Auto Service World
News   November 30, 2015   by CARS Magazine

AAMCO Franchise drives sales for franchisees

AAMCO Franchise has made progress in maximizing profitability for its franchisees through its partnership with its sister company Global Powertrain Systems (GPS) and its remanufactured transmission facility.

GPS, which is located next to AAMCO’s latest training facility, AAMCO University, is part of the company’s strategic plan to modernize the brand and build long-lasting customer relationships.

Through its partnership with GPS, AAMCO franchisees are given access to a vertically integrated supply chain with preferred pricing on the brand’s core transmission category. This partnership allows the company’s franchisees to keep their costs low and focus on increasing their profitability in the Total Car Care segment. Furthermore, it reduces the challenges of actively seeking and recruiting well-trained builders.

“Global Powertrain Systems has given our franchisees the ability to control the cost, quality and speed of delivery on our highest ticket item, transmissions,” said Brian O’Donnell, senior vice president of franchise sales at AAMCO Transmission, Inc. “This ultimately has driven greater efficiencies for the brand, while giving us the opportunity to focus on growing our Total Car Care business and capture more market share in the general automotive repair industry.”

For Sam and Sherri Underwood, owners of the AAMCO service center in Levittown, Pa., the company’s business model has allowed them to take their business to the next level. The franchisees plan to relocate their existing AAMCO location during the first quarter of 2016 to a new, larger service center in the area in order to serve their growing customer base.

“Now that AAMCO has a partnership with GPS, the business model is very simple to operate and makes it easier to run a successful business and with less support,” said Sherri Underwood. “The benefits of the partnership with GPS are endless. There is a better warranty to offer our customers and we are saving the salary that we would have to pay a builder. It also reduces the challenges of maintaining a specialized labor workforce.”

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