The AMN Week in Review (Sept. 6-10, 2010)

We kick off this week’s recap of the most popular news items on aftermarketNews with a significant announcement from the distribution segment. The AIM Associated Sub-Groups (AASG), which include AIM Alliance, Auto Extra, DWC/Cygnus and SDI, have formed a strategic alliance with Uni-Select. The strategic alliance became effective Sept. 1. According to Dick Palmer, president, AIM Alliance, and spokesperson for the AASG, the new alliance will allow AASG members to retain their independent status while also giving them the ability to participate in Uni-Select’s sales, marketing and business operations programs. All contracts and agreements that AIM Associated Sub-Group members have with customers and suppliers remain in effect. AASG members will learn more about the various programs now available to them at the organization’s 15th annual member reception, held in conjunction with AAPEX this November in Las Vegas.

Also highly read this week was the news of four new appointments to the Schwartz Advisors team. Schwartz Advisors provides mergers and acquisition advisory services to middle market companies in the automotive and truck aftermarket. Four notable industry executives have joined the company recently. The newest Schwartz Advisors affiliates include Rick Keister, former CEO of Keystone Automotive Industries and president of the Remy International Aftermarket Automotive Group; Larry Samuelson, former president of the NAPA Automotive Group; and Gary Paulson, former president of the TBC Private Brands division of TBC Corp. Lou Basenese, the firm’s newest Schwartz Advisors partner and former CEO of Meguiar’s, joins the Schwartz Advisors leadership team, which includes Mort Schwartz, Ray Datt and Rick Schwartz. Other Schwartz Advisors affiliates include Malcolm Davidow, Steve Ganster, John Passante and Glenn Martin.

In other personnel news this week, National Performance Warehouse (NPW) has named Pat Saunders to the newly created position of VP sales and marketing west, effective Sept. 13. He will report to Rick Kovalick, CRO and VP of purchasing. Saunders joins NPW from Classic Industries, a leading supplier of restoration, performance and accessories parts to a wide range of GM and Mopar brands. Prior to his position with Classic, Saunders was the sales leader on the West Coast for WD’s Keystone Automotive Operations and Reliable Automotive. He has more than 20 years of specialty industry sales and marketing experience. As VP of sales and marketing, Saunders is charged with all facets of West Coast business development, including strengthening the sales forces both inside and out, expanding into new markets and energizing the existing customer base, according to NPW.

Osram Sylvania has introduced an all-new Headlight Restoration Kit. The new kit was designed to remove thousands of miles of damage and restore headlight lenses to provide durable and like-new performance in light output, thereby improving driver visibility and safety. The Headlight Restoration Kit from SYLVANIA restores clarity and removes the hazy yellow appearance on headlight lenses, plus it provides a UV Block Clear Coat, which protects headlights from UV rays, the No. 1 reason headlights become dangerous. After use, motorists should see a significant improvement as the product enables up to three times more light to shine on the road, the company claims. There are currently more than 150 million vehicles on the road today that feature plastic lenses that are five years or older. Most likely, they are already showing visible signs of weathering and hazing, resulting in reduced vision for the driver and a potentially serious distraction for oncoming traffic, says Osram Sylvania. “This was a huge concern for consumers that we spoke with prior to launching the product,” said Joe Verbanic, marketing manager for SYLVANIA Automotive Lighting. “Most did not know that driving with hazy headlights could have such an impact on their visibility or create glare for oncoming traffic on the road. It was a real eye opener.”

And finally, we round out our recap of the week’s top news with some good news from Pep Boys, which said its second quarter sales increased 3.3 percent. Sales for the 13 weeks ended July 31 increased by $15.9 million, or 3.3 percent, to $504.9 million from $488.9 million for the 13 weeks ended Aug. 1, 2009. Net earnings for the second quarter increased to $10.6 million (20 cents per share) from $7.7 million (15 cents per share) recorded in the same period last year. Sales for the 26 weeks (first half) ended July 31 were $1,014.9 million, as compared to $985.4 million for the 26 ended Aug. 1, 2009. Net earnings for the first half of 2010 increased to $22.5 million (43 cents per share) from the $18.6 million (36 cents per share) recorded in the same period last year. “Our results mark the sixth consecutive quarter of improved profitability,” said President and CEO Mike Odell. “We continue to earn the trust of our customers every day by delivering an experience that is based on speed, expertise, respect and value.”