Bodyshop News: April 2004

AADCO Signs Fifth Agreement in as Many Months

AADCO Automotive Inc., a leading supplier of like, kind and quality (LKQ) used auto parts, has signed a preferred supplier agreement for LKQ and aftermarket parts with Collision Care Canada Inc. (CCC Inc.)

The agreement is to take effect April 1, 2004. CCC Inc. consists of 10 corporately owned collision repair facilities in the greater Toronto area, operating under the Imperial and Oaktown banners. This agreement will assist CCC in its vision to become increasingly more efficient and responsive in the servicing of its customers and insurance companies, to increase the use of LKQ parts in the repair process

The CCC Inc. agreement is the latest announcement as AADCO expands its supply business model. In December 2003, AADCO announced the signing of a strategic alliance with Dave’s Part Mart of Ottawa, with an option to acquire. On March 2, 2004 AADCO announced the signing of a letter of intent for a master distribution agreement with United International Business of Canada, which should see AADCO parts being sold in China before the end of 2004. On March 9, 2004 AADCO announced the signing of a letter of intent to acquire Coreline, the third-largest automotive core and materials business in Canada, and on March 16, 2004, AADCO announced a preferred supplier agreement with the 24-shop Collision Solutions Network.

Ford, Licensees Agree on Reproduction Parts Trademarks

An agreement has been reached to allow Ford reproduction parts manufacturers to operate on a level playing field, according to the Specialty Equipment Market Association (SEMA).

Ford has agreed to provide a three-year contract to its licensees, rather than the initially proposed one-year term, and all licensees will be given the same terms of agreement, without variation. Licensees will pay a 7% royalty fee on the use of Ford trademarks, and a fee of one dollar per part that bears a Ford trademark or Ford part number, up to a maximum of $1,000 U.S. Also, only one licensee in the distribution chain will have to pay the fee. Finally, no reporting requirement or fee is required if a Ford trademark is used only in an informational capacity, for example, in a catalogue to describe a part application.

BASF Announces Refinish Training Schedule

BASF’s Automotive Refinish business has issued its training schedule for the second quarter of 2004. Contact the training centres directly, or call the BASF Customer Service Centre at 1-800-825-3000 and select option #7. Canadian training locations can be contacted in Montreal at (514) 340-3934, Toronto at (416) 674-2242, and Vancouver at (604) 820-1632.