Every other week, aftermarketNews.com offers an interview with high-profile individuals in the automotive aftermarket. We give executives free rein to express their views on anything from the state of their corporations to recent legislative news to future trends in their niche markets. Here you see what matters to the newsmakers themselves.
This Executive Interview features Duane Miller, who is the Executive Director of GM’s Service and Parts business channels (GM Service and Parts Operations [SPO]). Miller was appointed to his position back in April 2005. He took time from his busy schedule to discuss with AftermarketNews.com his new responsibilities, the outlook of ACDelco going forward and how “Real Car Guys” know ACDelco.
Earlier this year, you were appointed executive director, Service and Parts Business Channels for GM’s Service and Parts Operations. You assumed responsibility for the ACDelco channel in addition to the GM Parts channel. What has transpired over the past few months?
On April 1, I “returned to my roots,” so to speak and now head up ACDelco in addition to GM Parts. It has been more than four years since I worked with ACDelco customers and employees and it’s been great to again team up with such a dynamic group. I started my career at A.C. Spark Plug in 1971 and have held numerous positions in sales and marketing for both ACDelco and GM Parts … my career has really come full circle.
I’m continuing to focus on the processes and initiatives already in place before I started my new job, namely, executing ACDelco’s “value proposition,” providing “all makes / all models” offerings to the global automotive aftermarket and collaborating at all levels to grow the business. I’ve been meeting with employees, DDG members, and secondary accounts alike to understand their needs and how we can better position ourselves to win in the marketplace.
Do you see your new responsibilities causing ACDelco to conflict with GM’s dealer business because you now lead both brands? What are your priorities for ACDelco for the remainder of the year?
We’re trying to leverage “wins” and best practices across both channels where it’s feasible – I see only opportunities. The total aftermarket for service and parts is very large. Our goal is not to grow one business channel over the other or at the expense of the other. Our goal is to grow the business as an enterprise with the independent aftermarket being our greatest growth opportunity.
We recently realigned our field sales staff to provide our customers with more points of contact than they’ve had in the past. ACDelco is focused on growing some key product lines this year, including undercar: brakes, shocks, chassis and steering; and underhood: remanufactured electrical, ignition / emissions, and batteries. And, my team and I are reviewing and updating our offerings, which include training, product positioning and other areas of support.
Clearly, our focus on our ACDelco business is to grow our share of the non-GM business through independent service centers and service providers. We also will continue to aggressively work with our dealers to grow their non-warranty service and parts business on GM vehicles.
You mentioned your DDG (Dedicated Distribution Group) customers. Please describe this agreement. What’s taking place with your DDGs?
The ACDelco DDG is designed to provide an exceptional level of service to the independent aftermarket and an aggressive, sustainable and profitable growth for the DDG members and ACDelco. We place tremendous value on our DDG distributors who have signed up to be the ultimate source for ACDelco products in their local markets. It is a unique partnership approach to growing the business and winning customers together.
As in every partnership, success will only come when both parties demand rigor in the process, discipline to fulfill commitments and accountability for results. ACDelco is working hard and making progress on the improvements that our DDG members have told us are necessary to help them sell our full line of products. These include competitive pricing, improved margins, product line availability and both printed and electronic catalogs.
In the last nine months, we’ve signed six new DDG members to strengthen our all makes all models distribution. And, a few weeks ago, I had my first meeting with the DDG Steering Committee. This leadership board is comprised of members who represent the DDG body and advise us on policy decisions that affect ACDelco. We discussed “wins,” goals and action items. It was a very productive two-day session and I look forward to working with this great group.
What do you tell someone not currently aligned with ACDelco Why should he or she do business with you?
We’re committed to offering our customers – from our DDG members, Independent Service Centers (ISCs), Jobbers, and retailers alike – a comprehensive “all makes / all models” portfolio of high-quality products at competitive prices. Based on feedback and input from our customers, we’re working with them to provide products and services to grow their businesses.
The ACDelco brand continues to maintain superiority in the eyes of technicians when it comes to overall opinion, consideration and usage.
Your Total Service Support (TSS) program provides service and parts to customers. Tell us more about it. What does it offer your direct and secondary customers?
The ACDelco TSS program offers Independent Service Centers (ISCs) the opportunity to align with ACDelco and receive exclusive access to a wealth of tools, training and benefits to improve their level of service and business success.
The program focuses on four elements in addition to training: bottom-line improvements, employee retention, customer satisfaction and technical support. We offer comprehensive services associated with each element in addition to discounts on what items shops need the most.
Some enhancements to the program this year include an upgraded image program, new uniforms, on-hold messaging for callers and enhancements to our e-business tools: Web Integrated Service Environment (WISE), WISE Internet Parts (WIP) system, and the MechanicNet Customer Retention System (CRS).
ACDelco is well known for the training programs you offer. What’s new in this arena?
Training is a core competency. At ACDelco, we believe offering exceptional training is just one more way to reinforce our dedication to our DDG members, our TSS customers, ISCs, fleet accounts and Jobbers.
We’re proud to be the undisputed industry leader by offering over 75 unique training programs with classes and seminars in automotive systems, diagnostic strategies and repair techniques as well as courses on customer care, e-business and successful business practices.
We’re focused on leveraging and developing a variety of electronic capabilities including Web-based training tools, video streaming and interactive distance learning (IDL). Our goal is to combine hands-on learning opportunities with the flexibility of participating in classes at a time and pace that best fits technicians’ schedules.
What promotions do you have planned to drive customers to the ACDelco brand?
Last year, we launched our new “Real Car Guys Know ACDelco” advertising campaign and have had some real success with it. We’ve heard from professionals and novices, women and men alike, that they identify with the “Real Car Guy” slogan and appreciate the attitude and excitement the campaign embodies. We’ve tied our consumer advertising into motorsports and I hope you and your readers have seen our commercials on NASCAR Series Busch broadcasts, ESPN, and the SPEED channel, among others.
We’re also running some exciting promotions and incentives for our distributors and ISCs that are tied to the launches of some key product lines. And, in September and October, we’re offering a rebate to consumers who purchase our DuraStop friction material. If you have ACDelco DuraStop brakes installed at a participating Independent Service Center (ISC), you can mail in for a $15 cash rebate per axle, maximum $30 rebate. We’ll be promoting this on our acdelco.com Web site shortly.
You talked about racing and I know ACDelco is involved heavily in motorsports. What news can you share with our “Real Car Guy” readers?
You’re right – from February to November, ACDelco’s motorsports sponsorships provide weekly opportunities to showcase our logo and test our products on the track. ACDelco is all about passion for vehicles and premium parts – our motorsports properties reinforce ACDelco as the automotive parts brand of choice for Real Car Guys, whether they’re male or female.
Our drivers are having a pretty good season. ACDelco Chevrolet Cobalt driver Kurt Johnson had his second win of the season in July at the Pacific Raceways in Seattle, Washington. And, ACDelco Chevrolet Monte Carlo driver Clint Bowyer had his first career win in June at the Nashville Superspeedway in Tennessee.
In 2005, the ACDelco Extreme Garage Tour will make appearances around the country, essentially following the 2005 NHRA schedule. It transports Kurt Johnson’s Pro Stock show car and Clint Bowyer’s NASCAR Busch series show car and features a rolling chassis with ACDelco parts, among other items. The tour also offers a chance to enter the “Dream Garage” sweepstakes, in which one lucky winner will have his or her garage transformed with everything a Real Car Guy could need.
What new products does ACDelco have coming down the pipeline?
Recently, we launched an all-new “all makes/ all models” rotating electrical line with more than 2,400 part numbers providing over 90 percent coverage for light-duty vehicles. These premium remanufactured alternators and starters are competitive with other independent programs, feature a simplified pricing structure, and limited lifetime warranty.
We’re in the process of expanding our ignition and emissions control lines, adding 5, 900 parts in the fourth quarter of last year and over 2,000 new parts on their way this year to offer one of the most comprehensive lines in the industry.
And, we recently invited the media in to learn more about our DuraStop brake line to demonstrate our unwavering commitment to customer and satisfaction and safety. While there are no explicit standards for aftermarket brakes in the U.S. and Canada, ACDelco demands its DuraStop brake products undergo the most rigorous testing practices in the aftermarket industry, including submitting them to rigorous independent Dual Dynamometer Differential Effectiveness Analysis (D3EA) testing. We’ll run trade and consumer “Brake Bucks” rebate promotions in September and October to support this line.
The aftermarket industry has been “going global” and we’re seeing many companies expand their markets. What are ACDelco’s plans and initiatives?
ACDelco has been in the global arena for some time now. We have opened more than 600 ACDelco Service Centers in more than 20 countries outside the U.S. and Canada since 1994. Most of the growth has been in India, Korea, Mexico, China, Japan and Taiwan, as well as in numerous countries in the Middle East.
ACDelco Service Centers operate under local agreements in their respective markets. Each facility offers high-quality, premium parts and light repair and maintenance for all makes and models.
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