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AASA President Paul McCarthy On ‘AMN Drivetime’ (VIDEO)
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By Counterman
In our cover story for
link hidden, please login to view, we asked distribution leaders to reflect on the successes and challenges of 2022 and share some of their insights for the industry in 2023. Here’s our Q&A with Paul McCarthy, president and CEO of MEMA Aftermarket Suppliers.
AMN/CM: What is the greatest threat facing the automotive aftermarket? What is the greatest opportunity?
PM: I have combined these questions, because if you look through a longer-term lens, the aftermarket’s greatest threat and opportunity are the same: technology.
EVs have generated concern in the aftermarket, but that needs to be kept in perspective. Remember the aftermarket’s history: With every new technology there were projections that there will be nothing or not enough to repair – but every time we still see problems and failures with these new parts and technologies. Think of fuel injection, electronic ignition or TPMS. Auto engineers are not perfect, and the real world is a difficult operating environment. In fact, NADA data indicates that EVs are coming back to the dealer more often than ICE vehicles – and needing more repairs per visit than ICE. New technologies have historically been good for aftermarket revenue – and we are looking at a flood of new technologies unlike any we have ever seen.
With so much focus on electrification, we aren’t talking enough about the revolution happening now: ADAS. We released a study at Vision that projected ADAS will exceed a billion-dollar market for replacement parts by 2030. Let me say that again: a billion-dollar market for replacement parts. That’s all opportunity and upside for the aftermarket.
And, the story of increasing vehicle content is not only ADAS or EVs. The increase in new-vehicle prices demonstrates the lifecycle opportunity. New-vehicle prices hit an eye-watering $30,000 a decade ago; now, the average is $50,000. And while some of that is near-term supply issues, increasing vehicle content has driven this long-term trend. Every one of these new technologies can break or need calibration or maintenance. We believe this huge increase in vehicle content bodes well for the future of aftermarket tickets.
The aftermarket is now living the famed “Innovator’s Dilemma” everyday: the challenge of managing two businesses. One, maximizing the returns from our existing business, which has a very long, fat tail. In parallel, we are growing new, innovative businesses prepared to take advantage of the aftermarket opportunities of electrified, automated and connected vehicles. In our view, the aftermarket is well-positioned in both the old and new industries.
The aftermarket should not be afraid of the future. If we engage the classic aftermarket entrepreneurial spirit, we believe technology and content bring more opportunity than risk.
AMN/CM: How can the independent aftermarket parts and service segments best prepare to repair the car of tomorrow as ADAS, EVs and other technologies become more prominent?
PM: In addition to the points above, we have a lot of work and training to do – together, up and down the value chain – to make sure that shops are prepared, and consumers know that the aftermarket is ready and able to supply the parts, tools and technologies to fix these vehicles. And we can.
AMN/CM: How is the Right to Repair issue impacting your members’ business?
PM: All this opportunity is contingent on one thing: Right to Repair legislation that allows market competition. Right to Repair, and the Federal REPAIR Act, are necessary to realize our future.
Consumers need this. If Congress takes action to ensure choice in vehicle repair and maintenance, consumers will save enormous amounts of time and money.
We appreciate the cross-industry partnership on this bill – a unified effort is essential to success. We have momentum. You’ve heard about the many bipartisan bill co-sponsors, the executive order, the FTC report and the hearings all in favor and support of consumers right to choose where and with what parts their vehicle is repaired. This new Congress is our moment; it may be our best chance of getting a bill passed. If we don’t succeed, by 2035 $63 billion in consumer service choices will be thwarted by repair restrictions – and that number will quickly grow. Our industry must – and will – be heard to protect consumers and free markets.
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By Counterman
The Automotive Aftermarket Suppliers Association (AASA) recently recognized Franchelle Thomas of NGK Spark Plugs (USA) with the 2022 AASA Diversity, Equity and Inclusion Individual Award.
Thomas, director of culture, communication & people for NGK, received the award on Nov. 2 at AAPEX in Las Vegas.
“We are proud to announce the annual AASA Individual DEI award, with the purpose of recognizing an influential leader in the automotive aftermarket that supports and represents the core values of diversity, equity, & inclusion,” said Ben Brucato, vice president of engagement, AASA. “Franchelle embodies the spirit of this award, challenging our industry to be forward thinking and retaining and attracting talent from all backgrounds and walks of life. Her work and dedication to DE&I makes the industry stronger and more resilient. We applaud her efforts that affect real change.”
As an alumnus of Northwestern University and the University of Illinois, Thomas holds degrees in both philosophy and business. In her career, she has held leadership roles in healthcare, education and insurance, but found her love of all things in human resources.
She is a certified professional in human resources and a longtime member of the Society of Human Resources Management. Thomas has been invited to present HR topics to a variety of private- and public-sector employers, and her writing has been published in a series of HR publications such as HR Bulletin, HR Hero and the Society of Human Resources. Thomas has served as an advisor on employment issues with Michigan State University and several not-for-profit organizations.
“I am honored to be selected to receive this award from AASA,” Thomas said. “I believe at its core, diversity, equity and inclusion creates a space for all to be successful. AASA has championed the aftermarket industry’s success for many years. People, especially in our industry today, are an integral part of that success. I am delighted to stand alongside them in this endeavor.”
Ben Brucato took the stage to name Thomas as the 2022 AASA Diversity, Equity and Inclusion Individual Award winner.
Also honored during the award presentation was MOTOR Information Systems, which was awarded the AASA DEI Leadership Award (Company) and Eric Sills, president and chief executive officer at Standard Motor Products (SMP), who was named the 2022 AASA Advocacy Champion.
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By Counterman
Eric Sills, president and chief executive officer at Standard Motor Products Inc. (SMP), received the 2022 AASA Member Advocacy Award on Nov. 2 at AAPEX show in Las Vegas.
“Eric has taken up the reins of representing the aftermarket during a very difficult time for our country and our industry,” said Ann Wilson, senior vice president of government affairs, Motor and Equipment Manufacturers Association (MEMA). “Whether discussing supply chain challenges on Capitol Hill or organizing his colleagues to support the REPAIR Act, Eric has focused on advocating for the aftermarket. It is truly an honor to work with Eric and to present this award to him.”
Sills is a proud representative of the industry and goes above and beyond to secure a bright future for the aftermarket, AASA noted. He testified to Congress on behalf of the entire manufacturing community on supply chain challenges and investing to strengthen American manufacturing and competitiveness. Sills activated his SMP-employee base to reach out to their congresspeople in support of the REPAIR Act and to help ensure a competitive market and consumer choice on where and with what parts vehicles are repaired.
Sills and his team work toward an outcome that is positive for manufacturers, channel partners, the aftermarket and for consumers. As someone who is a fourth-generation leader in the aftermarket, he is a superior executive who not only focuses on his own organization’s success, but also considers the supplier community and the industry as a whole, AASA noted.
“I am deeply honored to receive this award,” Sills said. “The aftermarket is in my blood, and it is more important than ever that the industry fully participates in all aspects of the public policy process.”
Wilson took the stage to officially name Sills as the 2022 AASA Advocacy Champion.
Also honored during the award presentation were Franchelle Thomas, who received the AASA DEI Leadership Award (Individual); and MOTOR Information Systems, which received the the AASA DEI Leadership Award (Corporation).
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By Counterman
The Automotive Aftermarket Suppliers Association (AASA), in coordination with several key suppliers, announced the launch of
link hidden, please login to view, a website designed to help give parts professionals information and tips on how to identify and reduce fraudulent warranty claims. It’s been estimated that fraudulent warranty returns cost auto parts stores more than $600 million annually. The items returned for credit include worn OE parts, bricks and other items meant to simply fill the box, as well as parts that were damaged during installation. As more high-tech sensors are sold and as the cost of auto parts continues to rise, it will become increasingly important to reduce fraudulent claims.
The website’s goal is to educate parts professionals on how to recognize and stop fraudulent returns, as well as provide a portal to report fraudulent returns. Parts professionals also can earn “Check the Part”-branded items for reporting examples of fraudulent claims through the submission portal.
A group of manufacturers created the Check the Part initiative to help the industry address this widespread problem. The committee is comprised of members from Standard Motor Products, Dorman Products, KYB, MPA, Mevotech, MotoRad of America and FDP Brakes. AASA and the Auto Care Association have endorsed Check the Part.
The website promotes three simple steps to help reduce fraudulent claims:
Open the box and confirm the part is the same type of part that is described on the box and paperwork. Confirm the brand of the part matches the brand on the box. If the part is brand new and was never installed, it can be returned, but it should not be processed as a warranty. Learn more about this initiative at
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By Counterman
Who gets to drive the Corvette?
That was the question on everyone’s mind this week when Crow-Burlingame announced its 2022 President’s Council winners. Launched in 2006, The President’s Council is a yearly award that recognizes the company’s top 12 store managers in areas such as sales, profit, inventory management and expense control.
Winners receive commemorative plaques, custom apparel and an all-expenses paid trip to the Aftermarket Jackpot in Las Vegas this November. Those who have won three times or more also receive the prestigious President’s Council ring.
But ask anyone: The biggest motivator is the Corvette. Each winner gets the Corvette delivered to their town, and then it’s theirs to drive for a month – with everything from car washes to oil changes and gas paid for by the company.
Winners get to choose from two this year. One is a 2019 Seabring Orange convertible with a V-8 engine. “It comes with everything Corvette offers except the turbo and standard shift,” VP & General Manager Tom Singleton told the group.
“The other Corvette, a white 2014 model, is exactly the same, except the interior is red and it’s five years older,” Singleton added.
Bryan Jones, a five-time winner from Fayetteville, Arkansas, was hoping to score the car during late October/early November. He grinned when it was his turn to name his car choice (the white one) and his month (officially November, but with the wiggle room usually given to winners who have a special occasion they are hoping to attend and show off the car).
“My daughter is getting married on Oct. 30,” Jones said. “I need the car that weekend!”
Thomas Martin, who officially retired in 2015 from Crow-Burlingame after 28 years of service, still serves as the official Corvette wrangler. It’s his job to keep the Corvette fleet in tip-top condition, and he facilitate the transfers between each winning manager. (Driving the ‘Vette between
destinations is a dirty job, but someone has to do it.)
He is the final word on dates. “We can definitely make that happen,” Martin said.
The other 11 winners nod and smile in agreement. It’s a family-owned company – since 1919 – and they wouldn’t have it any other way.
Think you have what it takes to win a month with the Corvette? Check out the job openings at link hidden, please login to view.
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