Citing the synergies to be realized by working together, the Aftermarket Auto Parts Alliance and Temot International have formally agreed to share current technology, purchasing and marketing solutions moving forward.
A major objective of this collaboration will be directed toward mutual shareholder global growth outside their current established marketplaces in Europe and North America.
The agreement was formalized at the Temot International Annual Spring Meeting and Executive Suppliers' Event when the Alliance became a shareholder in Temot International.
Temot International has been an Alliance member since 2002. It is the largest independent program distribution group in Europe, with 32 members selling upwards of $5B in 40 countries. Aftermarket Auto Parts Alliance enjoys similar status in the North America market with sales of its 53 members approaching $2.5B. The groups have shared a great deal of knowledge and best practices through interaction in each other's meetings and regular communications. Recent strategic planning sessions between the groups led to the decision to configure their joint relationship to enhance technology and marketing efforts, while supporting geographical new member growth resulting in product line growth and improved volume for mutual supplier channel partners.
“In the course of our planning, it became clear that it was time to take things to the next level,” says Fotios Katsardis, president and CEO of Temot International Autoparts GmbH. “Market conditions, shareholder needs and new leadership at both groups have aligned to make now the time.”
John Washbish, president and CEO of the Alliance, says. “We've studied the technology efforts of both groups and it's clear that we can help each other in several areas. One of those is our mutual desire to expand our groups beyond their current trading areas. These expansion plans make collaboration on technology and marketing very attractive. North America and Europe will continue to be strong markets for automotive parts. Vehicle populations on both continents will continue to grow steadily but slowly for the next few years. We plan to use our shared technology to optimize our efforts in mature markets and to provide the necessary infrastructure to penetrate areas where vehicle populations are growing by double digits each year."
As an example, Washbish cited the situation in South America, in which both Temot and the Alliance are considering entry. "In parts of South America the heavy-duty business is mostly equipment of US origin while passenger cars are predominantly European. The advantage of collaboration is obvious. In other places, Temot's Commercial Vehicle Division will help the Alliance and our Supplies, Accessories & Tools catalog will help them."
Both group leaders stressed the critical role of their supplier channel partners in this strategy. “In many cases, collaboration with our suppliers will be as important as inter-group collaboration," says Washbish. "Our growth will mean growth for our supplier channel partners as well, but it will not come without a great deal of work.” Katsardis also talked about the need for a collaborative approach with suppliers to detail and pursue the global expansion plan.
Both men spoke of the collective knowledge and expertise the two organizations can bring to new members regardless of their location. "We have a lot of marketing and technology prowess to offer distributors in these growth markets," said Washbish.
According to Katsardis, “The concept of collaborating with supplier channel partners beyond our traditional geographical boundaries is exciting, too.” Washbish agreed that the upside of this global strategy is nearly limitless and that the opportunity is one that few other independent groups are even thinking about.
Auto Value / Bumper to Bumper is part of Aftermarket Auto Parts Alliance with over 2,200 parts stores and over 3,000 certified service centers throughout North America.