While some of us may have been temporarily captivated by other forms of transportation this week (read: Balloon Boy), progress in the automotive industry continues to roll on. The distribution segment in particular has been going strong in recent months. Leading off our top stories of the week is the news that Uni-Select has completed its acquisition of all minority shares of Uni-Select USA. Minority shareholders of its subsidiary Uni-Select USA have tendered 100 percent of their shares in the company, accepting the terms of the offer to purchase submitted late in August. The shareholders were paid $44.8 million (CDN) for approximately 13 percent of the stock of Uni-Select USA. Among the shareholders agreeing to tender their shares are members of the Buzzard family, a well-known name in the aftermarket industry, which owned 10 percent of Uni-Select USA.
Meanwhile, things were not as productive for Ford this week, as the automaker announced its largest recall ever. Ford has recalled 4.5 million cars and trucks due to a badly designed switch that could cause vehicle fires. The recall includes the remaining vehicles equipped with a cruise control deactivation switch made by Texas Instruments. Those vehicles include: 1995-2003 Windstars, 2000-2003 Excursion diesels, 1993-1997 and 1999-2003 F-Super Duty diesels, 1992-2003 Econolines, 1995-2002 Explorers and Mercury Mountaineers, 1995-1997 and 2001-2003 Rangers and 1994 F35 motorhomes. NHTSA said there are warning signs a car is at high risk, including trouble shifting out of park, dashboard brake lights going on and malfunctioning cruise control and brakes.
Also in our top stories this week, Advance Auto Parts announced the launch of its new e-commerce Web site. The enhanced Web site, complete with improved site navigation, powerful search features and high-speed movement from page to page, now provides the service of online shopping. Customers can choose from more than 100,000 parts and accessories. Multiple shipping options include buying online and pickup in a local store or at-home delivery. Shipping is free on all ship-to-home orders greater than $75 and there is never a shipping charge on any store pickup order. Additionally, customers can process returns free-of-charge at any Advance Auto Parts store across the country.
And while Advance expands its virtual presence, Pep Boys continues to expand its physical footprint in the Florida market. Pep Boys this week announced that it has entered into a definitive agreement to acquire the assets and assume the property leases of Florida Tire, a service and tire provider to customers in Orlando since 1987. The $4.35 million acquisition is expected to close on Oct. 30, and generate annual sales of more than $14 million. In addition to offering customers Pep Boys’ full range of automotive repair and maintenance services, all 10 stores will feature a full assortment of Goodyear, Dunlop and house-brand tires.
Rounding out our top five stories of the week is our exclusive Executive Interview with Don James, marketing director, Commercial Vehicles & Aftermarket, for Continental Automotive Systems North America. James, a longtime industry executive, talks about evolution taking place in the automobile industry today, the future of the supplier industry as well as future vehicle service trends. In the interview, he addresses some of the industry’s most critical topics including Cash for Clunkers, Right to Repair and globalization.
