eAuto runs out of gas

Dallas-based business-to-business Internet parts distributor eAuto has closed, citing the inability to secure a second round of funding due to market conditions. eAuto launched in 1996 as a consumer service automotive portal, with the firm’s “B to B” services a relatively recent addition in November of 2000. According to a company press release, eAuto’s business plan was sound, but the company fell victim to the current tech stock meltdown. eAuto will sell its assets, including a “robust diagnostic application that was to be released in the near future.”

UAP renews partnership agreement with Petro-Canada

Petro-Canada has entered into a five-year agreement with UAP/NAPA to supply parts to the oil company’s network service stations across Canada. The agreement designates UAP/NAPA stores coast-to-coast as the “preferred parts supply source to Petro-Canada Associates engaged in the vehicle repair business.” Petro Canada has 1600 retail sites, including 150 franchise Certigard locations across Canada. UAP has 6185 point of sale locations as corporate, associate, and bannered outlets.

GM switches to Bridgestone on some 2002 vehicles

GM will switch from Firestone to the Bridgestone brand for some cars and light trucks starting this summer on 2002 models. According to the Detroit News, the switch was proposed by Bridgestone/Firestone, and does not represent a long-term plan to eliminate the Firestone brand at General Motors. Cadillac and Saab models are reported to be the first to see the switch, which is consistent with the tire company’ strategy to position Bridgestone as the firm’s premium brand.

GM mulls extended warranties

Following strong sales in the wake of General Motors’ U.S. announcement of a five-year 60,000-mile warranty on Oldsmobile products, the firm is contemplating offering the longer warranty on the entire range of GM products. Citing competing long duration warranties by automakers such as Hyundai, and the need to reduce cash incentives, Bill Lovejoy, head of GM North American sales service and marketing told the Reuters news agency that the plan could drive service business and sell more GM factory parts: It’s been much stronger (reaction to the Oldsmobile offer) than we anticipated. We’re evaluatng it. We’ll talk to our dealer councils, trying to determine if this is an aberration.”

Toyota contemplating new brand

Toyota may create a third brand in an attempt to lure younger buyers into its showrooms, according to a report from the Reuters news agency. With the average age of a Toyota buyer now at 43, well above other Asian carmakers’ statistics, the Japanese giant is looking at the possible new brand as a long-term solution to the problem that led to the demise of GM’s Oldsmobile brand, the lack of a consumer base young enough to establish long-term buyer loyalty. The report quotes Kyoji Sasazu, a Toyota board member as stating: “A third brand is under serious consideration”, although some of the firm’s U.S. management team has suggested that a third brand is unnecessary. Toyota has five brands in the Japanese market.

New franchise legislation in place in Ontario

Ontario Minister of Consumer and Commercial Relations Bob Runciman has announced the proclamation of the Arthur Wishart Act (Franchise Disclosure) 2000, requiring pre-sale disclosure of information by franchisors, and setting out the consequences for failure to disclose appropriate information to prospective buyers. The Act requires a franchisor to provide a disclosure document at least 14 days prior to entering into a franchise agreement or receiving any payment relating to a franchise. Minimum information is required, such as the seller’s business background and all details of the business arrangement. The legislation also provides a right to associate for franchisees, a duty of fair dealing, and applies to all existing franchise agreements. Details can be found at www.ccr.gov.on.ca

iSHOP demonstrates test success

The U.S.-based AAIA (Automotive Aftermarket Industries Association) has announced the successful connection of clients and servers using the iSHOP specification. At a work session hosted by Genuine Parts in Atlanta, representatives from Snap-On, Mitchell Repair, ALLDATA, Hunter Engineering, Delphi Automotive, SPX and Baymaster determined that few changes are necessary to the specification. Prototypes written in both Visual Basic and C++ were connected on a variety of Windows operating systems. According to Tim Larsen of Hunter Engineering, ” The only problems involved Windows security and registration issues that we were not surprised to find.” ALLDATA’s Mark Erdich reported resolution of most of the Microsoft issues within a week of the meeting. iSHOP is an industry computer data protocol that will allow future shop equipment to communicate seamlessly regardless of brand or software.