Virginia Automotive Report

Transcription

1 Virginia Automotive Report December 2009 VAA Dealer Feature: Diesel Power of Virginia It s all in the name, right? That is not necessarily the case with VAA member Diesel Power of Virginia. The business, owned by Harvey and Carol Johnson and their sons Heath and Bo have been known for their diesel expertise for many years. When the business first started in 1980, Harvey and two employees only did diesel work, and most of their business was retrofitting commercial vehicles with fuel efficient diesel engines from Isuzu. As Harvey puts it, we put 4 and 6 cylinder Isuzu diesels in most every make of delivery vehicle, box vans and motor homes. They would last forever and double the fuel economy. The cost of a complete retrofit was from $7-10,000 and took 120 hours to complete. Around 1982 GM and Ford began offering factory equipped diesel engines, which made retrofitting less competitive. This forced Harvey into diversifying and adding general auto repair to their menu. He took this opportunity to include another specialty item, transmission work. They offered The 6,000 square foot facility has 9 service bays Harvey and Carol Johnson Heath (L) and Bo Johnson complete rebuilding for automatic and straight drive, both domestic and import. Wanting to spread the word of their new expertise, and concerned most would not think of a shop with diesel in their name for transmission work, he set up a new company at the same location called Harvey s Transmissions. This work stayed very strong for many years, and today while rebuilding is less, they still do a large volume of repair and factory rebuilt replacement business. Over the years they have continued to invest heavily in equipment and software for both diesel and gas engines. They offer computer flash for most vehicles including late model GM, Ford and Chrysler. Their diesel diagnostic work includes GM, Ford, Caterpillar, Cummings, International, Mercedes and VW. This diversification and ability to fix any make or model has paid off, especially during the difficult times of the past year. Their business mix used to be 65% commercial and 35% retail. Over the past year as many commercial accounts downsized their mix shifted to Many of their retail customers are employees of their commercial accounts, and as Bo noted, about 10-15% of our business comes from other shop referrals for work they can t do. In addition to the diesel, transmission, general auto repair and tires, they have a pipe bender and do custom exhaust, can resurface flywheels, and do welding and specialty fabrication. Paint and collision are about all they don t do. Harvey began his automotive career working part time for a garage while attending Richmond s Hermitage High School. (continued on page 6)

2 VAA Board of Directors Officers: President: Dave Kavanah American Tire Distributors, Baltimore, MD President Elect: Larry Williams University Tire, Charlottesville Vice President: Brenda Carpenter Carpenter Tire, Lynchburg Secretary-Treasurer: Jerry Tatum Leete Tire, Petersburg Directors: Myron Boncarosky, MSS, Inc., Fairfax John Kline, Old Dominion Tire, Midlothian Steve Crawford, Hepner Tire, Woodstock Chris Barnett, Tire Tread Svc., Fredericksburg Jeff Ramsey, White Tire, Roanoke Tony Waugh, Myers Tire Supply, Richmond Bobby Cutchins, Bobby s Muffler, Franklin Jeff Campbell, Twin Co. Tire, Galax Terry Westhafer, Central Tire, Verona Eric Hughes, Harris Tire, Lynchburg Tom Jones,, Staunton Fran Boyd, Thompson Tire, Radford Scott Brown, Cardinal Plaza Shell, Springfield Harvey Johnson, Diesel Power of VA, Richmond VAA Staff: Steve Akridge, Executive Director sakridge@vaautomotive.org Bill Ferguson, Membership and Training wfferguson@vaautomotive.org VAA Office: 6126 Fox Haven Place Midlothian, VA Phone: Toll Free: Fax: Use the Dealer locator to find a retail member by city Find a Supplier member Info on money saving VAA Programs Find and register for the next VAA Technician Training Class in your area Get Convention & Trade Show info Register to attend the Convention VAA Members only section Happy Holidays From the VAA Officers, Directors & Staff Please Extend a Warm Welcome to the Following New VAA Members Name Company City Sponsor Jim Bennett CarMasters Automotive Va. Beach Robert West Randy Traylor Jasper Engines Providence Forge Steve Akridge 2

3 Sinking Vehicle Volume and Changing Mix Lang Marketing projects annual 2009 new vehicle volume in the U.S. will sink to 10.3 million units, down nearly 3 million from last year and an eye-popping 5.9 million drop from This is the greatest two-year vehicle volume plunge since World War II. As new vehicle sales sank in the U.S., misery was not equally distributed across all makes and models. Consequently, there were significant changes in volume share recorded in the U.S. market by foreign versus domestic vehicles as well as cars compared to light trucks. Fewer New Vehicles and More Older Ones With nearly 12 million fewer new vehicles sold during 2008 plus 2009, compared to average annual volume over the preceding five years, the number and share of vehicles on U.S. roads in newer age categories (five years and younger) are sinking, with no turnaround in sight. This will result in an expansion of the so-called vehicle age "sweet spot" for aftermarket product use to include higher age groups than in the past. Concurrently, the share of older vehicles in operation will grow. This means more miles will annually accumulate on older vehicles (with fewer newer vehicles available for use). This will be positive for the aftermarket, since older vehicles use more aftermarket products-per-mile than younger ones. More Foreign Vehicles and Fewer Domestics Foreign vehicles are rapidly increasing their new vehicle sales share. From 49% of the 2007 new vehicle market in the U.S., foreign models (imports and transplants) will capture 56% of 2009 volume. As a consequence, foreign cars and light trucks over the next several years will grow to an unprecedented portion of vehicles populating the so-called age "sweet spot" for aftermarket product volume. As domestic models increase their share of vehicles 12 years and older, the balance of vehicles recording above-average aftermarket product use will continue shifting toward the foreign vehicle aftermarket. As a result, foreign models (imports and transplants) will capture 40% or more of car and light truck aftermarket product volume by 2012, up from only 26% aftermarket share 15 years earlier. Shift From Light Trucks To Cars The level and mix of accessory sales are already undergoing significant change due to the decline in volume and share of new light trucks in the U.S. Almost 4 million fewer new light trucks will be sold this year versus 2007, as their new sales share plunges to 47%, down from 53% just two years ago. While sales of many types of light-truck accessories plunged over the past two years, some of this decline was offset by rising Accessory volume among compact performance vehicles (mostly foreign cars). Where Aftermarket Parts Are Purchased, Installed, and How They Are Distributed Changing new vehicle sales also have aftermarket consequences for where products are purchased (by professional mechanics and DIYers), where they are installed, and how they are distributed. Declining new vehicle sales as well as changes in the mix of nameplates and models sold are changing the Dealer population in the U.S. Shifts in the mix of light vehicle service outlets, along with differences between where consumers choose to have foreign vehicles repaired (compared to domestic models) are leading to unprecedented changes in the share of products installed by major types of service outlets. This, in turn, influences product flow through the five major distribution channels serving the car and light truck aftermarket in the U.S. Long-Term Aftermarket Consequences The changing new vehicle market will have implications for the nature and structure of the aftermarket for many years to come. 'From Aftermarket Insight by Jim Lang, President of Lang Marketing Resources, Inc., 3

4 Potential Employment Legislation for 2010 Employers were faced with several new employment regulations in A partial list includes the increase in minimum wage to $7.25 per hour, an expansion of the Family and Medical Leave Act (FMLA) to provide leave for family members of military personnel and veterans, the Genetic Information Nondiscrimination Act (GINA) which prohibits discrimination based on genetic information, and the updated Form I- 9. The coming year is likely to offer additional challenges for employers. Listed below are three bills which have been introduced in the U. S. Congress that may be enacted in The Healthy Families Act was introduced in the House in May 2009 and was referred to the Committee on Health, Education, Labor, and Pensions. If this Act becomes federal law, it will require employers in all states who employ 15 or more employees to grant paid sick leave to employees, so they may care for themselves or family members. Employees working at least 30 hours per week would accrue seven days of paid sick leave per year. An employer that already provides paid sick leave equivalent to the requirements of the Act would not be required to provide additional paid sick leave under the Act. Many small employers do not currently provide paid sick leave to their employees. Passage of this legislation would mean an additional financial burden for employers at a time of poor business conditions. The Employment Non-Discrimination Act (ENDA) is a bill that would provide employment discrimination protections to individuals based on their sexual orientation and gender identity. It would prohibit employers from firing, refusing to hire, discriminating, or retaliating against those employed or seeking employment on the basis of their perceived or actual sexual orientation or gender identity. Several states currently have fair employment laws that prohibit discriminating against gay, lesbian, and transgender individuals. This legislation would extend these protections to all states. VAA is hosting the largest Product Display & Equipment Demonstration TRADE SHOW in Virginia April 24, :00 5:00 pm Williamsburg Marriott In considering the impact of this legislation, employers are reminded that hiring decisions and other employment-related actions should be based on the individual s ability to perform the required job duties. Employment decisions should not be made on the basis of an individual s age, race, ethnicity, disability, or other protected classes as defined by state and federal laws. Employers with 20 or more employees that provide group health insurance for employees are familiar with the COBRA subsidy program that was enacted in As part of the federal economic stimulus package, qualifying employees who were involuntarily terminated through the end of 2009 are eligible for the subsidy for up to nine months. This means that the former employee only pays 35% of the COBRA premium. The employer pays the other 65% of the premium and receives an equivalent credit on payroll taxes. The subsidy program is set to expire December 31, There are presently two bills in Congress that would expand eligibility to people who are involuntarily terminated through June 30, In addition, the bills would extend the maximum duration of the premium subsidy from 9 months to 15 months. If passed, this legislation will provide additional relief to individuals who have lost their jobs. However, it will mean additional recordkeeping and administrative costs for affected employers. Should you have an opinion about any of these employment-related bills, you are encouraged to contact your Congress member and Senators. If you have questions about these bills or other employment-related issues, professional human resource services are available to VAA members from SESCO Management Consultants. You may contact SESCO by phone at or by at sesco@sescomgt.com. 4

5 Partners In Progress The 2010 VAA Convention & Trade Show April Williamsburg Marriott Featuring: Nationally known Speakers Educational Seminars Networking opportunities Full Equipment Demonstration & Product Display Trade Show Breakfasts, Lunches, Dinners Receptions and Entertainment Golf Tournament It s the biggest Automotive Event to hit Virginia in years don t miss the excitement don t miss the only Automotive Show in Virginia. The Full Program outline and Registration Details will be mailed to VAA members in January. Details also available at our website: 5

6 (Diesel Power article continued from Page 1) From 1966 to 1969 he had a couple of jobs including the Marine Reserves. He and Carol were married in 1967 and they owned a Citgo service station from when Citgo closed all stations in the Richmond region. From Harvey took a break from the automotive business and they moved to the Northern Neck where he was a commercial fisherman and marine mechanic. A job with Fran/Autolite moved them back to Richmond in 1977, and he opened Diesel Power in Carol joined the business full time in 1985; Bo worked part time some during high school and college, and swore he would never work full time there. He began full time in Heath, who had also grown up in the business, began full time in Carol often brings their four granddaughters to the business along with her two dogs, a golden named Lucy and a black lab named Leroy. Heath s lab, Bay joins them most days. What s in a name? Harvey, who joined VAA s Board of Directors last May, once considered changing it and taking diesel out. But his customers quickly learned they were much more than diesel, and the name stayed. Diesel Power, and all they do will continue to be well known around Richmond for years to come. VAA Training Schedule for 2010 Northern Virginia: February 24, 25: Nissan Drivability Dan Marinucci April 28, 29: Toyota Drivability Dan Marinucci September 27: TPMS Sean MacKinnon October 27, 28: VW Audi A.T.G. Winchester: Dowel J. Howard Center January 12: AC Class Bill Mays April 15: Mode 6 Bill Mays May 17: TPMS Class Sean MacKinnon October 12; Ford Diesel Bill Mays Fredericksburg: Germanna C.C. February 4: GM Diesel Class Bill Mays March 22, 23: Nissan Drivability, Dan Marinucci May 4; Mode 6 Bill Mays December 2: Ford Diesel Bill Mays North Richmond: Richmond Technical Center February 22, 23: Nissan Drivability, Dan Marinucci April 26, 27; Toyota Drivability, Dan Marinucci September 28: TPMS Sean MacKinnon October 25,26: VW Audi A.T.G. Chesterfield: Chesterfield Technical Center May 19: TPMS Sean MacKinnon September 9 Meter Usage Bill Mays Fishersville: Valley Vocational Technical Center February 17: Meter Usage Bill Mays May 12: Mode 6 Bill Mays September 30: TPMS Sean MacKinnon December 7: Ford Diesel Bill Mays Lynchburg: E.C. Glass H.S. March 2: GM Diesel Bill Mays May 18: TPMS Sean MacKinnon November 11: Ford Diesel Bill Mays Ricky Smith runs the front sales counter Dublin: New River Valley C.C. March 11: Mode 6 Bill Mays September 29: TPMS Sean MacKinnon October 19 Ford Diesel Bill Mays Hampton: Thomas Nelson C.C. March 24, 25: Nissan Drivability Dan Marinucci September 22, GM Diesel Bill Mays November 17: Ford Diesel Bill Mays Tidewater: Tidewater C.C. January 19: GM Diesel Bill Mays April 22: Ford Diesel Bill Mays May 20: TPMS Sean MacKinnon Information including Registration Forms will be ed to VAA Members prior to each class. Information and Registration also available at our website: Click the Training tab and go to the training location you wish to attend Bubba Fox (right) has been a tech with Harvey for 24 years Call Bill Ferguson at wfferguson@vaautomotive.org 6

7 Training Calendar in Virginia The following is a list of upcoming training classes offered by VAA Supplier Members 1/25/10 Engine Diagnostic Strategies Rocky Mount, NC 1/26/10 Engine Diagnostic Strategies Farmville, VA Contact John Johnston/ /27/10 Engine Diagnostic Strategies Danville, VA 1/28/10 Engine Diagnostic Strategies Rocky Mount, VA 2/18/10 Fredericksburg, VA Contact Shawn Adcock/ /22/10 Culpeper, VA 2/23/10 Winchester, VA 2/24/10 Harrisonburg, VA 2/25/10 Staunton, VA University Tire Opens 2nd Location University Tire & Auto has opened a 2nd location in the Pantops area of Charlottesville, just off Route 250. The 5 bay facility was previously a Mercedes repair business. After some extensive renovations, the store reopened on October 4. The new location offers complete tire and auto repair service. According to owner Larry Williams, sales have been strong, and he is pleased with the progress made. The store is managed by Dale Shiflett and John Hancock is the Assistant Manager. A grand opening is planned for the spring of L-R Larry Williams, Dale Shiflett, John Hancock 7

8 VIRGINIA AUTOMOTIVE ASSOCIATION 6126 FOX HAVEN PLACE MIDLOTHIAN, VA ADDRESS SERVICE REQUESTED 8