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The leadership of National Pronto Association and Automotive Distribution Network announced today the merger of the two organizations. As of Jan. 1, 2021, the newly formed organization will be known as the Pronto Automotive Distribution Network.
Headquartered in Grapevine, Texas, Pronto Automotive Distribution Network will be led by Robert Roos as president and David Prater as executive vice president. The combined organization will represent more than 250 members in North America with an estimated revenue of approximately $5 billion annually. Members will continue to market under the Pronto, Parts Plus and Auto Pride names.
In addition, Pronto Automotive Distribution Network, together with Federated Auto Parts, will comprise the Automotive Parts Services Group (The Group).
DAYTONA BEACH, Fla. & RALEIGH, N.C.--(BUSINESS WIRE)--As NASCAR Weekly Series sanctioned events begin to return at select tracks across North America, NASCAR and Advance Auto Parts (NYSE: AAP), a leading automotive aftermarket parts provider, today announced a multiyear official partnership, designating Advance as the series entitlement sponsor. As part of the agreement, Advance also becomes the “Official Auto Parts Retailer of NASCAR.”
"It's great to have Advance join us in welcoming the return of NASCAR-sanctioned grassroots racing," said Ben Kennedy, vice president, racing development, NASCAR. "Advance’s commitment to our Weekly Series will develop some of the brightest NASCAR talent across North America. Advance has a long history in racing, and we’re thrilled to see its expanded presence from the grassroots all the way through our national series.”
Advance Auto Parts, Inc. (NYSE: AAP) has acquired the DieHard brand from Transform Holdco LLC (“Transformco”), for $200 million utilizing cash on hand.
“We are excited to acquire global ownership of an iconic American brand. DieHard will help differentiate Advance, drive increased DIY customer traffic and build a unique value proposition for our Professional customers and Independent Carquest partners. DieHard has the highest brand awareness and regard of any automotive battery brand in North America and will enable Advance to build a leadership position within the critical battery category,” said Tom Greco, president and CEO, Advance Auto Parts. “DieHard stands for durability and reliability and we will strengthen and leverage the brand in other battery categories, such as marine and recreational vehicles. We also see opportunities to extend DieHard in other automotive categories. We remain committed to providing our customers with high-quality products and excellent service. The addition of DieHard to our industry leading assortment of national brands, OE parts and owned brands will enable us to differentiate Advance and drive significant long-term shareholder value.”
AmazonBasics High Mileage Motor Oil - Synthetic Blend
AmazonBasics high-mileage synthetic-blend motor oil offers an enhanced level of protection for engines over 75,000 miles. Its synthetic blend combines conventional oil with synthetic for cost efficiency with some of the benefits of a full synthetic. An important part of routine maintenance, the motor oil works well for anything from topping off levels to complete oil changes. Whether it’s a beloved older vehicle or one with an uncertain maintenance history, help protect its engine with AmazonBasics high-mileage, synthetic-blend motor oil.
When selecting parts for a car repair, it pays to know the differences between original and aftermarket parts. Whenever possible, get estimates for both.
Choosing between original and aftermarket car parts — and even used parts of either type — is all about squaring your priorities with your budget.
You’ll have different options depending on the part and the shop. And the best choice will depend on whether you’re trying to keep repairs cheap, restore your car’s appearance after a wreck or soup up your ride.
Original equipment manufacturer (OEM) parts match those that came with your car, and are of the same quality as its original parts. They’re also the most expensive.
Auto parts retailers have been spared from sharing the same fate as Barnes & Noble, Toys R Us and so many other companies rendered redundant by Amazon. About 80 percent of AutoZone's business comes from people repairing their own cars with the other 20 percent coming from professional mechanics. Amazon's gaining traction in stealing away some of the consumer market. link hidden, please login to view Daniel Acker | Bloomberg | Getty Images An employee, right, helps a customer change a license plate bulb outside an AutoZone store in Princeton, Illinois.
link hidden, please login to view has crushed many iconic American companies, but auto parts retailers like link hidden, please login to view and link hidden, please login to view have managed to fend them off. For now.
Stores that sell car batteries, mufflers and other parts are facing new pressure since Amazon started selling auto parts. Big retailers like
link hidden, please login to view have also jumped into the fray, in part, to compete against Amazon. So far, auto parts retailers have been spared from sharing the same fate as
link hidden, please login to view, Toys R Us and so many other companies rendered redundant by Amazon. For years, the $130 billion business selling aftermarket auto parts was one of the steadiest segments in retail, with mild cyclical fluctuations and slow trend of consolidation, MoffettNathanson analyst Greg Melich told CNBC. The segment even managed to make it through the recession reasonably well, as drivers repaired instead of upgrading their cars.
But pair of warm winters and a variety of other factors in 2016 and 2017 took a toll on the segment, just as Amazon and Walmart
link hidden, please login to viewstepped up their efforts to grab market share. Now there is an oversupply of sellers in a market that has been experiencing slower demand, and may see slower growth in the next few years, Melich said. "The battle of the titans between Walmart and Amazon is only just starting," Melich said. "The smart companies are doing what they should do, which is lean into the more service oriented part of the business on the commercial side."
Amazon pulls in about $6 billion in annual sales from "do-it-yourself" auto parts customers and is partnering with Sears to sell tires.
Walmart has also stepped up its game in the segment over the last three years, even at the expense of profit margins, Melich said.
In 2018, MoffettNathanson expects Amazon and Walmart to have a combined share of about 23 percent of the "do-it-yourself" market — with Amazon at about 8 percent and Walmart around 15 percent. Just 5 years ago, the two retailers had up to 17 percent of that market.
The more a retailer serves consumers, the tougher it will be for them to compete against Amazon.
About 80 percent of
link hidden, please login to view business comes from people repairing their own cars with the other 20 percent coming from professional mechanics. About 60 percent of link hidden, please login to view sales comes from the do-it-yourself consumer market with mechanics making up the rest. The split is reversed at Advance Auto Parts with 40 percent of its revenue coming from consumers. Just 25 percent of the sales at
link hidden, please login to view, which owns NAPA, comes from people popping their own hoods to fix that troublesome rattle. "Amazon is obviously more of a risk to an AutoZone which does a majority of their business in DIY," Jordan said. He added that AutoZone is making a big push into serving commercial customers where there's more potential growth.
The increasing technical complexity of cars means it is ever more difficult for ordinary customers to service what they own.
That bodes well for sales of parts on the commercial side. More sophisticated parts cost more money. A halogen headlight for a 2005 Jeep Wrangler might cost $15, but a new headlamp on a luxury vehicle — the sort that can swivel to follow the shape of the road — might cost hundreds of dollars, Jordan said.
So far, Amazon has not been able to crack the code of the commercial auto parts business. Parts sellers need a mind-boggling degree of inventory — enough parts for the wide array of cars on the road, Jordan said.
It also does not yet have enough points of distribution around the country to replicate what auto parts stores do for commercial customers, and it might not be the best use of their resources right now to invest in that, Melich said.
Of course, he added, that could change in just a few years. Amazon didn't have a strong grocery distribution network, that is, until it bought Wholefoods Market.
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