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APA’s Steve Tucker: ‘Threats Are Just Opportunities’
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By Counterman
You can’t turn a corner these days without seeing a headline about electric vehicles. In recent years, this caused some consternation in the automotive aftermarket, with internal combustion engine (ICE) vehicles being the bread and butter for this industry. However, new data shows there will continue to be room for – and a need for – products for both incoming electric and ICE vehicles.
According to data from the Joint EV Trends and Outlook Forecast from MEMA and Auto Care Association, while EVs are beginning to penetrate the U.S. car parc, ICE vehicles will maintain the majority share through 2040. By 2030, the average estimate for approximately 30% of new car sales will be electric vehicles, according to PwC, which partnered with the associations on the joint forecast.
That being said, over the past several months, we have seen a significant uptick in industry activation surrounding vehicle electrification, in a variety of ways.
Within the automotive aftermarket, we are beginning to see a mindset shift, moving from skepticism surrounding the idea of EVs into more companies seeing the opportunities available in this rapidly growing space. Take for example longtime diagnostic products provider Autel entering the market this past June with the launch of its new Autel Energy division, which released the MaxiCharger Home and Commercial Level 2 AC chargers, available in 40-amp and 50-amp flexible charging configurations, compatible with all plug-in electric vehicles.
In the automotive repair equipment space, BendPak recently introduced its EV2400SL EV battery pack and powertrain lifting system. This push-around full-rise scissor lift table is designed to make replacing both electric vehicle battery packs and internal combustion powertrain components more efficient, the company said. The patent-pending design offers all the benefits of BendPak’s former SL24EVT lifting system with several user-friendly enhancements.
Just this past month, GM announced plans to invest a total of $20.5 million across three of its Customer Care and Aftersales parts distribution centers in Tennessee and Michigan to modernize warehouse operations as the automaker prepares for industry growth and electric vehicle readiness.
NAPA also saw the need to invest in preparation for the incoming change and this past fall announced its “NexDrivePowered by NAPA” training program in the U.S. to prepare repair shops for the changes electrification brings in the repair segment.
In January, Shell paid a cool $169 million to acquire EV charging company Volta to “unlock long-term growth opportunities in electric vehicle charging,” the company stated.
Bridgestone unveiled at CES this January it’s new Smart Corner solution, a demonstration of the ability to enhance the performance, comfort and efficiency of electric and autonomous vehicles, while maximizing the lifespan of tires and air springs. The solution combines premium Bridgestone tires and Firestone Airide (previously Firestone Industrial Products) air springs that are engineered specifically for electric and autonomous vehicle applications.
Standard Motor Products said it is committed to providing replacement parts for hybrids and EVs and has added new part numbers specifically for hybrids and EVs through its Standard and Four Seasons brands.
Valvoline and ENEOS both have developed automotive fluids specifically for use in Hybrid and Plug-in EVs.
These are just a handful of examples of businesses that have long been involved in the traditional ICE market segment creating opportunities in the EV market, as well.
From a consumer standpoint, the rate adoption of EVs varies from country to country, with cost (be it cost-savings or cost barriers) being one of the top factors.
According to AMN’s sister publication dedicated to EVs, The Buzz, “While internal combustion engine (ICE) vehicles still dominate future vehicle purchase intentions, preference for electrified powertrains continues to rise. Overall, the global shift to EVs is occurring at different speeds as individual markets face varying challenges to adoption, including cost and availability of charging infrastructures.”
Citing data from Deloitte’s 2023 Global Automotive Consumer Study, The Buzz noted that “Despite mounting concerns about climate change and reducing emissions, lower fuel expenses are the top reason consumers choose EVs in the U.S., Germany, India, Japan, the Republic of Korea and Southeast Asia, in an effort to reduce vehicle operating costs.”
In the U.S., intent to purchase hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and all-battery powered electric vehicles (BEV) are each up by 3 percentage points from 2022. Globally, consumer interest in BEVs is highest in China (27%, up 10 points year-over-year).
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By Counterman
With each new season, we’re presented with different challenges and different sales opportunities. It’s up to us to capitalize on these opportunities, and help boost our margins and keep our stores in the green. So, as the temperature starts to drop outside, let’s take a look at what we can do inside our stores to boost add-on sales, and what trends we can expect to see in the coming months.
‘Tis the season
The first category we’re going to look at is what I call “winter seasonal products.” These are the types of products that only come out to the shelf during this season. Ice scrapers, snow brushes, winter hats and gloves all fall into this category. Many stores will display these types of products on an end cap, or a special cardboard stand or display.
There are lots of opportunities to get add-on sales with this category. If a customer is buying a snow brush or ice scraper, ask them if they’d also like to pick up a pair of winter gloves, or a jug of de-icing windshield-washer fluid. Every little bit will help to boost your margins.
There are some products that fit into this category, but they stay out on the shelf all year long. One example would be fuel and oil additives. While these additives can be found all year long, they’ll likely move off the shelf faster in the winter. Why? Colder temperatures are especially harsh on vehicles that run on diesel fuel. When the temperature drops, diesel fuel can gel. This can lead to clogged fuel lines and filters. That’s why many diesel owners will pick up fuel-system treatments in the winter.
Batteries
Battery sales tend to jump twice a year: when the temperatures climb in the summer, and again when they drop in the winter. Cold weather takes a toll on batteries and electrical systems. Engine oil is thicker when it’s cold, so the engine is harder to start than it would be at warmer temperatures. On top of that, the colder temperatures will sap the cranking power the battery has to offer. There’s a good reason why batteries are rated for cranking amps (CA) and cold-cranking amps (CCA). The temperature outside has a big impact on how much power the battery has to offer.
When it comes to selling batteries, always remember to offer dielectric compound, as well as the fiber insulators that slide over the battery posts and sit underneath the battery cables. I’ve also had good luck selling small, compact battery jump packs to customers in the past. These small battery jumpers aren’t much bigger than a cellphone, but they pack a big power punch when you need it most. They’re relatively inexpensive, but they offer some serious peace of mind.
Wiper Blades
I’ve talked before about how I dreaded two types of days in the parts store: heavy snowfall and heavy rainfall. Why? Because I knew that we would be selling a ton of wiper blades on those days. It also meant that I would be installing all of those wiper blades outside, so I’d either end up soaking wet from the rain, or frozen stiff from the snow and ice. Worst of all, our margin on wiper blades was pretty thin, so our store numbers wouldn’t fare very well that day.
So, what did we do to boost our margins? We would do our best to upsell the better wiper blades, as well as offering washer fluid and other add-ons along with the wipers. For SUVs and wagons, we would always ask them about the rear wiper blade. Experience has taught me that many customers will neglect that small rear wiper blade, so it’s important to ask.
Our final tip in this category is to tell your customers about the benefits of using a washer fluid with a de-icing formula. Many customers aren’t aware of how this type of washer fluid can help them day-to-day, and it’s an easy add-on sale.
Belts & Hoses
This final category will only represent a small percentage of your winter sales, but it’s important to be aware of what you can expect. Belts and hoses can become brittle, crack or break altogether when the temperature drops. Modern modular hoses usually will have plastic connectors or tees that are especially susceptible to the cold, and if they break, the customer will need to buy the entire hose. It’s important for your customers to check belts and hoses for signs of wear or damage before the winter weather hits. It’s much better to catch this sort of issue early, rather than wait until the vehicle breaks down on the side of the road.
I had a few customers who would stock up on detailing supplies once the weather started to turn. They told me that they would wax their car before the snow came so the paint would be better-protected from the elements. These days, ceramic coatings are available that do an even better job of protecting the paint from the hazards seen during the winter.
So, take a walk around your store and think about what you expect to see selling this winter. Come up with a game plan for how you can maximize your sales numbers heading into the winter season, and what types of add-on sales opportunities you can find.
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By Counterman
Steve Handschuh, a highly respected automotive aftermarket veteran who joined the Motor & Equipment Manufacturers Association (MEMA) in 2006, died on Aug. 22.
A native of Baltimore, Handschuh joined MEMA as president and chief operating officer of MEMA’s Automotive Aftermarket Suppliers Association (AASA) division and was named president and CEO of MEMA in 2013. Handschuh retired in December 2018.
An aftermarket veteran of more than 40 years, Handschuh is known for his service to NAPA Auto Parts/Genuine Parts Co. for 18 years, including serving as NAPA president from 1998 to 2004. Handschuh later served as senior vice president, commercial, at AutoZone.
He began his career as an outside salesman for Mighty Auto Parts, where he rose to vice president of sales and marketing.
“MEMA and our industry have lost a great one,” said Bill Long, MEMA president and CEO. “Steve was a dynamic leader, consummate professional and friend to all who worked with and for him at MEMA, and he left a tremendous legacy from his leadership. He will be mourned by the entire MEMA family, both employees and membership.
“Steve was a man of integrity and always spoke highly of his wife, Joann, and children, making them his top priority. He was deeply involved in serving in his local Jehovah Witness Kingdom Hall and helping its young community. As a son of Charm City, Steve was a lifelong Orioles fan. Steve was also passionate about music and was undoubtably a superfan of The Beatles.”
In 2018, Handschuh received the MEMA Triangle Award – the organization’s highest honor – for his vision, passion and dedication to the interests of the automotive industry.
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By Counterman
After an extensive aftermarket career working in parts stores, machine shops and with major aftermarket suppliers, Steve Tucker, who was
link hidden, please login to view of Automotive Parts Associates (APA) in February 2021, describes moving to the program group side of the business as a “shock.” “You spend a lot of time in this business, and you think you know everything, and then, you switch gears and find out you know very little,” Tucker says. “It gave me a great perspective on how the customer thinks. No matter how much time you spend on the other side of the desk, when you get on this side of the desk, you start seeing things with new eyes.”
During his “AMN Drivetime” podcast interview with Babcox Media CEO Bill Babcox, Tucker also shared that working with the group of people at APA has been “another eye opener” for him.
“We all read about how the aftermarket is shrinking and consolidating and all those things, and the big box guys are taking share – and no doubt a lot of that is true – but what I really find is that all of these independent warehouse distributors are very entrepreneurial. Over here at APA, probably more so than some of the other groups. We have a lot of guys that have found a niche and it’s really hard to get people out of that niche. They’re high-end European or Asian or tuner specialists or heavy truck specialists. I call us ‘the Island of Misfit Toys.’ We have people who fit in here who may not fit in any other group, and you know, I enjoy being the leader of those ‘Misfit Toys.’”
In this episode of “AMN Drivetime,” Bill and Steve dive into the following topics:
1:34 How leading APA has been an “eye-opener” after a career on the supplier side
3:47 How Program Groups Stay Competitive
4:28 The critical importance of solid data for program group members
5:29 His passion for finding new brands
7:15 Plans for APA’s future growth: “If you don’t grow, you die.”
8:23 The biggest issues APA members are concerned about today
9:45 A look back at Steve’s career on the supplier side
11:00 Steve’s secret hidden talent (spoiler alert: his go-to karaoke song is … )
12:08: The biggest issues the industry should stay focused on today
13:50 The popular new Lightning Round!
“AMN Drivetime” is sponsored by link hidden, please login to view.
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By Counterman
After an extensive aftermarket career working in parts stores, machine shops and with major aftermarket suppliers, Steve Tucker, who was
link hidden, please login to view of Automotive Parts Associates (APA) in February 2021, describes moving to the program group side of the business as a “shock.” “You spend a lot of time in this business, and you think you know everything, and then, you switch gears and find out you know very little,” Tucker says. “It gave me a great perspective on how the customer thinks. No matter how much time you spend on the other side of the desk, when you get on this side of the desk, you start seeing things with new eyes.”
During his “AMN Drivetime” podcast interview with Babcox Media CEO Bill Babcox, Tucker also shared that working with the group of people at APA has been “another eye opener” for him.
“We all read about how the aftermarket is shrinking and consolidating and all those things, and the big box guys are taking share – and no doubt a lot of that is true – but what I really find is that all of these independent warehouse distributors are very entrepreneurial. Over here at APA, probably more so than some of the other groups. We have a lot of guys that have found a niche and it’s really hard to get people out of that niche. They’re high-end European or Asian or tuner specialists or heavy truck specialists. I call us ‘the Island of Misfit Toys.’ We have people who fit in here who may not fit in any other group, and you know, I enjoy being the leader of those ‘Misfit Toys.’”
In this episode of “AMN Drivetime,” Bill and Steve dive into the following topics:
1:34 How leading APA has been an “eye-opener” after a career on the supplier side
3:47 How Program Groups Stay Competitive
4:28 The critical importance of solid data for program group members
5:29 His passion for finding new brands
7:15 Plans for APA’s future growth: “If you don’t grow, you die.”
8:23 The biggest issues APA members are concerned about today
9:45 A look back at Steve’s career on the supplier side
11:00 Steve’s secret hidden talent (spoiler alert: his go-to karaoke song is … )
12:08: The biggest issues the industry should stay focused on today
13:50 The popular new Lightning Round!
“AMN Drivetime” is sponsored by link hidden, please login to view.
link hidden, please login to view link hidden, please login to view
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