Dan Freeman, president of Automotive Parts Associates (APA), notes that as the Big Three in Detroit lose market share and the Japan Three become more competitive, some unique opportunities will be apparent.
"This is only the beginning of what's to come," says Freeman, who presented several opportunities to APA members at the group's recent Annual Shareholders & Manufacturers Conference in Miami. "In the next few years, Chinese manufacturers like Chery, Geely and others will appear in North America."
He cites the numerous Las Vegas taxicab fleets that contain foreign nameplates as an example.
"The proliferation of auto parts will continue to increase," Freeman offers, adding that this is a good thing for APA members who do a better job of inventory management than some of the bigger retailers.
"The retail chains have not done a good job figuring out how to deliver slower moving or newer parts into their supply system," he continues. "If you can't service the customer and deliver the part in a reasonable amount of time, you will not make the sale."
A related trend, and consequent opportunity for jobbers and shops, is that the influx of foreign nameplate sales will lead to a shortness of available bays at import dealerships. The service channel will be able to take advantage of this opportunity to garner more sales, Freeman states.
"With so many nameplates manufactured in North America, there are more OE and OES suppliers than ever," says Freeman. "Our vision will be to develop programs with these suppliers."
During the convention, APA shareholders also voted for the Vendors of the Year, naming AMS Automotive, Centric Parts and Dorman the winners.
