Over the Counter: November 2000

Nationwide Training Program to Debut in 2001

The Partners in Training tour, set to debut in February 2001, will offer progressive jobbers an opportunity to learn more about their installer customer’s business and improve the business management skills of those same customers.

Sponsored by Federal-Mogul Canada Ltd. in partnership with the Southam Automotive Group (publishers of Jobber News Magazine), eight Partners in Training (PIT) Stops are planned for locations across Canada. Bob Greenwood will conduct the E.K. Williams two-day business courses. Greenwood, who contributes the popular monthly MYOB column in Jobber News, is a leading business trainer in the automotive aftermarket.

“We see this as an important initiative to help the independent professional installer to grow and be more profitable in their market area,” says Mike Holland, general manager, Federal-Mogul Canada Ltd.

“Jobbers have told me that Bob Greenwood really knows his stuff,” says Jobber News editor Andrew Ross. “They say ‘it’s like he’s really been here.’ That’s exactly the type of training he can offer; real-world solutions to real-world problems. And they are solutions that have been shown to reduce the price shopping by installers and improve their profitability too.

“We all know how races can be won, or lost, in the pits. We think that taking a two-day Federal-Mogul PIT Stop may just be the best way to ensure that jobbers and their installers are fuelled up and ready to go the distance in this highly competitive market. We’re really pleased to be able to partner with an organisation like Federal-Mogul to bring this progressive program to the Canadian automotive aftermarket.”

Jobbers are encouraged to attend these sessions with their key installer customers. With an overall theme of “If You Can’t Measure It, You Can’t Manage It,” the course includes numerous sections: a financial management questionnaire; basics of management; the banker’s financial statement–what does it tell me about my business; early warning signs of operational failure; early warning signs of financial failure; how to analyse an operating statement–up-to-date formulas, ratios and guidelines; review and discussion of industry sales and productivity guidelines and averages; sales potential and capability; six questions of capability; marketing guidelines–selling your shop on quality and enhanced value, not just price; and many other key business management guidelines.

The course also includes discussions and breakout sessions. And, because the number of participants is kept small, to a maximum of about 30, there is ample opportunity for participants to ask questions based on the particulars of their own business.

The tour is slated to kick off in February in Winnipeg, Man., with other PIT Stop training dates in Edmonton, Calgary, Vancouver, Toronto, London and Halifax. There is the possibility of other dates being added.

Jobbers and installers can find more information at www.autoserviceworld.com, or they can contact their local Federal-Mogul representative.

General Electric to Acquire Honeywell

General Electric Co. has agreed to acquire Honeywell International for $45 billion (U.S.) worth of stock.

The agreement comes after some furious, last-minute dealing by GE which ousted United Technologies’ plans to buy Honeywell for about $40 billion (U.S.). The boards of both GE and Honeywell have approved the deal, which is expected to be completed in early 2001. As part of the deal, Honeywell’s head office in Morristown, N.J. will be closed, taking more than 500 jobs with it.

Its Consumer Products Group supplies Autolite, Fram and Prestone brand products. It had previously been announced that Questor Partners Fund II, L.P. would acquire Honeywell’s Bendix friction materials business.

World Automotive Makes Shad’s R&R Challenge

World Automotive Warehousing director of sales Harvey Presement has challenged others in the aftermarket to aid research into Muscular Dystrophy in lieu of buying their customers and staff Christmas gifts.

“World has been doing this for 10 years now,” says Presement. “I think it’s time others joined in.” World Automotive has never revealed the exact amount of its annual contribution to Shad’s R&R in support of Muscular Dystrophy research, but Shad’s board member John Vanstone has said that it is a “substantial contribution.” Since its inception, Shad’s R&R has raised more than $2 million for the Muscular Dystrophy Association of Canada, primarily through its annual golf tournament held each June.

Any individuals or groups interested in finding out more about Shad’s R&R and how they may contribute can contact John Vanstone at Specialty Sales & Marketing at (905) 564-2100.

World Automotive made its annual contribution to Shad’s R&R and put the challenge out to others to do the same. At the presentation (l-r): Juanita Ash, accounts payable manager, Pat Reed, catalog manager, Shad’s R&R board member John Vanstone, Sunita Seth, manager accounts receivable, Nancy Ash, inventory manager, Carol Lowry, customer service manager, and Ken Coulter, Shad’s R&R board member.

Ontario Says Public Support for Drive Clean High as Phase 2 Launches

A recent poll shows that public support is growing for Ontario’s Drive Clean emissions testing program to reduce smog-causing pollutants from vehicles, Environment Minister Dan Newman has announced.

“Drive Clean is the cornerstone of our commitment to clean air,” said Newman. “This clearly demonstrates that Ontarians support the program.”

The poll found that 80% of the residents of the Greater Toronto Area (GTA) and Hamilton-Wentworth Region who were aware of Drive Clean supported the program. This is an increase of five percentage points over poll results in April of 1999. And, in Phase 2, where Drive Clean tests become mandatory on January 1, 2001, the support is 85% among those who were aware of the program.

“The poll results are very positive for Drive Clean,” said Jane Armstrong, vice-president of Environics Research Group Limited, which conducted the polling. “They clearly show overwhelming approval of the program. It also gets high marks from those who have had Drive Clean tests.”

Drive Clean emissions testing became a mandatory part of the registration renewal process in the GTA and Hamilton-Wentworth on April 1, 1999. On January 1, 2001, emissions testing becomes mandatory in Phase 2, 13 more urban centers and their commuting zones, from Peterborough to Windsor and the Niagara Region.

The poll also showed that even those who had not heard of Drive Clean support vehicle emissions testing. The support was 83% in Phase 1 and 90% in Phase 2. About 90% of Phase 1 vehicle owners who had gone through the Drive Clean test were satisfied with the service received at Drive Clean Facilities, and 65% of respondents in Phase 1 and 62% in Phase 2 had confidence that consumers were protected in Drive Clean.

The 13 urban centers included in Phase 2, with their commuting zones, are: Peterborough, Barrie, Guelph, Kitchener, Waterloo, Cambridge, Brantford, Niagara Falls, Welland, St. Catharines, London, Sarnia-Clearwater-Point Edward and Windsor.

McCoy Sells Northland

McCoy Bros., Inc. has announced an agreement to sell the Northland Trucks dealership business to Maxim Transportation Manage-ment Services.

The sale, which also includes M.E. Invest-ments Corporation, includes the land, building and outbuildings of Prince Albert, Sask., International dealership as well as the on-hand parts inventories and other equipment. The sale completes a restructuring of the company that also included the divestiture of its wholesale and retail heavy-duty and light trucks parts businesses in Western Canada.

Maxim has existing International dealerships in Winnipeg, Brandon and Regina, as well as trailer dealerships and rental and lease locations from B.C. to Quebec.

Cardone Celebrates 30 Years of Reman

Leading remanufacturer Cardone Industries is celebrating its 30th anniversary.

The company was founded by Michael Cardone Sr. with his son in
1970, but the elder Cardone’s involvement goes back to the 1930s, when remanufacturing became a necessity during WWII. He was a pioneer in the field and was named to the Automotive Hall of Fame in 1994.

Since he joined with his son Michael Jr. to form the company in 1970, it has remained a family operation.

“It’s important that we keep our family culture because it gives us a competitive advantage,” says Cardone Jr., chairman and CEO. “When your family’s name is at stake, you take extra care of your customers. My father knew this when we founded the company in 1970.”

Today, 18 family members spanning three generations are involved with the company.

Ontario Agencies Merge

Kingham Marketing and Tribax Sales have merged their organizations to better cover the Ontario market.

The new agency, Tribax Sales, will be headed by Terry Bax and Rob Reith, a former owner of MPA, who has 30 years of automotive experience. Terry Bax started Tribax in 1994 and has nine years of aftermarket experience.

In addition, sales representative Ed Iardas will be moving from Kingham to the new agency.

Honeywell to Distribute Tire Monitoring Product

SmarTire Systems Inc. and Honeywell have announced an agreement in principle to expand the distribution of its tire pressure monitoring products through Honeywell’s distribution network.

For SmarTire, the agreement in principle represents an opportunity to market its tire monitoring products on a global basis through Honeywell’s extensive auto parts distribution network. The agreement also provides for the joint development of new tire monitoring products for the passenger car and commercial vehicle markets.

The companies will also explore opportunities for global distribution, new product development for the automotive aftermarket and future tire monitoring systems for other market sectors.

“The establishment of successful alliances with key strategic partners continues to be our most important business objective,” states Robert Rudman, SmarTire’s CEO and president. “In the area of marketing, distribution and product development, Honeywell is an ideal strategic partner. It has distribution in place to market our products to most major automotive parts retailers in North America and into Europe. SmarTire provides innovation and technological expertise in tire monitoring technology, while Honeywell delivers consumer branded, high-growth automotive products to the global aftermarket.”

Federal-Mogul Locks Up Canadian Tire Brake Business

Federal-Mogul has been awarded the friction, rotor and drum business of Canadian Tire.

Federal-Mogul’s friction products will be sold under Canadian Tire’s private label, Certified Friction, at their retail locations and as Wagner branded product at the PartsSource stores. The drums and rotors will be sold under Federal-Mogul’s Wagner brand at both locations. Canadian Tire currently has 44% of the DIY market in Canada.

Kimberly-Clark Celebrates 75 years in Canada

Kimberly-Clark, supplier of a variety of wiping products, hand cleaners, and other products is celebrating the anniversary of the opening of its first facial tissue facility in 1925.

The facility, in Niagara Falls, Ont., was the first facility, but the company now employs 1,900 and has mills in Huntsville and Terrace Bay, Ont., as well as St-Hyacinthe, Que. and New Glasgow, N.S. Administrative offices are located in Mississauga, Ont.

Aftermarket Wins California OBD II Battle

After three years of relentless grassroots campaigning by state and national aftermarket groups in the U.S., California’s governor has signed an OBD II access bill into law.

“This is a monumental victory for the aftermarket and consumers. SB 1146 ensures that car owners will continue to have access to the most convenient and affordable vehicle aftermarket in the world,” said Al Gaspar, president and CEO of the Automotive Aftermarket Industry Association (AAIA). The victory is seen as a key component to having full, widespread access to OBD II information.

Specifically, the bill mandates that the independent aftermarket will have access to service information and tools necessary to repair and maintain vehicles equipped with on-board diagnostic computers. The bill further requires that independents have access to information necessary to ensure that replacement components are compatible with on-board computers.

“We are extremely pleased that the governor has chosen to support the continued rights of consumers to obtain quality and competitively priced parts and repairs from the independent aftermarket,” said Gaspar. “This new law will help level the playing field between the aftermarket and new car companies and their franchised new car dealers in providing sophisticated parts and service for late model vehicles.”

AAIA and the Automotive Warehouse Distributors Association comprise the Auto-motive Parts and Service Alliance (APSA). The Alliance worked closely with the California Consumer Choice Coalition, a group of state and national aftermarket groups, consumer and vehicle safety groups to spearhead a concerted grassroots effort to obtain passage of the bill.

E.R.I Awards Scholarships

The E.R.I. Group is pleased to announce the winners of the 2000 Richard Miller Award.

Tim Fedak of Halifax, N.S. and Cori Smuck of Jarvis, Ont., were each presented a cheque for $1,000 to help them further their education. We congratulate them on their success and wish them well in their chosen vocations. Fedak is attending Dalhousie University, majoring in biology, and Smuck is attending Brock University, majoring in Accounting.

U.S. Court Enjoins Pennzoil’s Advertising

A New Jersey federal court ordered a halt to Pennzoil-Quaker State Co.’s advertising campaign for Pennzoil multi-grade motor oil.

The court found Pennzoil’s ad campaign–which features quarterback Brett Favre–to be “false and misleading” and “repugnant” to federal advertising law.

The case was brought before the courts by Castrol North America. Among other things, the injunction enjoined Pennzoil from making any claim that its oil is in any way superior to Castrol or any other leading motor oil and that its oil provides better protection against engine wear or engine failure than Castrol or any other leading motor oil. The injunction is effective immediately and applies to all forms of advertising, including television, cable television, print, the Internet and the World Wide Web. The judge reserved for later decision the questions of whether to hold Pennzoil in contempt of court, whether Pennzoil would be required to pay Castrol monetary damages, and whether Pennzoil will be liable for punitive damages.

Among the 18 Cardone family members involved in the business are Dan McClave, son-in-law, Michael Cardone III, son of Michael Cardone Jr., president and CEO and his spouse Jacquie Cardone.