Canadian Automotive Aftermarket. - Monaco Group

Congratulations to the MONACO Group
celebrating 50 successful years in the
Canadian Automotive Aftermarket.
From your friends at Federal-Mogul Canada Ltd.
M2
October 2010 www.ssgm.ca

The man is not very tall. He is discreet,
almost shy. He doesn’t stand out
in a group. He won’t get up on a stage
and leaves others to tell his success
story. In spite of his low profile, he
took some time to talk to us about his
life, his story and his business.
Very often, we discover what is truly
important about a man in the privacy
of an interview. We discover values,
loyalty to one’s roots and discipline.
Ernesto Monaco was in his twenties
when he came to Montreal from Italy,
looking for new opportunities in the
post-war years in Canada. In the first
years after he arrived, he made a point
to learn French and English, and to
become familiar with the way of life
in his community. Shortly after, he
opened his own garage and later purchased
a parts supplier and started Jarry
www.ssgm.ca October 2010
Mister
MonacoBy René Primeau
Auto Parts.
In the early years of his entry into
Canada’s competitive aftermarket,
Ernesto followed a formula of keeping
a low-profile while building profitable,
long-term relationships with other
local parts suppliers and installers. For
two decades, the business steadily grew.
Ernesto opened a second store in 1978
that showcased many modern merchandising
practises for the aftermarket.
He was soon joined by his son
Dominic.
THE SPARK
In the 1980s, Ernesto noticed a
increasing need for import car parts,
especially in big markets like Montreal.
In 1983, he flew to Germany for
Automechanika in order to meet and
develop contacts with manufacturers
of import parts. Meetings with Italian
and Japanese suppliers soon produced
an agreement to import rotor and brake
parts on an exclusive base for Canada.
This was the first step in creating his
own branded rotor product, Eurorotor.
In 1986, Ernesto Monaco founded
Entrepôt de Montréal allowing him to
become a major warehouse distributor
for the jobbers of Greater Montreal. At
first he was a rotor and brake specialist
supplier, but soon Ernesto widened his
range of products. Suppliers trusted
him and shortly, national brands like
Walker, Monroe, Fram, TRW and others
became official lines of Entrepôt
de Montréal. He made further inroads
in the market by becoming the best
continued on page 4
The Monaco Group
marketed its own product
lines over the years while
still offering national
brands to both of its
banners, ASX and TechStop
M3

continued from page 3
second-source supplier for most affiliate
jobbers in the marketplace.
During the 1980s and 1990s, the
automotive aftermarket was less segmented
than previously. In Montreal,
some players like Imperial Automotive,
Mendelssohn and Century disappeared
while Kingsway and IPA were boughtoff
or merged. At the same time, the
national networks like NAPA, Uni-
Select and Carquest have grown by
becoming totally dedicated to their
own stores and developing their own
private brand. The vacuum created
by this approach allowed Entrepot de
Montreal and the Monaco Group to
grow rapidly as an independent openend
warehouse.
The growth impact
In 1987, when Dominic Monaco joined
his father on the managing team of
the Monaco Group, he built a solid
management team to keep up with
the growth of the company. In only
13 years, the company grew from a
modest 18,000 square foot warehouse
M4
to where the Entrepot de Montreal
operation is housed in a modern facility
of 160,000 square feet. The product
lines are numerous and Entrepot de
Montreal, once perceived as a secondsource
supplier, has now grown to the
status of a full-line warehouse, offering
a complete line of products and services.
It now has a top-notch sales force,
advanced marketing tools and computer
systems, and dedicated and enthusiastic
administrative personnel to meet the
challenges of the aftermarket. It also
has a network of 80 affiliate members
in Quebec and a warehouse in Ontario.
Projects and peoples
“The key to success,” says Ernesto
Monaco, “is directly related to the
involvement of our employees. We can
guide, motivate and lead them; but if
there is no commitment from them,
we will not achieve our goals. From my
part, I am proud to say that so far, our
employees have met our expectations”
“We have targeted two big urban
markets in Quebec which are excellent
opportunities for us to grow substantially.
Our corporation has the product
You’ve only just begun.
50 once seemed miles away.
Congratulations to Monaco Group in your remarkable success.
Blue Streak is proud to play a part in this significant milestone.
Keep the pedal to the metal.
lines, the logistics, the administrative
structure to open a new warehouse and
a new super store in an urban market.
But we have not made a schedule
because we haven’t found the right
people to make it happen. Like it has
been in the past, human resources allow
us to make it a success.”
No plans for retirement
Today, half a century later, the Monaco
Group has 375 employees, is active
in three Canadian cities serving eight
super stores, 80 affiliate jobbers, plus
1,000 customers and thousands of
repair shops.
Ernesto Monaco is still the same
low-profile man who came to Canada
60 years ago. He confirms that peoples
coming from other countries, by their
hard work, their dedication and vision
in order to create opportunities and
improve and contribute to our industry.
One man cannot build an organization
of this size without attracting
strong and skilful human resources,
and the torch is now passed to his son
Dominic. Ernesto Monaco is the man
who made the difference. y
October 2010 www.ssgm.ca

SSGM and L’automobile magazines have
witnessed growth of the Monaco Group
since 1960. SSGM has been published
since 1955 and L’automobile since 1939,
and both magazines saw the aftermarket
industry grow and the Monaco Group
taking a prominent place among Quebec’s
warehouse distributors.
Ernesto Monaco came from Italy in
the early fifties and started building a
small empire he can truly be proud of.
But most of all, the whole industry recognizes
the accomplishment of the man.
SSGM and L’automobile take the
opportunity to congratulate Ernesto
Monaco and the exceptional team that
leads the Monaco Group.
A group of individuals with strong
leadership and undeniable expertise have
made the company grow over the years,
and it will continue to expand with his
son Dominic Monaco at the helm.
To the MONACO GROUP for achieving 50 years
of growth and success.
www.ssgm.ca October 2010
A landmark for the
Monaco Group
I was waiting at the airport before
taking off for Las Vegas to attend the
SEMA show about 15 years ago, and I
noticed before boarding that I would be
sitting next to Ernesto Monaco. Imagine,
four hours next to one of the icons
of the industry.
I had this odd feeling I would be
close to a modern replica of Charles-
Émile Préfontaine, founder of UAP. I
was already taking notes and getting
ready for a relaxed interview with a
A reporter’s story
man who is usually quite discrete with
the media.
The interview never materialized.
Moments after take-off, the man was
already sound asleep and woke up as we
were about to land in Sin City.
Ernesto Monaco, unaware of my
intentions, smiled at me as we touched
the tarmac. He told me that the best
way he could use the time when flying
was to relax and take a nap.
Michel Poirier-Defoy, L’automobile
SSGM and L’automobile want to take the opportunity to congratulate the
Monaco Group for 50 years of ongoing success. Our publisher Marc Gadbois
from Business Information Group, Michel Poirier-Defoy, editor and René
Primeau, account manager for L’automobile applaud the Monaco Group for
its accomplishment and its reputation in the aftermarket industry.
M5

By René Primeau
After decades of building a reputation
as a warehouse distributor providing
efficient, customer-driven service, the
Monaco Group is now at a turning
point: provide its 80-store jobber network
with an efficient banner program
to help increase installer loyalty and
gain market share against competitors.
“In the Monaco Group, we recognize
the importance of offering our
jobber network the marketing tools
they need to hit the market place with
a competitive edge,” says Mr. Daniel
Boyer, sales and marketing manager
with the Monaco Group. “The
automotive aftermarket is constantly
M6
The banner
challenge
challenging the major distributors to
improve their offerings in order to
gain market shares. The banners are an
answer to that challenge: it increases
the loyalty of the buyer coupled with
an increased visibility of his business.
However, for us, everything starts with
proper supply, unequalled professional
service and consumer satisfaction.”
Boyer adds the success of any banner
program comes from how it enhances
the communications between the
front-line jobber staff and the installer.
That communications has to go
beyond selling the auto part. It needs to
build on the professionalism of the jobber
staff and helping the jobber build
loyalty with the installers.
“The most important link in the
chain of success of the banner program
is the jobber,” continues Daniel Boyer.
continued on page 8
Besides enjoying golf and holidays in the sun, Ernesto
and Dominic Monaco like to go fishing occasionally. And
you can be sure the global strategy on the company must
be the topic as they wait for the fish to bite.
At Tenneco,
we have appreciated
the support of
the MONACO Group
for many years.
Thank you for the thrust
you have put in our company
and our Best Wishes for your
50th Anniversary
October 2010 www.ssgm.ca

www.ssgm.ca October 2010
You have been
excellent business partners
during so many years.
Congradulations to
the MONACO Group
for 50 years
of success.
We are proud to be part
of the celebration of 50 years
of business accomplishment
and success.
Congratulations for your
50th Birthday
M7

continued from page 6
“He is the one on the front line, in
contact with the installer. If the bond
is solid, if he delivers what the buyer
expects, he will surpass the basic function
of selling auto parts. He will sell a
concept, increase the relationship and
loyalty, and spread the visibility of the
banner in his market. After a while,
the supplier and the customer become
partners in business.”
“I think that the more we demonstrate
our professionalism with the
banners, the more our relationship with
the installer and the consumer will
improve. Shops are proud of their banners
and it is up to us to show the
added-value of the program so they can
pass it on to the consumer. One of the
important added values is the continuous
training programs we can provide
to the installer.”
The Monaco Group’s banner program
includes such jobber program as
AZX and TECHSTOP, as well as programs
for helping installers better promote
their businesses and to deepen the
business relationship with the jobbers.
ASX and TECHSHOP banner
M8
Congratulations
to MonaCo group
on 50 years of
suCCessful
business
Forming the Future
programs are available in Québec and
Ontario wherever the MONACO
Group have jobber stores, corporate
stores or affiliates.
These banners are offered to automotive
repair shops and specialty repair
shops.
The general idea behind the ASX &
TECHSTOP concept:
The banner program benefits the
automotive repair shop owner by
increasing the visibility of the business
enabling the shop to partner with their
parts supplier and take advantage of a
number of features such as:
• Warranty on labor
• Roadside assistance
• An insurance plan
• Reduced credit cards fees
• Connectivity and on line ordering.
A few of the benefits are as follows:
The ASX program is designed for a 3/4
shop bays shop and contain territorial
protection. The TECHSTOP program
is designed for more modest shops, 1 or
2 bay operations with less visibility, no
territorial exclusivity.
There are currently 75 shops that
are part of the program, 15 of these
ad_monaco.indd 1 10-09-27 11:14
shops are TECHSTOP. Twenty automotive
repair shops are in Ontario and
55 are in Québec.
Mr. Michel Lepage, banner manager,
comments: “At the Monaco group, our
ASX and TECHSTOP banners are
rapidly growing. The programs are still
young but they are taking more and
more space in the automotive aftermarket.
“In our case, we have acknowledged
the needs of the marketplace
and have adapted to the expectations
of the installer. Since last year, we have
appointed no less than 15 new ASX
and TECHSTOP members as part of
the Monaco Group family due to the
efforts and commitment of the jobbers
who endorse the program.
“The network can now count on
more than 75 loyal installers properly
advertising our banner program. We
are presently setting up a Web site
www.groupe-monaco.ca to further assist
our members.” y
October 2010 www.ssgm.ca

After more than a quarter of a century
successfully managing his business,
Ernesto Monaco was proud to welcome
his son Dominic to the organization
who has since become president of
the company. We have asked him what
where the major reasons for the success
and the growth of the Monaco Group?
“In order to ensure the growth of
the Group, it was of prime importance
to develop a program which would
allow us to become the number one
supplier for our targeted customers.
One of the reasons for our growth has
www.ssgm.ca October 2010
Monaco Group:
A company on the move
been the level of inventory we carry
even with the proliferation of application
SKUS.
“We have adjusted those inventories
for our affiliate prospects and customers
to make sure they were getting the
same advantages as the major players in
the market. This is why, like others, we
made arrangements to join an American
group in the early part of 1998.”
Dominic Monaco, president
The mission
“Once the tools and programs where
in place, which were endorsed by the
senior management and we could
count the commitment from our personnel,
we where ready to launch our
mission statement:
“Become the best supplier of automotive
and light truck replacement
parts in Quebec and Ontario.
“We must be alert to our customer
base and make the necessary changes
as time goes. The automotive aftermarket
is in constant evolution and we are
ready to react and initiate the improvements
that our market needs.”
Dominic Monaco, president
Corporate super-stores: a key
to gain urban market share
After establishing a good reputation
with Jarry Auto Parts, Ernesto saw the
opportunity of opening a second store
in 1978. The new branch is one of the
first to use new marketing practices
that were being developed in the 1980s
to reach out more effectively to the
aftermarket and to grow the business
further.
In the early 1990s, a new satellite
store was established on the intersection
of Pie IX and Jarry Street in
Montreal. In 1997, the satellite store,
continued on page 10
M9

continued from page 9
M10
Hymus Auto Part, is set up to make
inroads in the West Island market.
In 1999, the satellite store is moved
to the campus of Entrepôt de Montreal.
This new super-store features
a huge showroom, state-of-the-art
merchandising, and expert personnel,
high inventory and a more professional
image. Lead by Régis Boivin,
Eugène Fortin and Claude Lombardi
the branch establishes itself as a major
player in the Montreal North East
market.
In the course of his activities, Ernesto
Monaco met Marc-André-Plante,
a highly respected store manager in
the industry. For some years, Ernesto
and Dominic wanted to establish a
super-store in Laval, a city of 400,000
peoples, the third biggest urban market
in Quebec. The missing link was to
getting the right people for the project.
Under the supervision of Marc-
André Plante, the Monaco Group’s
Laval super-store has been operating
for two years in a 27,000 square foot
building with $2.5 million of inventory
available to customers.
Pièces d’Autos Vaudreuil has been
in operation since early 2009 in the
Vaudreuil areas in West End Montreal,
under the guidance of Marco Sanelli.
The facility is 18,000 square feet, carrying
some $1.5 million in inventory,
and offers a wide showroom, training
center and a new computer system for
installers. y
October 2010 www.ssgm.ca

TM Trademark of Ashland or its subsidiaries, registered in various countries. ©, 2010, Ashland Canada Corp.
www.ssgm.ca October 2010
Congratulations to the
Monaco Group on the achievement of
50 Years of success through commitment
and service to your customers!
You are a valuable
part of our team!
M11

M12
Using technology to stay
ahead of the competition
Like any large organisation, the Monaco
Group had to develop its own state
of the art telecommunication systems
in order to cope with the needs of its
customers. Headed by Daniel Massé of
the company’s communication group
unveils the main frame of their operations.
All the telecommunication and computer
systems are located under the
same roof, in Montreal, in a secured area
of the main warehouse and are referred
to as the IT department for Information
Technologies. Operations are grouped
under an MPLS system – for Multi-
Protocol Label Switching – a system
that links the three distribution centers,
superstores and the installer shops.
The installers, superstores and distribution
centers can access an electronic
online parts catalogue to know what is
available for each part number, file an
GROUPE
M NACO
GROUP
A U T O M O T I V E
order and, in some cases, get a real-time
update the available inventory.
The Monaco Group’s IT department
handles nine call centers linked
to the distribution warehouses and the
corporate superstores.
“Through these call centers” says
Daniel Massé, “we can handle quite a
large volume of orders in a very short
time. The data we collect gives us a
chance to evaluate the performance of
each agent and find new ways to make
our system even better. Most of the
orders are still sent by telephone even
as online order is gains ground.”
The Monaco Group’s IT department
offers its staff and installer customers
training and on-line support.
They also provide services for developing
customer networks for those who
need to implement larger communication
systems in their business. y
Ernesto Monaco’s business was built delivering parts on time. Ernesto Monaco stands at the main store on Jarry Street
with Entrepôt de Montréal’s largest warehouse in the background
We are proud
to be associated
to the MONACO Group
for many years.
Thank you for your support
and congratulations to the whole team
on your 50th Anniversary
in business.
October 2010 www.ssgm.ca

www.ssgm.ca October 2010
Expansion in
Ontario
At the end of the 1980s, Ernesto
Monaco was looking to expand his
business in Ontario and establish a
strong relationship with the owners of
the Toronto-based independent warehouse
World Automotive.
Over that next decade, that partnership
with World Automotive grew
and soon Monaco purchased a 50 per
cent share in World Automotive, and
teamed up with a new associate, Alan
Alber. Since then, the Monaco Group
has become the sole shareholder of
what is referred to as World amongst
employees. The company offers an
80,000 square foot capacity facility, a
strong business structure and a professional
staff that lets the Monaco Group
tackle the Toronto aftermarket, one of
the largest and most competitive in the
country.
Looking to broaden the business,
Monaco looked at another important
market in Ontario, the Ottawa Valley.
The project took a while to materialize,
but in 2005 land was purchased and
construction of a 65,000 square foot
warehouse began in order to supply
Greater Ottawa and Greater Gatineau
in Quebec. Monaco is proud this
expansion has given his company modern
facilities with plenty of growth
potential.
“We are very happy with the business
relationships we have developed
with the installers in Ontario and our
positioning in the Metropolitan Toronto
and the Ottawa and Kingston areas,”
said Monaco. “Our strategy is always
the same: inch our way progressively
into a market and never look back. We
will continue to maintain high standards
of service towards our installer
customers and help them service their
customers.” y
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M14
Foundation Monaco:
Contributing to great causes!
by René Primeau
Last September 12, Monaco Groupe
held the 19th Edition of its Golf Classic
under the presidency of Ernesto
Monaco. It was a full day that began
with breakfast at 6:00 a.m. before a
shotgun start on the course at 7:30 a.m.
No less than 300 golfers took to the
links at Le Versant golf course in Terrebonne
nearby Montreal. Among the
participants were customers and suppliers
of the Monaco Group, and staff.
Without a doubt, one of the major
events of the aftermarket industry in
Quebec.
After breakfast, 150 carts were lined
up for the golfers to reach their starting
points before the official start was
given. In the clubhouse, a silent auction
was held and bids were put on hockey
sweaters, namely those of the Flyer’s
Daniel Brière, the Canuck’s Roberto
Luongo and more from the Montreal
Canadians.
Under the Vegas formula, best score
of the day was a 64, good enough for a
PGA tournament; but that’s the way
the formula favours better players. But
the goal of the Group Monaco Classic
When we turn eighty, we hope to be golfing like Mr.
Monaco.
was first and foremost to raise funds
and this year’s charity commitment,
a record $116,000 that was shared
between Montreal Institute of Cardiology
Foundation and the Montreal
Thoracic Surgery Foundation.
The Monaco Group Foundation
has amassed large donations every
years, totalling more than $1.2 million,
proof that founder Ernesto Monaco
is generous and the company a good
corporate citizen.
Sporting activities like the Group
Monaco Golf Classic give a chance to
In the usual order, Dominic Monaco, CEO; Daniel Massé, IT director ; Yvan Domingue, vice-president, operations and
sales; Marco Sanelli, Montreal superstores director; Ernesto Monaco, founder and chairman of the board; Marc-André
Plante, Laval superstore director; Régis Boivin, Jarry director; Daniel Boyer, sales and marketing director and Gilbert
Roy, purchasing director.
a large number of individuals involved
in the aftermarket industry to spend an
enjoyable day and make best of their
philanthropy. y
Mr. Monaco calls them his guardian angels. Right is
Doctor André Duranceau, CHUM thoracic surgeon and
Doctor Pasquale Ferraro (nephew of Mr. Monaco), CHUM
Department Head and associate professor.
The Monaco Group
employees getting involved
The Entrepot de Montreal employees
proudly started getting involved
in the Make-a-Wish Foundation in
2004. The first two years consisted
of a simple fund raising amongst
themselves. But the last five years
have seen more activities take place.
An annual activity called Disco
Bowling is held in the spring with
all the families joining in.
BBQs are organized for the
employees with the Monaco Group
setting up food and supplies;
employees take these opportunities
to raise more funds and the company
doubles the amount.
Over the last six years, more than
$16,000 have been raised for the
Make-a-Wish Foundation.
October 2010 www.ssgm.ca

6
3
1960: a year of great men!
1. Jean Lesage and René Lévesque formed a new
government elected on June 22, followed by Jean
Drapeau on October 24.
2. Fidel Castro and Che Guevara ruled over Cuba.
John Fitzgerald Kennedy was elected President of
the United States.
3. In Quebec, the slogan was “It’s now or never,
Masters of our own destiny.”
4. In Russia, the first Sputnik was launched.
5. On September 15, the “Rocket” Maurice Richard
announced his retirement.
6. Finally, Ernesto Monaco opened his first store,
Jarry Auto Parts in Montreal.
www.ssgm.ca October 2010
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1 2
5
M15

HAppY 50tH ANNIVERSARY
tHANkS foR mANY YEARS of gREAt pARtNERSHIp. HERE’S to mANY moRE.