CANADIAN ENGINE REBUILDER: Repowering Challenge Presented To Aftermarket Executives

The future health of the engine rebuilding industry is important to the entire aftermarket, said Dave Deegan, the 2000 president of the Automotive Repower Council.

Speaking at the Global Automotive Aftermarket Symposium–attended by industry executives from all sectors–Deegan spoke of the challenge and opportunity facing the aftermarket regarding remanufactured engines. “The discussion of core value leads right to what we are doing at the Automotive Repower Council (ARC), and how it is building a consumer market for remanufactured engines.

“We have a problem: 74% of the public doesn’t know about repowering; they have never even thought about it.”

Turning that tide is the key focus of the ARC’s efforts.

“Why are consumers important? Consumer spending drives two-thirds of our economy, but we sometimes forget that this is why we’re here. The truth is we can’t build our business without the consumer spending. The market potential is enormous; it’s a multi-billion dollar opportunity. We believe it’s a very important mission and that it will support all of us.”

He explained that it’s good for the aftermarket because it provides a market for new and remanufactured products that are used in the repowering process. “One of the biggest overlooked aspects is the collateral parts sales that happen when repowering. I’m talking about belts, hoses, sensors, thermostats etc. These are great opportunities for additional parts sales, and it benefits us all. And it benefits the consumer. It’s a great opportunity to bring their vehicle back into usable condition.” He estimates that these parts are valued at $500 to $700 per engine.

“We know that it is good for the aftermarket, but equally important it’s also good for the consumer. The costs of ownership are lower, insurance costs are lower, plus they keep the vehicle they know and love.

“Repowering is not only economically sound, it’s also environmentally sound.”