Mopar Masters Guild Magazine May – June 2021 by Don Cushing

Leaders in the sale of quality FCA Mopar Parts.

May - June 2021

Also In This Issue From the Desk of MMG President Susan McDaniel: “30 Years!”..........................2 NADA 2022 - Mark Your Calendars! ............3 1964 Dodge 330 HEMI Lightweight: The Beginning To A Mopar Racing Revolution ............................................4 Joyson Finds Falsified Seat Belt Test Data at Former Takata Plants .................................5 Jeep Brings Tasts of the Electric to Moab Safari .............................................. 6-7 The Big Adventure - Susan McDaniel..........8 Tavares Gives Chrysler, Other Brands 10 Years ..........................................9-10 The View from My Office with Kat Monteiro .............................................11-13 MMG Vendors ..........................................14-15 Wholesale Parts Pro/ NiTS Solutions .........................................16-17 FenderBender ..................................................18 CDK Global .....................................................19 Katzkin Leather ..............................................20 CDK Global .....................................................21 Reynolds & Reynolds .....................................22 Wholesale Parts Pro/ NiTS Solutions ...............................................23 Activator ..........................................................24 Ratchet+Wrench ............................................25 OEConnection ...........................................26-27 AER Manufacturing .................................28-29 OEConnection .................................................30

Jeep Brings Taste of the Electric to Moab Safari

Reynolds & Reynolds .....................................31 8 Factors Pushing Up the Price of Used Cars in the Untited States ............32-33 Average Age of Cars Rises to 12.1 Years - Study Shows ........................34-35 MMG Officers/Committees ........................36

The exchange of information by like size dealers in a non-competitive environment”

May - June 2021

From the Desk of MMG President Susan McDaniel

30 Years Wow! It’s hard to believe that it has been nearly 30 years since the incep on of the Mopar Masters Guild. We have come a long way since that very first mee ng with just a few Parts Managers, some modest snacks and an amazing idea to bring the top managers around the country together to share ideas, connect, grow our businesses, network with our vendors who make our jobs possible and forge friendships that would last a life me. Some of us have more EXPERIENCE than others. We all have something to learn and to share; we are the leading Parts and Service professionals in this business. Our NETWORKING capability is off the chart. The MMG connects us to the most successful, most forward-thinking Parts and Service professionals in a collaborave, sharing environment. As far as GROWTH; you will develop professionally and personally through your interac on with other MMG members. The PROFITABILITY , successful strategies and proven methods that we have been able to learn from the leading sellers in our industry is second to none. The MENTORSHIP with the most experienced professionals have helped to guide our careers in a more posi ve direc on. The VENDOR RELATIONSHIPS that the MMG offers is a direct connec on to many prominent industry vendors and suppliers, allowing us to build key connec ons and have real me feedback and input from the very people that help us to achieve our selling goals to the fullest poten al possible. Our structured mee ngs and conversa ons have played a very important role in our growth as a guild and for us professionally. We always try to bring ideas (homework pertaining to current industry events) guest speakers and members presen ng “tried and true” processes and implementa ons to the mee ng rooms. We now have Zoom at our finger ps to make our communica ons easier and faster. I think the one thing anyone who has ever been to one of our mee ngs or events can truly say is that the conversa ons that take place outside of our mee ng rooms have proven to be just as important, if not more so than and structured conversa on that we may have. All of us have something that we are doing on a daily basis that we are taking for granted that would be a GREAT IDEA as far as someone else is concerned. Those casual conversa ons at the breaks, lunches or a er hours are priceless. That is why our LIVE mee ngs are so important! There is no other OEM group that can offer their dealership Parts & Service Managers a venue like the Mopar Masters Guild. We are extremely unique! We are really looking forward to ge ng together this fall for our LIVE 20 Group. Stay tuned for details. STAY POSITIVE! Your President,

Susan McDaniel Susan McDaniel - susan@billluke.com - 602.336.1557

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

Mark Your Calendars! It’s not too early to start thinking about NADA 2022 Plans for our 30th Anniversary of the Mopar Masters Guild MeeƟng at NADA 2022 in Las Vegas, Nevada are underway! With all the changes and not being able to see each other in over a year, we’re all looking forward to meeƟng “LIVE” once again. Watch your email and check the website oŌen as we will keep our members posted and up-to-date!

The exchange of information by like sized dealers in a non-competitive environment.

May - June 2021

1964 Dodge 330 HEMI Lightweight: The Beginning To A Mopar Racing Revolution A misunderstanding led Chrysler to an all new platform in the early 1960s. The “B” body pla orm, though not ini ally well received, quickly gained in popularity because of its small stature. Plymouth and Dodge “B” body cars made their debut in 1962. With a misunderstanding that Chevrolet would be downsizing their cars for that model year, Chrysler’s designers reworked their planned design on a shortened chassis. Though marketed as “fullsized” cars, the “B” body cars were in fact much smaller than Ford’s and Chevy’s offerings for the vehicle class, giving Dodge and Plymouth “B” bodies a clear advantage when fi ed with a V8 engine. Almost simultaneously, as Mopar bodies were shedding weight, Mopar engine op ons were ge ng bigger. The HEMI, now displaced 426-cid and when combined with the lighter Chrysler offerings made for a car that would break Ford’s grip on NASCAR and absolutely dominate the NHRA track. Just under the mid-trim for the 1964 model year, the Dodge 330 A864 was a historical step forward for Mopar’s legendary motorsport record. This par cular 1964 Dodge 330 HEMI Lightweight is one of just 55 examples made like it. It features an aluminum hood, scoop, front bumper, fenders and doors as well as an aluminum intake with dual offset Holley carburetors. Trading side glass for thin plas c and rear glass for lightweight Plexiglas encasing the car’s interior, it also features factory lightweight bucket seats, radio and heater-delete plates, and the rear seats were also deleted from the factory. Under the hood is a 426cid HEMI with a 12.5:1 compression backed by a race-prepped 727 TorqueFlite heavy-duty automa c transmission. The factory exhaust system implemented cutouts, a single muffler, and just one exhaust exit. According to a trustworthy history file, various invoices, and a Galen Govier report, this car is believed to be op oned as built with its original engine, although there are no iden fiable markings on said engine. Either way, as a righ ul predecessor to the legendary Charger and Roadrunner HEMI models, this 1964 Dodge 330 HEMI Lightweight would make for an awesome addi on to any collec on. Source: hƩps://www.motorious.com/

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Joyson finds falsified seat belt test data at former Takata plants An invesƟgaƟon showed test data on belt webbing, used for seat belts and child safety seats, were doctored at plants in Hikone, Japan and the Philippines. TOKYO -- Supplier Joyson Safety Systems’ Japan unit said Friday that it has found 1,000 cases of data falsificaon in seatbelt tests at two plants it acquired from former airbag maker Takata Corp. An inves ga on, which began in October 2020, showed test data on belt webbing, used for seatbelts and child safety seats, were doctored at plants in Hikone, Japan and the Philippines, Hisayoshi Iwamitsu, president of JSS Japan, told reporters. The test results, which looked at quality of the webbing, were altered to meet legal and client standards. Iwamitsu said JSS Japan has submi ed an inves ga on report to Japan’s transport ministry on Friday. Joyson Safety Systems is owned by China’s Ningbo Joyson Electronic Corp. but globally headquartered in suburban Detroit. The company is not planning a recall, he said, since reexamina on of the webbing showed no safety issues, and also because the 12 automakers that the company is supplying decided not to implement measures such as car inspec ons. As part of preven ve measures, the company introduced an electronic system in March that would prevent data from being falsified and is working on expanding human resources for quality management, he added. Takata’s faulty airbag inflators caused the auto industry’s biggest safety recall and have been linked to numerous deaths and injuries, mainly in the United States. The inves ga on also showed that data had been falsified at Hikone plant over a two-decade period un l Jan. 2020, overlapping with when Takata was embroiled in airbag scandals. “In response to the airbag issue, JSS group as a whole made various eﬀorts including establishing a code of conduct and enhancing compliance awareness among employees, especially those involved in quality management,” JSS Japan’s senior legal oﬃcial Kohei Hamamoto said. “Unfortunately, inves gators pointed out that wasn’t enough,” he added. Source: www.autonews.com

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May - June 2021

Jeep Brings Taste of the Electric to Moab Safari

With the Ford Bronco and the reimagined and electrified Hummer set for comebacks, Jeep is upping its game and green cred with new concepts. The landscape is changing for Jeep. The venerable brand hasn’t faced serious oﬀ-road compe ter part of a decade or more.

on for the bet-

But with the Ford Bronco and Hummer — reimagined and electrified under the GMC brand — set for comebacks, Jeep is upping its game and green cred with new concepts. Jeep has combined electrified power and the internal combus on engine with oﬀ-road prowess to engineer the set of custom-built Wrangler and Gladiator concepts. The Easter Jeep Safari in Moab, Utah — Saturday, March 27, to Sunday, April 4 — is the tes ng ground for the newest 4x4s, capped by the first ba ery-electric vehicle from Jeep — the Magneto — another milestone in Jeep’s quest to become the greenest SUV brand.

Magneto The Magneto, based on the two-door Wrangler Rubicon, is equipped with a custombuilt axial flux electric motor that revs up to 6,000 rpm. The motor is connected to a six-speed manual transmission, crea ng a powertrain with a clutch that operates as it would with an internal combus on engine. Jeep says the compact motor delivers up to 273 pound-feet of torque and 285 hp. Calibra ons permit the powertrain to emulate the driving experience, torque and horsepower of a V-6 engine. The Magneto concept runs 0 to 60 mph in 6.8 seconds, Jeep says. Continued on Page 7

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Continued from Page 6

Red Bare The Red Bare concept is a Gladiator Rubicon equipped with a turbocharged 3.0-liter EcoDiesel V-6 engine, rated at 260 hp and 442 pound-feet of torque, with standard stop-start technology. To handle greater torque loads, the V-6 connects to a TorqueFlite 8HP75 eight-speed automa c transmission, calibrated for low rpm shi s and to maneuver over rigorous terrain. The Red Bare features a 91:1 crawl ra o to tackle tough trails.

Jeepster Beach The Jeepster Beach concept started as a 1968 Jeepster Commando and was blended with the performance of a 2020 Wrangler Rubicon. The Jeepster Commando, created around growing interest in leisure use of 4x4 vehicles, was the first compact fourwheel-drive vehicle with an automa c gearbox. But unlike the Jeep CJs of the me, it featured modern standard ameni es: doors, roll-up side glass, a heater and a roof. The Jeepster Beach features a 2.0-liter turbocharged four-cylinder engine with a custom, concept calibra on that increases output about 25 percent above the produc on version, to 340 hp and 369 pound-feet of torque. The interior features lowback bucket seats trimmed in red leather. The rear seat was replaced with a chrome four-point safety cage, and the carpets were removed to make cleaning out sand a cinch.

Orange Peelz With the Orange Peelz, based on the two-door Wrangler, Jeep pays homage to unbridled openair endeavors. Mopar designers enhanced the Wrangler’s open-air heritage by removing side and rear windows, installing prototype Jeep Performance Parts half-doors and a custom removable one-piece glass sunroof. The Orange Peelz is powered by a 3.6-liter Pentastar V-6 engine with 285 hp and 260 pound-feet of torque, bu oned to a TorqueFlite eight-speed automa c transmission. The powertrain is upgraded with a cold-air intake and cat-back exhaust system, both from the performance parts division. Source: www.autonews.com

The exchange of information by like sized dealers in a non-competitive environment.

May - June 2021

The Big Adventure - with Susan McDaniel

The mountain in the background is known as Squaw Peak. It is 2,610 feet and is the second highest point in the Phoenix Mountains, a er Camelback Mountain, and the third highest in the city of Phoenix, Arizona. The trail op on that my friend Jill and I decided to take is the Mesquite Double Black Diamond. This means it is for hikers whose skills have progressed beyond the advanced level; this isn’t exactly us. Did I men on that it was 1.18 miles up?! Our adventure started at 9:00 in the morning back in April. Lucky for us, it was s ll in the low 70’s. That is a treat for us Arizonians. We saw all types of people and all ages while on the trail. The shoes that some people chose to wear were hilarious! Sandals, Vans, Berkinstocks. This trail was pre y rocky terrain; I don’t know how they managed! The Berkinstocks guy was told that there was a Starbucks at the top so he was walking pre y fast. He had some really mean friends! It took us 1 ½ hours to get to the top and there were people actually running back down. One guy said that he climbed the mountain every day a er running three miles. My hero. There was another fellow hiker smoking a joint at the very top. I don’t know if he ever made it back down. He could not stop laughing. I don’t know if it was the cannabis or us! Anyways, we had a great me. I think I lost my hiking partner though. We had no idea what we were ge ng ourselves into with this par cular trail but our three hour journey was awesome and exci ng with the most amazing views of our beau ful city.

Next stop: Mount Kilimanjaro!

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Tavares gives Chrysler, other brands 10 years Stellan s CEO Carlos Tavares says he’s affording each of the new company’s 14 brands a decade to execute a successful business plan. Fiat Chrysler is no more, but Fiat and Chrysler have been given at least another decade to show they’re worth keeping around. Stellan s CEO Carlos Tavares says he’s affording each of the 14 brands melded together from Fiat Chrysler Automobiles and PSA Group a 10-year window to execute a business plan. For Chrysler, a brand in need of direcon and more products, looking to 2031 is a tall task. With a lineup of only two minivan nameplates and the aging 300 sedan, making it that far without a major infusion of metal will be difficult. Interim Chrysler chief Tim Kuniskis, if he remains in the role, will have his work cut out for him in forging a game plan for the brand that will hit the century mark in 2025. But whoever has the reins in the coming years, it appears they’ll be given the opportunity to put Chrysler on a different path. Some say the brand is vulnerable and needs to find a purpose. Others, including dealer council Chairman David Kelleher, believe Chrysler could use a crossover and even another car — possibly on a PSA pla orm — to flesh out the lineup.

Don’t ‘kill what you love’ Instead of making any immediate decisions, Tavares is giving brand leaders 10 years, during which they’ll have funding along with the chance to build and carry out a long-term vision. “We love them all,” Tavares said of the brands. “You do not kill what you love.” Brand heads will be given an opportunity to “plan for the diﬀerent product launches and diﬀerent technologies to make the brand grow, or the brand rebound, and create value for the company so they have a chance,” Tavares said last week during Automo ve News’ Congress Conversa ons series. Tavares believes giving execu ves a decade to execute a vision is unique in the industry. “How many brand CEOs in the world have visibility of a 10-year funding for technology and product to organize the growth?” he asked. “That’s what we are giving them so they have a chance. If they win, we will applaud. If they lose, then we’ll see what we do.”

Diversity ‘big strength’ Tavares touched on a variety of topics during the interview, including his outlook on China, the development of the merged company’s culture and how Stellan s completed the union two and a half months sooner than planned. Continued on Page 10

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May - June 2021

Continued from Page 9 Prepara ons for the blockbuster merger had to be carried out during a pandemic that upended society and forced the auto industry to adjust how it produced and sold vehicles. The FCA and PSA teams, who Tavares said were tremendously eﬃcient, were able to complete the e-up quicker than an cipated despite a process that included the filing of 12,500 documents from December 2019 to January 2021. Four months into the merger, Stellan s’ culture is taking shape. But Tavares says it will take me to define. When a company execu ve asked him what the culture is, he answered: “One that we will select a er a few years of working together.” Whatever emerges will be derived from diverse viewpoints gleaned from those who have operated around the globe.

This diversity, Tavares said, is a “big strength” because it gives the company “a higher capability to understand the world and understand the markets in which we are opera ng, and it also brings more diﬀerent ideas and angles from which we can look at the problems and make the best possible decisions for the company.” For the me being, Tavares said, “we don’t try to figure out what is our culture. We just consider that being diverse is a compe ve edge, and we are happy with that.”

Regions for growth Looking ahead, Tavares sees Africa, Asia, La n America and the Middle East as regions where Stellan s can con nue to grow. He said the company already is strong in La n America, where it’s a market share leader, but he said it can s ll be more eﬃcient there. In Africa and the Middle East, Stellan s is gaining market share and has “very significant plans to enhance the capability to source in the region for the region,” he said. India is progressing, but the automaker is looking to address weakness in China. “We are now, as you know, reengineering completely our strategy in China, as it has not been successful both for FCA and PSA in the past,” Tavares said. “So we are now nego a ng and changing very many things at core — not on the surface, but at core.”

Source: www.autonews.com

Mopar Masters Guild Magazine

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The View From My Oﬃce

With Kat Monteiro

Here we are again, almost the end of June. Time has really flown by. Things seem to be ge ng be er somewhat with the whole COVID thing. People are ge ng vaccinated and it’s easier now than ever to get a vaccine shot. California is doing very well on ge ng a good majority of our popula on vaccinated and as of the 15th of June we are now open for business. I was sorry to hear on the news that some states might have opened up a li le too soon without a good part of their populaon being vaccinated and are again experiencing surges in cases of COVID. The airplanes are flying and are packed with people anxious to get out and go somewhere. I’m not sure what I’m supposed to do, for over a year now we’ve been wearing our masks and now I really don’t know how to go out without it on and I’m not sure I’m ready to take it off in all situa ons yet. I am s ll working at our front retail parts counter and I’m s ll loving it. Maybe in the Fall I’ll get back out on the road and start visi ng customers again if everything goes well. I do enjoy talking with customers and helping out where I can. We have been crazy busy in the parts department which is a good thing. Things at home are about to change again. Our daughter Terra who has been home and going to school for Avia on Mechanics has since finished her program and got her cer ficate of comple on. She has spent the last two and a half years going to school in a very intense program and has done very well. She has really enjoyed it so that makes all the difference. She finally found her niche and I believe she is going to be happy doing this kind of work. We are very proud parents. I am pleased to announce that she has already been offered a job at Duncan Avia on in Lincoln Nebraska. In fact, we will be making a road trip out there at the end of this month to move her. We have already been out there a couple months ago and found her an apartment to live in for her and her dog. She starts her new job on July 12th. Duncan Avia on has a very good reputa on in Lincoln Nebraska and seems like a really great company to work for. We are all very excited for Terra to start her new adventure! She will be an Airframe Tech working on corporate and business jets. I am sure I will have plenty to tell all of you in the next issue of the MMG magazine about our trip back there. Her and I will be driving our Ram Diesel truck, towing her car on a car trailer, with her dog! We plan on driving two days, 10 hours each day, so 2 nights in a pet friendly hotel, and then get to Lincoln on day 3. Sounds like a great adventure! I am so excited for her, but I know I am really going to miss her. I have already checked in with Lyne e Oakes and let her know she was coming. I know they are not in Omaha anymore but at least they are only 2 hours away if she needs something. Continued on Page 12

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May - June 2021

Continued from Page 11

Rick and I had a li le bit of an adventure a couple months ago that many of you die hard Mopar fans will appreciate. Some friends of ours who live in Los Angeles sold their company, re red, bought some property in Montana where they plan to build their house, and in the mean me are going to live in their travel trailer on said property. Kathy Grisham has been good friends with Rick since high school, and her husband Tom has always been interested in building cars and motorcycles. Well, since they were moving, and his sister was selling their childhood home, it was me to clean out the garage.

So, Kathy got in touch with Rick and asked him if he would be interested in some Mopar engines that Tom had stowed away in his parents garage, hoping that someday he would rebuild them and put them in a project car. Rick said of course! We didn’t want them for us, but we would have no trouble finding people who would want them. Continued on Page 13

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Continued from Page 12 So off to Riverside County we go in the #8 parts truck, the truck we call our Powertrain Truck because it is the big 2500 Hemi truck with the power li gate on the back - much needed in situa ons like these! We get there and back up to the garage - and while Kathy and I watched - Rick and Tom pulled out the engines and carefully, without hur ng themselves, got them up and loaded in the truck. It was quite the task! Having that power li gate made all the difference and really was the star of the show. Before we le , we contacted Chuck Finnley. Chuck is a huge Mopar fan. He worked for Rick as a parts advisor for many years and was really good at it. He really connected with people who loved old Mopar cars. When I am out in the field, I s ll have customers that ask about Chuck. People really liked him. He was always in the process of building his old Challenger. He re red 6 years ago or so but s ll maintains his passion for the old school cars. He has quite a li le collec on going. And he s ll goes to the car shows. So when Rick reached out to him about these engines to see if he knew anyone who would be interested in them he said “ME”!! (of course, he did!) So on day one Tom and Rick pulled these engines out of one garage and loaded them up into the truck, we spent that night at Rick’s mom’s house, then on day two Rick and Chuck unloaded them off the truck and into Chuck’s garage. It sure was a busy couple of days! At the end of the weekend we loaded and off loaded:  A 70 440HP2 Commando  A similar vintage 383 Long Block  And a 33 Plymouth 6 cylinder Flathead and transmission – it was completely rebuilt about 40 years ago and has been si ng in the garage ever since! Tom kept the Hemis and is dragging them to Montana with him! “Someday” he says……. It is really interes ng to me that these old dirty things will be someone’s treasure! So that’s my li le adventure story for this issue of the View From My Office! Never a dull moment. We are looking forward to seeing many of you in Florida in October!

Kat The exchange of information by like sized dealers in a non-competitive environment.

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May - June 2021

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XLI [LSPI 7IVZMGI HITEVXQIRX WE]W ƈSYGL Ɖ A fractured workflow in the Service department isn’t just a nuisance. It’s a threat to your profitability. But you can heal that fracture with service tools from CDK Global that streamline your RO process. Access customer data from previous transactions. Automatically assign repairs to techs based on their availability and skills. Easily quote services. Know if parts are in stock and roll them right onto the RO. Then, allow customers to approve work electronically. It’s all to put Fixed Ops workflow woes behind you. And a healthier bottom line in front of you.

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May - June 2021

The Changing Automotive Landscape

CONSUMER PREFERENCES IN SERVICE

We conducted a survey of consumers who had service work completed at a dealership to better understand their preferences toward online and digital offerings in fixed operations.

Available Option

Customers who prefer this option:

Customers who actually used this option:

Schedule Service Visit Online

72%

24%

Check-In Using a Kiosk

33%

Check-In Using a Mobile App

40%

Recieve Photos and Videos of Work/Issues

49%

16%

What does this mean for your dealership? When comparing consumer preferences to actual behavior, there appears to be a divide. Consumers continue to prefer more digital options in service such as text and email links, photo and video evidence, and additional forms of check-in and check-out using selfservice technology. The dealership that meets these new preferences is likely the dealership that will beat out the competition, increase customer satisfaction, and drive service profits.

For more insights on the changing automotive landscape, download the full report at reyrey.com/report.

Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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The exchange of information by like sized dealers in a non-competitive environment.

May - June 2021

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Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

REACHING 91,000+ REPAIR SHOPS EVERY MONTH Print & Digital Options to Grow Your Mopar Wholesale Business

06.21

STRATEGIES & INSPIRATION FOR AUTO CARE SUCCESS

WIN THE CUSTOMER COMEBACK

Fresh Perspective Caitlin Monson, director of sales and marketing for The Detroit Garage, has helped deﬁne a marketing vision to grow the shop's brand.

PAGE 43

ATTRACT TOP TALENT WITH PROFIT SHARING PAGE 47

MARCONI:

HOW TO KEEP FROM BECOMING OBSOLETE PAGE 25

BUILD A

HOMEGROWN BRAND A MARKETING CROSSROADS SPURRED THE CREATION OF A FULL- FLEDGED REPAIR GROUP PAGE 30

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May - June 2021

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Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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May - June 2021

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Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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Mopar Masters Guild Magazine

Leaders in the Sale of Quality Mopar Parts

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8 Factors Pushing Up the Price of Used Cars in United States

Values increased 21 percent from April 2020 through April 2021, with 10 percent occurring in April 2021 alone. As of April, the U.S. 12-month annual infla on rate was 4.2 percent. In the same period ending in April 2020, infla on increased 2.6 percent, according to the U.S. Labor Department. A closer look at the data shows used-car prices increased 21 percent from April 2020 through April 2021, with 10 percent occurring in April 2021 alone. New-car prices increased 2 percent in the same me frame. While dealers’ new- and used-vehicle inventories are greatly depleted, consumer demand is growing. The primary factors influencing U.S. infla on over the past year have been the funding and early spending of mul ple trillions of dollars on COVID-19-related federal government programs and roughly $2 trillion in Federal Reserve expansionary monetary policy since early in 2020. In addi on to tradi onal infla on causes, the following factors have fueled the boom in used-car prices, especially in the past four months.

1. Computer chip shortage. The global crisis is primarily due to disrup ons in the manufacturing and supply chain. It has delayed the produc on and sale of new vehicles, forcing otherwise new-car consumers into the used-car market and therefore driving up prices due to increased demand.

2. Growth in GDP. A er one of the worst first-half performances in U.S. history, the second half of 2020 registered one of the best back-to-back quarter performances in gross domes c product, with the economy growing 33 percent in the third quarter and 4.3 percent in the fourth. Continued on Page 33

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Leaders in the Sale of Quality Mopar Parts

Continued from Page 32 The U.S. was one of the top performing economies during the COVID-19 global recession and is expected to be a top performer this year, according to the U.S. Bureau of Economic Analysis and the Interna onal Monetary Fund. The economy grew at 6.4 percent in the first quarter and is expected to grow 10 percent in the second, according to the Federal Reserve Bank of Atlanta. Strong growth in the U.S. and global economies is pu ng pressure on raw materials and products. One of the strongest signs of recovery is that 13 million of the 21 million Americans who lost their jobs during the pandemic are working again.

3. Tax cuts. The federal reduc ons that were passed by Congress and signed into law in 2017 and took eﬀect in 2018 have provided relief for most American taxpayers. H&R Block es mated the average personal tax cut was $1,200 based on the tax returns the company processed in 2018. The savings have allowed greater household consump on.

4. Growth in wages. As the economy recovered, average wage rates in the U.S. in 2020 increased by 4.4 percent, according to the Bureau of Labor Sta s cs. Those addi onal dollars from produc vity and wage growth have aﬀorded more Americans the opportunity to buy a new or used car, again pushing prices upward.

5. Federal unemployment subsidies. A $600-per-week federal subsidy to state unemployment compensa on was ini ated during the early months of the COVID-19 recession and did not expire un l July 31, while the current $300-per-week federal subsidy expires at the end of September, aﬀording many unemployed workers the opportunity to purchase a used vehicle when normally they would not be able to do so. 6. COVID-19 s mulus checks. The federal government has provided three rounds of s mulus checks since April 2020. A family of four earning $150,000 or less would have been eligible for $3,400 in the first round of s mulus checks, $2,400 in the second and $5,600 in the February 2021 s mulus program. Many of these individuals purchased a new or used vehicle with the help of s mulus dollars.

7. Stock market wealth eﬀect. All major U.S. stock markets have rebounded from their steep declines in the early days of the pandemic and today are at or near record highs, giving many Americans the confident feeling of a stronger, wealthier country. This increased confidence and greater individual wealth is also contribu ng to the upward pressure on the price of new and used vehicles.

8. Replacing older automobiles. According to IHS Markit, the average age of an automobile on U.S. highways in 2014 was 11.4 years; by 2020, it was 11.9 years. For the rest of 2021, we believe interest rates will con nue to inch up and the chip shortage will improve in the second half. We also believe that the federal government’s s mulus checks and weekly unemployment subsidy will not be renewed. Therefore, we see used-car prices increasing no more than 3 to 4 percent annually in 2022 — good news for those who can aﬀord to be in the market then. Source: www.autonews.com ArƟcle wriƫen by: - Lisa McClain - The congresswoman represents Michigan in the U.S. House & Timothy Nash - Director of the McNair Center for the Advancement of Free Enterprise and Entrepreneurship at Northwood University

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May - June 2021

Average age of cars rises to 12.1 years: Study ‘Increase in average age will further drive vehicle maintenance opportuniƟes from an increasingly aged vehicle fleet.’ The average age of cars and light duty trucks in the United States has risen to 12.1 years this year, according to new research from IHS Markit. The average age has increased by nearly two months during 2020 and was elevated by the COVID-19 pandemic, the study found, adding that the increase in average age will “further drive vehicle maintenance opportuni es from an increasingly aged vehicle fleet.” The pandemic caused a “dras c reduc on” in new vehicle sales as well as a sudden increase in vehicle scrappage, which was a catalyst for increased velocity in the growth of the average age of light vehicles, IHS Markit said. But this trend is expected to be short-lived with 2021 seeing a return of new vehicle registra ons and increased ac vity in used registra ons. “2020 was a radical departure from the norm and challenged assump ons about how vehicle owners use their vehicles and accumulate miles,” said Todd Campau, associate director of a ermarket solu ons at IHS Markit. “From a vehicle fleet perspec ve, one of the real surprises was the number of vehicles that suddenly exited the ac ve popula on.” According to the analysis, the rate and mix of vehicles leaving the popula on point to the possibility that the volume may be inflated due to a larger percentage of vehicles that may not have been registered due to lags in state requirements for registra on renewals, more vehicles being put into storage due to COVID-19 restric ons in many loca ons, and work from home ini a ves, the study found. While new vehicle sales proved resilient in 2020, the most significant impacts to vehicles in opera on from the pandemic were felt in the rate of vehicle scrappage and vehicle miles traveled. Scrappage, the measure of vehicles exi ng the ac ve popula on, saw its highest volume in two decades at over 15 million units, and second highest rate at 5.6 percent of vehicles in opera on. Vehicle miles traveled declined year over year by over 13 percent in 2020 due to lockdowns and work from home policies. “Typically, an increase in scrappage rate would be expected to be a headwind to average age, but coupled with the lower new vehicle sales and reduced vehicle miles traveled, the combined impact proved to be a tailwind,” IHS Markit said. Continued on Page 35

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Leaders in the Sale of Quality Mopar Parts

Continued from Page 34

Looking forward This year oﬀers two related factors that are expected to mute average age growth, according to IHS Markit analysis. The ongoing microchip shortage is expected to con nue to challenge new vehicle produc on volumes through the fourth quarter 2021, but rounding out the year, IHS Markit expects U.S. light vehicle sales to reach 16.8 million according to current forecasts, which can be expected to mute average age growth. In addi on, during the height of pandemic, some vehicle owners may have allowed registra ons to expire because their vehicles were not being driven. “The microchip shortage and subsequent inventory levels for new vehicles have created a situa on in which used vehicle values have go en extremely high, so a vehicle owner who may have kept a vehicle in the garage that they were not using in 2020, now instead may take advantage of the opportunity to either reduce the number of vehicles in their garage, or trade up to something newer while the demand and value is extremely high on their used vehicle,” said Campau. “This is great news for the a ermarket as subsequent vehicle owners typically have a higher propensity to use independent repair shops for necessary maintenance and repair.” The combined impact of the factors at play in 2020 led to the first decrease in vehicles in opera on since 2012, with 279 million vehicles in opera on as of January 2021, down from nearly 281 million a year prior. That said, the industry is entering a period of strong growth in the a ermarket sweet spot — those vehicles 6-11 years of age — as record sales years begin moving into that age group over the next five years. In addi on, electric vehicles con nued to increase, with strong registra ons through 2020, IHS Markit found, pushing total electric vehicles in opera on to near 1 million units. The average age of electric vehicles in the U.S. is 3.9 years of age and has been hovering between 3.8 and 4.1 years since 2016 as the volume of new registra ons of electric vehicles con nue to represent a large share of overall EV vehicles in opera on. Nearly 90 percent of 2016-2020 model year EVs are s ll registered by their first owner, as compared to 68 percent of gasoline vehicles for those same model years. As EV’s begin to gain more market share and become more prominent in the used vehicle market, it is expected that their average age will begin to increase. At that me, the a ermarket will begin to see repair opportuni es shi in response to the increased EV market share.

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May - June 2021

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Mopar Masters Guild Magazine May – June 2021

Articles inside

Average Age of Cars Rises to 12.1 Years - Study Shows

Used Cars in the Untited States

NiTS Solutions

to Moab Safari

at Former Takata Plants

CDK Global

Kat Monteiro

1964 Dodge 330 HEMI Lightweight: The Beginning To A Mopar Racing Revolution Joyson Finds Falsified Seat Belt Test Data

Brands 10 Years

NiTS Solutions

Susan McDaniel: “30 Years!”