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Coretalk: Key Industry Speakers Slated For PERA’s Chicago Convention

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Yastrow and Som will discuss “Current Issues in Employment-Related U.S. Immigration Law: I-9 Compliance, Visa Updates.” In addition to addressing hot topics and compliance tips, they will provide answers to your specific questions.
Bob McKenna, President/CEO of Motor & Equipment Manufacturers Association (MEMA) and Past President of NAPA, will be speaking on “Motor Vehicle Parts Suppliers – The Invisible Giants of Manufacturing.” Conference participants are invited to supply topics to be covered or questions to be addressed, says PERA Executive Vice President Nancie Boland. “This is a great opportunity for you to get all of your questions answered and to direct the content of the presentation.”

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Boland asks that topic requests and questions be submitted to [email protected] no later than September 7th.

The 2007 PERA Conference schedule is as follows:

* Thursday, September 27th – (day) Golf or City Tour; (evening) Opening reception.

* Friday, September 28th – Opening Program, Spouse Tour;

* Saturday, September 29th – Closing Program, Awards Luncheon.

For Hotel Reservations contact Pam Burban, Worldtek Travel at https://wems.worldtek/perafall2007. Or visit www.pera.org for more information.

Chrysler Group To Offer Lifetime Full-Powertrain Warranties

With some dealers hailing the move as “awesome,” The Chrysler Group has announced that it will offer a lifetime full-powertrain warranty on all 2006, 2007 and 2008 Chrysler, Dodge and Jeep vehicles, delivered beginning late last month. Chrysler will continue to cover the rest of the vehicle with its three-year, 36,000-mile basic limited warranty. Vehicles with diesel engines and SRT packages are excluded.
The program, described in a report from Automotive News, came as a result of many Chrysler dealers requested an expanded warranty, saying it would help them compete with offers such as General Motors’ 5-year/100,000-mile powertrain warranty. The warranty offer comes as Chrysler prepares to become an independent U.S. automaker owned by the private equity firm Cerberus Capital Management LP.

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Jim Arrigo, a Chrysler group dealer in Palm Beach, FL, believes this is a positive move. “We’re going from having the worst warranty in the industry to the best,” Arrigo said. “To be the first in the industry to come out with something like this shows we’re committed to making things better, to draw traffic to your showroom.” Arrigo said he considered the move a sign that Chrysler, under its new owners, would be more willing to go out on a limb for dealers.

Illumaware Announces New Promotion for Aftermarket Manufacturers and Resellers

Illumaware Corp. has announced a new promotion for aftermarket manufacturers and resellers. Effective immediately, Illumaware will map any product line of less than 10,000 products to both ACES and Legacy at no additional charge to customers who commit to a three-year subscription contract with Illumaware’s Evokat online mapping and data management suite.

“Evokat is the automotive aftermarket’s only state-of-the-art online data management application. Evokat subscriptions have grown considerably in the past 18 months due to the fact that it is both secure and easy to use. Evokat helps manufacturers and resellers both large and small to keep their parts data current, and to get that data to market instantly. Our customers are able to tie increased sales to their use of Evokat to manage and disseminate their data,” said Adrian Klingel, president of Illumaware.

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Klingel added, “We have always been dedicated to removing price and technology barriers to the flow of data in the aftermarket. In addition to Evokat’s success, our ACESAdvantage service allows us to quickly and accurately map millions of lines of data in hours, while still reporting on discrepancies and overlaps in vehicle applications. The net result is we are able to offer our small and midsized customers this mapping service at no cost to them, regardless of the state of their current catalog information.”

ACESAdvantage not only points out errors in source data, but it also shows actual solutions for fixing each data or mapping error in the customer’s existing catalog. Best of all, customers using Evokat have full access to their data at any time, in any format they require. “We have not and do not sell our customer’s data. Our lock-in strategy is to deliver the most valuable, easy-to-use and efficient mapping system for our customers at an affordable price,” said Klingel.

AAPEX to Have First-Ever ‘Green’ Zone For Products, Tools, Services

The Automotive Aftermarket Products Expo (AAPEX) will have its first-ever “Green” Zone at this year’s event to highlight environmentally-friendly products, tools and services. AAPEX will be held Tuesday, Oct. 30 through Thursday, Nov. 1, at the Sands Expo Center in Las Vegas, NV.

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The AAPEX “Green” Zone will feature products that service providers and retailers can sell to consumers to help make their vehicles more efficient and environmentally friendly. It also will have tools and diagnostic equipment used to repair new green cars, as well as suppliers that recycle waste or remanufacture parts, or that have environmentally friendly aftermarket parts.

“The automotive aftermarket is one of the most environmentally friendly industries in the world,” said Bill Glasgow, Sr., AAPEX show manager. “The ‘Green’ Zone will provide an exceptional opportunity for suppliers to showcase their products to the aftermarket, and for retailers and service shops to advance their expertise in this field.”

The AAPEX “Green” Zone will be located in the Venetian Hotel Ballroom that adjoins the Sands Expo Center.

AAPEX also will identify exhibitors on the show floor that have green products and the AAPEX Web site, www.aapexshow.com, will include a “Buy Green” area where buyers can find products that are environmentally friendly.

In addition, many exhibitors will promote their company’s green practices at the show, including environmentally-friendly manufacturing processes and training programs to encourage employees to be environmentally responsible.

To participate in the AAPEX “Green” Zone, contact Judy Novak, W.T. Glasgow, Inc., AAPEX Show Management, at 708-226-1300, fax: 708-226-1310 or e-mail [email protected]

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AAPEX is jointly sponsored by the Motor & Equipment Manufacturers Association (MEMA) and the Automotive Aftermarket Industry Association (AAIA). For more information, visit www.aapexshow.com.

Detroit Hustling To Get More Diesels Into Light Trucks, Say Experts

According to AutoWeek, Detroit’s automakers are working quickly to install fuel-saving diesel engines in their light trucks. And Nissan and Toyota may join them as well. Diesels have been common in the domestic automakers’ heavy-duty pickups, but as fuel economy concerns grow, as well as pressures from the competition, we may start seeing them in the light-duty trucks as well.

According to Richard Truett’s July 2, 2007 Autoweek article (“Driven to Diesels: Automakers Scramble to Offer Diesels in Light-Duty Trucks”), the following are expected to hit the market in the future:

Ford – 4.4L turbocharged V8 for F-150 and possibly Expedition in 2009

Dodge – 4.2L turbocharged V6 for Ram 1500 in 2010

GM – 4.5L turbocharged V8 for Silverado/Sierra pickups and Hummer H2 in 2010

Nissan – Not definite. Might use V6 or V8 diesel in Titan (from International Truck and Engine Corp.) in 2010

Toyota – Not definite. Currently working with Isuzu to develop diesels; might see a diesel in Tundra in 2010

LKQ Acquires Recycled Parts Business in Quebec City

LKQ Corp. has acquired recycled parts business Pintendre Autos Inc., located near Quebec City, Canada. Terms of this transaction were not disclosed.

Pintendre Autos primarily serves the professional repair market for not only automobiles but also for heavy duty trucks and several types of light duty vehicles. Pintendre also has a small retail self service recycle facility. The business operates on property totaling approximately 125 acres. The company generates annual revenue of approximately $29 million.

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According to LKQ President and CEO Joe Holsten, this second acquisition in Canada gives the company a large parts recycling business in a large population area.
“While business operations are concentrated in the Quebec City market, the company also provides service to Montreal through a re-distribution facility. While the bulk of sales and profits are from the sale of recycled parts, Pintendre will provide us a limited exposure to the parts recycling business for heavy duty trucks, motorcycles and recreational vehicles, such as snowmobiles and all terrain vehicles. Furthermore, we have been very impressed with the Pintendre management team, which will remain in place post-acquisition,” said Holsten.

For more information about LKQ, go to www.lkqcorp.com.

Increase Business By Adding ERC Link To Your Company Web Site

The Engine Repower Council (ERC) is encouraging aftermarket companies to show their support of the ERC by adding a link to www.enginerepower.org on their Web site.
As a segment of the Automotive Aftermarket Industry Association, ERC exists to create awareness of the economic and environmental benefits of rebuilt and remanufactured engines to extend vehicle life. The Web site contains a variety of tips, articles and other tools aimed at consumers seeking information about engine repowering.

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Heavy Duty Dialogue Conference To Convene At Mirage In January

Heavy Duty Dialogue ’08, the annual conference for executives and leaders in the heavy duty industry, is set for Monday, Jan. 21, 2008 at The Mirage, Las Vegas.
Organized by the Heavy Duty Manufacturers Association (HDMA), the event will precede Heavy Duty Aftermarket Week (HDAW), which kicks off the evening of Monday, Jan. 21, and continues through Thursday, Jan. 24, 2008, at The Mirage.

HD Dialogue ’08 will continue the event’s tradition of offering a stellar line-up of analysts and industry experts forecasting the future of the heavy duty industry. Confirmed speakers to date include:

* Dr. Thomas P.M. Barnett, noted author and expert on international security and globalization;

* Derek Kaufman, president and CEO of C3 Network; and

* Peter Nesvold, transportation industry analyst for Bear Stearns.

Several panel discussions and presentations with other industry leaders are planned for HD Dialogue ’08. The 2007 event, which drew more than 300 senior executive participants, attracted the largest audience in the event’s history.

More details will be updated regularly on the HDMA Web site, http://www.hdma.org.

Goodson To Host Regional Tech & Skills Conference, Sept. 15

Suppliers to engine builders can display their products and distribute literature at the regional AERA Tech & Skills Conference hosted by Goodson Tools & Supplies, Winona, MN, Sept. 15 from 8-4 pm.

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The conference is designed to provide one-on-one time with customers in a more intimate setting than a major trade show provides. The conference is open to both AERA members and non-members.

The cost is $250 for a six-foot display table. Suppliers can come in person, or AERA will set up their display and be sure literature is distributed.

Exhibitor Registration Forms and additional information can be found by visiting the Goodson Web site at www.goodson.com.

NEWS IN BRIEF

* Schumann’s Sales & Service, an industry supplier to the Midwest since 1970, is going nationwide in distribution of wet sump oil pumps, push rods and valve train components. Warehouse and factory representation opportunities currently exist in some geographic territories. Contact Verne Schumann at 563-381-2416 for further information.

* Ted Wise, co-president and COO of O’Reilly Automotive Inc., Springfield, MO, will address the Executive Breakfast presented by the Automotive Aftermarket Suppliers Association (AASA) at 7 a.m. on Tuesday, Oct. 30, the kick-off event at AAPEX in Las Vegas, NV. For ticket information, visit www.aftermarketsuppliers.org.

* In addition to celebrating its 25th anniversary in 2007, The Marx Group, a full-service business strategy and marketing communications firm, recently announced its sponsorship of the Car Care Council Women’s Board for 2007. “We are proud to support the efforts of The Women’s Board to educate women and young people about automotive careers, proper vehicle maintenance and safety,” said Tom Marx, president of The Marx Group. “We encourage other companies to join in this cause.” For more information, visit www.themarxgrp.com

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* ROL Manufacturing of America has announced that Marty Novil has joined the company as the new Director of Technology, Sealing Products. Novil brings with him over 30 years of OE and Aftermarket design engineering experience, and will be responsible for all gasket design, developing aftermarket solutions for troublesome engines and customer engineering support.


CORETALK EXTRA

Dana Reaches Settlement Agreement with Unions

Dana Corp. has reached settlement agreements with its two largest unions that will save the bankrupt auto parts maker more than $100 million per year, the company announced recently in an AFX News report.

Under the deals struck with the United Steelworkers and the United Auto Workers, voluntary trusts will take over Dana’s obligations for providing health care for retirees and long-term disability coverage for other employees. Dana will contribute $700 million cash and approximately $80 million dollars in common stock to the trusts, the company said in a news release.

The settlements include four-year extensions of Dana’s current contracts with the USW and the UAW at unionized facilities in the U.S., as well as new agreements with several recently organized facilities. The agreements allow for the establishment of a two-tier wage structure at some Dana operations and changes in disability benefits, the company said.

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Dana also announced a deal with Centerbridge Capital Partners, which will invest $500 million in Dana preferred convertible stock following the company’s bankruptcy reorganization. Centerbridge also has agreed to help line up investors for an additional $250 million in shares.

Dana, one of world’s largest automotive suppliers, filed for bankruptcy protection in March 2006 amid pressure from American automakers to obtain price cuts from suppliers. Dana has said its U.S. operations lost $2 billion over the past five years.

In March, the company asked a U.S. bankruptcy court judge for the right to force cuts on the unions, but the judge urged more negotiations toward a negotiated settlement.

Throttle-Less Valve Control Is Coming

Toyota recently released details of its new Valvematic variable-valve timing technology for improving the efficiency and performance of its gasoline internal-combustion engines, according to a recent WardsAuto.com article. In addition to employing elements of its existing VVT-i (Variable Valve Timing-intelligent) technology, Valvematic uses a new mechanism to control the volume of air entering the engine by precisely metering the opening/closing of the intake valves.

This development, Toyota says, improves performance by allowing the engine to operate without the use of a conventional throttle valve, or “butterfly.” Benefits of the new technology include up to 10% gains in engine efficiency and power output, as well as reduced carbon-dioxide emissions and improved vehicle acceleration.
Toyota says a 2.0L four cylinder will be the first engine to feature Valvematic, with the first applications reportedly including the new Toyota Allion and Premio sedans, which go on sale in Japan this winter, slotting in between the Corolla and Camry.

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Meanwhile, Honda is also working on advanced valvetrain systems and plans to release the next generation of its VTEC (Variable Valve Timing Electronic Control) technology in 2009 in an Accord-class vehicle. Honda currently is demonstrating the system on a 2.4L four cylinder, which it says is getting approximately 13% better fuel economy than its existing i-VTEC engines.

Although Toyota plans to continue refining its hybrid-electric powertrain technology, the automaker says Valvematic will add to its environmental-preservation efforts as it moves to revamp its entire IC engine and transmission lineup by 2010.
Source: from www.wardsauto.com

MAHLE Clevite Implements Pricedex PIM Solution for North American Operations

Pricedex Software, Inc., has announced that MAHLE Clevite Inc. will implement the complete Pricedex product information management (PIM) system to serve its customers in the North American and international markets. MAHLE Clevite is part of Germany’s MAHLE Group, a nearly $5.7-billion OEM and aftermarket supplier of automotive parts.
“We have been listening to our customers in the marketplace, and to the urging of our industry associations to embrace industry standards and improve our internal data management processes to ensure the speed to market of accurate and complete product information,” said Jesse Jones, head of marketing for MAHLE Clevite.

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“We have listened and so have our new owners. Our decision to select Pricedex was quite easy, actually. We wanted a leading technology solution that would handle both our existing light-vehicle and heavy duty parts portfolios – including managing pricing. With the additional challenge of merging MAHLE Clevite’s diverse product lines, we needed the added flexibility the Pricedex system could offer.”

“We are very pleased that MAHLE Clevite has selected Pricedex and our AutoPIM Pro solution,” said Terry O’Reilly, Pricedex president and CEO. “We fully support the industry’s effort to adopt parts standards because we know this is something that must happen to improve efficiency and drive cost and time out of the value chain. And we believe that ongoing standards-compliance is dependent upon good Product Information Management (PIM). We are absolutely committed to helping manufacturers and their customer groups achieve this transformation. Going forward, companies that adopt a complete PIM solution will be the companies that can compete profitably and respond quickly to market conditions and customer requirements.”

“MAHLE Clevite will implement all ‘four pillars’ of PIM in the Pricedex solution,” said Ron Friskney, head of product management for MAHLE Clevite. These include modules for part and product management, pricing management, catalog and publishing management, and data synchronization.

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For more information about Pricedex, visit: http://www.pricedex.com.
To learn more about Mahle Clevite Inc., go to: http://www.engineparts.com.

Federal-Mogul Reports Second Quarter 2007 Results

Federal-Mogul reported net income of $4 million for the quarter compared to a net loss of $17 million for the second quarter of 2006. For the six months ended June 30, the company reported net income of $9 million, compared to a net loss of $85 million for the comparable period of 2006. These results reflect an 8 percent increase in sales, improved gross margin and reduced selling, general and administrative expenses.

Federal-Mogul reported net sales of $1,763 million for the quarter, an increase of $131 million, or 8 percent, compared to the second quarter of 2006. The most significant factors impacting sales were increased volumes of $77 million and favorable foreign currency of $56 million. For the six-month period, net sales increased by $248 million to $3,480 million, of which $119 million is due to increased volumes, $51 million is due to the May 2006 acquisition of Federal-Mogul Goetze India (FMG) and $116 million is due to favorable foreign currency. These favorable impacts were partially offset by customer pricing.

Combining cash provided from operating activities with cash used by investing activities, the company generated positive cash inflows of $79 million for the six months ended June 30, 2007, compared with $30 million for the comparable period of 2006.

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“Federal-Mogul remains fully committed to exiting from Chapter 11, while wholly dedicated to our strategy for sustainable global profitable growth, providing our valued customers with service excellence, quality products, leading technology and innovation at competitive cost,” said Chairman, President and Chief Executive Officer Jose Maria Alapont. “The results achieved during the first half of 2007 reflect the company’s commitment to consistently improve our operational performance.”

For more information about Federal-Mogul, go to: www.federalmogul.com.

All the World’s Vehicles Would Circle the Globe 120 Times

If all the world’s motor vehicles were lined up bumper to bumper, the line of traffic would circle the globe 120 times. According to the 2007-2008 World Motor Vehicle Market Report, the world’s motor vehicle population reached 789.8 million units in 2005 – which would create the globe-encompassing traffic jam mentioned above.

This growth in total number of vehicles reflects an increase of 52.6 million, or 7.1 percent, from the 737.2 million vehicles in use in 2004. The world’s population in 2005 was estimated at 6.4 billion, which equates to approximately 8 persons for every vehicle in the world.

Now in its 76th edition, the 2007-2008 World Motor Vehicle Market Report illustrates the continued expansion of the global economy through the increasing motor vehicle population. It is one of the industry’s oldest and most respected global statistical analyses.

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In addition to world vehicle markets, the 2007-2008 Report features in-depth analysis and coverage of vehicle production and assembly, vehicle census summary, U.S. motor vehicle parts trade worldwide and world trade in new vehicles.

The report is produced annually by the Overseas Automotive Council (OAC), the Motor and Equipment Manufacturers Association’s (MEMA) international aftermarket division. Members of OAC, MEMA and its market segment associations can order copies of World Motor Vehicle Market Report for just $75. Non-members can order copies for $200. Copies can be ordered online at the publications section of the MEMA Web site, www.mema.org or by e-mailing [email protected]

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