Sharing
Ideas for a Better
Future
in the Automotive Industry May - June 2026
From the President’s Desk
As we move through another busy season, your MMG officers con nue to focus on crea ng value for our membership and ensuring the Guild remains a strong resource for Mopar parts and service professionals across the country.
In the coming weeks, the MMG officers will meet in Dallas for an Execu ve Commi ee planning session focused on several important ini a ves for the Guild. This officers-only mee ng will be dedicated to finalizing plans and developing the agenda for our upcoming MMG Mee ng at SEMA, reviewing proposed bylaw updates, and discussing the long-term vision and future direc on of the Mopar Masters Guild. The Execu ve Commi ee looks forward to produc ve discussions that will help ensure MMG con nues to provide value and remain a strong voice for its membership.
Planning is progressing well for our upcoming MMG Mee ng at SEMA. The Execuve Commi ee is working hard to develop an agenda that will provide members with relevant content, industry insight, and plenty of opportuni es to connect with fellow dealers and vendor partners. We are excited about the direc on of the event and look forward to sharing addi onal details as they become available.
As MMG con nues to grow, we encourage qualified dealers who may be interested in membership to reach out. If you know a dealership that would benefit from the rela onships and knowledge-sharing that MMG provides, please contact Membership Chairman John Russo or any member of the Execu ve Commi ee. Our strength has always come from the quality of our members and their willingness to share ideas and best pracces.
One topic genera ng discussion throughout the industry is the possibility of lubricant and oil supply challenges. You’ll find a separate ar cle in this edi on that explores current market condi ons and what dealers should be watching as we move through the remainder of the year. Staying informed and prepared will help all of us be er manage inventory and customer expecta ons should supply constraints develop.
We also have several upcoming vendor trips being planned. These visits are an important part of the relaonship-building process that helps MMG be er understand our vendor partners, their products, and the challenges and opportuni es they face. If you currently serve on a commi ee, I encourage you to make every effort to a end these trips when opportuni es arise. Your par cipa on helps ensure we con nue to foster strong partnerships that benefit the en re membership. If you are interested in becoming more involved and would like to serve on a commi ee, please contact our Vendor Chairman, David Kiser, for more informa on.
Thank you for your con nued support of the Mopar Masters Guild. The Execu ve Commi ee remains committed to serving the membership and ensuring MMG con nues to be the premier organiza on for Mopar parts and service professionals. I look forward to seeing many of you at our upcoming events and hearing your ideas on how we can con nue to improve the Guild.
Regards, Cody
Cody Eckhardt - President – Mopar Masters Guild
Service Director – Ken Garff West Valley CDJR - codye@KenGar
ff.com
MMG 34th Annual Meeting to be held at the Aria Resort - Las Vegas - Make Plans NOW!
Wonderful news! We’re excited to share that our upcoming November 2026 mee ngs will be held at the beau ful ARIA Resort & Casino in Las Vegas.
Reserva on Details
Your room block is now available, and the hotel has generously included pre- and post-stay opons, giving everyone the flexibility to extend their visit and enjoy everything Las Vegas has to offer.
Reserve your room here: h ps://book.passkey.com/go/SMMG1126AR
Event Schedule - More Detailed Info Will Follow
Arrival: Wednesday evening, November 4, 2026
Mee ng Days:
o Thursday, November 5: 7:00 AM – 5:00 PM
o Friday, November 6: 7:00 AM – 5:00 PM
o Saturday, November 7: 7:00 AM – 11:00 AM
We look forward to seeing everyone in Las Vegas for what promises to be a produc ve and enjoyable set of mee ngs. Be sure to book early and take advantage of the extended stay op ons!
The exchange of information by like sized dealers in a non-competitive environment.
Synthetic motor oil shortage could last until mid-2027. What service departments need to know
What caused the motor oil shortage?
Service departments across the U.S. face severe shortages of synthe c motor oil required in most vehicles built in the last decade to protect against overheating and engine wear.
The Independent Lubricant Manufacturers Associaon expects the U.S. to run out of the main ingredient needed to produce synthe c motor oil in June. The motor oil shortage likely will last un l at least mid-2027, the associa on said.
The ongoing U.S. war with Iran has cut off reserves from the Middle East, which accounts for nearly halfof U.S.’s imported Group III base oils — the main ingredient used to make synthe c oil and other lubricants such as transmission fluid. Three Persian Gulf producers — Pearl GTL in Qatar, ADNOC in the United Arab Emirates and Bapco in Bahrain — supply about 44 percent of U.S. Group III base oils, according to the associa on. The ongoing blockage of the Strait of Hormuz has effec vely closed exports to the U.S. Addi onally, the Pearl GTL facility was damaged during Iranian aerial strikes in March and will be at half capacity for a year, the associaon said.
Can’t other producers help?
Typically when there’s a shortage from the Middle East, producers in South Korea — which supply about 30 percent of the Group III base oils sent to the U.S. — can pick up some of the slack. However, South Korea refiners are also having trouble ge ng crude oil from the Middle East. Also, margins on jet and diesel fuels are at 40-year highs, so it is more lucra ve for producers to make oil for those purposes rather than base oils, experts say.
What about other oil alterna ves?
Blenders would consider Group II base oils — commonly used for conven onal motor oil, not synthe cs — when Group III is in short supply. But with diesel margins at 40-year highs, refiners are rou ng gas oil to fuels instead of base oils.
How are automakers reac ng?
Nissan and Toyota sent bulle ns to dealerships on alloca ng oil supply and instruc ons for using alternaves. Nissan is rationing supplies of two popular synthetic motor oils to dealerships because of the supply disruptions, while keeping prices unchanged The shortages affect 5W-30 and 0W-20 synthetic engine oils, which are formulated to Nissan’s specifications.
Under a new alloca on system beginning May 21, stores will receive 70 percent of their previous year’s volume for 5W-30 and 55 percent for 0W-20, Nissan said.
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Leaders in the Sale of Quality Mopar Parts
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Toyota’s April 30 memo to service and parts managers said Toyota’s supplier, ExxonMobil, “may experience challenges in fulfilling demand for Genuine Toyota Motor Oil 0W-8 and 0W-16 oils due to production and logistics constraints within the global petrochemical supply chain.”
The bulle n advised service managers on motor oil subs tu ons. Toyota’s goal is to reduce demand for both oil weights and support the na onal supply, the memo said.
Will automakers grant dealerships some flexibility in which motor oil they use?
The American Petroleum Ins tuteasked all automakers on March 30 to provide enforcement flexibility on proprietary oil specs, such as General Motors’ Dexos motor oil cer fica on. The ins tute’s Emergency Provisional Licensing allows engine oil marketers to subs tute base oils for unavailable components while con nuing to use its Engine Oil Quality Mark.
Will using a different weighted motor oil affect vehicles?
Owner’s manuals usually specify a number of grades of oil that can be used based on the temperature where the vehicle is used. Moving to a slightly thicker oil won’t cause any internal damage but may slightly lower fuel economy. More important is that whatever oil is used meets the ins tute’s standards required by the automaker. That ensures the oil has the correct addi ves.
Have dealerships been impacted yet?
Most dealerships currently have an adequate supply of synthetic motor oil, and many are having storage tanks topped off as a hedge against future shortages. Some have experienced price hikes and expect more in the future as the supply dwindles.
When will things improve?
Even if the U.S. war with Iran were to end today, it would take several months for the supply to get restocked, analysts said. And it would be even longer for prices to come back down un l the U.S.’s strategic petroleum reserves are at a healthy level. The Independent Lubricant Manufacturers Associa on es mates it will be mid2027 un l things return to normal.
About Dan Shine
dan.shine@crain.com
Dan Shine oversees coverage of service & parts, finance & insurance, retail technology and used vehicles/wholesale auc ons. Before joining Automo ve News in 2020, Shine was a communica ons director at a University of Michigan global economics think tank. He previously was a reporter and editor at the Detroit Free Press and the Dallas Morning News. For more than 20 years, Shine has been an adjunct professor of journalism at area universi es, including Michigan State University and the University of Michigan. Shine has a bachelor’s degree in journalism from Michigan State University and a master’s degree in strategic communica ons from Purdue University.
Source: www.AutoNews.com
The exchange of information by like sized dealers in a non-competitive environment.
One Missed Reconciliation Can Cost You Thousands
Why Monthly Reconcilia on Protects Your Inventory
When reconcilia on is delayed, small differences turn into larger gaps. Monthly checks keep discrepancies contained and easier to trace. Stores that stay consistent avoid major surprises and maintain ghter control over inventory value.
Where Inventory Errors Start
Most problems begin with rou ne breakdowns. Open repair orders can hold large amounts of inventory without visibility. Nega ve on-hand values appear when items are not properly received. Credits, returns, and outside purchases create gaps when they are not tracked closely. These issues build over me and are difficult to isolate when le unchecked.
What Needs to Be Reviewed Every Month
A disciplined process includes tracking inventory value, cores, outstanding credits, work in process, and special orders. Parts that are invoiced but not yet received must be accounted for. Manufacturer price changes also impact inventory value and should be reviewed regularly.
How Delays Turn Into Large Shortages
Consistent reconcilia on prevents major discrepancies.
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Leaders
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Stores that delay reviews face larger shortages that are harder to explain. Other cases show inventory appearing short due to unaccounted repair orders. Regular checks keep inventory aligned with what is actually on hand.
Inventory accuracy depends on consistency. Monthly reconcilia on, supported by daily and weekly checks, keeps discrepancies controlled and prevents small errors from turning into larger problems.
Listen to the full episode here: h ps://open.spo fy.com/episode/0g3kC4vjdpBGBvwq9NoHe7?si=Cs cHD80sTp2Lv4967PXZcQ&utm_source=oembed
Anderson on the Hidden Cost of Parts Returns: How Shops Can Save Money and Improve Efficiency
Key Highlights
By implemen ng structured methodologies like DMAIC, shops can iden fy root causes of excessive parts returns, improve ordering accuracy, and streamline credit management.
Many shops experience high parts return rates, some mes up to 20%, which leads to wasted labor and increased costs.
Outstanding parts credits can e up hundreds of thousands of dollars, impac ng a shop’s cash flow and financial clarity.
Implemen ng the DMAIC process helps iden fy root causes of returns and credits, enabling targeted improvements.
Accurate parts ordering, u lizing tools like Build Sheets and PartsLink24, reduces unnecessary returns and errors.
Regular review of credits and return reasons ensures accountability and maintains opera onal control.
About two years ago, I was a ending an industry event when it hit me right in the face. Everyone in this business has a voice: OEMs, insurance companies, so ware companies, and shops. Everyone, that is, but wholesale parts managers.
And that bothered me, because they’re right in the middle of everything we do. They see how parts are ordered, handled, and returned. Yet nobody was really asking them what their experience looked like.
So, I decided to find out.
With support from Subaru and several other OEMs, I started traveling the country and hos ng wholesale parts manager workshops. Over the last two years, I’ve done over 40 of them. We brought together wholesale parts managers, OEM representa ves, and collision repairers from the same regions and spent a day talking through real issues.
The en re purpose of these workshops came down to one word: perspec ve.
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Leaders in the Sale of Quality Mopar Parts
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I wanted shops to understand what wholesalers deal with. I wanted wholesalers to understand the pressures shops are under. And I wanted OEMs to hear what happens a er parts leave the warehouse. Very quickly, one major issue rose to the top.
Parts returns.
At one workshop, I asked a group of wholesale parts managers what an ideal parts return rate looked like. Someone jokingly said, “Zero.” I said, “Ok, let’s be realis c.”
The consensus was this: If a shop keeps returns under 4 percent, excluding cores, that’s best-in-class.
But some shared that some of their shop customers are returning 15 to 20 percent of the parts they order
That’s alarming — for both sides.
From a shop’s perspec ve, we don’t charge to order parts; it’s not a billable opera on. I’ve never seen an esmate with “Order parts: one hour” on it. Returning parts? Same thing. It’s unpaid labor. Every duplicate order, every incorrect part, every unnecessary part is me your team gives away for free.
And that’s only half the problem.
The Accoun ng Black Hole
One of the biggest issues I see from shops is outstanding parts credits that are weeks, months, some mes even a year old.
That money is owed to the business, but it’s not in the bank. It sits on reports. It creates confusion for accounting. It throws off financials.
Across my current client base, I rou nely see hundreds of thousands of dollars tied up in outstanding parts credits And most shop owners have no idea how bad it is until we look at the data together
That’s why with my clients I use a problemsolving methodology called DMAIC.
Using DMAIC to Fix Parts Returns
DMAIC stands for Define, Measure, Analyze, Improve, and Control.
First, define the problem. Don’t generalize it. Say something specific, like: “Our parts return rate is 12 percent.”
Next, measure. Pull a report from your management system on all parts returned last month.
Then analyze. Look for pa erns. What’s the numberone reason parts are coming back? Is it unnecessary parts? Duplicate orders because the parts got misplaced? Wrong parts ordered? A ermarket parts that didn’t fit? Cars that ended up being totals?
Some mes you’ll find it’s ed to one es mator. Some mes one vendor. Some mes one process that’s broken.
Once you understand why, you move to improve.
If unnecessary parts are the issue, enforce 100 percent disassembly before ordering. If preordered parts are being returned because customers don’t show up, require a deposit.
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The exchange of information by like sized dealers in a non-competitive environment.
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Finally, control
This is where most shops fall. You must inspect what you expect. I recommend reviewing outstanding parts credits weekly and reviewing parts return reasons monthly. Set a clear standard for how long credits can remain open; 48 hours is ideal, but pick something realis c for your opera on.
If no one owns it, it won’t get fixed.
Order Correctly the First Time
A huge contributor to this is inaccurate parts ordering. Yes, we enter the VIN — but the VIN doesn’t always tell the whole story.
Build data does. It tells you its DNA and accounts for produc on dates, rolling changes, supplier shi s, and package differences that happen midmodel year. Tools available today — like CCC’s Build Sheets and PartsLink24 — can catch those differences before parts ever get ordered.
Why This Ma ers More Than Ever
Parts return management is s ll low on most shops’ radar, and it shouldn’t be. This is real money, real labor, and real rela onships.
Shops that keep their return rates low are easier to work with. Wholesalers no ce that. And when you need help — especially during shortages or back-orders, it ma ers. This isn’t about perfec on. It’s about process.
If you reduce your parts returns, clean up your credits, and start holding the line opera onally, the payoff is real — and it shows up faster than most people expect.
And in my experience, that’s well worth the effort.
About the Author
Mike Anderson is president of Collision Advice and provides training and consul ng for all collision repair stakeholders. He leverages his life experiences, OEM cer fica on training, and former mul -shop ownership with mul ple OEM cer fica ons to deliver high-quality and customized services that meet the needs and challenges of the collision industry.
Collision Advice offers assistance in accoun ng, marke ng, es ma ng, management, produc on, cycle me, scanning, calibra ons, parts processes, customer service, and more. The company also conducts training for many OEMs, such as Toyota, Lexus, Porsche, Nissan, Infini , Volvo, Subaru, BMW, and others.
Addi onally, Mike facilitates 20 groups for collision repair shops, both independent and dealership-owned, called the Spartan 300, and publishes a state of the industry quarterly report with over 200 slides of data from various sources. His mission is to help collision repair professionals improve their performance, pro fitability, and customer experience.
Source: h ps://www.fenderbender.com/shop-life/columnists/ar cle/55370244/the-hidden-cost-of-partsreturns-how-shops-can-save-money-and-improve-efficiency
VW, Stellantis, Renault urge the EU to adopt simple ‘Made in Europe’ rules to help auto industry
Volkswagen Group, Stellan s and Renault, which account for about 60 percent of Europe’s car output, are urging the European Union to adopt simple “Made in Europe” rules and stronger incen ves to boost local produc on.
In a joint le er sent to European Parliament members, the three groups called for 70 percent of vehicles sold in the European Union to source 70 percent of their value from within the 27-country bloc, covering the full value chain from engineering to manufacturing.
The EU has been weighing a “Made in Europe” framework as part of broader industrial policy during the shi to electrifica on. Policymakers are examining local content thresholds, state support and incen ves linked to regional produc on to strengthen supply chains and reduce reliance on imports.
VW, Stellan s and Renault said they were commi ed to maintaining a strong manufacturing base in Europe, but this depended on a “more realis c” regulatory framework.
“European automakers face an unprecedented challenge to their compe veness due to significant technology gaps in strategic areas, intense global compe ve pressure and persistently high energy, manufacturing and regulatory costs,” they said in the le er.
The ini a ve builds on an earlier call by VW and Stellan s for the EU to shield its auto industry through incenves and favorable treatment for locally made electric vehicles.
The companies said demand remained weak in Europe, with around 3 million fewer vehicles sold annually than in 2019, underscoring the need for policy support.
They called for measures to encourage European-based manufacturing, including targeted support for ba ery produc on and greater regulatory flexibility, especially for small cars, to make EVs more affordable and support local supply chains.
“We want to offer clean, affordable, technologically cu ng-edge cars to Europe’s middle class,” they said.
The automakers pointed to the EU car market’s current 26 percent of imports as a reference point.
“Europe is not closing itself off. Europe only stops the trend of further outsourcing industrial produc on to third countries,” they said.
Source: www.AutoNews.com
The exchange of information by like sized dealers in a non-competitive environment.
The View From My Office
With Kat Monteiro
The View From My Office today is from home. A rarity these days!
We have been on the move since September! And it has been a great ride. We have been blessed to spend me with family and friends, and the fact that we can do it, is something that causes me to catch my breath in amazement almost every day.
We just got home from Nebraska where we spent a couple weeks at our daughter Terra’s house while she traveled to California! Go figure! She spent 5 days in Napa with her sister for the music fes val Bo le Rock. They go every year and enjoy 3 days of concerts with a wide variety of bands. It is pre y epic since Jessie lives right downtown and they can just walk to and from the venue. So, while she was enjoying being back home in California, Rick and I went to her house to dog- sit. I know that sounds crazy, but we enjoy it.
What makes our trips to Lincoln even be er now is that our friends, and long- me Mopar Master, Lyne e and Gerry Oakes have moved back to their hometown of Fremont, which is just a short drive from Lincoln, so we get to hang out with them. What could be be er? Rick and Gerry played a round of golf, while Lyne e and I went an quing, then enjoyed a coffee at the cutest li le coffee shop in downtown Fremont before mee ng the guys for lunch.
We had lunch outside on a wonderful pa o on the water. There was a marina, so we got to watch all the boats coming and going. But, OMG, the amount of Co onwood seed floating through the air was something I have never seen before! It was like it was snowing! All these li le white puffs, everywhere! For a few minutes it was all you could do to keep it out of your drinks, eyes, hair!! It was crazy. I guess people that live there are used to this, since the Co onwood is the State of Nebraska’s Tree, but it took this California Girl by surprise.
On another day we had lunch at Round the Bend Steakhouse. Now this restaurant is famous for - get this - the Tes cle Fes val! It was not going on when we were there, but I guess this is a very popular thing in Nebraska!
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Leaders in the Sale of Quality Mopar Parts
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Here is the AI Overview of the event - the tes cle fes val is named exactly what it is - an event centered around the prepara on and consump on of animal tes cles. These deep fried, bite sized delicacies are typically known as Rocky Mountain Oysters or Calf Fries.
The descrip on on Round the Bend Steakhouse’s website reads like this - Our Tes cle Fes val goes down every year on the Saturday of Father’s Day Weekend - because nothing says “Thanks, Dad” like cold beer, live music, and a sack of Calf Fries. And I love this paragraph - Outside, the beer garden is stacked with spools (for seats), sunsets, and a few stories you probably won’t repeat in church the next morning. There’s room for everyone - whether you come for the music, the meat, or just to see what kind of madness rural Nebraska can legally pull off. Sounds fun! If you find yourself in Ashland Nebraska this month it is on June 20, live music starts at 11 am! You should go!!
A er Terra got home, we joined up again and went to the movies to see The Mandalorian and Grogu. It was great! Of course we love anything Star Wars. A er the movie we enjoyed another great meal together and said our goodbyes ll next me!
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The exchange of information by like sized dealers in a non-competitive environment.
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Before Nebraska we were in Florida visi ng another long- me Mopar Master, Marvin and Laura Windham at their rented house in The Villages. They moved there for 3 months a er our Keys trip in February. Marvin was a ending a clinic there for therapy for the stroke he experienced 2 years ago. Anyone reading this please send any good wishes or prayers for his con nued healing. It has been a very long road, but he is naviga ng it like a pro. It was a great visit! And being able to check out The Villages was a hoot. I was so amazed at the set up they have going on there. It was so fun to see everyone driving everywhere in their golf carts. And let me tell you, there were some pre y fancy customized golf carts out there! And each community has their town square that is surrounded by restaurants, li le stores, and ice cream shops, and everyone gathers around the square because they have live music every single night! Some nights it is a DJ and most nights they have a live band. It is so fun! They also have all the shopping you need to do right there in the community, so really, you would never have to leave the area. The restaurants we ate at were all really good, and at a good price. It was a nice surprise.
And who did we have dinner with one night, but yours truly, the one and only, Don Cushing, our editor for the Mopar Masters Guild Magazine! It was so great to see him. He is a Villager and he his wife love living there. (Unfortunately, his wife Penny was up in New England visi ng family, so we didn’t get to see her!) A er dinner we sat and listened to the music at Brownwood Paddock Square, which is one of the Town Squares in The Villages, watching all the people dancing and having a great me.
The Villages really does have so much to offer. They even have Polo grounds, with Polo matches. There wasn’t one going on when we were there, but Marvin and Laura went and told us how fun it was. And golf!! So many golf courses, Rick would be in heaven. He and Marvin went out one day and Rick was telling me how nice the course was. I also felt very blessed to spend Mother’s Day with Laura (and the boys). With neither of us having our girls with us on this special day, we had a wonderful brunch at one of the Country Clubs. We sat outside and had a water view, we even saw a Heron momma with her baby chicks! Quite fi ng for the day. We had the most wonderful day, and we all toasted our moms up in heaven.
We also took a day trip into Cedar Key.
Talk about a great li le town that feels like it has been lost in me. We had a great lunch at Steamers Clam Bar & Grill, which was in a temporary building. It didn’t look like much from the outside, honestly, and I was tempted to keep driving by, but you know the saying - don’t judge a book by its cover - it definitely applied to this place.
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Leaders in the Sale of Quality Mopar Parts
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The food was good and they made an amazing Bloody Mary! Their original place was waterfront, and they had a fire that destroyed part of the building, Then a week or so later the hurricane came through and destroyed the rest. Crazy right? They have a new lot they are building the new place on. So, if you are ever in Cedar Key you will have to check it out! Oh, then we went to the visitors center right next door and met the Mayor! What a fun day.
This week we are heading to Atlanta to visit Alan and Wanda Yancey. We are excited to spend some me in Georgia.
Hard to believe Spring is on her way out and summer is moving in. Time is certainly going by fast. The first day of summer lands on Father’s Day, another reason to celebrate. It’s that me of the year, the kids are out of school, me to plan those summer family vaca ons, or spending days hanging out at the lake or at the pool.
I’m looking forward to harves ng tomatoes and peppers and making yummy things in my kitchen, hanging out by the pool, cooking and ea ng outside with an evening fire in the fire pit. Of course, I will also be the one hiding inside in the air condi oning when it gets too hot outside!
I hope all of you enjoy your summer however you plan to spend it.
A reminder, it is the Year of the Horse - symbolizing freedom, swi ac on, energy and independence. A dynamic, fast-paced me that favors bold decisions, bold explora on, and forward momentum - a perfect me to make things happen!
Please take care of yourself and each other.
Happy Father’s Day to all you dads out there!
The exchange of information by like sized dealers in a non-competitive environment.
Our Supporting Vendors: Support those who support you .
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Supporting Vendors:
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Every year, the industry’s most innovative leaders get together. Will you be there this August?
Join like-minded professionals and dive deep with experts on AI, operational strategy, the evolving customer experience, and so much more.
Amplify is a productive getaway built to recharge and inject your dealership with practical insights from experts across automotive retail.
Park Hyatt Aviara Resort | Carlsbad, California | August 10-11
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Market Snapshot: The OEC Wholesale Trends Report, Powered by PSXLink
OEC recently conducted a year-over-year analysis of the parts wholesale market. Our findings revealed several trends that offer some reason for guarded optimism, while other notable areas show that existing challenges remain. Here’s a look at high-level findings from the OEC Wholesale Trends Report, which analyzed sales invoice data from 1,500+ dealers, including top 100 performing dealers and an all-dealers segment:
Mechanical Parts Wholesales
Dealers continue to benefit from reliable parts wholesale demand driven by an aging car parc, with consumers choosing repairs over replacement. This has resulted in both dealer groups experiencing increases in average monthly net part sales, including a 3.1% YoY increase for the all-dealer segment and a 2.4% YoY increase for top 100 dealers. The all-dealer segment also saw a 4% increase in Q1 2026 compared to Q1 2025.
Collision Parts Wholesales
The collision parts market continues to face declining repair volumes, driven by rising total loss frequency resulting from increased repair complexity and an aging car parc. While it is no surprise that the collision market continues to navigate a difficult landscape, it is worth noting that there were no significant swings in performance in either direction. The alldealer segment saw a modest drop in average monthly net part sales (-1.2%) while the top 100 dealer segment notched a small increase (+1.9%).
Margin Pressure Stabilization
When it comes to margin compression, positive signs did emerge in the recent analysis. While margin compression impacted both segments, Q1 2026 showed signs of stabilization. Both collision dealer segments saw narrower gross profit percent decline in the quarter versus the year. Quarterly mechanical results remained consistent with YoY trends.
Leaders in the Sale of Quality Mopar Parts
Return Rates
RepairLink
On a clearly positive note, the return rate declined year-over-year and quarter-over-quarter for both market segments. This suggests stronger parts ordering practices and stronger relationships between dealers and shops. Improved return rates increase operational efficiency and reflect a more positive customer experience, both of which positively impact the bottom line.
OEC Parts Platforms
CollisionLink
Comparing Q1 2026 to Q1 2025, RepairLink saw a 24% increase in mechanical parts sales. The upward trend reflects the increase in vehicle repair complexity as well as 9% YoY growth in the RepairLink shop network. This highlights a behavioral change as shops move to online ordering, shifting orders previously managed over the phone to the online platform.
Get the Full Picture
Stay up to date with these trends and check out the full analysis of the dealership parts wholesale market, including additional insights into collision and mechanical wholesale performance:
Similarly, CollisionLink saw a 9% increase in collision part sales compared to Q1 2025. This performance is likely driven by growing repair complexity as well as the CollisionLink shop network growing by 4.8% YoY. This further drives online activity for dealers and likely signals an increase in reimbursements on programeligible parts.
3 Ways Business Intelligence Tools Support Parts Managers
Setting the Stage
A parts manager noticed one day that a once-reliable customer stopped ordering parts. Confused, the parts manager called to see why. “You stopped ordering,” the parts manager said. “Why didn’t you tell me?” The shop owner replied: “I’ve been telling you for months.” The parts manager returned to his books, spreadsheets, and POs. He noticed the shop had slowly but surely reduced order volume over time, and eventually stopped ordering entirely. The parts team never saw the trend because it happened gradually and, like most customers, the shop didn’t just say: “I’m buying from someone else!” Here are 3 ways business intelligence (BI) helps parts managers access customer trends and growth opportunities through insights into their wholesale parts business:
Understand the Message Behind Customer Data
There’s no doubt most parts departments know their customers well, with most completing hundreds of transactions with these shops. However, if the data is inaccessible, then much of the critical information is an untold story. When parts managers adopt business intelligence tools, like PSXLink, they can easily access sales trends, specific segments of their wholesale performance, and customer behaviors (like when a customer reduces parts spending). By unlocking and presenting data using interactive dashboards, parts teams can easily identify changing trends, both abrupt & incremental, and get a clear look at what customers are telling them.
Strengthen Your Customer Relationships
It’s easy to think of these tools as numbers, spreadsheets, and long arrows that go up and to the right (great) or the opposite (time to act). But what’s at the core of business intelligence tools (beyond the ability to track behaviors, trends, & performance) is the ability to foster customer relationships. This depth of analysis provides hard data and objective information required for real, productive customer conversations. For example, if a parts manager can see a shop’s trends and think, “Woah, he’s spending less and less,” it’s clear that it’s time to pick up the phone or swing by for a visit.
3
Identify Strategies & Growth Opportunities
Business intelligence tools do more than serve as preventative solutions to guard against lost sales. The analytics allow parts managers to easily monitor all aspects of their wholesale business – providing actionable insights for growth strategies. When you are able to monitor the segments of your business you deem most important, the sales team easily identifies customers presenting growth potential. This allows the parts manager to pinpoint opportunities, make informed decisions, track sales activity, and view follow-up progress. All of which can be managed through an integrated customer relationship management (CRM) tool.
Take Control of Your Parts Business
Missing growth opportunities and losing sales is never good for any business and will quickly impact a parts department. With enhanced access to customer data, you can see what customer behaviors and trends tell you. BI tools, like PSXLink, are designed specifically for wholesale parts and provide insights that help accelerate growth. Customers are always conveying a message to your parts department (even when they’re not “saying it” out loud) and now, more than ever, you need to make sure you’re receiving the message clearly.
Scan the QR Code to learn more about PSXLink or visit oeconnection.com/products/psxlink
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Why Your Warranty Labor Rate Is Costing You More Than You Think
Most service departments across the country are performing warranty work every single day. And most of them are getting paid less for that work than they are legally entitled to receive.
That's not an opinion. It's a pattern we've seen consistently across over 2,500+ dealerships in all 50 states. The warranty labor rate gap is one of the most common and costly profit leaks in Fixed Operations, and the frustrating part is that it's almost entirely avoidable if you follow a process.
At QB Business Solutions, we work one-on-one with dealerships to identify exactly how much money is being left on the table through undercompensated warranty labor and handle the entire process of recovering it. Here's what every Service Director/Manager, Fixed Ops Manager, and Dealer Principal needs to understand about warranty labor rates in 2026.
What Is a Warranty Labor Rate and How Is It Set?
Your warranty labor rate is the amount a manufacturer reimburses your dealership for labor performed on warranty repair orders. When a dealership opens, the manufacturer sets a default warranty labor rate. That rate is almost always lower than what the dealership charges retail customers for the same type of work.
In many cases, dealers accept that default and never revisit it, even as their customer pay door rate climbs year after year. The result is a growing gap between what your technicians are producing on warranty work and what your dealership is actually being compensated for it.
Why the Gap Between Warranty and Retail Labor Rates Keeps Growing
How Do Manufacturers Determine Warranty Labor Reimbursement?
Manufacturers set warranty labor reimbursement rates based on their own internal guidelines, not your dealership's actual retail labor rate, or demographic. Unless you take specific action to request a higher rate, the factory default stays in place indefinitely.
That default rate was often established years ago, when your dealership's door rate was significantly lower than it is today. Every time you've raised your customer pay labor rate without updating your warranty rate, the gap has widened. For many dealerships, that gap is now $15, $20, or more per flat rate hour.
What Does That Gap Actually Cost Your Dealership?
The math compounds quickly. If your warranty labor volume runs 500 flat rate hours per month and your warranty rate is $20 below your retail door rate, that's $10,000 in undercompensated revenue every single month.
Our data shows that the average annual warranty labor increase we secure for dealerships is $164,500. For larger volume stores, that number climbs considerably. Our increases range from $275,000 to $500,000 annually, depending on the dealership's size, labor volume, and how wide the existing gap already is.
What the Law Actually Says About Warranty Labor Reimbursement
Are Dealerships Legally Entitled to Their Retail Labor Rate?
Yes, in most states they are. Legislation in the majority of U.S. states gives dealerships the right to apply for warranty labor reimbursement at or near their actual retail customer pay labor rate. These statutes were enacted specifically because lawmakers recognized that manufacturers were systematically undercompensating dealers for warranty work.
The challenge is that these laws vary from state to state, and every manufacturer has its own submission requirements layered on top. Navigating both simultaneously is where most dealerships either give up or make costly mistakes that result in denials.
Why Don't More Dealerships Apply for a Higher Rate?
Most Fixed Ops teams simply don't have the bandwidth. Service Managers are focused on dozens of tasks ranging from: CSI scores, technician productivity, monitoring repair order quality, and managing all aspects of the business. Nobody has the time to become an expert in warranty reimbursement law and manufacturer submission protocols on top of their existing responsibilities.
There's also a knowledge gap. Many dealers aren't fully aware they're entitled to a higher rate, or they've heard the process is complicated and haven't pursued it. That hesitation costs them real money every month they wait. In states like Florida, where dealership volume and retail labor rates are both above the national average, the cost of inaction is especially significant.
How the Warranty Labor Rate Increase Process Works
What Does a Submission Actually Involve?
A warranty labor rate submission requires pulling specific data, organizing it according to manufacturer and state guidelines, and presenting it in a way that gives your dealership the strongest possible case for an approved increase.
Our warranty reimbursement process handles all of that. We work directly with your management team to structure the submission correctly and monitor it through to approval. Your team's involvement is minimal by design.
We offer two paths. The first is our full consultative model, where each dealership works with a dedicated account manager, receives weekly progress updates, and benefits from a hands-on approach that consistently produces the highest reimbursement increases. The second is our data service option, a faster and more streamlined path that yields a smaller increase but works well for dealerships that need quicker results.
Both options operate on the same terms: no upfront costs, no monthly fees, no service fees. We get paid when you get paid.
Common Mistakes That Reduce Warranty Labor Rate Approvals
What
Submission Errors Lead to Denials or Lower Approvals?
The most common mistake we see is dealers submitting with incomplete or inconsistently formatted data. Manufacturers review submissions carefully, and any gaps in documentation give them grounds to approve a lower rate or deny outright.
Timing also matters more than most dealers realize. There are optimal windows within your financial data history that produce the strongest submissions. Submitting at the wrong point in your data cycle can meaningfully reduce the increase you receive.
How Dealer Analytics Strengthens Your Warranty Submission
One factor that's often overlooked in the warranty labor rate conversation is data quality. A strong submission is built on clean, well-organized financial records. If your data has inconsistencies, the results you're able to achieve are limited by those gaps.
The exchange of information by like sized dealers in a non-competitive environment.
This is where our dealer analytics service connects directly to warranty reimbursement outcomes. By examining your Service and Parts department Customer Pay data in depth, we identify inconsistencies, flag timing considerations, and make sure your submission reflects the strongest possible picture of your retail labor rate. Better data leads to better submissions, and better submissions lead to higher approved rates.
Frequently Asked Questions
How long does it take to get a warranty labor rate increase approved?
Most dealerships receive a decision within 30 to 60 days of submission. We monitor every submission and keep you updated throughout so there are no surprises.
Can I apply if my dealership has never submitted a rate increase before?
Yes, and dealerships that have never submitted often see the largest increases because the gap between their current warranty rate and their retail door rate has been growing unchecked for years.
Will this process disrupt my service department's daily operations?
No. The process is designed to require minimal involvement from your team. We work with your DMS provider directly to pull the reports we need, and your staff continues focusing on their regular responsibilities throughout.
Does this work for all manufacturers?
Yes. We work with all automotive manufacturers and have completed submissions across all 50 states. Every manufacturer has different guidelines, which is exactly why having an experienced partner makes a measurable difference in results.
What if a submission gets denied?
Denials are not the end of the road. We review what happened, address any issues with the data or documentation, and work toward resubmission. Our consultative approach is specifically designed to minimize denial risk from the start by structuring submissions correctly before they're ever sent.
The Bottom Line on Warranty Labor Rates
Your technicians are doing the work. Your service department is absorbing the cost. The only question is whether your dealership is being compensated at the rate the law says you're entitled to receive.
For most dealerships, the answer right now is no. And every month that goes by without addressing it is another month of revenue your Fixed Ops department earned but didn't collect.
At QB Business Solutions, we've spent over 75 years of combined experience helping dealerships across all 50 states close that gap. The process costs nothing upfront, requires minimal time from your team, and delivers results that show up directly in your gross profit.
Book a free consultation and find out exactly what your dealership is leaving on the table: https://calendly.com/qb-qbbusinesssolutions/30min
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Principle Distribution:A Legacy of Logistics Excellence
What We Do Principle Distribu on serves as a key component between contract owner operators and the automo ve supply chain, seamlessly connec ng skilled professionals with leading OEM and a ermarket auto parts distributors and wholesalers. As a broker, it streamlines placements, op mizes delivery schedules, and reduces opera onal disrup ons, helping businesses meet market demands while providing drivers with valuable opportuni es. Its industry exper se helps businesses increase market share by iden fyingopportuni eswithinitsnetworkofstrategicpartnerships.PrincipleDistribu on iscommi edto maintainingahigherstandard ofserviceto mee hedemandsofanever- evolvingmarket.
FoundingandGrowthPrincipleDistribu onwasfoundedin2003withasingularvision:to set a new standard in high-quality delivery services. The company emerged in response to the growing demand for efficient, reliable transporta on solu ons, par cularly in the automo ve OEM and a ermarket parts industry. By benchmarking compe tors and refining opera onal models, Principle Distribu on quickly established itself as a leader in the OEM and a ermarket auto parts industry. Over the years, the company expanded its footprint across Texas, Arizona, and beyond acquiring key logis cs companies to strengthen its capabili es. Notable acquisi ons include First Place Logis cs (2007), North Couriers (2014), Dealer Staffing (2019), and OPS Overnight Delivery (2024), posi oning PrincipleDistribu onastheleaderinTexasinlocalandregionalnetworkcoverageforauto parts.
Services and Strategic PartnershipsPrinciple Distribu on has built a comprehensive logis cs ecosystem, leveraging strategic partnerships to provide specialized services tailored to the automo ve industry. These partnerships include:
MaximDirect:TheAus n-basedregional deliverynetworkspecializesinsame-day andnextday deliveryforOEMand a ermarket autoparts. Its next-day delivery network encompasses over 475 ci es. Maxim Direct ensures rapid fulfillment across Texas, Oklahoma, Arkansas, and Louisiana, op mizing inventory management and minimizing down me for dealerships.
MaximSelect:Anovernightwhite-glovedeliveryservicecustomizedspecificallyfor OEM and a ermarket auto parts distributors that supply parts to major collision centers. The Texas hubs are strategically located in Aus n, Dallas, Houston, and San Antonio. Maxim Select offers advanced tracking, digital pictures, and proof of deliveryviatheEliteExtraApp.Thereistremendouspoten alforexpandingthis service into other strategic markets.
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Industry Leadership and Future OutlookIn 2025, Principle Distribu on has solidified its reputa onas apremier logis cs provider inthe automo ve parts industry, knownforits commitmen oefficiency,reliabili ty,andinnova on.Thecompanycon nuestoinves n great people who drive excellence for clients. Principle Distribu on’s commitment to technology reflects its vision and understanding that good data is necessary for making informed business decisions.
Lookingahead,PrincipleDistribu onaimstoexpanditsstrategicpartnerships,integrate AI-driven logis cs solu ons, and further streamline supply chain opera ons in the automo ve parts industry. With a customer-centric approach and a dedica on to excellence, the company is poised to remain a key player in automo ve parts logis cs industry for years to come.
The exchange of information by like sized dealers in a non-competitive environment.
Chrysler designers gain freedom to finally grow brand with flexible new platform
DETROIT — A new global pla orm is giving Chrysler designers much-needed flexibility as the brand gears up for a long-awaited expansion.
A er years of relying on older pla orms from minivans and the defunct 300 sedan, designers are applying crea vity to a new canvas called STLA One.
Chrysler will be the first Stellan s brand in North America to deploy the STLA One pla orm with the Airflow, a midsize crossover. The automaker hasn’t provided exact ming for what would be Chrysler’s first all-new vehicle since the Pacifica arrived in 2016.
The global nature of the pla orm will allow designers from various regions to “bring exactly what they want” to it, said Irina Zavatski, Chrysler’s vice president of design.
STLA One will “give us a lot more flexibility, where at the moment we don’t, so I think it’s going to help us push the language and the propor ons,” Zavatski told reporters June 4 during a tour of Stellan s’ North American headquarters in Auburn Hills, Mich.
By 2030, Stellan s says half of its global volume will come from three pla orms, including STLA One.
STLA One will be a “star” in the global lineup as the automaker phases out its STLA Small and STLA Medium pla orms, Stellan s design chief Ralph Gilles said
The pla orm will support gasoline and electrified powertrains in segments ranging from subcompacts to family-hauling midsize u lity vehicles. It’s designed to reduce complexity, cut costs, shorten me to market and strengthen supplier stability.
“We are ge ng rid of our own boundaries that we were constraining ourselves in terms of segmenta on, in terms of dimension,” Davide Mele, Stellan s’ chief product planning officer, said during the company’s May 21 investor day.
Continued on Page 51
Leaders in the Sale of Quality Mopar Parts
Continued from Page 50
STLA One will facilitate Chrysler revival
Chrysler, which currently sells only the Pacifica, is “in the process of being reborn,” Gilles said, with Stellan s viewing the brand as “really ripe for reinvestment.”
“I‘m a strong believer in Ralph Gilles,” said Stellan s Na onal Dealer Council Chairman Sean Hogan. “I think he’s got a vision for this product, he’s got a vision for Chrysler, definitely, and what he touches seems to turn out really well for the brands, so I’m pre y op mis c with all these new vehicles coming. We need it.”
Two smaller crossovers, the Arrow and Arrow Cross — based on the Fiat Grizzly and Grizzly Fastback — will join the Airflow in Chrysler’s North American lineup
Those Fiat models, expected to be available with gasoline, mild-hybrid and ba ery-electric powertrains, will go to overseas markets including Europe and Africa. They ride on the company’s Smart Car pla orm.
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The Arrow and Arrow Cross will start at less than $30,000, with the larger Airflow just above.
Having a trio of crossovers in the $25,000 to $35,000 range will help Chrysler go a er the 35 percent of buyers who view func onality and prac cality as the top reasons to make a purchase, Tim Kuniskis, who heads Stellan s’ American brands, told investors May 21.
“A purchase decision built around prac cality should leverage affordability,” Kuniskis said.
Chrysler’s expansion is meant to allow Dodge to maintain its posi oning without trying to go a er buyers outside the high-powered models that have come to define it.
“Can Chrysler be more than the minivan brand?” Kuniskis asked. “Clearly, it has been much more in the past, or it would’ve never survived 100 years. But when your showroom covers North America with brands like Jeep, Dodge, Ram, do you really need Chrysler? Absolutely, you do.”
STLA One will support more than 30 models globally
Stellan s is planning for STLA One to underpin more than 30 models globally, genera ng more than 2 million sales by 2035.
The pla orm will be the first to integrate the company’s STLA Brain electronics and so ware architecture and STLA SmartCockpit infotainment system.
Stellan s said it will use STLA One to offer lithium iron phosphate ba eries on a mass scale. Those ba eries are less expensive and require fewer cri cal raw materials than today’s dominant lithium-ion chemistry.
The pla orm can support 800-volt ba eries to deliver compe ve charging mes and a be er real-world EV experience, Mele said.
STLA One “is the perfect example of the way we develop global assets and scale them across all the brands, spending be er and not spending more,” said Emanuele Cappellano, the COO of Stellan s’ Enlarged Europe region.
Source: www.AutoNews.com - Ar cle by Vince Bond Jr.
The exchange of information by like sized dealers in a non-competitive environment.
2026 Mopar Masters Guild
2 0 2 6 M o p a r M a s t e r s G u i l d
O f f i c e r s & C o m m i t t e e s
Officers & Committees
“The exchange of information by like-size dealers in a non-competitive environment”
Guild Officers
President Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT
V. Pres - Jim Jaeger – Victory CDJR – Merrillville, IN
Secretary - John Russo - Dallas DCJR - Dallas, TX
Treasurer – Chris Hojnacki – Serra Lake CDJR – Lake Orion, MI
Execu ve Commi ee - All Officers Including:
Dan Hu on - Tom O’Brien DCJR - Greenwood, IN
Alan Yancey - Hayes CDJ - Alto, GA
Rick Cutaia - Rick Hendrick DCJR – Charleston, SC
Steve Hofer – Park Chrysler Jeep – Burnsville, MN
Joe McBeth - Dallas DCJR - Dallas, TX
David Kiser - Spartanburg CDJR - Spartanburg, SC
Guild Commi ees
MMG Annual Mee ng Planning 2026
Jill Vance - Apogee Event Agency
Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT
Chris Hojnacki – Serra Lake CDJR – Lake Orion, MI
Finance Commi ee
Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT
Chris Hojnacki - Serra CDJR – Lake Orion, MI
Don Cushing – MMG Magazine/Media
Newsle er/Website/Social Media
Don Cushing – MMG Magazine/Media
Vendor Commi ees
AER Manufacturing
Robert Chatwin - Larry Miller DCJR - Sandy, UT (Chair)
Ted Hawkins - Cerritos Dodge - Cerritos. CA
Chris Hojnacki - Serra Lake CDJR – Lake Orion, MI
*Joe Handzik - Be enhausen Auto - Tinley Park, IL
CDK Global
Joe McBeth - Dallas DCJ – Dallas, TX (Chair)
Robert Chatwin - Larry Miller DCJR - Sandy, UT
Dan Hu on - Tom O’Brien DCJR - Greenwood, IN
*Steve Hofer – Park Chrysler Jeep – Burnsville, MN
*Jim Jaeger - Victory CDJR – Merrillville, IN
Elite EXTRA - Epicor
Joe McBeth - Dallas DCJ - Dallas, TX
Alan Yancey - Hayes CDJ - Alto, GA
Chris Hojnacki – Serra Lake CDJR – Lake Orion, MI
Steve Anderson - Tonkin Parts Center - Portland, OR
Steve Hofer – Park Chrysler Jeep – Burnsville, MN
Helm
Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT (Chair)
Joe McBeth - Dallas DCJ - Dallas, TX
Robert Chatwin - Larry Miller DCJR
Chris Hojnacki – Serra Lake CDJR – Lake Orion, MI
Chris Reynolds - Larry Miller DCJR
OEConnec on
Dan Hu on - Tom O’Brien CJD – Greenwood, IN (Chair)
John Russo - Dallas DCJ – Dallas, TX
Jim Jaeger - Victory CDJR – Merrillville, IN
Chris Hojnacki - Serra Lake CDJR – Lake Orion, MI
*Steve Hofer – Park Chrysler Jeep – Burnsville, MN
Reynolds & Reynolds
Rick Cutaia - Rick Hendrick DCJR – Charleston, SC (Co-Chair)
Joe Handzik - Be enhausen Auto - Tinley Park, IL
Randy Rogers - Huffines CJDR - Plano, TX
Kent Cogswell - Jack Phelan CDJR - Countryside, IL
*David Kiser - Spartanburg CDJR - Spartanburg, SC
*Chris Hojnacki - Serra Lake CDJR – Lake Orion, MI
Snap On Business Solu ons
Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT (Chair)
Randy Rogers - Huffines CJDR - Plano, TX
Taylor Sisson - Ganley CDJR, Bedford, OH
*Steve Hofer – Park Chrysler Jeep – Burnsville, MN
*Alternate
Vendor Chair
Cody Eckhardt - Ken Garff CDJRF - W. Valley City UT
David Kiser - Spartanburg CDJR - Spartanburg, SC