CEA Research Finds." CEA press release.

 

Thu, 05/31/2007 - 00:00

It has been a year since the Japanese Big Three reintroduced B-cars in the United States, and the segment has been growing ever since. According to a recent WardsAuto.com article, year-to-date sales suggest that subcompact sales will reach levels not seen in more than 11 years.

First-quarter sales for subcompacts are running 95.1% ahead of the same quarter in 2006 at 107,942 units versus 53,328. "B-car deliveries are tracking at an annual rate of 535,105 units, nearly double last year's 274,272-unit total," states the article. Ward's Auto data indicates that the last time sales of subcompacts surpassed the half-million mark in the United States was in 1995, when 567,210 vehicles were sold. In 1996, sales dropped 48.5% to 291,860 units, as vehicles either moved up a segment due to an increase in size and/or price or were discontinued in favor of a new model.

Since the mid-'90s, sales of subcompacts have been on a "downward trajectory," reaching a 26-year low of 120,616 units in 1998. Rebecca Lindland of Global Insight says that upcoming new vehicles from Ford Motor Co., General Motors and BMW should keep subcompact sales high. She also said that "auto makers missed the ball when they aimed the latest crop of B-cars at the youth market." Lindland went on to say that manufacturers are under the impression that Generation Y wants to drive small cars, when in fact they would rather have their parents buy them a truck or an SUV.

Even with the growth in this market, the subcompact segment remains small compared with other vehicle categories, such as Ward's Auto Middle/Cross Utility and Large Pickup classes. In 2006, subcompact sales peaked in July and August at 33,530 and 33,667 units, when the national average for regular unleaded gasoline was near $3 per gallon. As this segment continues to grow, demand for aftermarket accessories for subcompacts will rise as well.

Source: Schweinsberg, Christie. (May 22, 2007). "Subcompact Sales Poised to Hit Levels Not Seen in More Than Decade." WardsAuto.com. Retrieved May 23, 2007 from www.wardsauto.com.

 

Thu, 05/31/2007 - 00:00

Record capital inflows and low interest rates have lead to a blistering merger and acquisition (M&A) market for financial and strategic buyers-the former looking for acquisitions which will yield synergistic benefits while the latter add value to the organization with the stated goal of reselling the business at some point in the future for a profit. M&A in the automotive aftermarket has behaved in the same way as broader M&A market transactions continued at a frenzied pace during the first quarter of 2007, according to a recent Aftermarket Analyst article.

The specialty-equipment industry-consisting of performance parts and accessories-represents a subset of the overall automotive aftermarket.

Buyers are very eager to invest their capital, but what makes the auto aftermarket so attractive to a potential buyer? According to the Aftermarket Analyst editors, the four main growth drivers in the auto aftermarket are:

1. Increases in the size of the country's automotive fleet
2. Increases in the age of the country's automotive fleet
3. Increases in the number of miles driven annually per vehicle
4. The higher cost and increased technology of new cars

The number of vehicles on the road in the United States has increased significantly in recent years, so there are now more vehicles than ever in need of aftermarket products. Between 1996 and 2005, U.S. motor-vehicle registrations increased more than 21.3% to 232 million total units. The aging of vehicles currently in use has also been a significant factor contributing to the growth in demand for aftermarket products. For example, as the average age of autos in use increases, owners are more likely to purchase aftermarket products to enhance or repair their aging vehicles.

The aftermarket is growing because the vehicle population is getting older, with approximately 39% of cars more than 10 years old. The average vehicle age has grown significantly over the last few years, with the average age for passenger cars reaching 10 years. Between 1996 and 2005, the average age of all passenger cars on the road increased from 8.6 to 10.0 years. The average age of light trucks increased from 8.4 to 8.7 years during the same period. This trend is expected to continue for the foreseeable future, further accelerating growth in demand for aftermarket parts.

An increase in total miles traveled has an obvious positive influence on the aftermarket in terms of consumable products, such as oil and tires. According to the Auto Aftermarket Industry Association (AAIA), total miles traveled has increased from 2.4 trillion miles in 1996 to 2.95 trillion in 2005. This reflects a 25% increase. More importantly, miles driven per vehicle is trending up, so each of these vehicles will need more service repair parts.

Relative to average family-income levels, new vehicles have become more expensive, with the average unit costing about $22,000. The result is that consumers are increasingly seeking ways to protect or enhance their investment. At the same time, more middle- and lower-income families opt for well-equipped used cars, rather than stripped-down, smaller new cars. Consequently, demand for aftermarket products has increased dramatically. New-vehicle technology has increased the cost of replacement parts and vehicle complexity. As a result, fewer people are desirous or even capable of repairing their own vehicles-opting instead to have then serviced by professional mechanics.

Excess capital and low interest rates are the "fuel" that is powering the current M&A market. While their source of capital differs, strategic and financial buyers appear to be well suited for another strong year of merging or acquiring businesses. This is true not only for the broader U.S. M&A market, but also for the auto aftermarket, which remains poised for growth and continues to be an attractive industry for investment.

Source: "Market Update: M&A in the Auto Aftermarket" (May 15, 2007). The Aftermarket Analyst newsletter by The Capstone Financial Group. www.capfg.rsvp1.com.

 

Thu, 05/31/2007 - 00:00

You probably have a good idea of who your existing customers are, their similarities, needs, etc. Future customers, on the other hand, may have unique needs that require a new approach in order to get them to buy your products. In a recent article by the National Federation of Independent Businesses, the author maps out 12 different customer profiles. In each of the 12 descriptions below, the author indicates a "customer tip-off"-what a customer might say to you—and a "conversation starter"—the appropriate response recommended by the author.

A customer is standing in front of you. Maybe he has a question or a complaint. Or maybe he is thinking about a purchase and wants to discuss a product issue. What do you say to best serve the customer and bring about a win-win resolution of the conversation?

Sounds like a simple question, huh? But the fact is that many customers have their own conversational temperaments and preferences. How you speak with your customer is often more important than what you say.

How do you engage your customer in the right conversation? First and foremost, listen carefully, and you'll learn which core need he wants met. Then you can build your conversation around that need.

Here are 12 of the most common core needs you'll observe in your customers:

1. The boss. This customer wants to be in charge. He  wants things done his way. Customer tip-off:  "Mr. Jones, about this widget... I need to have three things happen this afternoon." Conversation starter: Imagine he is a respected supervisor. Speak deferentially. Ask questions to be sure you understand his problem. Make notes if necessary.

2. The competitor. The customer is checking around to see what he can get from the competition. He will spare no effort to identify the "best deal." Customer tip-off: "Give me a few days to consider this package." Conversation starter: Reiterate what makes your service unique or valued, or offer a small incentive for an immediate decision.

3. The explorer. This customer may not even be certain he wants to buy or obtain service, but a minor incident convinced him to get in touch with you. Customer tip-off: "I noticed that my widget seems to get very warm after I plug it in." Conversation starter: Invite your customer to disclose any possible questions or concerns. If authentic problems are suggested, offer guidance or repair. If not, provide reassurance; that's often satisfaction enough.

4. The miser. If the customer is buying a product or a post-purchase service, he is out to save every possible nickel. Customer tip-off: "If you come to service the widgets on your own schedule, can I save some money?" Conversation starter: Bring the conversation around to the value of your product and your service. Remind your customer that he is making an investment.

5. The negotiator. He believes hard negotiation is the key to just about every successful business transaction. Customer tip-off: "Let me propose this: You handle this problem for me and then throw in four months worth of supplies." Conversation starter: This customer wants to negotiate, so negotiate. For example, you could say something like "I want you to begin this very important service program, so let me give you a package of sampler supplies and a 10% coupon for your next call."

6. The novice. He has had little or no experience with your product or business. Yet he's on your doorstep with a seeming willingness to buy or seek assistance. Customer tip-off: "Can you tell me about these new widgets that I'm hearing about?" Conversation starter: Ask a few questions to determine the extent of your customer's knowledge. If it's low, provide him with a simple tutorial. For example, say something such as, "Let me tell you about four important things you should know about this widget product."

7. The preacher. Almost evangelical in his tone, this customer has firmly-and quickly expressed-opinions about sellers, quality or your product. He'll want to spend time expounding on his views. Customer tip-off: "Every single time I have bought a widget over the last five years, I have the same problems." Conversation starter: This customer requires extra careful listening. Don't hesitate to agree where the facts are clear, but your most important role is to empathize with your customer. Statements such as, "I'm beginning to understand what you're saying" or "It sounds like you are very angry" can help. Once you get beyond the opinion and the emotion, you can address the issues at hand.

8. The researcher. He wants to gather information about his prospective purchase or his post-purchase problem in a studious, almost academic fashion. Customer tip-off: "I have some questions about this widget." He may even have a notebook in his hand. Conversation starter: Listen carefully to his questions. Ponder your answers. If you're not certain about a point, or want the opportunity to continue the conversation later, indicate that you'll research the answer and get back to him.

9. The sampler. This is the classic kick-the-tires customer. He wants to try and test. Customer tip-off:  "Do you have a demo widget that I can use for 10 or 15 minutes?" Conversation starter: If you can make a test possible, offer to assist your customer. If not, redirect the conversation to your guarantees or top-notch service.

10. The skeptic. This customer doesn't take advertising or product claims at face value. The result is often a stream of pointed, sometimes trivial questions. Customer tip-off: "So tell me again where this was manufactured." Conversation starter: Help your customer make a priority list of truly important product qualities or issues and focus his attention on the top priorities. If your product or service is known for one or two key strengths, bring the conversation back to those strengths time and again.

11. The socializer. This customer likes to buy and even looks forward to seeking customer service. Customer tip-off: "What a beautiful necktie, Mr. Jones. Was that a gift?" Conversation starter: This customer wants a personal relationship. Engage in chitchat. You're not wasting time talking about the weather, your children or your customer's weekend plans.

12. The speed demon. Whether he's got many things on her mind, children in tow or adhering to a tight schedule, this customer is in a hurry. Customer tip-off: "I hope you can help me quickly." Or you will notice his anxiously tapping his foot or appearing slightly agitated. Conversation starter: Brisk, authoritative, but friendly tone of voice. Fast answers to first questions. If asked, he wants genuine assurance that you'll address his need quickly.

Source: The National Federation of Independent Businesses. (May 9, 2007). "Know Your Customer." Retrieved May 21, 2007 from www.nfib.com.

 

Thu, 05/31/2007 - 00:00

Earlier this month it was reported in eNews that PPG had just released its Sungate EP automotive glass windshield, which they said significantly reduces the transmission of solar energy into a vehicle, keeping the interior cooler and improving fuel economy. The new technology employs a glazing process built into Sungate windshields, which reduces front seat temperatures 27 degrees F (15 degrees C) and air-breath temperatures 16 degrees F (9 degrees C). This reduces air-conditioner workload, along with fuel consumption and carbon-dioxide emissions, the company said.

Some SEMA members raised some questions about this new technology. Specifically, the question was asked whether the glazing interferes with radar detectors. According to PPG, the coating used in the Sungate windshield does interfere with a directional signal, such as a radar detector. However, the company has taken a measure to prevent the use of radar detectors in Sungate EP windshield-equipped vehicles.

"We have made provisions for that capability with deletions of the coating in the targeted areas of the windshield where the relevant signals are present," noted Mukesh Rustagi, general manager market manager of automotive OEM glass products for PPG Industries. He goes on to say that the technology is similar to what they already use in the Mercedes Benz S-Class and the BMW 7-Series, both of which have these deleted areas that enable the radar detectors to work through the windshield.

"The benefits of the Sungate windshield, and now of the Sungate EP windshield, are clearly noticeable to the consumer when they enter a vehicle that has been parked in the sun. The initial comfort level is better and the time to cool down is much faster when the vehicle is equipped with a Sungate windshield," Rustagi says.

Source: SEMA Research & Information Center