Parts professionals at all levels must embrace the vehicle electronics revolution in order to take advantage of the opportunities they can provide to the aftermarket, said Frank Ordonez, vice president, Delphi Corp., and president of Delphi Product & Service Solutions. "We need to get this revolution going. There’s a lot of opportunity for us."
Ordonez made his remarks at the general session of the Aftermarket Auto Parts Alliance 2009 convention in Nashville at the Gaylord Opryland hotel. Aftermarket Jam 2009 runs from March 4-8. More than 1,700 distributor shareholders, outside sales professionals, store managers and owners/managers of affiliated automotive service facilities attended. 
"Parts stores need the vehicle electronics product expertise," said Ordonez, in order to take market share away from automotive dealerships. "Technicians are counting on the WDs, parts stores or the jobbers. They must have the right products on the shelf. Parts stores can be the specialists."
There are three big ideas the aftermarket must embrace because they’re on the minds of the buying public, Ordonez said. They are: safe, green and connected. "Three of the top five things consumers demand is safety-related," Ordonez said. "They’ve come to expect they’ll walk away from nearly every accident." As a result, an average of $700 in safety equipment is added to every new vehicle.
Connectivity is another vastly evolving segment of the industry. "We really are wireless. This is one of the fastest growth areas for our great industry," Ordonez said. "Electronics make up 25 percent of the vehicles on the road. That’s expected to double in the next four years."
Electronics are new "content" to automobiles, and comprise nearly $5.3 billion of the market, he said. By way of comparison, brakes make up $6 billion. In electronics, "significant gains are being made on the dealership side," Ordonez said. "We’re missing a huge opportunity for revenue" if the industry doesn’t take advantage of it." Not only is it an issue of potentially missed dollars on the part of the aftermarket industry, "more importantly, what message are we sending to the public if we can’t take care of these types of repairs?" such as reflashing.
Industry research shows that by 2010, 25 to 30 percent of vehicles will be equipped with telematics. "Think about 10 years ago. How did you communicate 10 years ago? How has that changed?" Ordonez asked. "That’s what’s happening with vehicles. They’re talking all the time and we need to make sure they’re telling it to the aftermarket."
Photo: Frank Ordonez, vice president, Delphi Corp., and president of Delphi Product & Service Solutions, tells Aftermarket Jam 2009 attendees that they must embrace the electronics revolution.
Ordonez believes the key to making telematics successful for the aftermarket is to find a business model and make it comprehensive. "This isn’t a technology challenge," he said. "The challenge is making a business model." Finally, any telematics system, if it reports data to repair professionals, must be passive. "Consumers aren’t going to hook up their cell phone to upload data to us. It has to happen automatically."
The third big idea, green, "is a subject on the minds of everyone," Ordonez said. "Tighter regulations of carbon dioxide emissions are imminent." The federal goal of 35 mpg by 2020 will require a 40 percent increase in efficiency. "We’re facing a significant challenge." Diesel is a short-term way to lower emissions, Ordonez said. "Why has a continent like Europe gone diesel the way it has? It’s 40 percent more efficient than the gasoline engine."
Americans drive 60 percent of their time on the highways, which is where diesel is at its best, he said. On highways, hybrids autos are working on gasoline anyway. "Diesel is the quickest way to become more efficient and reduce emissions, but we also must move beyond this." Ordonez pointed to compressed natural gas (CNG) and gas direct injection (GDI) vehicles, which provide higher fuel economy and fewer emissions, as methods to achieving the 35 mpg goal. "There’s still a lot to be done with gas engines," he said.
As for hybrids, "everybody likes to talk about hybrids. The public hasn’t decided whether they’re going to go for hybrids or not."
AFTERMARKET JAM SEMINARS
The Aftermarket Auto Parts Alliance 2009 Convention featured 18 business seminars. The entire suite of classes was accredited by the University of the Aftermarket. Attendees had five opportunities to attend seminars over three days.
The convention began Wednesday, March 4, with live music and plenty of hot dogs and wings during the kickoff party in the Gaylord Opryland’s Delta Ballroom. The 1,700 attendees were treated to Auto Value/Bumper to Bumper-branded money clips and a few attendees took advantage of the dance floor.
On Thursday, more than 110 vendor booths filled about 70,000 square feet of the Gaylord Opryland’s exhibit hall. Attendees had a chance to play and win a Nintendo Wii.
Photo: Attendees of the Aftermarket Auto Parts Alliance 2009 convention in Nashville speak to a vendor on the show floor Thursday.
Grammy Award-winning country music singer and songwriter Lee Ann Womack entertained Alliance convention attendees Thursday night after dinner. Womack, was the 2001 Country Music Association Awards Female Vocalist of the Year and 2005 winner of Single of the Year for, "I May Hate Myself in the Morning."
Photo: Grammy-winning country star Lee Ann Womack performs for Aftermarket Jam 2009 attendees after dinner on Thursday night.
Womack was the 2001 recipient of a Grammy for Best Country Song for, "I Hope You Dance." In February, she was nominated for a Grammy for her performance of the song, "Last Call." "I’m so glad we got to play some songs for ya’ll," Womack told the audience, who gave her a standing ovation.
Prior to Womack’s performance, Hannah Gayle, 16, the daughter of Steve Marks, senior vice president for marketing for the Alliance, sang a variety of songs, including country, pop and Ella Fitzgerald.
"I grew up in the auto parts business because of my dad," she said.
Photos by Pat Garin, www.patgarinphotographer.com
