In our top story this week, Dorman and WAI announced that WAI will acquire Dorman’s ignition distributor product line. As part of a strategic review, Dorman determined the line no longer fit with its focus of delivering new products to the aftermarket. WAI, a global leader in supplying the rotating electrical industry and manufacturer of electronics and sensors, acquired the line on March 5.
Also this week, McCourt announced the launch of its own line of tire balancers and changers. This new product line expansion is the result of a May 2009 announcement by Corghi Wheel Service Products that it was bringing its North American marketing and sales inside. This left McCourt without the line it represented for more than 20 years. McCourt’s new line of wheel service equipment is being marketed under the Wheel Products name and will be available to distributors and customers that serve the OE, aftermarket and new car dealer markets. Included in the initial offering will be passenger-vehicle tire changers and balancers.
General Motors this week announced a name change for its Service Parts Operations (SPO) division, which includes ACDelco, Goodwrench and GM Performance Parts. The new name – Customer Care and Aftersales – was created to put more focus on the automaker’s commitment to customer service, said Steve Hill, who was recently appointed general manager of the division. "It’s going to be less about selling parts and more about taking care of customers, hence the name customer care," Hill said of the former SPO. "All successful organizations are centered on the customer. If you’re not customer-focused, you’re just not going to win."
This week brought the release of more research confirming the theory that in tough economic conditions, consumers tend to be a bit more conservative with their cars – opting to maintain their current vehicles rather than buying new. According to Rothman Research, this fact is supported by strong sales at auto parts chains in the past year. In its recent research, Rothman cites two examples of stocks doing better despite the weak economy since last year — O’Reilly Automotive and AutoZone. O’Reilly earned $71.9 million or 52 cents per share, up from $42.7 million, or 32 cents per share, in the same quarter of last year. AutoZone has been reporting solid gains since last year. The company has seen double-digit EPS growth for 14 consecutive quarters, which was propelled by a 565,000-share repurchase during the quarter.
The final item in our recap of the top five news stories of the week comes from Navistar International, which has established a new e-commerce Web site for customers. The company believes it is the first heavy duty truck and bus manufacturer to sell parts online. The e-commerce site features a full product catalog and allows the user to select vehicle and engine model to determine the correct part for their need. The introduction of the Partsmartparts.com e-commerce site will be supported by a full marketing communications plan, including online, print and radio advertising, Wi-Fi sponsorship and display advertising at select truck stops.
