MAGAZINE LEADERS IN THE SALE OF QUALITY
PARTS
March 2008
Mopar Masters Guild Convenes in San Francisco For 16th Annual Meeting Pages 3-23
Annual Issue Packed with Information!
In This Issue
New President Mike Gerber Reynolds & Reynolds Snap-On Business Solutions ADP OEConnection MOC1 Solutions Crossword Puzzle Tidbits Chrysler Won’t Need More Cuts What Do You Know About R-DOT? Industry Trends Affect Parts Sales Lean-ing Out Collision Repair Process 2008 Mopar Masters Guild Committees
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Mopar Masters Guild President Mike Gerber CJD of Bellevue It is ironic that I was elected to the office of President in San Francisco this year as I attended my first Mopar Masters Guild meeting in San Francisco in February of 1999. I remember sitting in the meeting, not knowing anyone, and them not knowing who I was or why I was there. My Dealership received a letter inviting me to come to NADA and join the Mopar Masters Guild. Being a guy and not wanting to ask for any directions I registered with NADA and got a room by chance in the Parc55. I had not registered with the Guild so they had no record of me attending. Ernie, Rick, & Paul took me under their wing and welcomed me to the Guild. Being new to Mopar I really didn’t have a lot to offer. All of my experience was with GM, Ford, NAPA, and with large trucks so I just listened. I was so overwhelmed with the sharing of knowledge I knew I couldn’t possibly implement all of the ideas I had heard. I am thankful for that experience because it kept me coming back for the next 9 years. I would like to thank Gerry Oakes, Marvin Windham, Alan Yancey, Rick Monteiro, and Paul Allred for their leadership as Presidents during my membership. I want to especially thank current President Roy Benner for taking the helm unexpectedly for this meeting in San Francisco. We all appreciate the hard work of our Committees and the producers of our outstanding Magazine. All of the members I have had the pleasure of knowing and sharing ideas with over the years have been invaluable in my career and my life. Thank you all. I would also like to acknowledge the founders of the Guild for their foresight and dedication to this “exchange of ideas in a non-competitive environment” My experience as Secretary, Membership Chair, and Website Chair has prepared me to take this challenge of Guild President. Being a member of the Executive Committee has helped me see the changes coming and prepare my business to accept them and profit by them as well. I have also met and developed relationships with our partners at Mopar and our supporting vendors. I would like to thank our supporting vendors for their support and the peek at what is coming down the pipeline. I sincerely believe our feedback and ideas are beneficial to both of us and the supporting vendors make all that we do possible. I would also like to welcome MOC1 Solutions as our newest Supporting Vendor. With the dramatic changes at Chrysler through ownership change, the move from a push to a pull strategy, the implementation of the ARO ordering system, the revision of the return policy, the revision of dealer rewards, the need for Mopar to open new channels of business, combined with our changing officers creates a challenge. I felt we could best address this through inviting five of our past presidents to serve on our Executive Committee. I also kept two very valuable members, Robbie Jackson and Dan Hutton as alternates. It is my goal to establish new and long lasting relationships with the new Mopar management team and strengthen our ties with our Supporting Vendors. I have already developed a respect for the way the Mopar management is listening, discussing, and changing rapidly and am pledging our support for the new programs they are developing. “The only constant is change”
Mike Gerber
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16th Annual Meeting of the Mopar Masters Guild at NADA 2008 San Francisco As we have talked about many, many times during the existence of the Mopar Masters Guild, any information that is obtained via the newsletter will not offer a complete and concise picture of what went on at our meetings. We stress the importance of attending these meetings and invite everyone who meets the Mopar Masters Club criteria to join the Mopar Masters Guild, attend these meetings and enjoy the wealth of knowledge and information that is presented. Our coverage of Vendor presentations, Mopar Executives’ presentations and Super Performance Group meetings will only lightly touch upon what was presented. Friday Feb 8th, 2008 “Change” appears to be the buzzword so far in 2008. Change in our economy, which dictates change in our lifestyle, change in the political arena where we will be voting for change in our country and on it goes. The 16th annual meeting of the Mopar Masters Guild also included change. Guild President Gerry Oakes of Baxter Chrysler in Nebraska was not able to attend this year due to mitigating circumstances. In Gerry’s absence VP Roy Benner of Allen Samuels Dodge would assume the presidential duties from this point forward. Calling our meeting to order Roy covered the events of the next few days and handed out copies of the itinerary for all to read. Another “change” this year would be the way we would interact with several of our Supporting Vendors. Roy informed everyone that a “vendor fair” would be part of our day today after lunch. (More on this later in this article) The financial support of our Vendors is such that we spent a portion of our morning selecting members that (Continued on page 4)
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would represent the guild in our interaction with them. You will find an updated Committee list on the last page of this issue. Secretary Mike Gerber of Chrysler Jeep Dodge of Bellevue then presented the Minutes in print form for everyone. A motion was made to accept the minutes, seconded and accepted. Roy then gave us an update on our financial standing with the Treasurer’s Report. (Treasurer Brent Hoge of Larry Miller Chrysler in Utah was delayed due to a Mopar trip he was attending) The report was motioned to accept and seconded. A role call ensued with each attendee introducing themselves and a little bit about their dealership. The following is a list of NADA 2008 Attendees: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Paul Allred Don Benner Roy Benner Steve Benoit John Bozek Jeff Bright Chris Brodeur Casey Brown Brent Christensen Steve Correll Don Cushing Rick Cutaia Mike Fago Mike Gerber John Gilbert Steve Hofer Brent Hoge Mike Hull Dan Hutton Robbie Jackson Brian Joynt Phil Krueger Darrell Langford Susan McDaniel Rick Monteiro Mike Mulkins Guillermo Nava Rich Okonsky Ole Olson Doug Price
Metrolina Chrysler Jeep Dodge Allen Samuels Dodge Austin Allen Samuels Dodge Archer Chrysler Jeep Dover Dodge Chrysler Jeep Normandin Chrysler Glenn E. Thomas Dodge Allen Samuels Dodge Katy Ken Garff West Valley CJD Christopher’s Dodge World Bald Hill Dodge Chrysler Rick Hendrick Dodge Franklin Sussex Auto Mall Chrysler Jeep Dodge of Bellevue Preston Chrysler Jeep Park Jeep Larry Miller Chrysler Jeep Dodge Beck Chrysler Jeep Dodge Tom O’Brien Chrysler Salsbury’s Dodge City Power Chrysler Jeep Buerge Chrysler Jeep Tuscon Dodge Bill Luke Chrysler Jeep Dodge Jack Powell Chrysler Dodge Go Chrysler Jeep West Buerge Chrysler Jeep Allen Samuels Dodge Katy Elk River Chrysler Security Dodge Chrysler (Continued on page 5)
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Rich Schott Mark Skinner Jim Stoneman Tom Watson Marvin Windham Alan Yancey
Moore Chrysler Jeep Power Chrysler Jeep Dodge Westoaks Chrysler Dodge Performance Chrysler Jeep Dodge Don Drennen Motors Hayes Chrysler Dodge Jeep
Paul Allred of Metrolina Chrysler Jeep Dodge in North Carolina then passed out the 2008 Mopar Masters Guild wearables which included a vest and dress shirt with the MMG logo. Our next order of business was to discuss our meeting with Mopar that would be held on Saturday afternoon. Past President Marvin Windham of Don Drennen Motors in Alabama reminded everyone that with all the changes that have occurred with Mopar and more changes to happen within the next few weeks that we, as a guild, needed to be focused and use the valuable time that Mopar would be with us wisely. We continued discussing guild business with most members voicing their individual results with current Mopar programs and promotions. Many great ideas were shared amongst attendees. We then took a short break to join our spouses and/or guests at the Spouses Breakfast being held in the room next to our meeting room. It was great seeing everyone again and there was plenty of laughter and conversation for all to enjoy. It was now time for our Supporting Vendor presentations. We will touch briefly on each one. Starting off this year’s gathering was a long time Supporting Vendor of the guild, Reynolds & Reynolds. Jason Sideris, Director, Product Marketing Fixed Operations gave us updates on the organization itself and new product. Jason tells us that all new product and support will solely be within the U.S. which brought a nice round of applause. Some of the fixed updates presented by Jason: For ERA DMS: • 206 Enhancements over 2 years – 6.3, 6.4, 6.5 & 7.0 • 97 ERA-wide enhancements included in 7.1 (released Jan 08) • 7 projects approved for Parts (Continued on page 6)
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19 projects approved for Service/SPG
For Power DMS: • 48 Parts & Service enhancements included in 23.x (released in ’07) • 6 projects approved for Parts • 22 projects approved for Service/SPG Jason told us of Reynolds’ Fixed Op Team Specialists that have been added to the team. Once again, these presentations by our Supporting Vendors are valuable not only for the information presented but also for the tremendous opportunity to talk directly with their people. Online Service Reservation Process, Parts Barcoding, Shop Capacity Management, Declined Services Tracking & Follow Up were several of the many topics presented along with comparing Mopar and ERA Data.
Next up: Snap-On Business Solutions. Phillip Firell, VP Product Management, talked of the values of his company. Snap-On’s Mission Statement: “The Most Valued Productivity Solutions in the World”. David Pankow, Sr. Product Manager spoke of PAIS 4. It is the next major enhancement to the Snap-On Chrysler EPC. Some of the key enhancements: • Online updates: Weekly parts information & price updates • Added 4 times the supersession history content • Improved filter capabilities – filter out non applicable groups, illustrations and parts • TSB # search • Email feedback with “moment in time” screen capture (Continued on page 7)
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Configurable user notes capability at the parts search within a vehicle or everywhere the part is found • Global content available Dave then gave us an up-to-date demonstration of PAIS 4. He then brought us up to speed on SnapOn’s EASy System with a detailed presentation. It appeared everyone in the room was using the EASy application. Great information!
Another of our longtime Supporting Vendors, ADP, was our next presenter. Randy Emerick, Director, ADP Manufacturer Solutions & Consulting, thanked us for the opportunity to once again be in front of the Mopar Masters Guild and briefed us on what would be covered during the next hour. Randy then introduced Joe Miliziano, VP & GM 3rd Party Access Program. Joe covered ADP Data Strategy, brief history of product and ADP’s current and future goals. Joe then went over the different options concerning Third Party Access Programs: Basic Access, Subscriber Access, Integration Access and VPN Access. David and Randy used the remaining time to field questions with guild members. There was a great deal of interaction concerning Third Party Access and potential new product from ADP. David also used this time to give us an update on PartsVoice which ADP acquired in March 2007.
After a break for lunch, we returned to our conference room for a different spin on our Supporting Vendor presentations. (More change!) This year the Executive Committee decided to try a “Vendor Fair” with 5 of our Supporting Vendors setting up displays and information booths around the room. Marvin introduced the Supporting Vendors and had each of them give a brief overview of their product and their involvement with the Mopar Masters Guild.
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MOC1 Solutions, which is one of our new Supporting Vendors, was represented by Kim Turner National Sales Manager and Sara Manriquez, Sr. Regional Trainer. MOC1 is a fully integrated supplier both to ADP and Reynolds & Reynolds and they are ADP’s Certified Vendor. MOC1 offers an application that gives Service Advisors a tool to take information right to the customer’s car and perform upsell opportunities with Service Suggested Menu Sales as well as make notes during the walkaround for any dents, damage, scratches, etc.
Borroughs/Storage Consultants of America (SCA) is another of our longtime Supporting Vendors. Bud Trammell, President of Trammell Equipment and Ricky Johnson of Borroughs Corporation. Bud asked everyone to stop by and see their new program that allows you to be able to see, in 3D, what your parts department would look like from different viewpoints concerning your storage bin location. Bud also asked everyone to stop at the Borroughs booth on the convention floor. Ricky tells us they now have more shop equipment such as Technician high-end work benches and a new line of storage and shop equipment.
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Another of our valued Supporting Vendors, Full Circle Solutions was represented by Glen Franks, Director of Programs. Glen had comparisons of sales between dealers who use FCS and those who do not which certainly validate the expertise and value of his company. He also had “hot lists” for those in attendance to help us take our business to a different level.
Longtime Supporting Vendor, Corporate Billing, Inc. was represented by VP Jeff Leavitt and VP Leif Founds. Jeff tells us in today’s environment CBI provides outsourcing of our account receivables from the funding on the front end to collections to sending statements to taking the risk and would be your solution to increased cash flow and decreased risk in your business.
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Noble Logistics was represented by Jim Rafferty VP & Sales and Marketing Manager. Noble provides dedicated logistics and distribution logistics. Jim tells us that many of the employees are former parts managers and personnel from dealerships so they are able to talk from a great amount of experience. Noble displayed a new scanner that was just introduced this past February that allows real time tracking.
Members were then free to visit each of these vendors for the next 90 minutes and later in the day everyone agreed that this “Vendor Fair” format was extremely successful. Sounds like a new change that will stick.
The final portion of our day was guild business with more discussion on new potential changes within Mopar, Dealer Rewards, Supporting Vendors and managers discussing intricate business practices that help make their dealership successful as well as, and most importantly, more profitable. A motion was made to adjourn, seconded, accepted and the first day our MMG meetings for 2008 was in the books. Members then had time to freshen up before our cocktail reception.
Our annual cocktail reception has always been one of our premier events. Friends, family and business associates joined together to enjoy great conversation, food and laughter along with a side order of business. This evening was no different. Our reception this year was held at the San Francisco Aquarium near Fisherman’s Wharf. Not only were we entertained by a Reggae band but we were allowed to tour the aquarium and for this evening it was exclusively ours. It was a very fun and interesting experience for all of us. Members and their spouses were able to catch up on what’s been going on over the past year and many of us were able to interact with Mopar executives and our Supporting Vendors. (Continued on page 11)
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Saturday Feb 9th, 2008 After a great evening, it was time to get back to business. President Roy Benner directed our Election of Officers. Roy asked for nominations for President, Vice President, Treasurer and Secretary. Nominated and elected were: • • • •
President V. President Treasurer Secretary
Mike Gerber Brent Hoge Steve Hofer Mike Mulkins
Chrysler Jeep Dodge of Bellevue Larry Miller Chrysler Jeep Dodge Park Chrysler Jeep Go Chrysler Jeep West
(You will find an updated Executive Committee list on the last page of this issue) With Roy Benner now being a PAST President he was quick to exclaim, “I had the shortest presidential term in the history of the Mopar Masters Guild”, to a rousing roar of laughter and well deserved applause! It may have been a short term Roy, but in all seriousness, your work in various positions within the guild has been invaluable!
With elections over, it was time to continue with our Supporting Vendor presentations. OEConnection took to the floor. Ted Fellowes, VP Supply Chain Products introduced his team and briefly touched upon their presentation agenda. Steve Reeling, Product Manager – Supply Chain Products, gave us a detailed presentation on DiscountPartsHub.com. and the value in having dealerships sell their idle parts and buy idle parts. Mark Tomasetti, VP Collision Products brought us up to date on CollisionLink, which, for many dealers, has been a successful tool to increase our collision business in a streamlined environment. Mark tells us that about 93% of all makes are now covered by CollisionLink. The Dealer body grew by over 500 with 220 of those being Chrysler dealers. Transactions were up by 140%. Bill Lopez, Product Mgr. Collision Products, covered new product developments which are: • An expanded CIP Program (Collision Industry Partners) (Continued on page 14)
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Parts Marketing Program Administration DMS Integration
Our next Supporting Vendor was Dealer Tire. Chad Broski, Director Inside Sales introduced his team of Cindy Frick, Partner, Chief People & Sales Officer and David Jordanger, National Sales Director, and Sarah Drazetic, Director, Customer Engineering. Chad started by telling us that long time friend Kevin Weidinger has transitioned into the Supply Chain working directly with the major tire manufacturers. Chad covered Dealer Tire’s agenda for the presentation and offered many opportunities to help us grow our tire sales business. What’s new at Dealer Tire? • Increased Mopar focus • Significant investment in Dealership Facing Position • Closer Engagement of Business Centers Chad fielded questions concerning Dealer Tire in relation to Dealer Rewards. Dealer Tire has offered to come to our dealerships and train your people at no charge! They also offer to work with us to create a business plan to sell more tires.
Hanel Storage, represented by Mike Cleary and Mike Fanning joined us next for their Supporting Vendor Presentation. Mike gave us great information on what sets Hanel apart form others. In their RoboMat product Hanel uses a Dual Motor Drive System, a Dual Carrier Arm Design, Modular Drawers and Fold Down Panels. There are many advantages in using this state-of-the-art product. The Hanel Vertical Carousel System requires only 50 square feet of floor space! (Continued on page 15)
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We took a break for lunch and were then joined by Mopar. Scott Barone, Sr. Manager Wholesale Sales Channel gave us information on the new Mopar Wholesale Channel Strategy. New Value Line products include: • AC • Electrical • Steering/Suspension • Reman • Driveline Scott went over the National Installer Program, the new National Fleet Powertrain Program, Channel Marketing and the Power Center Model. Scott then turned over the floor to Rob Richard, Director of Global Mopar Parts, Sales & Service Marketing, Chrysler LLC. Rob said he was glad to be at his first NADA meeting and was looking forward to interacting with us. Rob briefed us on the retirement of Christine Cortez and the respect and admiration she had for the Mopar Masters Guild and, through Rob, sent her thanks and best wishes for future success. Rob then covered the changes within Mopar and Chrysler. Topics to be discussed today were: • The New Sales and Marketing Organization • Dealer Rewards Program highlights • Dealer Return Policy We were able to interact with Rob and Simon Boag, President of Mopar – Global Service and Parts, Chrysler LLC for the remainder of the day with most of the discussion being Dealer Rewards and Dealer Return Policy. (As of 3/31/08 plans have been finalized on a program and all dealers have been informed of these changes and the institution of the new policy) (Continued on page 16)
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After a short break Simon took to the front and gave us a short briefing on part of what Chrysler and Mopar would be focusing on: “Making our dealer base stronger and more successful�. Simon then told us of his background with a short bio. Rob and Simon were extremely receptive during our meeting with spirited conversation and many, many questions. We would like to thank Simon Boag, Rob Richard and all those attending from Mopar for taking time from their busy schedules to meet with us at NADA. The Mopar Masters Guild looks forward to continuing dialogue and maintaining our great relationship with Mopar. As we have said many times before the importance of being a member and attending NADA to be exposed to this type of information is tremendous. We then voted to adjourn and the 16th Annual Mopar Masters Guild meeting at NADA 2008 was concluded. Members, spouses and guests had the evening as well as the following day (Sunday) to see what San Francisco had to offer as well as visit the NADA Convention Floor.
Sunday Feb 10th, 2008 This day allowed everyone to visit the NADA Convention and afterwards, if time permitted, enjoy some of the wonderful San Francisco offerings. It was a beautiful, bright sunny day and I managed to get an early start at the Convention Center, visiting our Supporting Vendors and taking photos. I used the afternoon portion of my day for a quick lunch and then took a trip over to Alcatraz which was quite an historical highlight. I spent the evening with my dealer principal at dinner discussing some of what had already unfolded during our guild meetings and we then perused the city by Cable Car. It was quite an experience.
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I couldn’t pass up the opportunity to buy one of these cheesy tourist pictures! Don C.
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Monday Feb 11th, 2008 Many times over we have stated the fact that Jim Jackson of LearnStuffNow is not only a true professional but a great friend. Jim guides us through processes that help all of us find better ways to be more successful running our departments.
As always, Jim opened the Super Performance Group meeting by welcoming everyone and recognizing first time attendees. He then allowed us a bit of time to “button up� guild business and once we were done, it was time to get down to business. Due to dealer trips and commitments Jim would spend most of our time together discussing and dissecting what we, as dealer parts managers, are doing to build our wholesale business. Jim then passed out our Dealer Composite reports. At this point, Jim had us discuss where our Performance Group meeting would be held in September. This September meeting would also involve Service Managers. Everyone was in agreement that having a meeting with our Service Managers is very important with the changing landscape of Mopar Dealer Rewards criteria. After a brief discussion it was decided that the September meeting would be held in Myrtle Beach, South Carolina.
We then continued our discussions on the growth of our parts departments. Accessory Sales, Retail Growth and Wholesale Development ideas were some of the areas that managers presented within our group. There were many amazing ideas that most of us would, could and should apply to our businesses. After each presentation members discussed the pros and cons of the idea presented and the applied processes to achieve results. Jim took us through the Wholesale Opportunity Matrix, a great tool to assist us in our business. This Strategy Memo (according to Focus Training disclaimer) is intended to make us generally aware of wholesale market segments and related marketing strategies. Valuable material! Defining our markets, Wholesale Marketing, Target Marketing and Positioning Strategies are just a sample of topics discussed.
We took a break for lunch and upon returning we resumed our discussions. Jim did take a short break during our discussions to call former guild president, Ernie Wennerstrom of Bald Hill Dodge who was recovering from open heart surgery. A brief speakerphone conversation with Ernie was followed with everyone wishing him well in his rehabilitation. The remainder of our day continued with discussions on growth opportunity and developing wholesale. We then adjourned for the day and members returned to their rooms to get ready for our Farewell Dinner.
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We all met in front of our hotel for a short bus trip to the Moscone Center Art Gallery where our Farewell Dinner would be held. We all enjoyed a superb dinner in the presence of family and friends with the atmosphere of this beautiful art gallery setting. Marvin and Roy thanked everyone that was able to join us sharing how “we are all one big family� in the Mopar Masters Guild. Marvin thanked our Supporting Vendors for their contributions and their help to the guild. Roy introduced the new officers of the Mopar Masters Guild. Current officers of the guild were each presented with a plaque commemorating their service over the past two years. We then spent time with each other sharing our stories from the past few days before retiring for one more day of meetings.
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Tuesday Feb 12th, 2008 This half day would involve more ideas to increase our sales and profit our businesses. Jim had members break into groups to brainstorm and then return later to share their results. Jim Jackson then officially closed the Super Performance Group Meeting for 2008 and wished everyone a safe trip home. We then enjoyed a buffet lunch before heading home to continue our hard work and efforts to continue our never ending quest of being the “Best of the Best!�
See you all in New Orleans For NADA 2009
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Our Supporting Vendors Support those who support you
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Our Supporting Vendors Support those who support you
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The NADA Convention 2008 is Over, but the Show Goes On at Reynolds! The NADA event for 2008 was a great experience for thousands of dealers, and judging by the traffic we had at the Reynolds booth, the interest couldn’t have been higher! There were a lot of product demonstrations going on, but three that were red hot revolved around the service and parts departments. In particular, dealers were excited about how Reynolds’ Service Sales Kit, Technician Dispatching, and Parts Barcoding could make their business better. Service Sales Kit – Dealerships can uncover additional selling opportunities, provide better customer service, and help ensure an efficient and consistent write-up process with Reynolds’ Service Sales Kit (SSK). SSK is designed to integrate with the ERA® system from any desktop or table PC. Technician Dispatching – Complete more service jobs in less time with Reynolds’ Technician Dispatching, a fully automated and integrated way to keep dealership technicians working more productively and the service department running smoothly. Parts Barcoding – Receipt and sell parts in half the time and keep your inventory clean with Reynolds’ Parts Barcoding, electronic barcoding systems that are fully integrated with the ERA dealership management system. The show continues as Reynolds takes these popular fixed operations solutions on the road as they launch this year’s series of road shows—Big Boss Tour ’08. If you didn’t get the opportunity to see what’s new in Reynolds’ fixed operations solutions at NADA, you will have an opportunity during the Big Boss Tour ‘08. To find out more contact your Reynolds Account Manager or call our toll-free number at 1-866-631-6519. Register today and we’ll see you there!
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Increasing Profits with ADP’s CA$H Discovery Program Effectively managing a successful parts operation becomes more challenging every year—even to the professional managers who comprise the Mopar Masters Guild. Add in weak new car sales and the resulting pressure to generate greater profits through fixed operations, and now your role as a parts manager is even more demanding. ADP’s CA$H Discovery Program (CDP) can help parts managers increase their profits and deliver the bottom line their dealers are looking for. In 2007, MMG members purchased $2,900,000 of new Chrysler parts through CDP. Since CDP transactions are conducted at 50% of dealer cost, these parts managers realized more than $1,400,000 of additional gross profit by buying these parts through CDP! Most parts managers “bank” this gross profit in their stock order discount account when they purchase the parts—giving an instant boost to their bottom line profit each and every month. CDP customers have the ability to establish client-specific profiles that permit them to closely control the parts that are offered on transactions, assuring that the transactions they receive are for the parts they really want to purchase. And with CDP, you have complete freedom to review every proposed transaction and purchase only the parts as you wish—there are no requirements to purchase “x” dollars per month. You are in total control of your CDP transactions. Buying parts through CDP is so obviously an important tool to make extra profit that some parts managers may not stop to realize that selling parts through CDP can really improve their bottom line too—even when they sell those parts at 50% of dealer cost! How can this be? To make selling parts at a discount pay off for you and your dealership, you need to reinvest the dollars you realize from selling idle inventory into faster moving parts—parts that will turn throughout the next 12 months and earn you order discounts from the manufacturer and gross profits every time you sell them. Remember, most consultants will tell you that once a part has sat for 9 months without a sale, there is only a 15% chance it will ever sell. They’ll also tell you that the holding cost for a part for 12 months is around 15% of the cost of that part due to taxes, insurance, physical inventory costs, etc. Selling parts through CDP is much like working the stock market. Once you have an investment that is clearly not providing a profitable return (like your idle parts inventory)—with little expectation that it ever will—it’s time to dump that investment and put your hard earned dollars to work in an investment that will provide a profitable return. Because of the ARO program and smart inventory management by MMG members they only needed to sell around $600,000 of inventory through CDP last year. Still, that generated cash they could then reinvest in faster moving parts to generate additional profits for their stores. To learn more about ADP’s CA$H Discovery Program, please call 1.866.598.4077 and select option 2 to speak to one of our sales specialists. There is no one-time setup fee and there are no recurring monthly support fees— you pay only a small transaction fee when you elect to buy or sell parts through the program. And don’t forget to ask about special discount that we offer to MMG members!
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Mopar Masters Guild Newest Supporting Vendor
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Brain Bugger Crossword by Nelson Hardy Across 1. Clam juice 6. Squeegee attachment 10. Eat sideways 14. Chemical found in some emetics 15. Dog wax 16. Goatherd's undergarment 17. Puzzle's secret, part one 19. Tiny ear 20. Foam basket 21. Wombat-like ruminant 23. Amateur proctologist's grp. 25. Slag dross 26. Puzzle's secret, part two 32. Obsequious exclamation 35. Spleen growth 36. Hungarian flautist Proog 37. Capital of Orlee 39. Bag of doughnuts: Var. 41. Shoe paste 42. Banjo filler 43. Trout vessel 44. Small sneeze 46. Sumatran rat monkey 47. Snide, to a Scot 48. Puzzle's secret, part three 51. Snail appendage 52. Etruscan tuber 53. Salty wine 58. "On my planet..." 63. Language of ancient Freznia 64. Puzzle's secret, part four 66. Hairy bristle 67. Swim like an armadillo 68. Shakespearean doofus 69. Crunchy fern 70. Hit with a spoon 71. Eskimo dance
Down 1. Rubber ducky's place, perhaps 2. Canyon sound3. Toboggan 4. Place for parking a boat 5. Baseball game division 6. Cat's coat 7. Animal home 8. Concept 9. Frisbee-shaped Olympics projectile
10. Go on and off, as a traffic light 11. Come back to earth 12. Where Cleveland is 13. Game on horseback 18. Lone Star State 22. Money in the bank, say 24. Tentacled creatures 26. Young ladies 27. Arctic or Indian, e.g. 28. Europe's "boot" 29. ___ of the above 30. Mr. Philbin of TV 31. Work too hard at (it) 32. Jack Nicholson role in "Batman" 33. Sporting event site 34. Jeans material 38. Breathing organ 40. Top room
45. Like some statistics 49. Sand trap, e.g. 50. Theater lanes 51. Cattle marking 53. Pop 54. Basic impulse 55. Light greenish-blue 56. Locale 57. Jump like a frog 59. Hendrix hairdo 60. Put on weight 61. Hawaiian musicmakers 62. Dracula player Lugosi 65. What candles may signify
Solution found on Page 45
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Tidbits Kia shareholders name new co-CEO Shareholders of Kia Motors Corp. approved on Friday the appointment of Kim Ik-whan as new co-CEO, replacing the son of the Hyundai Motor Group chairman, a move analysts say was the result of poor earnings. Nissan expects to beat global sales target Japan's third-largest automaker, Nissan Motor Co., expects to beat its global sales target for the year ending March 31, 2008, CEO Carlos Ghosn said on Friday. Noble finishes $50M financing deal with AcelorMittal Supplier Noble International Ltd. on Thursday completed a $50 million convertible debt financing deal with steelmaker ArcelorMittal SA, its largest shareholder. Japanese supplier opens Kentucky plant Howa USA Inc., a subsidiary of Japanese supplier Howa Textile Industry Co., opened a plant this week in Bowling Green, Ky. The company will use the 80,000-square-foot building to make dash insulators, headliners and interior products for automotive customers. UAW STRIKE AT AMERICAN AXLE American Axle fills some orders in Mexico Strike-bound American Axle & Manufacturing Holdings Inc. has moved some of its parts production for Chrysler LLC from the United States to its operations in Mexico. Union will continue organizing drive at Toyota The International Association of Machinists and Aerospace Workers is leafleting and continuing its organizing drive at Toyota's Cambridge, Ontario, assembly plant as the union contemplates a legal challenge to the automaker's campaign tactics. GM joint venture in Uzbekistan signed today Up to 250,000 Chevrolets per year could be built in Uzbekistan by a joint venture created today by General Motors and a local manufacturer. Toyota says likely to miss '08 sales target Toyota Motor Corp. is likely to miss its groupwide global sales target for this year, hit by slowing sales in major markets and a firming yen, an executive vice president said on Thursday. (Continued on page 39)
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Delphi says progress made on exit financing Delphi Corp. has made progress in terms of obtaining financial commitments to the financing needed for the U.S. auto parts maker to exit bankruptcy, a spokesman said on Wednesday. Suzuki concept No. 3 a prelude to U.S. sedan American Suzuki Motor Corp. unveiled the Kizashi 3 concept car at the New York auto show today, taking a step toward what Suzuki hopes will be a big increase in U.S. sales in the next few years. Tata cash to boost future Ford products Ford Motor will spend the money raised from selling Jaguar and Land Rover on the future development of Ford, CEO Alan Mulally said. " The proceeds will be invested on our quality and productivity and new product development – for Ford," Mulally told investors. Hyundai gets sporty with Genesis coupe Our first look of Hyundai's Genesis coupe came last fall at the Los Angeles auto show as a nearproduction concept. For the New York show, Hyundai readied the production version with its sights set squarely on the enthusiast crowd. Ford aims to move taxi concept to New York streets Ford Motor Co. is aiming to grow its share of the U.S. taxi market with a van billed as a contender to be New York City's cab of the future. Ford launched the high-riding Transit Connect Taxi concept vehicle on Wednesday at the New York auto show. GE gives Ross-controlled supplier $200 million line of credit International Automotive Components Group Inc. was issued a $200 million secured line of credit today by GE Corporate Lending. IAC will use the loan for working-capital needs, GE said in a statement. VW will optimize real estate holdings Volkswagen said it would create a new structure to "optimize" real estate holdings estimated to be worth 6.9 billion euros. The assets had been placed in a separate division. Supplier JAC Products names CEO Automotive roof rack and cargo system supplier JAC Products Inc. today named Stephen Morrey as its CEO. Automotive Hall of Fame will induct 8 Eight automotive history makers will be inducted into the Automotive Hall of Fame Oct. 7 at the Ritz-Carlton in Dearborn, Mich. The inductees represent the full range of the automotive industry, from the manufacturing side to reporting automotive news. (Continued on page 40)
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Dacia workers to strike in Romania Thousands of workers at Romanian carmaker Dacia, owned by France's Renault, will strike to press their demand for a 50 percent pay rise, the union said today. "Negotiations with the management have failed, our strike involving more than 80 percent of the 13,000 workers will begin on March 24. Kia co-CEO to step down Chung Eui-sun, one of the co-CEOs of South Korea's Kia, will step down from the post, company officials said today. Kia, an affiliate of Hyundai, has three CEO: Chung Mong-koo, who is also Hyundai group Chairman, and his son Chung Eui-sun, and Cho Nam-hong. Machinists call off Toyota union vote Organizers have called off their Thursday union election at Toyota Motor Corp.'s assembly plant in Cambridge, Ontario, following Toyota's complaint that the union incorrectly estimated the number of eligible voters. Redesigned TSX has many Acura firsts Acura's redesigned 2009 TSX offers the first glimpse of the brand's new styling and technology direction for sedans. The exterior design is more evolutionary than revolutionary. But a wider, bolder stance gives the second-generation TSX a sportier look. Mercedes aims to beat Toyota's profitability Daimler aims to have profitability at its Mercedes-Benz Cars premium division exceed that at Japan's Toyota, CEO was quoted as telling a Swiss magazine. Zetsche also told Bilanz that Daimler intended to keep its stake in aerospace group EADS for years more. Venturi and PSA will supply electric cars to La Poste Venturi Automobiles and PSA/Peugeot-Citroen said France's La Poste has asked them to supply Citroen Berlingo First and Peugeot Partner Origin cars in electric versions for a consultation project. "The international consultation, launched in April 2007, should lead initially to the supply of several test vehicles," PSA/Peugeot-Citroen said. Lutz: GM mulls 4-cylinder engine for new Camaro General Motors is considering a four-cylinder engine for the new Chevrolet Camaro as a response to rising fuel prices. GM Vice Chairman Bob Lutz said the drivetrain under consideration for the Camaro is the same high-performance one used in the Pontiac Solstice and Saturn Sky roadsters. Liberatore ends 23-year industry run The auto industry is losing one of its most seasoned government affairs executives. Robert Liberatore will resign at the end of March as Daimler AG's group senior vice president of global external affairs and public policy.
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Nardelli: Chrysler won't need more capacity cuts Press sees 'big drop' in March Bradford Wernle Automotive News
NEW YORK -- CEO Bob Nardelli does not think Chrysler LLC will have to make major capacity adjustments even if industry sales fall below 15 million units this year. " We pegged the industry at 15.5 million units before the rest of the industry got there," Nardelli said this morning at the International Motor Press Association breakfast opening the New York auto show, where he delivered the keynote speech. " We did not build in a second-half recovery" into the forecast. Chrysler co-President Jim Press said the economy won't get much worse: " I think we're on the bottom of the bathtub." Nardelli also said Chrysler is on target to return to profitability, although he declined to say when that might be. Chrysler is now privately owned and does not report its financial figures. Nardelli said Chrysler ended 2007 with " $1 billion more in cash and liquidity" than the company's recovery plan identified. " We're on plan for the first two months." Chrysler is introducing the 2009 Dodge Challenger in New York. The Challenger will be offered with three engines. A six-speed manual transmission also will be offered. Meanwhile, Chrysler expects to post a "big" decline in March U.S. sales compared with a year earlier, reflecting the automaker's decision to pull back from less profitable deals for car rental agencies, Press said. Press and other Chrysler executives spoke to reporters on the sidelines of the New York auto show. Now controlled by Cerberus Capital Management LP, Chrysler posted a 13 percent drop in U.S. sales in January and February. Separately, Tom LaSorda, who oversees the automaker's production activities, said he was "optimistic" Chrysler could meet its target for cutting U.S. factory workers through a program of buyouts and early retirement offers. Chrysler has said it aims to reduce by 8,000 to 10,000 its 44,000 U.S. blue-collar work force represented by the UAW as part of its restructuring efforts.
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What Do YOU Know About R-DOT? The 1984 Motor Vehicle Theft Law Enforcement Act and the 1992 Anti Car Theft Act require that one of two tamper-resistant "anti-theft" labels be applied to specific vehicle components. The "Vehicle Identification Number (VIN)" anti-theft label is applied by the factory to specific components on new vehicles. All the component labels and the vehicle itself display matching VINs when they leave the factory. However, since it would be extremely difficult to match a VIN to a service part, NHTSA developed a second "R-DOT" label (the one you're most used to seeing) for service parts to comply with the anti-theft vehicle act. So, when a part displaying the R-DOT label is used to repair a car, it is assumed to be an official manufacturer’s replacement part. However, if a law enforcement officer notices a part displaying a VIN label that does not match the vehicle number, or an anti-theft label that has been covered or removed; he or she will usually assume that the part is stolen. What about salvage parts used for repair? The anti-theft act requires that the work order clearly state which salvage parts were used for repair and the customer must retain the work order should questions arise. The R-DOT label and VIN are tamper-resistant and must never be covered, removed or defaced. However, according to John M. Dho, Coordinator, National Parts Regulatory, American Honda Motor Co., Inc., it was found that some body shops were painting over or damaging the VIN and R-DOT labels during a car repair. The consequences: When cars go in for vehicle safety inspections, the customer can be denied renewal of the inspection sticker because law enforcement will suspect it was repaired with stolen ("chop shop") parts or the vehicle itself is "hot" if they see that the VIN or R-DOT labels have been painted over or removed. Suspicion can also arise during routine traffic stops if the officer notices a defaced label. Incidents like this have already occurred in several states including Pennsylvania, New York, New Jersey, and Florida. Of course, the customer, who most likely has NO idea what the labels are for, and the repair facility, may become "persons of interests" when the enforcement agencies get involved. To avoid any possible problems, make sure your body shop and wholesale customers: • NEVER PAINT OVER the VIN or R-DOT Labels • NEVER remove, cover, deface, or tamper with the VIN or R-DOT labels • Make SURE that the Repair Order clearly and specifically lists what (if any) salvage parts were used for repair and also lists the applicable VIN(s) on the anti-theft labels applied to the salvage parts. • Contributed by John M. Dho – Coordinator, National Parts Regulatory American Honda Motor Co., Inc. Submitted by Dan Murphy – SanTan Honda
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Industry Trends Affect Parts Sales -Number of Auto Physical Damage Claims Should Continue Downward Collision-avoidance technology now enables vehicles to avoid accidents through technical advances in communication. This technology is expected to save more lives and avoid more accidents. In addition, continued high gas prices can potentially reduce the number of miles driven by consumers, again resulting in fewer accidents and fewer cars to repair, and thus, fewer parts sales. -The Number of Repairable Vehicles Reduced This will impact collision repair on many levels due to the present collision repair model, leading to more competition between independent repair facilities and dealership in-house body shops. Some shops, especially independent shops that are not well-supported or well-run may be forced out of business; in some cases, owing payment to vendors and parts suppliers for goods and services. Moreover, this would reduce the number of shops increasing competition among parts suppliers; including OE dealers. -Aggressive Consumer Marketing by the Insurance Industry Competitive services such as “Concierge-Style” claims handling programs and other Direct Repair Provider (DRP) initiatives will result in competition for market share. Such programs are already initiated by at least four major insurance companies, the most prominent being Progressive Insurance with 54 “Concierge” facilities around the country. This relationship between the insurance company and the consumer may actually reduce the number of collision repair shops needed. Again, this could result in increased competition among parts suppliers. -Demands by Consumers for Expedited Repair Solutions Consumers are not as concerned about the potential conflict of interest between themselves, the body shop, and the insurance company when insurance companies intervene in the vehicle repair process. With the advent of the Concierge concept initiated by some insurance companies, the consumer now expects insurance company “Hand-Holding” intervention, support, and help in making “informed” collision repair decisions. Note: “Informed”, as used in this context is a relative term. Use of the new Honda/Acura Collision Brochure can assist consumers in making a balanced, decision about the parts used in the repair of their vehicle. -Increased Competition Due to Over-Capacity of Collision Repair Facilities A saturated market of collision repair providers increases competition for a decreasing number of claims. The market will eventually balance itself out. But while this happens, perhaps as many as 5,000 body shops may go out of business in the foreseeable future. With this information in mind, Parts Managers may want to keep a close eye on wholesale business receivables, especially those where dollar amounts start to creep up, then begin to age. -DRP Programs Force Higher Performance The industry is becoming increasingly influenced by DRP’s to become more efficient and organized in order to compete. Body shops are rated by their insurance DRP program on a number of different metrics, not the least of which is “cycle time”, the ability to get a car into the shop, repair it properly and safely, and get the customer back into it. Helping body shops meet cycle time goals through efficient parts distribution will be key to building your parts business. We will continue to monitor these, and other key business indicators, reporting to you as the business climate evolves and changes. Submitted by Dan Murphy – SanTan Honda
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Lean-ing Out The Collision Repair Process One of the “buzz-terms’ heard around the collision industry today is “lean processes.” This refers to taking the “fat” or waste out of each individual process that a body shop must perform to properly repair a vehicle. Industry experts note that there is a lot of waste in the collision repair process. This causes vehicles to sit idle while waiting for approvals, waiting for other pertinent information, waiting for a tech to work on the vehicle, or waiting for parts. In order for a shop to make more money in the collision repair business, they must remove the waste, and begin operating in a more efficient manner. Shops must begin providing what customers (and insurance companies) want – a vehicle that is repaired properly, and in a timely manner. Shops must find a way to bring an added value proposition to a process that has become a commodity. OE dealers, especially Honda and Acura dealers (with the advent of DSO) are uniquely positioned to help body shops reduce waste, at least in the parts procurement process. Getting the correct part to the shop, the first time… and on time… will help the shops meet their goals for reduced waste (in terms of waiting for parts) and thus is paramount to building your business. Consider the following when taking an order for collision parts: • Verify the correct year and model. Secure a VIN number and color code as applicable. • Double check part numbers when they are pulled from storage. • Ship complete orders when possible. • When taking the parts order from the shop, ask for the Repair Order number. Using a self-adhesive label, attach the RO number to each part to help the shop keep all the parts together. • Double check part numbers as they are loaded in the delivery truck. • Have the parts driver work with the body shop’s parts receiver to verify all parts as they are unloaded at the body shop. • Check for damage as the parts are removed from the delivery vehicle • Plainly identify any back-ordered parts and advise the body shop of a delivery date when possible. By helping your body shop customers provide value to their customers, you become a more valued parts provider. Helping reduce your customer’s “wait” makes everyone happy and more productive. Submitted by Dan Murphy – SanTan Honda
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THE GUILD MOTTO
“THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A NON COMPETITIVE ENVIRONMENT” This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as pro-active as possible. The Guild is YOURS, be proud of it and be part of it!
Brain Bugger Crossword Solution
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2008 Mopar Masters Guild Committees President Vice President Treasurer Secretary
Mike Gerber Brent Hoge Steve Hofer Mike Mulkins
Chrysler Jeep Dodge of Bellevue Larry Miller Chrysler Jeep Dodge Park Chrysler Jeep Go Chrysler Jeep West
Executive Committee
All of the above and: Gerry Oakes Paul Allred Rick Monteiro Marvin Windham Alan Yancey Roy Benner Dan Hutton 1st Alternate Robbie Jackson 2nd Alternate
Baxter Chrysler Jeep Metrolina Chrysler Jeep Dodge Jack Powell Chrysler Dodge Don Drennen Motors Hayes Chrylser Dodge Jeep Allen Samuels Dodge Tom O’Brien Chrysler Salsbury’s Dodge City
Membership Committee Brent Christensen (West) Steve Hofer (North) Doug Price (East) Robbie Jackson (South)
Ken Garff West Valley CJD Park Chrysler Jeep Security Dodge Chrysler Salsbury’s Dodge City
Vendor Chairman
Paul Allred
Metrolina Chrysler Jeep Dodge
Newsletter
Don Cushing Mike Mulkins Claire Cummings
Bald Hill Dodge Chrysler Go Chrysler Jeep West Go Chrysler Jeep West
Performance Group
Ole Olson
Elk River Chrysler
Finance Committee
Roy Benner Brent Hoge
Allen Samuels Dodge Larry Miller Chrysler Jeep Dodge
Reynolds & Reynolds
Paul Allred Tom Watson John Gilbert Rick Cutaia
Metrolina Chrysler Jeep Dodge Performance Chrysler Jeep Dodge Preston Chrysler Jeep Rick Hendrick Dodge
ADP
Jim Stoneman Roy Benner Steve Hofer Mike Mulkins Casey Brown
Westoaks Chrysler Dodge Allen Samuels Dodge Park Chrysler Jeep Go Chrysler Jeep West Allen Samuels Dodge Katy
Snap-On OEConnection Dealer Tire
Dan Hutton Tom O’Brien Chrysler Brent Hoge Larry Miller Chrysler Jeep Dodge Rick Monteiro Jack Powell Chrysler Dodge Brian Joynt Power Chrysler Jeep (Dan, Brent, Rick and Brian are the Chairs for Snap-On, OEConnection and Dealer Tire)
Noble
Casey Brown
Allen Samuels Dodge Katy
Hanel
Susan McDaniel Rich Schott Terry Doll
Bill Luke Chrysler Jeep Dodge Moore Chrysler Jeep Earnhardt Dodge
Interstate
Tom Watson
Performance Chrysler Jeep Dodge
NADA 2009 Planning
Robbie Jackson Dan Hutton
Salsbury’s Dodge City Tom O’Brien Chrysler
Website Chairmen
Marvin Windham Don Cushing
Don Drennen Motors Bald Hill Dodge Chrysler