SSGM December 2014

Service Station and Garage Management READ BY AUTOMOTIVE REPAIR SHOP OWNERS AND TECHNICIANS SINCE 1955

DECEMBER 2014

Garage of the Year:

Columbia Auto Service Winter Tire Test Future of the Canadian Auto Sector www.ssgm.com

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SSGM Service Station and Garage Management

EDITOR Tom Venetis

(416) 510-6790 tom@ssgm.com

TECHNICAL EDITOR Jim Anderton jim@ssgm.com

December 2014

Vol. 44 No. 10

what’s inside

CONTRIBUTING WRITER Andrew Brooks PUBLISHER Marc Gadbois

(416) 510-6776 marc@ssgm.com

SALES MANAGER Jay Armstrong (416) 510-6745 ACCOUNT MANAGER Jim Petsis (416) 510-6842 CIRCULATION MANAGER Selina Rahaman (416) 442-5600 ext 3528 srahaman@bizinfogroup.ca SUBSCRIPTION ENQUIRIES Roshni Thava (416) 442-5600 ext 3555 ART DIRECTOR Choo Hwee Kuan PRODUCTION MANAGER Steve Hofmann (416) 510-6757 PRINT PRODUCTION MANAGER Phyllis Wright VICE PRESIDENT CANADIAN PUBLISHING Alex Papanou

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PRESIDENT BUSINESS INFORMATION GROUP Bruce Creighton

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Association of Business Publishers 205 East 42nd Street New York, NY 10017

Garage of the Year Columbia Auto Service places a premium on customer service, quality repairs ............................................................................................................................10 TACT Murray Voth asks, ‘Are you ready for the Dragons’ Den?’ .................................14 Tire Test Winter is here and SSGM takes Continental Tire’s ExtremeWinterContact into the elements ..........................................................................................................20 Brakes What it takes to do a premium brake job ...............................................................23 DesRosiers Interview Famed auto analyst Dennis DesRosiers looks at the Canadian auto sector .25 FAG Tech Tip FAG explains Orbital Forming ....................................................................................28 J.D. Power Automotive Analyst Note .........................................................29

Departments Editorial ��������������������������������������������������������������������������������������� 4 News �������������������������������������������������������������������������������������������� 6 Baywatch ����������������������������������������������������������������������������������� 30 Advertiser Index ����������������������������������������������������������������������� 34 Internet Directory ��������������������������������������������������������������������� 34 *For BlackBerrys: Go to your BlackBerry messenger and select Scan Barcode. *For iPhones: Use the App Store to download Beetagg Reader Pro.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

In association with CANADIAN

AUTOMOTIVE Technician

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|| Tom’s EdiTorial

Vehicle Security the Next Great Aftermarket Issue

D

By Tom Venetis, Editor

The problem is that such connectivity results in numerous points of entry for hackers, whether to access private information or to meddle with vehicle systems. Automakers and governments are now trying to come up with ways to secure these systems.

uring the technology boom of the 1990s, I spent a considerable time writing about and investigating issues surrounding security and privacy. In those nascent days, security issues such as hacking were typified by such movies as WarGames and Gibson’s novel Neuromancer. Companies spent little on security and most people thought little of privacy. Today, privacy concerns loom large for many and companies spend millions on cyber security.

The aftermarket seems immune from such concerns. Nobody wants to hack a car.

That is going to change. A team of hackers working for the U.S. military demonstrated how a modern vehicle can be electronically broken into. The team of hackers were able to remotely cut the vehicle’s brake system, kill the engine and do such mundane things as pop the trunk and start the wipers.

Last year, I came across a story about an ambitious gang of car thieves who managed to steal several high-end vehicles from dealerships. They discovered a way of hacking into the vehicles and remotely unlocking the doors and starting the engines. Once that was all done they were able to drive the vehicles off the lot without any problems.

Automakers are now looking to add more electronics into vehicles, going well beyond mere telematics. Vehicles will be equipped with systems that will seamlessly connect passengers to the Internet, allowing them to access emails or to stream movies to any number of handheld devices. Others are looking to work with governments to develop vehicles that use this Internet connectivity to ‘speak’ with each other. If there are dangers on the road ahead, a vehicle accident or weather related slowdowns in traffic, vehicles can communicate this information to other vehicles and their drivers.

The problem is that such connectivity results in numerous points of entry for hackers, whether to access private information or to meddle with vehicle systems. Automakers and governments are now trying to come up with ways to secure these systems. Some automakers are proposing establishing security centres whereby automakers can exchange information about vulnerabilities and develop means of jointly preventing attacks on vehicle systems.

For the aftermarket, service shops will now have to become aware of vehicle cyber security when resetting systems and servicing vehicle electronics. Vehicle makes will soon have to include security updates in technical service bulletins for service technicians, along with other technical information. Then there are legal issues. If a vehicle system is hacked and private information is stolen from devices, does fault reside with the vehicle maker, the service operation or the vehicle owner?

While vehicle cyber security is still something new, it will become an issue that service operations will have to become experts on.

What do you think?

Have your say and speak your mind! letterstotheeditor@ssgm.com 4 SSGM December 2014

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*

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|| News Briefs Michelin Helps Drivers Prepare for Winter’s Toughest Road Conditions Whether you’re headed to the ski slopes or off to visit family and friends during the holiday season, winter driving in Canada can be dangerous. Committed to helping drivers face winter conditions, Michelin introduces its latest version of the online Winter Driving Academy, a reference site created by Canadian experts to enable the country’s drivers to arrive at their destinations safely.

With a new modern look, the Michelin Winter Academy offers dynamic and interactive multimedia content. Visitors will be able to hone their driving skills in difficult weather conditions while receiving tips from Carl Nadeau, professional race car driver and a master of winter driving.

They’ll also learn more about some of the most difficult driving manoeuvres in winter – sudden stops, braking on icy roads, obstacle avoidance, and regaining control of a vehicle while skidding on snow.

“We are very pleased to unveil the new version of Michelin’s Winter Driving Academy, an entertaining and easy-to-use online platform,” said Cécile D’Ittièle, winter category manager for Michelin. “Safety is our guiding principle at Michelin, and the

Academy helps Canadian drivers prepare for the onset of winter.”

Professional driver Carl Nadeau’s video clips offer simple, effective advice on how to see more clearly, even in a storm. “We all know driving on an icy or snowy road can be a source of stress. With the online Winter Driving Academy, Canadians now have access to simple tips so that they can take the wheel with confidence, regardless of what the weather has in store,” added Mr. Nadeau.

Here are just a few of the tips offered by the online Winter Driving Academy to help you adapt to Canadian roads from coast to coast this winter: • Having four winter tires improves braking distance, road adherence and performance.

Liqui Moly Makes Investment in International Advertising Beginning next year, motor sports fans around the world will be able to see the blue-red Liqui Moly logo more frequently. The German company intends to make major investments in background advertising at the motorcycle world championships.

“This is the largest investment in globally effective advertising in the company’s history,” said Peter Baumann, marketing manager at Liqui Moly. “That is a lot of money, but it is well invested money,” continued Baumann. Over two million motor sports fans make the pilgrimage to the races each year.

For two years, Liqui Moly has already sponsored a team participating in the Moto2 with the previous Moto3 World Champion Sandro Cortese. This new commitment goes much further. Peter Baumann added, “Now we are not only represented by a single driver, but by the entire racing series, which will put our brand in the media at 18 races every year. This will be a tremendous boost for international familiarity with our brand.”

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• Winter tires are essential when the temperature falls below 7°C, even if the roads are dry.

• Tire pressure decreases as the temperature drops. It’s important to check it at least once a month.

• If the vehicle in front of you loses control, don’t stare at it, brake in a straight line as much as possible and then try to steer to avoid an accident.

Don’t look at the vehicle in trouble; look for a place to steer your own vehicle.

• Ensure your fuel tank is always at least half full to avoid having a frozen fuel line.

Those interested in the Michelin Winter Driving Academy can go to www.michelinwintercenter.com/.

Saskatchewan Industry Award Presented

Automotive Parts Distributors (APD) announced the recent winner of the Highest Overall Achiever for the 1st Year AST Program at SIAST Kelsey Campus in Saskatoon, Saskatchewan. This award recognizes the hard work of the automotive students enrolled in the SIAST program. The selection is based on academic achievement, work attitudes, and work habits demonstrated in shop and lab work.

The winner was Cheney Penner, currently employed by Expert Auto Service in Swift Current, SK. www.ssgm.com

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|| News Briefs New ANCO Wiper Blade Catalogue ANCO Wipers has published a comprehensive new master catalogue that helps speed the selection of the right replacement blades and related ANCO products for virtually any automotive, vintage, heavy-duty, specialty and other application.

The catalogue (No. 309514) covers the complete ANCO line of replacement wiper blades including heavy-duty and refills, washer system parts, adaptors, connectors and miscellaneous components. The catalogue also highlights the brand’s aggressively expanded line of innovative wiper solutions engineered to meet the needs of virtually any vehicle and match a broad range of customer needs and budgets. The ANCO line includes premium Contour beam blades, Profile beam blades, Transform hybrid blades, AeroVantage and 31-Series conven-

tional wipers, rear blades and winter wiper blades.

To help ensure faster, easier wiper selection for all users, the new catalogue features a graphical quick-reference

Moto2 and Moto3 to Use Liqui Moly Oil

At the end of this year’s racing season, German motor oil specialist Liqui Moly will become the official oil supplier for the Moto2 and Moto3 World Championships.

All of the teams will be using the new motor oil during the preparations for the 2015 season.

“This is a great distinction for us, that the racing series has selected us as their exclusive oil supplier,” stated Peter Baumann, marketing manager at Liqui Moly. “I believe that the fact that we produce exclusively in Germany to maintain our uniformly high quality standard, was also a major contributing factor in this decision.”

The company also uses the racing series as a test laboratory for its own oil development.

The feedback from the drivers and mechanics provides valuable information on how to get even more performance out of the oil.

Not only have the pros of Moto2 and Moto3 profited from this, but so has every motorcyclist. This is because when oil proves itself on the racetrack, it also delivers the highest performance on the road. “We want to make this uncompromising performance available to every motorcyclist,” added Baumann.

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guide covering all ANCO blade designs and an expanded range of applications. The washer pump section now also includes a full selection of related washer system parts with corresponding photos.

An updated refill guide includes product cross-section illustrations and dimensional information to simplify product selection. Detailed images of adaptors, connectors and related parts are also included to help the professional and consumer quickly identify correct items.

“The ANCO catalogue is an important competitive tool that helps parts and service providers sell more wipers across all vehicle categories,” said ANCO brand manager Tracy Neil. “Our new catalogue sets an impressive standard for ease and usability at the parts counter, service desk and in a retail environment, where speed and accuracy help drive sales.”

Mitchell 1 Introduces Mobile ManagerPro

With the new Mobile ManagerPro from Mitchell 1 and an Android tablet device, auto repair shops can now extend their shop management systems into the driveway and service bays with full wireless functionality and integration with Manager SE. VIN and license plate decoding enable service writers to seamlessly populate vehicle details in a matter of seconds, without writing anything by hand.

The data collected on repair orders, estimates and digital multi-point inspections automatically shows up in Manager SE without any additional effort.

“Mobile ManagerPro gives shops a whole new way to add efficiency to their shop management system. This is a realtime, two-way shop management integration, giving service writers the option to start multi-point inspections, estimates and repair orders right at the vehicle — or anywhere within range of their wireless network — on a tablet,” said John Dwulet, senior product manager for Mitchell 1. “Mitchell 1 is delighted to www.ssgm.com

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News Briefs || bring this leading-edge mobile technology to our auto repair shop customers to help them further increase efficiency, accuracy and revenue.”

Service professionals will save time through the ability to add canned jobs, take and text vehicle photos, along with integration to parts and labour information, TSBs, symptoms and more.

Mobile ManagerPro also includes customizable multi-point inspections and reports, scheduling and digital signature capture for repair order authorizations.

WORLDPAC Releases OE Detailed Schematic Parts Diagrams WORLDPAC announced the addition of OE Detailed Schematic Parts Diagrams on speedDIAL, the company’s proprietary electronic catalogue and fulfillment ordering software.

OE Detailed Schematic Parts Diagrams assist independent automotive service centres to quickly and easily locate and identify the exact parts needed to do the complete job.

Key features of OE Detailed Schematic Parts Diagrams include: • Over 100,000 OE style schematic diagrams covering most vehicles from 2000 to present.

• Schematic diagrams can be enlarged to any size, even an entire second monitor.

• New dynamic sub-categories are listed below available schematic diagrams.

• Schematic diagrams are similar to factory electronic parts catalogues.

• Each callout is click-to-select for quick ‘One-Click’ ordering.

• Easy way to find and order items without knowing the name.

Visit website for more up-to-date news

www.ssgm.com

www.ssgm.com

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Mahle Service Solutions Unveils New Website Mahle Aftermarket, Service Solutions, formerly Mahle RTI, has introduced its new website at www.servicesolutions.mahle.com. The site contains updated information on Mahle Aftermarket’s newest division, providing visitors with a clean, user-friendly site with comprehensive information on the company’s automotive tools and maintenance equipment.

According to Max Dull, general manager, Mahle Service Solutions, the new website helps complete the transition that started in 2013 when Mahle purchased RTI Technologies. He says the new site provides Mahle Service Solutions with the opportunity to display the new Mahle branding for the division’s newest tool, TechPRO, along with its existing ArcticPRO, FluidPRO and NitroPRO lines.

The site includes detailed equipment specifications for each machine they sell.

“By its name, our division is all about providing solutions to help keep automotive technicians productive,” explained Dull. “We built the website so information like instruction manuals, promotions, catalogues and software updates could be quickly accessed.”

The former RTI website, RTItech.com, will now point visitors to the new Mahle Service Solutions website. Dull points out that all of the same software downloads for shop equipment are now available at the new website.

Dull said the website will soon feature a “Where to Buy” section so customers can find the nearest location to purchase the division’s tools and equipment. A new, interactive contact section is currently being built that will provide the most current answers to frequently asked customer questions.

Akebono Launches New Website To drive and support the growth of its North American business, Akebono Brake Corporation has launched a new website to help customers more easily find information about its products and where to purchase them.

The newly designed Akebonobrakes. com offers an enhanced user experience with improved navigation to specific product pages for each of its aftermarket brands – Akebono Pro-ACT, Akebono EURO and Akebono Performance ultra-premium ceramic disc brake pads – along with information about their company history and original equipment business.

“As we celebrate our group’s 85th year of providing best-in-class braking solutions, we are pleased to offer this new, user-friendly, online experience to our customers,” said Ted Saito, president and chief executive officer, Akebono. “We will continue to embrace digital communication technologies that help us provide exceptional customer service and satisfaction.”

Specifically, the new website connects to the company’s social media pages and is mobile-friendly, allowing users to browse the site with ease from any device.

The site features a searchable literature library and an online parts catalogue, so users can easily find which Akebono brake pads they need for their specific vehicle. In addition, the site features a dealer locator which automatically detects the user’s location to find auto parts distributors in their area that carry Akebono’s ultra-premium line-up of replacement ceramic disc brake pads.

“We will continue to make improvements to our website into the future to ensure quality communication with our customers,” added Saito.

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|| GaraGe of the Year

For

Disting Congratulations NAPA AUTOPRO Waterloo, Ontario

SSGM’s 2014 Garage of the Year!

To Jim and Laurie Voigt and the entire staff at Columbia Auto Service – a big tip of the NAPA Cap to the entire team!

Service For Garage of the Year Columbia Auto Service, the customer is key to success

C

olumbia Auto Service of Kitchener-Waterloo, Ontario, winner of the 2014 SSGM Magazine Garage of the Year award, might have to find new digs soon – just to have room to display all the awards they’ve won over the years. Previous honours include NAPA AUTOPRO of the Year for Ontario in 2012, the NAPA Leadership Award (three times), and ten consecutive years as winner of the CAA Customer Service Award. As part of the NAPA National group, Columbia has also won the J.D. Power Customer Service Award for four out of the last six years – the award recognizes excellence in NAPA AUTOPRO facilities across Canada.

Columbia’s unique combination of outstanding service, teamwork and relationship-building continues to draw an expanding customer base by word of mouth, enabling the operation to continue to grow, attract new customers – and keep winning awards – without needing to spend a lot of time and money on marketing.

And to the dedicated efforts of our NAPA Associate Store in Waterloo, ON – Britton Automotive & Industrial – way to go!

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Garage of the Year ||

nguished

By Andrew Brooks

From left: Sarah Voigt, Laurie Voigt and Jim Voigt. The Voigt family continues a three-generation tradition of excellent service.

One advantage Columbia has is three generations’ worth of experience. Owner and manager Jim Voigt recalls that Columbia’s heritage goes back to 1954, when his grandfather founded a White Rose service station. He eventually moved on to a position in the oil industry, and there was a hiatus in the Voigt family’s involvement in the automotive trade. That ended in 1968, when Jim’s father established what would become Columbia Auto Service. Jim and his wife Laurie bought the company from Jim’s father in 1992.

Voigt has known from the start that this was his life’s work. “From the time I was old enough to walk people were saying I was going to be a technician,” he recalls. He has

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never worked anywhere else. After qualifying as a technician, he immediately began to ply his new trade in the family business. He still remembers his grandfather taking him aside to offer advice on how to provide superior customer service.

Voigt says that over the last two decades, sales and profits have flatlined in only a single year. Other than that, Columbia has expanded steadily, going from a 2,000-square-foot space in the rear of their current building to occupy 10,000 square feet, almost the entire building.

Rapid growth is the best problem to have – but it can still continued on page 12

December 2014 SSGM 11

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|| Garage of the Year

continued from page 11

be a problem. At one point, Columbia was bursting at the seams and badly needed new space. The challenge: another tenant occupied almost half the building and didn’t want to break its lease. So Voigt opened a second location and for three years Columbia operated out of two facilities.

“The second location was used primarily for tire storage, but we decided to do some things there that we weren’t doing here, such as rustproofing, cleaning and detailing, car sales and drive-in oil changes, and Saturday hours. It was like starting a new business.” Research in Motion (now BlackBerry), the flagship tech giant of Kitchener-Waterloo, built a campus nearby, which helped as a lot of RIM employees took their cars there.

“It worked out,” Voigt says, “but when the tenant here finally decided to move out, it was an easy decision to move everything back. We were storing about 2300 tires there, and we had a truck going back and forth between locations every day, getting tomorrow’s tires, putting tires back in storage. It was expensive.”

Today Columbia boasts a total of nine bays – seven mechanical bays in the main shop, and two more in the detailing shop, one used for rustproofing and the other serving as a spare mechanical bay. The total of 18 employees includes five licensed technicians (including Voigt) and four apprentices. Two employees handle full-time shuttle driving of customers as well as courtesy washes. On the cleaning and detailing side there’s a manager and two employees. Columbia has four service advisors on hand at all times.

“Growth just keeps happening,” Voigt says. “Other shops 12 SSGM December 2014

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in town close down, we’ve always gotten great word-ofmouth referrals – basically we can’t stop growing!” The tire storage operation is maxed out already, and while Voigt doesn’t like the idea of moving, he admits that his attitude may have to change in a few years.

Columbia depends on a large and diversified network of suppliers and business partners, but no visitor can miss the NAPA AUTOPRO connection, which has been the mainstay of Columbia’s success. “NAPA is our major parts supplier,” Voigt says. “We buy a lot from them – specifically

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GaraGe of the Year || Britton Automotive.” NAPA also provides crucial training and marketing tools and support. “We get great mileage from NAPA’s Excellence program. We ask our techs to take a course once a month and our service advisors have access to it.”

Columbia was the first NAPA AUTOPRO shop in Kitchener-Waterloo, signing on in 1983. “That NAPA logo means a lot,” Voigt says. “It’s a very well recognized trademark. But for us, AUTOPRO has really become the major sign in terms of customer recognition and credibility.”

Other significant suppliers include Brewers Car Parts Plus, which handles the bulk of Columbia’s ACDelco parts supply, and Auto-Camping, which provides parts for European makes. RTD Trican serves as the main tire supplier.

Voigt likes them for their easy ordering system and quick delivery. Columbia is a Tirecraft and Signature Tire dealer, but Trican manages both programs. For scan tools, Columbia looks to Launch, Autel and Snap-on’s Modis, though they also have other brands. The lifts are mostly from Rotary and Valvoline is the chosen oil brand.

Technology and Trust On the business management side, Voigt says that Columbia’s Protractor shop management software plays a huge role in customer relations and face-to-face trust-building. It enables techs to print out inspection forms for each job that spell out all the components of a service charge so the customer can see exactly what’s been done. “Then they know you didn’t just think about it for a couple of minutes,” Voigt says. “You have to provide all the details of exactly what you did. It helps in the process of communicating with the customer.”

One trend Voigt has witnessed over his years in the business is the constant increase in the skill levels required of technicians. “I was fortunate to become a licensed tech in the early 80s, where I learned the basics – how to use a wrench and screwdriver, adjust points and rebuild carburetors. But computerization was also coming in, so I also learned about sensors and PCMs and all the electronics that go along with it.”

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Voigt says that a few decades ago even a tech that wasn’t very skilled with computers and electronics could still apply the basic skills to a host of different kinds of work, like brake or suspension jobs. “Now, you have to use scan tools to do brake jobs on certain cars. If you’re not up on the latest technology, you’re not going to be able to do very much.” Also, diagnostic work has also become a huge part of what any garage does. “It used to be you spent 10 minutes diagnosing a problem and an hour fixing it. Now that ratio is almost reversed.”

But some things don’t change. Voigt believes that customers are still looking for the same things they’ve always looked for. “Honesty, quality, service on time, service done right the first time, no broken promises,” he says. “But communication is the key, and we excel at clear communication. We get emails from customers all the time saying how happy they are with how they’ve been treated. Yes, we’re fixing cars – but really, we’re in the people business.”

When asked about Columbia’s selection as Garage of the Year, Voigt says “I’m just so happy that the whole staff – the managers and the whole organization – is being recognized this way. We’re a team. All of us pull the same way. I think back to my father and grandfather, the family tradition and everything they taught me, and this, to a lot of us, is the best SSGM award we could have won.”

Congratulations Columbia Autopro for winning SSGM Garage of the Year!

From Gates Canada, proud supplier of NAPA Belts & Hoses

December 2014 SSGM 13

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|| TACT

Are

You a

Dragon?

By Murray Voth, TACT

M

any of you are familiar with the television shows Dragons’ Den in Canada or Shark Tank in the United States. Over the course of the last few years I have teasingly asked shop owners if they would consider taking their shop business model to the show to ask for an investment.

Of the hundreds of shops I work with, only one or two said they would with any confidence. I then ask the rest why they wouldn’t do it and they all say it’s not that good of an investment. Of course that opens up the conversation as to why they would bother putting their own money into such a poor investment. In the same vein I then ask them what they would do if they won a lottery prize of $500,000. The majority say they would take a trip somewhere warm, pay off debt and invest the rest.

When asked what return on investment they would expect, it is usually more than the return they are currently getting on their business.

What I have discovered is that most shop owners start their business on a shoestring. They rack up their credit cards, push their suppliers to 90 days and borrow from friends and family.

After five to 10 years of hard work and stress they eventually pay everyone off, but in their minds it happened so slowly, they don’t see how much their

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business is worth. They don’t see it as a lump sum of money that needs to have a return on investment.

What is Your Business?

In a spinoff show of Dragons’ Den called “The Big Decision” featuring Dragon Arlene Dickinson, Arlene visits several businesses that she has committed to investing in. One of the businesses was a three-generation family business on Vancouver Island that had been manufacturing logging boots for decades.

They produced a quality product. The decline in the forestry industry, however, was putting pressure on their business. They had decided to get into manufacturing men’s and ladies’ fashion footwear.

This is where Ms. Dickinson comes into the picture. They wanted her to invest in their expansion into these new markets. Among some of the tasks she asked them to do to prepare for her to invest was to attend a footwear buyers’ show in Vancouver to display some of their products.

In an arrogant tone, the owners of the boot company put down the show and did not attend. Their reason for not attending was that they thought no one would get how expensive their foot-

wear was. A pair of logging boots costs $850.00. Little did they know that this show was attended by top fashion boutiques, department stores and shoe stores. There were shoes displayed that sold for over $4,000.

How many of you are still competing in the cheap oil change market?

Did you know that a VW Level One Service is $240 and it is basically an oil change with a tire rotation and a 25-point inspection?

In conversations with a representative of a provincial automotive service provider association it came up that the majority of their members still prefer to use fax to communicate rather than email. A couple of weeks later, I was www.ssgm.com

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TACT ||

Dave Meunier’s Automotive Management Training and Consulting group is one of the most sought after providers of business solutions for shop owners in Canada. Contact Lee Meunier, toll free at 1-866-489-8228 (TACT) or by email Lee@proshopmanager.ca

parts business stated it well.

He said, “Most shop owners are very good at diagnosis and repairing vehicles. They assume that because they are good at that, they are good at running a business.” In fact, he finds that many get offended when invited to take management training.They reply by asking the parts salesman who invites them continued on page 16

speaking with an automotive technical trainer and he stated the same. In fact, he estimated that only 20 per cent of the shops he deals with use email. The rest prefer fax. A salesman for a large parts company told me that in one Ontario city there are seven shops he calls on and only two are using computer invoicing systems. The other five are still hand writing invoices.

Many shop owners who are very hard working and very intelligent have not learned how to attach a file to an email or to copy-and-paste a file on a computer from one folder to another.

I still find that about half of the shops I work with still do not have a website or any other web presence. Happily it is improving more this year than ever.

The business tracking website Manta lists 16,500 automotive repair shops in Canada, including dealers.

The Canadian Automotive Dealers Association claims 3,200 members. So my math shows that there are about 13,300 independent repair shops in Canada. It is my impression that most new car dealers invest a lot in training for their employees. In a conversation last spring with an automotive consultant with over 30 years of shop software and training experience, we discussed the level of participation in management training by shop owners.

His research shows that barely 10 per cent of all independent shop owners participate in training outside of vehicle technical training. That lines up very closely with studies by Stats Canada. Stats Canada finds that on average only 10 per cent of Canadians from all professions take additional schooling or on-the-job training after their initial schooling for their profession. A very good friend of mine in the automotive www.ssgm.com

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There may not be a steeple or pretty organ music but there are a few souls being restored.

es ecom age b we’ve r a g the why ger ines, hat’s ir eng men!” T t 30% lon ll e h t s te and ® e say, “A dirt, la mers cars w more our custo n for At WIX , % io 5 s 4 s . pa res tch true orship captu ge to wa a ave a lace of w lter that h p u k o o p fi a bo ur ny Whe urch - yo s creating our Face r it ch a is e r . y V u s o y el. ine r 70 WE r ang f eng t ove spen tects you worship o E o pr heir LOV and out t b a ES! s storie NGIN E wixfilters.com wixfilters.com

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December 2014 SSGM 15

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continued from page 15

to the training if he or she thinks they are stupid. That is the last time a parts salesman tries to present a training opportunity to that shop.

I am sure most of you are aware of the shortage of qualified technicians in our industry. Alberta has been suffering the longest. Manitoba and Saskatchewan joined not long after, and then BC and the Maritimes began to notice this challenge. However, it has taken till the last 12 months for this issue to really hit Ontario.

As we all know, it is the resource sector with its high wages that has been drawing all of the trades away from their traditional jobs and roles. I work with some of the better shops in Ontario, and they are now at the $30 plus an hour level for good qualified technicians in many parts of Ontario.

However, many shops are at labour rates that are much too low, and their productivity and efficiency are poorly managed. Shops with labour rates as low as $68 an hour that are paying technicians $22 to $25 an hour are going to be suffering very soon from this same shortage. The sad thing is that many of these shop owners think they are being generous at $25 an hour, or even make statements like “that’s all they are worth.”

What a Professional Looks Like At this point you may be wondering how all of these separate paragraphs are related. What I am doing is building a case for what a professional shop owner looks like. First, a professional shop owner is an investor. The purpose of getting into business was not to fix cars but to create wealth, for themselves and for their employees.

A serious investor or shareholder holds their company accountable to generate the returns required by their investment. Secondly, this top-notch business owner is aware of their business surroundings and the impact the world around them will have on their business. Any human being can put blinders on and just look at what is in front of them. The people I admire and try to emulate take off the blinders, face the truth around them, deal with it and move on. Thirdly, a good shop owner

understands how important it is to be relevant.

Just as a cheap shop owner will attract cheap customers, shop owners who do not embrace appropriate business management technology will become irrelevant to the next generation of customers. I have stressed out many a shop owner by asking them how many customers they have under the age of 45. Some of them have said “none,” with terrified looks on their faces. The investment in training shows that you are an adaptable businessperson.

How many businesses or business models no longer exist because they do not adapt? How many shop owners are willing to take responsibility for the current shortage of qualified technicians? How many of us have paid as little as possible for as long as possible, mostly because we did not know how to operate profitably? How many of us have taken the risk and invested the cost of hiring an apprentice? How many of us have undersold the work and knowledge that our technicians bring to the table? And lastly, how up to date is your business with the technology required to service, diagnose, repair and maintain the modern vehicle? Do you have a plan on how to catch up and keep up with the latest training for your team and equipment for the shop?

I see more shops today subletting their diagnosis and vehicle data updating to other shops that have invested in the tools and flash technology. What happens as your customers find out that you do not have the skill yourself? They are going to find that other shop. In the end it is all about the confidence that comes from fiscal accountability, relevance, adaptability, and ownership and SSGM staying up to date. www.ssgm.com

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DepT HeAD ||

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|| News Briefs

continued from page 9

Grand Prize Winner of the Raybestos Brand 1971 Chevrolet Camaro RS “G-Machine” Brian Williams from Lynchburg, Va. is the lucky grand prize winner of the Raybestos brand 1971 Chevrolet Camaro RS “G-Machine” featuring the new Element3 brake pads with Enhanced Hybrid Technology (EHT), the company announced at their booth during the Automotive Aftermarket Products Expo (AAPEX).

As part of his prize, Williams received a trip for two to Las Vegas and badges to attend AAPEX and the SEMA Show. Jeff Schwartz, who directed construction of the project at his shop, Schwartz Performance in Woodstock, Ill., was also on hand to congratulate Williams on winning the ultimate high performance vehicle.

“We congratulate Brian as the grand prize winner of the custom-built Raybestos brand 1971 Chevrolet Camaro and we thank him for supporting the Raybestos brand,” said Bruce Tartaglione, senior vice-president of global sales and marketing for Brake Parts Inc. “He really did hit the jackpot as

we received over 400,000 entries in the Raybestos Camaro sweepstakes. As a Camaro enthusiast, we know that Brian really appreciates all of the hard work and talent that Jeff and his team put into building this one-of-a-kind car.

He will definitely enjoy driving around town, showcasing his new ride.”

The Raybestos brand Camaro RS packs plenty of power with a 700-plus horsepower Schwartz-modified, GM

Dayco Names Joao Ramon President of Dayco South America Dayco announced the hiring of Joao Ramon as president, Dayco South America. In this role, Ramon will be responsible for Dayco’s entire business in South America including sales, manufacturing, research and development, purchasing and distribution for the automotive, industrial and aftermarket industries.

“Our Dayco business in South America continues to deliver good growth, both organically and from the recent acquisition of Nytron. We are now at a point to accelerate that growth for the automotive, industrial and aftermarket end-markets,” said John Bohenick, chief executive officer for Dayco. “With this challenge and opportunity, it is great to have Joao Ramon join us as president to lead our team in South America. Joao has always delivered exceptional results during his career.”

Ramon began in manufacturing and has worked with first-tier global automotive companies throughout his career. Recently, Ramon served as the director, president and country manager for Actuant Corporation in Brazil. In addition, he has worked at Gates Corporation, Flexonic and Vickers Group, bringing extensive product expertise in power transmission and fluid power components and systems for the automotive, industrial and aftermarket end-markets.

“I am excited to have Joao join the Dayco team and to work with him again.

We look forward to capitalizing on his experience and expertise in leading our strong and growing business in South America,” said Jonathon Levine, executive vice-president and chief financial officer for Dayco. “Joao has a track record of driving business performance and economic value while ensuring a foundation of robust business, financial and risk management controls. His experience in these areas will be extremely beneficial to support the future growth of the Dayco business in the region.”

Ramon will be based at the Dayco office in Sao Paulo, Brazil.

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LS3 V8 engine with SLP supercharger, mated to a Tremec six-speed manual transmission and severe-duty Moser nine-inch rear axle. The Schwartz team prepared the Raybestos brand Camaro with a performance disc brake upgrade package using Raybestos brand brake components and featuring Element3 brake pads. With the best attributes of both ceramic and semi-metallic friction materials in a single hybrid compound, Element3 is engineered to ensure optimal performance, improve pad wear and durability, and deliver unsurpassed stopping power and vehicle control, even under the most aggressive braking conditions. Element3 is formulated for long life, less noise and reduced dust.

Automotive Lift Institute (ALI) Elects 2015 Board

Jerome Lentz of Challenger Lifts (Louisville, Ky.) has been elected chairman of the Automotive Lift Institute (ALI) Board of Directors for 2015.

Lentz’s 2015 term will be his third as chairman of the ALI board.

“Under the direction of Jerome Lentz, ALI has achieved many milestones,” says R.W. “Bob” O’Gorman, ALI president.

“The past two years have seen significant growth in the ALI Lift Inspector Certification Program, the successful launch of the online version of the Lifting It Right vehicle lift safety training course, and the formation of significant partnerships with other vehicle service industry organizations. I look forward to working with him again in 2015.”

In addition to Lentz, returning board members for 2015 include Jeff Kritzer of BendPak, Inc. (Santa Paula, Calif.); Peter Liebetreu of Hunter Engineering Co. (Bridgeton, Mo.); Stet Schanze of Gray Manufacturing Co., Inc. (St. Joseph, Mo.); and O’Gorman.

New members include Stan Poweska of PKS Equipment & Engineering, Inc. (Ancaster, Ontario); Matt Webster of Vehicle Service Group (Madison, Ind.); and Associate Class representative Gary Wainwright of Weco, Inc. (Bradford, Ark.). continued on page 22 www.ssgm.com

14-12-04 10:14 AM

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14-12-04 10:14 AM

|| Tire TesT

Continental Tire’s Extreme

Winter Contact Winter is here once more and Continental Tire’s winter tire offers excellent control, safety and a quiet ride

By Tom Venetis, Editor

P

eople often have a tough time understanding the difference between all-season tires and winter tires. For many, the term all-season suggests just that - all four seasons.

Such tires should then be able to offer the same performance and handling in the winter months as they do during the summer months. This is false.

While the name might suggest that allseason tires are able to handle the winter months, they are in fact designed for general use in spring, summer and fall months. They are not designed to work during the winter months.

Specifically, they begin to suffer when the temperature drops below 7°C. The reason is that the compounds used in their manufacture don’t work well when the temperature dips below that 7°C mark. What happens is that the material becomes harder in the cold weather and can’t provide the same traction and control on snowand ice-covered roads as tires that are engineered for the winter season. The analogy to keep in mind is of a hockey puck on ice. A cold hard hockey puck will skate across the surface of the ice;

20 SSGM December 2014

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the same goes with all-season tires on cold, ice- and snow-covered roads, impacting adversely vehicle control and braking distance. That is why you will often see vehicles with all-season tires still moving forward on winter roads even when the brakes are applied and the wheels are locked.

It is also important to use four winter tires. A misconception is that winter tires are best used on the front for four-wheel drive vehicles and conversely only on the rear wheels for rear-wheel drive vehicles.

Four are required only if you have a fourwheel drive vehicle. The reality is that regardless of whether your vehicle is a front-, rear- or four-wheel drive vehicle, you need four winter tires to get proper control of the vehicle when braking or cornering on wet, snow- and ice-covered roads.

SSGM Magazine was recently given the opportunity to put to the test Continental Tire’s ExtremeWinterContact tires across a range of winter driving conditions in real-world driving conditions. The ExtremeWinterContact tires are made for drivers of sedans, light-duty pickups and passenger vehi-

cles. According to Continental, the tires are made to perform well in snow and on ice, while providing needed traction and handling on slush-covered roads. The compounds used in the tire’s construction allows the tire to remain flexible in cold and sub-zero weather for improved handling on ice and in snow. The tire comes with compact outside treads with elevated lateral grooves for improved handling, inclined longitudinal grooves for better water displacement, a large number of void and grip edges in the centre contact patch and traction ridges in the grooves to reduce braking distances in snow and give drivers better traction on snow- and ice-covered roads.

SSGM Magazine first tested the tires on dry winter roads, when the temperature had dipped below zero degrees Celsius. The tires proved to be surprisingly quiet when driving on urban roads and on the highway. And they provided excellent control without feeling overly ‘grippy’ or making the car seem sluggish when accelerating. In fact, a passenger in the test vehicle thought the tires were all-seasons as they were quieter and www.ssgm.com

14-12-04 10:56 AM

Tire TesT ||

more comfortable than other winter tires on the market.

A few days later, Toronto was hit with its first major snowfall. While nowhere near as severe as what struck Buffalo and New York State, some five centimetres falling on the city proved enough to snarl commuters as the snowfall happened just at the beginning of rush hour and before salters and plows could be sent out.

The tires proved to be well suited to these conditions, providing needed traction and control on urban streets where one had to navigate around vehicles and pedestrians at a moment’s notice.

At no point did the tires feel as if they were having difficulty in the slippery conditions.

Stopping distance was also tested - not by design, it must be said. During the test, a pedestrian decided to walk out into traffic and vehicles had www.ssgm.com

p-20,21-Tires.indd 21

to stop quickly in order not to hit the person.

While several vehicles on the road lost control because of having to suddenly brake, the ExtremeW interContact tires brought the vehicle to a full stop without causing the vehicle to lose control: no fishtailing or lateral skidding.

This control was proven again when navigating tight turns in the slippery conditions. The tires even helped navigate several hills that proved too difficult for vehicles that still had their all-seasons on.

Overall, Continental Tire’s ExtremeWinterContact proved to be an excellent tire for winter driving at an excellent price point.

Special thanks to Continental Tire and Humberview Volkswagen for assisting in this review.

SSGM

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|| News Briefs

continued from page 18

Akebono Wins Award Akebono Brake Corporation announced it has received the Best Overall Import Aftermarket Product award from the Auto International Association (AIA) for its EURO Ultra-Premium ceramic disc brake pads.

“Akebono’s EURO Ultra-Premium ceramic disc brake pad line provides automakers with unprecedented vehicle control and response rates, providing European automakers with the best application-specific braking solution for each vehicle,” said Ken Selinger, director, aftermarket sales and marketing, Akebono. “We are honored by this recognition by the Auto International Association

From left to right, Ken Selinger, director, sales and marketing, Akebono; Stephen Bearden, chairman AIA; Kirby Pruitt, product development manager, Akebono.

and this award is a testament to Akebono’s continued focus on delivering the best braking solutions in the world.”

Introduced to the industry in 2005, Akebono’s award-winning EURO line was the first ceramic disc pad designed

precisely to address performance-specific requirements of European vehicles, such as NVH, dust, and pedal pulsation.

Since its inception in the market, more than 1.3 million units have been sold.

Akebono proved it’s a pioneer of ceramic braking technology by meeting the 2021 low-copper requirements under California and Washington restrictions 16 years ahead of regulations.

The EURO line is designed for exclusive use on the following European vehicle applications: Audi, BMW, Fiat, Jaguar, Land Rover, Mercedes-Benz, MINI, Porsche, SAAB, VW and Volvo.

Honda to Invest $857 Million in its Ontario Manufacturing Plants Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced that it will invest $857 million over three years to innovate its three awardwinning manufacturing plants in Alliston, Ont. with new technologies and processes. This announcement comes as the company prepares for its unprecedented role as the global lead plant for the next generation of the Honda Civic, the best-selling passenger car in Canada for the past 16 consecutive years. The new investment brings

Honda’s total Canadian manufacturing investments to over $3.9 billion since 1986, when Honda became the first Japanese auto maker to build a manufacturing facility in Canada.

HCM is partnering with the Government of Ontario on this program, with the province contributing 10 per cent of the total investment.

As the lead global plant, HCM will not only be the first plant in the world to launch the next generation Civic into mass production, but will be

First Canadian Tesla Destination Charging Network Group Germain Hotels announced that all electric vehicle (EV) enthusiasts will be able to recharge their batteries at its Le Germain and Alt Hotels across Canada. The independent Canadian hoteliers are the first to roll-out the new Tesla Destination Charging program thereby providing its guests access to a private network of over 20 EV charging stations capable of delivering a full charge in four to eight hours at its many hotels.

“Sustainability and innovation have always been top of mind for us at Group Germain Hotels. Not only do we always incorporate eco-friendly features into the design of our properties but we also support and encourage like-minded guests and organizations. Tesla is an industry leader in both fields making this partnership a natural extension of our guest experience”, says Jean-Yves Germain, co-president of Group Germain Hotels.

Universal and Tesla charging stations ranging from 60 to 100 amps are currently available at Le Germain and Alt Hotels in Quebec City, Montreal and Toronto. The Alt Hotel in Halifax currently has a universal charging station that is connected to the VERnetwork.

22 SSGM December 2014

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responsible for developing the manufacturing processes and tooling trials that will form the manufacturing base at all Honda plants globally that will build the next Civic model.

“We are deeply proud to be the lead plant for the next generation of Honda Civic, a designation that reflects the incredible efforts of Honda associates over the past quarter century to produce products of the highest quality for our customers in Canada and around the world,” said Jerry Chenkin, president and CEO of Honda Canada Inc. In addition to supporting the global lead plant activities, the investment will enable Honda to invest in innovative technologies and processes to modernize all three of its plants – two auto assembly plants and one engine plant.

It will also secure thousands of wellpaying, high-quality jobs in Alliston and throughout the province in Honda’s deep supplier network.

Finally, the investment will help secure HCM’s position in an increasingly competitive global automotive manufacturing environment and also reinforce its important role within Honda’s global operations. www.ssgm.com

continued on page ??

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10:15 AM

Brakes ||

Better

Braking

By Andrew Brooks

A booming market drives demand for new braking technologies, premium brands

I

t sounds like a paradox, but stopping is a growth market. Sales of brake parts in North America are through the roof, according to a Frost & Sullivan study that pegged the sales of brake pads in 2013 at almost 90 million units.

Among the reasons: declining scrap rates and the increasing age of vehicles on the road.

Unsurprisingly, the level of demand is also spurring an increase in quality and the development of new technologies to increase the durability and efficiency of braking systems. But while most brake components now on the market exceed safety standards, that doesn’t mean that there aren’t still meaningful variations in quality that directly affect the durability of components and driver safety.

Premium products are becoming more affordable, says Dean Weber, vice president of Proforce Automotive. “Now the jobber can buy our premium brand of ceramic that comes with an enhanced formulation, noise www.ssgm.com

p 23-24-brakesv1.indd 23

dampening shim, scorched-in material, complete with stainless steel hardware for under $20 for most numbers. Our premium rotor, which is fully Geomet [with] anti-rust coating, mill balanced with OE fins and weights, at up to 60 per cent less than original premium rotor prices.”

Kevin Fleury, sales director for Transbec, notes that there’s still enough of a price differential between premium and entry-level products that in many cases customers continue to resist the lure of top quality. To Fleury, this represents an opportunity. “There are certain areas where it’s ‘price, price, price,’ and the kind of brake pad doesn’t make much of a difference to the customer.

Price does have a cost though, and that’s what a lot of people don’t realize. For pennies more, you can upsell your customer to something that will give them much more value for money and inevitably cost them less in the long run.”

Fleury says Transbec’s premium Bremsen line even offers an aesthetic

advantage – something that can be used to help upsell customers. The coated rotors last longer and extend the life of the vehicle, he says. “The coating that we use is compatible with every type of friction out there,” he says. “You can use it with a ceramic pad, a semimetallic pad; you can even – at the risk of dating myself – use it with an organic pad. If they still exist!”

While different brands are fully compatible with each other, Fleury sees a distinct advantage in using friction and rotors from the same brand. “From a marketing and branding standpoint, friction and rotors should be matched,” he says. “At the end of the day, that brake job’s going to cost $500 to $600 and the customer wants to know what they’re putting on their vehicle.”

There’s still a fair price differential between the top name lines and the rest of the market, says Ernie Fields, sales manager for ProMax Auto Parts Depot Ltd. “There are a lot more premium continued on page 24

December 2014 SSGM 23

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|| Brakes

continued from page 23

products on the market now, but some of them don’t have the same brand visibility.” Fields notes that there are still price discrepancies based on this brand recognition – “as in any market, the name brand is naturally going to cost more.”

ProMax sells three lines of friction: semi-metallic pads, ceramic pads and the same ceramic pads but with premium stainless-steel hardware included.

Fields says the latter package is gaining traction as shops realize buying just the friction and getting hardware separately – or, worse, replacing only the friction and trying to clean up the existing hardware on the vehicle – is more expensive and takes more time than buying pads and hardware together.

For Bob Peters, chief engineer, friction material engineering, Akebono Brake Corp., the quality of replacement components is critical, and here premium products offer definite practical advantages. “The rotor is often overlooked and considered a commodity,” he says, “but the grade of cast iron used in the rotor and its surface finish do influence the output of the friction couple.

Noise and roughness can also be influenced by rotor metallurgy and surface finish.” In summary, he says, yes, friction and rotors can be replaced with items from different manufacturers, but the quality and selection of the replacement parts should be carefully considered.

Peters believes that while shops may sometimes replace the friction only, in a bid to keep the cost down for the customer, it’s justifiable when the linings are being replaced due to wear and tear, and the rotor friction surface is still smooth and within the tolerance limits for both wear and thickness variation.

“This is especially true if a quality ceramic material has been used, since these materials wear the rotor very little during normal use,” he says. “If there is some brake related issue such as noise or roughness, however, it is best to replace both elements of the friction couple – rotor and pads.”

Irina Mescheryakova, senior product manager, Bosch Brake Components LLC, Automotive Aftermarket Division, Robert Bosch LLC, warns of the danger of catering to price sensitivity by 24 SSGM December 2014

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not doing as complete a job as might be needed. “The expense on the front end is less,” she says, “but doing the job properly can add 10,000 or 15,000 miles to the brake job. Therefore the complete brake job is less expensive.”

Mescheryakova also notes the importance of servicing brake fluid at the times recommended by the manufacturer. “I recommend flushing brake fluid with every complete brake service,” she says. The service interval listed by manufacturers for flushing brake fluid is generally about 30,000 miles or two years, while the average front pad life on many vehicles is close to this, so flushing at the same time makes sense.

If brake fluid is regularly serviced, the chance of corrosion occurring inside the brake system is minimal, Mescheryakova says. “The components that actually cause premature wear or unusual wear patterns regarding the brake pads are hardware and bracket condition.

Hardware replacement and bracket service during a complete brake job will dramatically reduce unusual pad wear problems, increasing the service life of the pads.”

When replacing just the pads, Wally Marciniak, director technical service, Brake Parts Inc, says technicians need to make sure the rotor minimum thickness is within specifications and that the rotor surface is in good condition and there is no pedal pulsation during braking. “Personally, I like to start with a good flat surface on the rotor when installing new pads.

I will either resurface or replace rotors, as needed.”

The water-absorbing properties of most brake fluid have the effect of lowering the boiling point and increasing the opportunity for corrosion to form within the brake system, says Bob Peters of Akebono. So changing brake fluid along with a lining change is beneficial, but Peters cautions that it has to be done carefully. Techs should ensure complete compatibility with the

existing brake fluid type, and make sure the system is completely sealed and free of leaks when the job is done.

When replacing the calipers along with the friction, Proforce’s Dean Weber lays out the recommended steps.

“Things to look for are uneven pad wear, and the vehicle pulling to the left or right when braking – these are signs the calipers need replacement.

If the inboard pad is more worn than the outboard pad, the caliper may be seized. In addition, the caliper boot should not show any signs of fluid leakage nor should the caliper boot appear hardened or cracked.” Weber says the caliper and housing should be completely cleaned, the pins lubricated and hardware replaced as necessary.

Wally Marciniak says that few manufacturers recommend caliper replacement except by a caliper manufacturer.

But he does have some suggestions for technicians who are taking this step.

“They need to inspect the old pads for wear patterns, such as uneven wear inboard to outboard pads and taper wear of the pads. Make sure the caliper dust boots, pistons, and caliper slides and pins are in good condition. If any of these stand out, it is highly recommended to rebuild or replace the caliper.

Properly operating calipers will help with the overall brake performance and extend the life of the brake pads.” SSGM www.ssgm.com

14-12-04 10:57 AM

DesRosieRs inteRview ||

Where we stand Canadian industry analyst Dennis DesRosiers on the future of Canada’s auto sector

D

ennis DesRosiers is the dean of Canadian automotive analysts, with a resume that spans from OEMs to the government sector to the University of Windsor in the heart of Canada’s auto industry. When DesRosiers talks, people listen, and in an era when low-wage right-to-work jurisdictions are claiming an increasing share of auto part making and assembly activity, questions about Canada’s long-term viability in the sector are inevitable.

Canadian Metalworking put the critical questions to DesRosiers…and as always, he pulled no punches: CMW: Canada became a major auto assembler through deals like the Auto Pact. How much did it drive the expansion of the Canadian industry?

Dennis DesRosiers: The Auto Pact was everything when it comes to the growth of Canada’s automotive sector. At the time ( Jan 16, 1965) it was the most important trade agreement anywhere in the world. It merged Canada’s struggling and totally inefficient auto sector to the much larger

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and much more efficient U.S. auto sector. Most don’t realize it but in the first few years it also decimated the Canadian industry in that none of our suppliers could compete with their American competitors and all of our OEMs needed to totally re-invest in their plants and build modern facilities. But the Auto Pact also was a very protectionist agreement requiring the OEMs to produce one car and truck for every one sold in Canada and there was a separate ratio for cars and light trucks. This meant that each of the members (primarily the Detroit Three)

had to build both a car plant and a truck plant in Canada to qualify.

Now remember that in 1965 light trucks were primarily for commercial use (about 20 per cent of sales) as there was no such thing as a minivan or SUV or CUV. When these categories took off in the mid-1970s Canada was perfectly positioned to produce for the fastest growing segments in the industry and thus production eventually tripled from a million units to about three million units.

The Pact also has Canadian Value Added required which was very complex, so I won’t bore you with the details, but it was the root of why the parts suppliers eventually did so well. A number of Canadian suppliers emerged like Magna, Linamar, etc. and just about every U.S. multinational continued on page 26

December 2014 SSGM 25

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|| DesRosiers Interview

continued from page 25

chose to invest in Canada to help the OEMs meet this tough standard. To highlight how important the Auto Pact was ... its elimination in the late 1990s coincides with the beginning of the deterioration in our industry which plagues the industry to this day. The Auto Pact was essentially eliminated with the signing of the FTA… The FTA allowed the OEMs to import vehicles and parts duty free without meeting any safeguards which made the Auto Pact ‘toothless’ and every OEM began importing/ exporting vehicles and parts into and out of Canada under FTA. instead of the Pact. NAFTA extended this to Mexico.

CMW: Many economists claim that Canadian operations aren’t cost competitive on a global basis. Is it true? How do we stand in competitiveness compared to other auto making nations?

Dennis DesRosiers: I’m not sure I am qualified to talk about all other auto making nations, but my general response would be that the OEMs are fairly competitive because they have the capital to build – and have built – very modern plants. The suppliers less so, although there would be many exceptions. High value-added parts like the parts that Linamar produces are likely competitive…anything labour inten-

sive would not be…with lots between these two polar opposites.

CMW: Many assembly plants are moving to “right to work” jurisdictions like Alabama and Tennessee. Is it strictly a wage cost issue?

Dennis DesRosiers: Partly, but I think it has more to do with nonwage costs than wages.

CMW: Can the Tier One and Tier Two supplier network adapt to assembly operations that are farther away in the U.S. and Mexico?

Dennis DesRosiers: Some can but there are extremely compelling reasons to be close to your customer base, so as Mexico and the U.S. South explode with assembly activity, ultimately most top tier suppliers will employ their capital close to these plants and not in Canada.

CMW: What can we do to protect our industry?

GM’S Oshawa assembly operation builds Chevrolet’s flagship Impala Sedan Where are Canadian-bought cars built? According to new data from DesRosiers Automotive Consultants, the majority of light vehicles sold in Canada are built in North American plants, with approximately a quarter of new vehicles sourced from overseas production facilities. Over the decade spanning 2003 to 2012, the Toronto research firm said, the percentage of new vehicle sales derived from North American-assembled products stayed relatively constant, declining mildly from 76.8 per cent to 73.8 per cent last year.

“While Detroit-based vehicle companies have suffered significant market share erosion during this period, virtually all of the benefitting import brand OEMs now build mainline products in Canada, the U.S. and Mexico (indeed Mexico crossed the three million unit production threshold for the first time in 2012), keeping North American sourcing levels high,” the firm said in a new report. “With much of that added assembly capacity focused on C-segment vehicles in Mexico and D-segment vehicles in the U.S., overall Canadian market sourcing proportions have changed little over the past decade. Indeed, the growing popularity of European and Korean-assembled models has roughly balanced the increase in North American-built vehicles sold by import nameplate OEMs.”

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Dennis DesRosiers: Nothing, and indeed it would be a mistake to ‘protect’ our industry from the competition. Support it through any number of different initiatives, yes, but to ‘protect’ it would mean the end is more likely to happen. Go back to the Auto Pact in 1965. Dozens of weak players disappeared but the remaining players invested in new technologies and advanced manufacturing systems and billions of capital was put on the ground to make the industry globally competitive… the OEMs had tough safeguards to meet, but the supplier community has zero protection under the Pact.

CMW: What’s the future for auto parts making and vehicle assembly in Canada? Is there danger it will decline?

Dennis DesRosiers: Sure, but we started to see the winnowing out of our industry at the turn of the century and it will continue to winnow out for the foreseeable future. It wouldn’t surprise me to see the industry disappear almost entirely over coming years, but this could 20 to 30 years and a lot of water could flow under the bridge in that timeframe.

Since 1985, Dennis DesRosiers has been Canada’s leading automotive industry analyst and global expert on Canada’s auto industry. Founder and president of Richmond Hill, Ontario-based DesRosiers Automotive Consultants, Dennis was the first analyst to use advanced modelling and analysis techniques to analyze and forecast the Canadian auto market. Through his newsletter, blog, multiple public appearances and media interviews, Dennis delivers insight into the automotive market in Canada from new vehicle sales to the Tier One and Two supplier network and beyond. Dennis is a past board member of the University of Windsor and was director of research for the Automotive Parts Manufacturers’ Association as well as an auto analyst for the Ontario Treasury. www.ssgm.com

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14-12-04 11:00 AM

Product-Info FAG Hub and Wheel Bearings: Orbital Forming From it’s beginnings in Germany over 130 years ago, FAG has been a leader in the roller bearing industry. Friedrich Fischer invented the steel ball grinding machine in 1883, paving the way for the modern ball bearing. His company, Fischer AG, known today as FAG, continues to build on his tradition. FAG is one of the leading bearing manufacturers in the world, providing OE solutions for automotive, aerospace and industrial applications.

FAG automotive and truck hub and wheel bearing units utilize cutting edge designs, materials and manufacturing processes to provide premium products to OE suppliers and the aftermarket.

Orbital forming is a technology used in many FAG hub assemblies with some key advantages: •

Pre-set bearing preload: With orbital forming, the bearing preload is permanently set during the manufacturing process, eliminating one of the major causes of bearing failure. Older designs use a nut to secure the hub. This can cause variations in bearing preload and premature failure if the nut, or fastener, is not properly torqued to specifications.

•

Fits more applications: The hub assembly may work for a wider amount of applications on both 2- and 4wheel drive vehicles.

Driven Wheels: Most driven wheels still require an axle nut to secure the drive shaft. The axle nut does not control bearing preload because that is set with orbital forming during the manufacturing process (See note).

Non-Driven Wheels: The orbital-formed end of the hub mimics a properly torqued axle nut on a conventional hub assembly and eliminates the need for an axle nut on non-driven wheels. The hub splines are not used on non-driven wheels because a driven axle shaft is not used in this instance. The splined center of the hub does not interfere with the operation of non-driven wheels.

LIT603E ©2013 Schaeffler Group USA Inc.

•

Fewer parts + More applications = Lower inventory + Lower costs + More availability In manufacturing, orbitally formed assemblies require fewer parts, sub- and final assemblies. This, combined with the “one hub fits many applications” philosophy, keeps costs down for everyone, including the manufacturer, jobber, repair shop and vehicle owner. Jobbers and stocking repair centers are able to inventory a single hub assembly for both 2- and 4- wheel drive vehicles in multiple applications, allowing for streamlined stocking and a better chance that the parts will be in-stock when needed.

Orbital forming permanently preloads the hub bearing during the manufacturing process.

NOTE All fasteners for installing hub assemblies must be torqued to the vehicle manufactures specifications using a properly calibrated torque wrench.

5370 Wegman Drive Valley City, OH 44280 Phone 800 274 5001 Fax 330 273 3522 www.Schaeffler-Aftermarket.us Blue Seal of Excellence RECOGNIZED BUSINESS

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Canada November 2014

Tires and Tribulations

Considered by many dealers to be a customer service nightmare, tire season is the epitome of a capacity crunch, wherein busy customers swarm dealership service bays at double, even triple the typical rate. Given the intense volume pressure, many dealers and manufacturers have come to expect significant slippage in both overall CSI scores and—more importantly—the completion rates of many critical Key Performance Indicators (KPIs).

However, recent research casts significant doubt on this long-held belief.

SEASONAL TIRE REPLACEMENT CYCLE Peak tire replacement periods 35% % of service visits including a tire replacement

jd.ney@jdpa.com 416-507-3254 With the changing of the season from fall to winter, and the inevitable cooler temperatures that come with it— and the converse from winter to spring—dealerships across the country are (or should be) gearing up for the bi-annual ritual that is tire season.

30% 25% 20% 15% 10% 5% 0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun '13 '13 '13 '13 '13 '13 '13 '14 '14 '14 '14 '14 '14

Source: J.D. Power 2014 Canadian Vehicle Ownership Satisfaction StudySM

Behind the Numbers

 The 2014 Canadian Vehicle Ownership Satisfaction Study finds service occasions that include tire replacements spike significantly in October, November, March, April and May.

 Based on conventional thinking, if traditionally busy dealership months produce subpar customer experiences, it is logical to predict considerably lower satisfaction scores during the peak tire‐changing season. However, when examining overall service satisfaction during all non‐peak months, the industry average is 829 (on a 1000-point scale), compared with 834 during peak months. The negligible difference in satisfaction renders that viewpoint unfounded.

 An analysis of KPI completion rates can determine whether critical service activities are being ignored— as would likely be expected—during busy service intervals. In actuality, service advisors are completing critical KPIs with a close consistency regardless of the time of year. This finding points to a more systemic performance problem rather than one that is situational. A common industry complaint is there is no time to perform multi-point inspections when the service department is swamped during peak tire

replacement months. However, the study finds that advisors perform multi-point inspections at almost the same rate during peak tire replacement months as they do during non-peak months (62% vs. 63%, respectively).

 Regardless of the season, dealers should perform multi-point inspections at a higher rate, as the opportunity for additional revenue is clear. When a multi-point inspection is performed, 86% of customers are advised of other service needs for their vehicle, compared with only 39% when a multi-point inspection is not performed.

 During peak tire-changing months, dealers should be mindful of when customers are notified if their vehicle will not be ready when promised. During peak months, 47% of customers discover their vehicle is not ready once they have already arrived to pick it up vs. 39% during non-peak months. Only 21% of customers who arrived to find their vehicle was not ready say they “definitely will” return for paid service work vs. a more substantial 34% of customers who were given at least an hour’s notice.

J.D. Power does not guarantee the accuracy, adequacy, or completeness of any information contained in this publication and is not responsible for any errors or omissions or for the results obtained from use of such information. Advertising claims cannot be based on information published in this publication. Reproduction of any material contained in this publication, including photocopying in part or in whole, is prohibited without the express written permission of J.D. Power . Any material quoted from this publication must be attributed to J.D. Power. © 2014 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved.

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SSGM BAYWATCH New Products

Deb Heavy-Duty Automotive Hand Cleaners Deb Group has introduced a complete line of heavy-duty hand cleaners designed specifically for the automotive aftermarket industry. KrestoGT offers advanced and powerful products formulated to protect, clean and restore technicians’ hard working hands. KrestoGT heavy-duty hand cleaner contains all-natural, biodegradable scrubbers with no harsh solvents or sharp scrubber materials—keeping even the grimiest hands not only clean, but healthy and productive as well.

Deb Group www.KrestoGT.com

DynoMax Ultra Flo Performance Exhaust System The DynoMax performance exhaust system for 2015 Ford F-150 3.5L V6/5.0L V8 trucks offers a combination of powerful performance and a smooth, deep tone. The new system improves horsepower by 16 and adds 19 ft.-lbs. of torque. Each cat-back, single exhaust system includes a stainless steel DynoMax Ultra Flo welded muffler. This muffler is a stainless steel, fully welded design that has straightthrough internal piping to help provide unrestricted exhaust flow and reduced backpressure. Each Ultra Flo welded muffler includes Continuous Roving Fiberglass (CRF) technology that helps to absorb unwanted interior drone while providing a rich, throaty performance sound. The new stainless steel system (p/n 39508) includes a buffed and polished four-inch outlet, single wall, buffed and polished 12-inch slant cut tip and three-inch mandrel bent, stainless steel piping. The exhaust system fits extended cab short bed and crew cab short bed Ford F-150 models.

DynoMax www.DynoMax.com

OTC Multimedia Interface Tester (MIT) OTC has released the Multimedia Interface Tester (MIT) to help diagnose vehicle communication issues on Ford, GM and Hyundai vehicles. The MIT sends a clean signal to a vehicle’s Bluetooth or auxiliary connection to confirm whether or not the vehicle is communicating properly. The device works by connecting via Bluetooth or 3.5mm auxiliary jack and providing an audible confirmation of connection and test. The device is updatable though a USB connection and more OE’s will be added as coverage becomes available. Connection issues include an inability to sync a phone or other electronic device via Bluetooth or an auxiliary jack not accepting audio or video input.

Technicians can identify if there is an issue with the vehicle or input device.

OTC Tools www.OTCTools.com

GE Automotive Lighting Solutions GE has expanded its NIGHTHAWK family of products to include new NIGHTHAWK LED Daytime Running Lights (DRL). Designed to update the look of vehicles, the energyefficient DRLs have a six-watt power consumption and feature an automatic on/off switch. The two-lamp system is water, dust and vibration resistant. DOT compliant; easy to install; and fits most vehicles on the road. In addition to DRLs, GE offers a full line of headlights, including GE NIGHTHAWK PLATINUM, GE NIGHTHAWK SPORT and GE NIGHTHAWK XENON. GE Lighting www.gelighting.com 30 SSGM December 2014

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SSGM BAYWATCH New Products

OTC Smart Battery Tester OTC has launched the 3200 Smart Battery Tester, offering near-instant battery, charging and starting system test results with a technician’s iOS or Android device. The tester clips onto a battery’s terminals and provides battery voltage and cold cranking amps (CCA) on-screen, and also displays a QR code. Using the OTC 3200 app and a smart device with a rear-facing camera, users can read the QR code to view a full report including battery, charging system and starting system health. The tester’s on-screen display indicates when to start the vehicle to measure starting system draw and charging system status. The pocket-sized tester will work on 6-, 8and 12-Volt lead-acid and AGM batteries for all light duty applications. An internal 9V battery allows testing of deeply discharged batteries for faster diagnosis, minimizing the ‘charge and retest’ process often used. The accompanying app will also scan the battery and vehicle barcode to collect battery and vehicle electrical system specs.

OTC Tools www.OTCTools.com

CRP ContiTech Black Series Timing Belt Kits CRP Automotive has introduced a new line of cost effective timing belt kits. The CRP ContiTech Black Series is designed and priced for economic considerations when servicing older and higher mileage vehicles. The ContiTech Black Series continues to deliver the OE quality construction and reliability that has made CRP the trusted name in quality replacement parts. CRP ContiTech Black Series timing belt kits include key components that are often replaced in conjunction with the replacement of timing belts. The kits include timing belt(s), a water pump, tensioners, idlers, and hydraulic tensioners (when called for by the manufacturer).

CRP Automotive www.crpautomotive.com

Denso Mass Airflow Sensors Denso’s improved designs in mass air flow sensors utilize a unique structure that reduces exposure to the sensing unit. This helps to reduce sensor contamination for improved detection accuracy. DENSO also uses a fine platinum wire sensing element coated with a glass film to further protect it from contaminants, resulting in even higher reliability. Each of these products is precision-built for exact replacement.

Denso http://densoautoparts.com/engine-managementsensors/mass-air-flow-sensors

GearWrench Fixed Tip Snap Ring Pliers GearWrench announced its new Fixed Tip Snap Ring Pliers. Designed for everyday professional use, these new pliers make working with snap rings easier. Made with automotive end users in mind, the solid joint construction and forged design deliver strength and durability for each task. The tapered tips improve snap ring retention, while the tapered jaws allow increased reach and access, making it possible for users to work in tight spaces. The straight jaws deliver deeper access for hard-to-reach snap rings, while the 90-degree jaws provide an excellent line of sight to the snap ring. The forged handles are gently curved for exceptional comfort and control. The easy-to-clean dipped handle grips are also resistant to gasoline, brake fluid and anti-freeze allowing for an extended tool life.

GearWrench gearwrench.com www.ssgm.com

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SSGM BAYWATCH New Products

Rotary Lift Updates Four-Post Alignment Lifts Rotary Lift has updated its 14,000 lb. capacity ARO14 alignment lift to offer greater precision, faster performance and new user-friendly features. The updates are also available on the AR14 closed-front alignment lift and as part of a patent-pending bolt-on retrofit kit that can equip Rotary Lift’s new SM series four-post lifts to perform alignments. Rotary Lift’s new ARO14 alignment lift features interlocking spacers along its runways that enable technicians to place the turntables in various locations. This makes it easy to service a wide range of cars, light trucks, SUVs and vans. The lift can be used to perform four-wheel alignments on vehicles with wheelbases as short as 71 inches (88 inches for extended-length models) and as long as 148 inches (165 inches for extendedlength models).

Rotary Lift www.rotarylift.com

Sylvania SilverStar zXe Series When it comes to designing and delivering high performance lighting technology for today’s vehicles, Sylvania Automotive Lighting continues to aim high. This is the case with its popular Sylvania SilverStar zXe lineup, which will soon include a complete offering of high-intensity discharge replacement headlight bulbs and new halogen-based fog light applications. As consumers enhance and customize their vehicles, there is a growing demand for light sources that push the color temperature envelope by simulating the light-emitting diode and HID assemblies found on today’s new vehicles. The zXe product line will provide more options for drivers who demand original equipment quality products.

Sylvania Automotive Lighting www.sylvania.com/auto

SK Ratcheting Wrench SK Hand Tool has released its SK X-Frame ratcheting wrench that offers a tight arc swing and offers more power and precision in tight spaces. SK re-engineered the geometry of the handle to allow the technician to deliver maximum torque. The SK X-Frame will help professional technicians handle tough jobs with more speed and confidence. The distinctive x-frame look of the SK X comes from opposing triangular structures that help make the wrench stronger than the world standard by dispersing the stress on the handle across two beams. This power is maximized in one-third of the arc swing of any other ratcheting wrench on the market.

SK Professional Tools http://www.skhandtool.com

Continental Adds DVR To Enhance VDO Camera Systems Program Continental Commercial Vehicles & Aftermarket introduced a new automotive grade DVR to its VDO Camera Systems Program.

The DVR gives enthusiasts GPS functionality and the added capability of recording up to 32 GB of footage on a standard SD card.

The new DVR has the ability to record up to four video feeds at one time. It can also record vehicle speed and has a G-sensor to log acceleration at the time of the recording. These features make the new DVR an excellent tool for liability purposes. VDO Camera Systems are ideal for enthusiasts who are looking to protect themselves and their investment. They greatly increase vehicle safety by eliminating blind spots around the vehicle and improving overall manoeuvrability, whether the vehicle is on the road, parking or being delivered to a show or jamboree. The VDO Camera Systems program includes Mini Cameras for parking and rear-view backup, cameras offering enhanced visibility both inside and outside the vehicle and 120-degree Rear View and Side View Cameras for better visibility and manoeuvring. Monitors, optional audio and infrared LEDs for enhanced nighttime viewing are also offered.

Continental www.vdo-gauges.com 32 SSGM December 2014

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SSGM BAYWATCH New Products

Snap-on PRO-LINK Ultra The new PRO-LINK Ultra (EEHD704004) from Snap-on provides all the answers that heavy-duty technicians need to keep their customers on the road – all in a single handheld tool. Covering commercial vehicles from light diesels to Class 8 heavy-duty trucks, PRO-LINK Ultra offers licensed and tested, OEM-proprietary coverage for major systems such as engines, transmissions, ABS, instrument cluster, emissions, SCR, body controls and more, which makes the tool ideal for everything from fleets, dealerships and owneroperators to repair shops, municipalities and mobile truck services. PRO-LINK Ultra provides a wide range of coverage for

the systems used by the major OEMs including Freightliner, International, Volvo, Mack, Paccar, Kenworth and Peterbilt. PRO-LINK Ultra provides essential maintenance functions that let technicians read and clear fault codes, monitor vehicle and driver performance with trip data, create health reports and view live system data.

It also includes powerful repair functions such as live data graphing for finding tough problems, special tests to verify component failures, and the ability to program replacement components and perform custom ECU programming.

Snap-on www.snapon.com

Mahle Service Solutions Introduces TechPRO Diagnostic Scan Tool Mahle Service Solutions announced TechPRO, a softwarebased, laptop- or tablet-enabled diagnostic scan tool.

The new Mahle Service Solutions TechPRO diagnostic scan tool was engineered so the vehicle communication interface (VCI) and software can be used with a technician’s current desktop, laptop or tablet, making it unnecessary to buy or lease extra hardware. Among TechPRO’s features is J-2534 pass-thru capability for reflashing and reprogramming. TechPRO also features an ergonomically engineered VCI with a bright LED light for high visibility and confirmation that the VCI is connected and communicating. Other useful functions include cylinder balance tests, compression testing, key relearn, and misfire graphing. The Mahle Service Solutions

TechPRO diagnostic scan tool will be available for sale in 2015. The tool comes with a Bluetooth enabled VCI. Mahle Service Solutions plans to make a pre-loaded tablet available upon request, for an additional cost.

Mahle Service Solutions www.mahle-aftermarket.com

East Penn Manufacturing would like to congratulate

Columbia AutoPro for winning 2014 SSGM

Garage of the Year.

Delphi Announces 12 New Ignition Coils Delphi Product & Service Solutions announced 12 new ignition coils that cover over 2.9 million vehicles including BMW, Jeep, Mercedes-Benz, Volkswagen, and Subaru applications from 1991 to 2012. Part numbers: GN10335, GN10401, GN10404, GN10413, GN10442, GN10445, GN10447, GN10484, GN10504, GN10529, GN10542 and GN10574.

Delphi go.delphi.com www.ssgm.com

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N

MADE I

Veedol. Made Here. For You. Veedol is a globally recognized top quality lubricant made right here in Canada. Our history and list of accomplishments span over a century with a product able to withstand the varied conditions found across Canada, and is the obvious choice for the Canadian automotive professional. And with over a hundred years of experience, Veedol has stood the test of time.

ELITE®

SYNTRON ®

Virgin base oils are processed to have high thermal and oxidation stability, as well as outstanding protection.

A fully synthetic oil that offers the highest level of engine cleanliness, reduced wear, and fuel efficiency.

Mineral Oil

100% Fully Synthetic

For more information contact:

INNOVATION • TECHNOLOGY • PERFORMANCE

Automobile Solutions Americas Inc. 800-975-2935 | info@asaveedol.com www.asaveedol.com

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THE PROFESSIONAL’S CHOICE

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MAKING THE RIGHT CHOICES REQUIRES THE RIGHT INFORMATION. FIND THE RIGHT INFORMATION ON BMW4IR.CA. Introducing bmw4ir.ca – BMW Group Canada’s portal for independent repair facilities performing quality repairs on BMWs and MINIs. Service your customer’s vehicle with confidence by having all the information you need – right at your fingertips, 24 hours a day, 7 days a week.

By signing up for bmw4ir.ca today, you will immediately benefit from: • • • • •

Exclusive special offers/promotions.

Quick access to valuable and detailed parts information.

Access to catalogues to help increase your sales.

Technical information to help answer customer questions accurately.

Informative videos to help you increase workshop productivity.

Visit bmw4ir.ca today to setup your account, and register to enter the Star Approved Tires Promotion for your chance to win a BMW M Watch.

To learn more, contact your BMW or MINI Retailer.

BMW GROUP ©2014 BMW Canada Inc. “BMW”, the BMW logo, BMW model designations and all other BMW related marks, images and symbols are the exclusive property and/or trademarks of BMW AG, used under licence.

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