ACDelco Makes Changes For Growth

ACDelco has reported that new agreements with distributors will help make it easier for distributors to stock ACDelco parts and satisfy intense demand from independent service centers for greater and more timely parts availability. This is part of a number of changes ACDelco has planned that are intended to spur growth.

Changes include a new, open-distribution model in the U.S. that will expand distributors’ sales territories while meeting the needs of independent service centers. In addition, ACDelco has begun adjusting prices on key parts lines and simplifying purchase and incentive programs for distributors.

“I’ve spent the past year talking to our independent service center customers. They believe in the brand and everything it represents; they love the quality and broad coverage of our parts; they think our training is the best in the business; and they’re thrilled with our Consumer Assurance and Roadside Assistance programs for consumers. The issue is they have a difficult time getting our parts, and we are going to change that,” said Bob Sanford, general director, ACDelco.

“As a leader in the global aftermarket business, it’s our job to meet our customers’ needs, and we are acting with speed to get them the parts they need,” he added. “At the same time, we want to make it easy for distributors to do business with us. The new agreement positions our valued distributor partners, independent service centers and ACDelco with a real opportunity to grow sales and succeed together in the growing aftermarket.”

The $145-billion annual aftermarket business is expected to expand another $11 billion in just two years, according to the company’s research. Even as new car sales trends back up to pre-recession numbers, the average vehicle on the road today is a 2004 model.

“That means there are 100 million vehicles on the road in the U.S. that are six-to-12-years-old, representing a real sweet spot for our industry,” said Sanford. “With the business changes we’ve implemented and the power of the ACDelco brand, we intend to seize that opportunity.”

Federated Auto Parts Distributors announced it is entering into a collaboration with the Association of Independent Oil Distributors (AIOD) – one it said will focus on mutual benefits for the respective members.

“Federated is constantly looking at ways to improve value for all constituents and this agreement provides that,” said Sue Godschalk, president of Federated. “This collaboration provides added volume and opportunities for our suppliers, new partners for our members, and added supply points and products for shop customers. We have enjoyed working closely with several AIOD members in the past and this agreement will expand and create further opportunities for both Federated and AIOD.”