Californians well represented at AAPEX PHOTO BY MICHAEL ANDERSON A decked out Fiat is on display at the SEMA show in the Chyrsler booth. Jasper Engines & Transmissions- Southern California 1477 Cedar Street, Unit "D" Ontario, CA 91761 P.O. Box 650 Jasper, IN 47547 1-800-827-7455 www.jasperengines.com AASA Executive Breakfast, AAIA Town Hall set stage for record-setting AAPEX Continued <strong>from</strong> page 7 McKenna, MEMA president and CEO. Polk President Tim Rogers returned to the AAIA Town Hall and shared five trends that will impact the aftermarket (see sidebar, below), and Danielle Russell, industry director for <strong>Auto</strong>motive, Google, also presented trends based on Google data and analysis as they are related to Internet parts searches, cross-shopping and online training videos. The AAIA Town Hall concluded with a lively election-year political discussion between Haley Barbour, former Mississippi governor, and Terry McAuliffe, former chairman of the Democratic National Committee. MERA invited AAPEX attendees to visit a new Remanufacturing Section — which featured exhibits <strong>from</strong> MERA and select member companies — on the main show Five trends that will impact the aftermarket by Rob Merwin Las Vegas—Polk President Tim Rogers returned to the AAIA Town Hall and shared five trends that will impact the aftermarket. The insights were generated <strong>from</strong> data and Polk’s relationships with OEMs and the aftermarket. Rogers outlined them as follows: • Trend 1 — Light vehicle sales are on the rise and are expected to reach 14.3 million units for 2012, which represents a 13-percent year-over-year increase, and Polk expects sales to break the 15-million mark for 2013. OEMs are becoming more aggressive and competitive as consumers are returning to the showrooms. “We’re past the economic crisis of 2008 and OEMs are returning to full strength.” VW sales are increasing (up 34 percent <strong>from</strong> prior year-to-date) and its global strategy is to become the dominant OEM by 2018; Toyota is back on track; Kia and Hyundai will focus on maintaining current market share; and GM, Ford and Chrysler will continue a downward trend in light vehicle sales. • Trend 2 — The vehicle population continues to age, with the average age of light vehicles having increased by 12 percent over the last five years. As vehicles 11 years and older have increased by 19 million units, it will floor. The new AAPEX Remanufacturing Section, which occupied 8,000 square feet, was identified by green carpet to acknowledge the environmental <strong>benefits</strong> of remanufactured motor vehicle parts. The Remanufacturing Section — co-hosted by MERA and the Engine Rebuilders Council (ERC) — featured exhibits <strong>from</strong> nearly three dozen companies in the remanufacturing industry, as well as live engine-rebuilding demonstrations. McKenna also congratulated Handschuh and Bill Long on their new appointments as executive vice president and CEO of MEMA, and as president and COO of AASA, respectively. McKenna said, “Steve’s distinguished career in the aftermarket and his experience in articulating a vision and building an energized AASA team has positioned MEMA as the strong voice for motor vehicle parts suppliers.” n afford “major opportunities” for the independent repairer. Average length of ownership for new and used vehicles combined has also increased to 58.2 months and new vehicle ownership to 71.6 months. • Trend 3 — CUVs (25 percent of all new vehicle registrations) and mid-size (20 percent of all new vehicle registrations) cars are driving the recovery in new vehicle sales due to fuel efficiency and family-friendly sizes. As a result, the four-cylinder engines they are equipped with are gaining more market traction and popularity among manufacturers. • Trend 4 — Globalization of platforms and families is accelerating and 10 of the largest platforms will comprise 24 percent of production this year. It will rise to 28 percent by 2023. The result will benefit installers and suppliers as the trend will reduce tooling and inventory expenditures. The highest volume platforms are anticipated to be the Nissan B and VW’s MQB. • Trend 5 — Technologically advanced vehicles offer increasing aftermarket opportunity. OEM’s use of oil-indicator lights is up <strong>from</strong> 3 percent in 2003 to 56 percent in 2011, and new vehicle registrations for diesels is down in contrast to hybrids, which are up. n Page 8 December 2012 <strong>Parts</strong> & <strong>People</strong> www.partsandpeople.com
<strong>Parts</strong> & <strong>People</strong> December 2012 Page 9
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