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By Counterman
“Humans think AI is going to replace them,” says Mike Mohler, executive vice president and chief purchasing officer with the Automotive Parts Service Group.
“It won’t. Somebody using AI to be better than you will replace you.”
The integration of artificial intelligence in the aftermarket is more advanced than many people might realize, according to Mohler. It’s already yielding impressive results for those who are using it effectively. The primary challenge is not just the availability of data, but the effective use of that data to drive actionable insights and decisions. Mohler cites a report from Accenture showing that AI-driven price optimization can result in a 5% increase in gross margin and a 15% boost in revenue.
“You look at some of our competitors, and they’re able to post comparatively outrageous profit margins,” says Mohler. “They’re using AI for logistical prowess. They’re using it for customer service. They’re using it to get the right pricing in play.”
The ability to make informed decisions based on comprehensive data analysis is a major advantage of AI. Data scientists in the aftermarket industry are increasingly using the technology to turn large sets of data into actionable insights. This includes identifying market trends, customer preferences and operational inefficiencies. The application of AI in this area can lead to better strategic planning and improved business outcomes. Mohler says those applications can have a significant impact on profitability.
“Let’s say the average WD would have a 25-45% gross profit margin, given their business model. Some competitors are posting 58%. AI is going to be the tool to help them catch up. We’ve got to get to 53% minimum, I think. That’s a rarefied position, but it’s been tested by some of the smartest people that I know, and it should be achievable when we’re planning and we’re hoping that it is,” Mohler explains.
A Customer Experience Revolution
AI’s application extends to customer service as well. Chatbots and virtual assistants are now commonplace, offering customers quick and efficient service. These AI-driven tools have evolved to the point where they can engage in conversations that are increasingly indistinguishable from human interaction.
“I wonder how many people know that they’re talking to a chatbot when they’re talking to a chatbot?,” asks Mohler.
Navigating the Risks
Despite its advantages, AI’s integration into the aftermarket raises several concerns. Cybersecurity is one of them, as increased reliance on data systems introduces new vulnerabilities.
“We have employees with access to the internet at a thumb’s notice, and if we’re not careful, they can mistakenly click on something that could disrupt our business for months,” Mohler explains.
Mohler also expresses concerns about protecting intellectual property. Misuse of data or inadequate protection against competitive eavesdropping could undermine trust and impact the industry’s integrity.
“Once the data hits the public domain, how do we protect it and how do we make sure that it’s not being used against us? How do we know that we’re not enabling our competitor who’s able to electronically eavesdrop on one another like never before?,” asks Mohler.
Envisioning AI’s Next Steps
Mohler stresses that AI’s influence on the aftermarket is only in its infancy. Over the next 5-10 years, he envisions an advancement from a basic understanding of AI as an algorithmic tool to more specialized applications tailored to industry-specific needs.
“So my thought would be that companies would have their own internalized GPTs and industries would have their own internalized GPTs. My hope is also that we will become as skilled at selling to disembodied customers via e-commerce as we are at selling to them when they’re across the counter from us or in our stores,” Mohler says.
Mohler references the seven stages of AI when looking ahead to the technology’s impact on the aftermarket.
“When it comes to supply chain, when it comes to logistically moving products around, when it comes to optimizing sale price, optimizing customer service, my hope is that we will be a little closer to stage seven. Right now, we’re really at stage one and a half, maybe two,” says Mohler.
As the technology evolves, moving beyond its current capabilities, AI’s exact impact on the aftermarket, and countless other industries, will be even more profound. Companies that invest in AI and adapt to its changes will be well-positioned to thrive in the future of the automotive aftermarket.
“It’s incumbent upon us to understand AI and to become data scientists ourselves, because everybody’s got access to the data. Whoever can use the most disparate sources for the best outcomes is going to win in my overall view of it,” says Mohler.
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By AutoZone
MEMPHIS, Tenn. , Sept. 24, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $6.2 billion for its fourth quarter (17 weeks) ended August 31, 2024 , an increase of 9.0% from the fourth quarter of fiscal 2023 (16 weeks). Excluding sales from the additional week included
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By shelitaauto
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link hidden, please login to view Source: Gasgoo
In the second quarter,
link hidden, please login to view’s electric vehicle sales in the United States again surpassed General Motors, ranking second in the U.S. electric vehicle market sales, and is on track to close the gap with Tesla.
Ford Mustang Mach-E; Image source: Ford
In the second quarter of this year, Ford sold 23,957 electric vehicles in the United States, a 61% increase from the same period last year, when total electric vehicle sales were 14,843. Meanwhile, Ford’s sales of hybrid vehicles rose 55 percent year over year. However, sales of internal combustion engine cars were down 5 per cent year on year.
Ford saw double-digit sales growth for several of its electric vehicles. Sales of the Ford F-150 Lightning rose 76.9% to 7,902 units. While new competitors such as the Tesla Cybertruck and the Chevrolet Silverado EV RST have all hit the U.S. market, the Ford F-150 Lightning remained the best-selling electric truck in the U.S. in the first half of the year, with 15,654 units sold.
Second-quarter sales of the Ford Mustang Mach-E were up 46.5% year-over-year to 12,645 units. In the first half of this year, 22,234 units of the Mustang Mach-E were delivered, the best performance ever. Sales of Ford’s E-Transit electric van continued to climb in the second quarter, rising 95.5 percent to 3,410 units from a year earlier.
In the first half of 2024, Ford sold a total of 44,189 electric vehicles in the U.S. market, up 72% from 25,709 in the same period last year.
Ford CEO Jim Farley said the automaker is shifting to smaller, more affordable electric vehicles to close the gap with Tesla and fend off competitors like BYD worldwide. Referring to Americans’ love affair with “larger vehicles,” Farley said smaller electric vehicles are “very important to driving the decarbonisation of American society and the development of electric vehicles.”
Ford’s surge in electric vehicle sales in the US market is enough for it to continue to overtake General Motors. In the United States, GM delivered 21,930 electric vehicles in the second quarter, compared with 38,355 in the first half of 2024.
GM is also ramping up production by introducing new models, with electric models such as the Chevrolet Blazer, Equinox and Silverado coming to the U.S. market. While Tesla did not give specific sales figures by region, its second-quarter electric vehicle sales worldwide exceeded expectations, delivering 443,956 electric vehicles and remaining №1 in the U.S. market.
As competition in the U.S. electric vehicle market intensifies, other competitors, including Hyundai and Kia, also set new EV sales records in the second quarter. Hyundai Motor, for example, set a new sales record with its IONIQ 5 model, which sold 18,728 units in the first half of the year. Meanwhile, sales of Kia’s first three-row electric SUV, the EV9, are also climbing.
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By TT-ABC
TT-ABC produces various brands of car headlights and taillights. For example, Toyota (Camry, 4Runner, Land Cruiser, FJ Cruiser, Prado, Highlander, Avalon, CHR), Honda (Accord, Civic, Jazz, CR-V), BMW, Mercedes-Benz, Lexus, Ford, Tesla, Land Rover, Dodge, Chevrolet, Mitsubishi, Cadillac, Nissan, Hyundai, etc. We support bulk purchases and custom development. We launch new products every month. You can follow our social media accounts and our official website (search "TT-ABC" on Google). We have sales promotions on various platforms. You can search TT-ABC on various platforms to find us. Our company has always been known for its service. Our headlights and taillights have a one-year warranty and 24-hour quick response.
This is our official store:
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By shelitaauto
Source: Gasgoo
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link hidden, please login to view According to foreign media reports, the Australian Federal Automobile Industry Chamber of Commerce released automobile sales data in May, the month of new car sales in Australia hit a record high. Sales of hybrid vehicles doubled year on year to reach 15.8 percent of the market, compared with a 0.4 percent increase in electric vehicle sales.
Almost one in every four new cars in Australia is currently a low-emission vehicle, so hybrid and electric vehicles are taking a greater share of the market. Meanwhile, Australians’ love affair with larger cars is still on the rise, with SUVs still dominating and ute sales continuing to grow.
This trend has more than doubled the popularity of hybrid cars in 2024, with more than 66,000 units sold, compared to less than 30,000 in the same period in 2023.
Electric vehicle sales also increased in Australia in May, with more than 8,900 units sold, accounting for 8.1 per cent of all new car sales, with more than 40,000 new electric vehicles on the road in Australia in the first five months of the year.
Tony Weber, the chamber’s chief executive, said the auto industry is working hard to meet the needs of drivers. “The continued growth in vehicle sales underscores consumer confidence and demonstrates the industry’s ability to meet the diverse needs of Australian consumers in the face of the current economic challenges,” he said.
However, large vehicles remain a popular choice for drivers regardless of fuel consumption, with SUVs accounting for more than half of vehicles sold and light commercial vehicles accounting for 22 percent of new vehicles. UTE also took three of the top five best-selling cars in May, with the Ford Ranger taking the top spot, followed by the Toyota Hilux and Isuzu’s D-Max light truck in fourth place.
Image source: Ford
Toyota was again the top-selling car manufacturer in Australia for the month, followed by Ford, Mazda, Kia and Hyundai. The data also showed a drop in sales for electric car leader Tesla, with the US company selling 3,567 vehicles in Australia in May, compared with 4,476 in the same month last year.
Its main electric car rival BYD, however, saw sales climb, with the Chinese company selling 1,914 electric vehicles in the month, up 32 percent from a year earlier.
The growing sales of electric and hybrid vehicles come ahead of the introduction in January of Australia’s first fuel efficiency standard, a legal standard that will set emissions limits on carmakers’ fleets of passenger cars, large and commercial vehicles in an attempt to reduce transport emissions by 2030.
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