It’s no secret that form, fit and function are not quite cutting it for aftermarket manufacturers.
A panel at the recent Global Automotive Aftermarket Symposium in Chicago discussed “The Manufacturing Challenge,” which was moderated by Bob McKenna, president and CEO of the Motor & Equipment Manufacturers Association (MEMA). Panelists agreed that consolidation is not the answer.
“The onus is on us in the supply chain to reduce inventory rather than by consolidating part numbers,” said Bruce Zorich, CEO of United Components, Inc., maker and distributor of pumps, filters, lighting products, engine management and driveline components.
“The aftermarket manufacturer has to look beyond his four walls to how that part will be installed on that vehicle and helping them to install the part properly,” said Michael Cardone Jr., chairman and CEO of Cardone Industries, Inc.
What drives technicians to use OE parts is a trust and confidence in those items, argued panelists.
“The professional installer is the guy we have to design for and the guy we have to protect,” said Joseph Felicelli, executive vice president, worldwide aftermarket, for Federal-Mogul Corp. “It’s about solving a problem, not replacing a part.”
Also discussed were the value line and its place in the aftermarket. Manufacturers should not misrepresent the role that value lines play, which is vital to a certain contingent of consumers.
“We have to offer differentiation in the bay,” said Terry McCormack, CEO and president of Affinia. The value line is designed to plug a hole, he said. “If you have an ’86 Taurus with a third owner, he or she is not going to want to put a premium product on the vehicle.”
Value lines are meant to keep vehicles on the road longer, commented Zorich, but the key is keeping them from encroaching on premium lines.
Manufacturers on the panel also said OEs are beneficial to suppliers, but too much OE business can be detrimental because one can’t be “all things to all people.”
And considering the recent woes of GM and Ford, industry analysts say a balance of business is necessary to survive.
Future consumers will be more brand-driven than those in past generations, agreed panelists, but Felicelli offered some perspective, saying, “We don’t think the brand is what it is.” Rather, the product itself is what’s valuable, and the brand is the mass communication vehicle to represent that.
Cost is only one measure of effectiveness, panelists added.