Truck Parts & Service 0916

Bergstrom Opens Retail Store | HDAW 2017 Announces Speakers

Growing with the times HOW DISTRIBUTORS CAN TACKLE AN EVER-CHANGING BUSINESS MODEL SEPTEMBER 2016 |

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DOTY Finalist: Weldon Parts The steadying influence of electronic stability control 20

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Volume 52 | Number 9 | September 2016

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Cover Story

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Growing with the times

/truckpartsandservice Truck Parts & Service

Editorial

Editor: Lucas Deal Equipment Editor: Jason Cannon Associate Online Editor: Jonathan Willis editorial@truckpartsandservice.com

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Features 12 Distributor of the Year finalist: Weldon Parts 20 ESC and the next wave of vehicle safety

Departments 1 2 6 11

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Editorial | Lucas Deal

Time for another round

By Lucas Deal, Editor lucasdeal@randallreilly.com

O

n August 16 the Environmental Protection Agency (EPA) and National Highway Transportation Safety Administration (NHTSA) jointly released their final rules for the next round of greenhouse gas emission and fuel economy standards for medium- and heavy-duty vehicles.

Just a few days later, the questions from readers started pouring in.

In an effort to be efficient and informative, I thought it would be best to answer as many as possible in this space.

Apologies in advance if I don’t get to your question, but with only one page to recap a nearly 1,700-page document, there is no way I can get to everything.

How do these regulations impact current standards?

The simple answer here is they don’t.

The new regulations released last month are Phase 2 of the EPA and NHTSA’s joint regulations. They have been written specifically to stack on top of the Phase 1 regulations in place today, and will require no alterations to Phase 1’s current and future regulations that were introduced late last decade.

“The Phase 2 standards will maintain the underlying regulatory structure developed in the Phase 1 program, such as the general categorization of [mediumduty] and [heavy-duty vehicles] and the separate standards for vehicles and engines,” regulators say.

The final round of Phase 1 regulations will go into effect with model year (MY)

2

2017 engines—most of which manufacturers have already introduced in the marketplace—and Phase 2’s regulations will begin with rules for trailers in MY 2018. The first engines and tractor regulations will take effect in 2021.

The rollout of Phase 2 will be much smoother than Phase 1 What equipment is impacted by the regulations?

Unlike Phase 1, which required only engine alterations to meet new emission and fuel economy standards, Phase 2 requires full-scale changes.

In addition to engines, new standards also have been developed for “combination tractors; trailers used in combination with those tractors; heavy-duty pickup trucks and vans; and vocational vehicles.”

In adding equipment to the greater regulations, the EPA and NHTSA believe Phase 2’s final rule will lower CO2 emissions by approximately 1.1 billion metric tons and save vehicle owners about $170 billion in fuel costs over the life of the program.

Why was this necessary?

I received a few variations of this question. The two reasons regulators point to are conservation and safety.

Reducing our reliance on fossil fuels is

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

a priority not just for the Federal government but for fleets as well. Every truck owner in North America searches for ways to lower fuel costs. Both Phase 1 and Phase 2 provide that—though admittedly with an additional up-front cost.

The emission standards are a safety feature. The EPA has identified commercial vehicle emissions as an obstacle in improving air quality nationwide and has made it a focus.

How will these new regulations impact my customers?

That depends on your customer base.

If you serve large fleets or government fleets, I’d expect some changes. The good thing is there’s reason to believe the rollout of Phase 2 will be much smoother than Phase 1.

On the engine side, manufacturers are much better prepared for Phase 2 after withstanding Phase 1. And the tractor and trailer standards, while new, are within reach using aerodynamic designs and equipment available in the market today.

Prices for MY 2019 trailers and/or MY 2021 tractors will surely go up, but it’s unlikely they’ll be viewed as cost prohibitive.

If your customer base is rolling with older model year equipment, it’s more likely you’ll need to prepare for Phase 1.

Retail prices for Phase 1 engineequipped tractors are dropping rapidly.

These are your customers’ next trucks.

You’ll need to stock the engine and after treatment components to keep them on the road.

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Editorial | MacKay & Company

Parts Kitting: Adding value for your customer

By Lynn Buck MacKay & Company

I

do a little home garage wrenching when I find the time. The other day I ordered a sensor online and when it arrived, I was dismayed to find the necessary o-ring did not come with it; I should have ordered a second part number. This delayed my repair and left me frustrated that the online site did not list the gasket as a complimentary part or simply include it in the box.

Granted, I should have studied the description a little more …

Coming from the parts business, I know why this happens. The distributor gets the sensor from one supplier and the o-ring from another. Parts come in separate shipments and are then placed in separate bin locations in their parts warehouse. The computer doesn’t know they belong together unless someone tells it.

In this increasingly competitive market, distributors need to set themselves apart from the competition. One way is to implement parts kitting solutions for your customers. If you hand a customer a more convenient way to do something, chances are, if it is a good value, they’ll take it.

Step One: Do a detailed analysis of your sales data. Where do customers buy related parts together on a regular basis.

Offer the customer the opportunity to purchase those parts as a kit.

For example, does a customer seem

to continuously purchase a water pump and gasket as separate line items? Why? You know and they know the gasket is needed, so why not sell it as one SKU? This saves your customer time in ordering and from hunting down yet another part both in your parts catalog or website as well as in their own parts department.

Convenience, lower labor cost and less downtime are universally an easier sell.

Other potential kit ideas: ■ PM kits: Create different SKUs by recommended maintenance intervals. Depending on the interval, include oil, air, fuel filters and other necessary items like belts, drain plug washers, etc.

■ Wheel bearing kits: Seals and bearings, castle nut, pin; per wheel end or per axle ■ Brake kits: Calipers, rotors, pads; rotors and pads and related hardware ■ Any part that requires a gasket: Include a new gasket ■ Parts that require new bolts or fasteners: Include the bolts or fasteners

Step Two: Interview your customer.

With what tasks are they having a particular problem? Which jobs have become costlier? Become a solution provider.

In my prior life at a parts distributor, we had a customer who had a lot of drum brakes in their light-duty truck fleet, but didn’t like the downtime necessary to change them out piece by piece. We set up a rebuilding shop in our parts warehouse and rebuilt their drum brakes—repainting the backing plates and fastening new shoes and hardware.

The new SKU became a bolt-on solution. It cost more than the individual parts, but the new solution saved in labor and downtime.

Step Three: Analyze your inventory.

Do you have excess stock in brake pads?

Putting parts into a kit can help move excess inventory. What parts should be sold together?

Kits may cost a little more in your upfront labor and should be priced accordingly. Most of the kits listed above are parts that would have been placed in the same box for shipment anyway. You are just doing that upfront instead of on the packing line. So, in most instances the incremental cost should be negligible.

The ROI has to be there, but convenience, lower labor cost and less downtime are universally an easier sell.

Lynn Buck, information technology analyst, joined MacKay & Company in November 2012. His background includes more than 15 years of data analysis and reporting in a variety of settings. Most recently, he has performed the roles of pricing manager and inventory manager for two aftermarket parts distributors. Prior to that, he analyzed markets for new parts and service locations for Navistar.

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Industry Focus

Dealer News Rush Enterprises announces Rush Truck Center – Asheville has moved to a new facility.

White’s International Trucks has acquired American Truck Center, Inc. West Carolina Freightliner Western Star, LLC, will open a new facility in Canton, N.C. Landmark Trucks of Knoxville, Tenn., is holding annual open house for customers Sept. 16, 2016.

Worldwide Equipment has released the dates for its annual Open House events at its facilities later this year. The company will hold nine open houses, beginning Sept. 8 and concluding on Oct. 20.

Truck Centers of Arkansas recently partnered with the Make-A-Wish foundation to grant a wish to a fourteen-year-old battling cancer.

Wisconsin Kenworth recently celebrated the grand opening of its new dealership near Madison.

The Nebraska School Activities Association (NSAA) has announced Truck Center Companies as a supporting partner of the NSAA. AMG Peterbilt Group of central and southern Ohio will hold an open house and vendor fair for customers on Sept. 15-16, 2016, at the Greater Columbus Convention Center.

Tallman Group has completed the acquisition of Tru-Nor Truck Centres.

Ryan Deleon of Summit Truck Group’s Lowell, Ark., facility earned top honors at the fourth annual Summit Truck Group Technician Rodeo on Saturday in Springfield, Mo. Nathan Holden, from Little Rock, Ark., finished in second place and Jonathan Metz, from Russellville, Ark., finished third.

Bergstrom Opens Store In Texas

ZF Making Move To Purchase Haldex

Bergstrom has opened a new facility in Rockwall, Texas, designed to enhance service for customers located in the Southwest region of the United States.

“This expansion illustrates why Bergstrom has become a recognized leader in the commercial vehicle heating and cooling industry,” says Bill Gordon, president of Bergstrom Parts LLC. “We will go to great lengths to ensure our customers receive same day or next day delivery of our OEM-quality parts – and the new Dallas plant is evidence of this.”

Bergstrom says the new facility will stock popular truck HVAC parts, Bergstrom Standard Products HVAC systems for trucks and commercial vehicles and aftermarket school bus and shuttle bus AC parts and systems.

ZF has made a public offer of $516 million to purchase Haldex. The news comes less than a month after SAF-Holland offered $495 million for Haldex.

ZF says it has obtained an undertaking to accept the offer from Göran Carlson, Haldex’s Chairman of the Board and the company’s largest shareholder (at 5.7 percent). The offer has been unanimously recommended by Haldex’s board of directors.

A business combination of Haldex and ZF represents an outstanding opportunity for both companies to jointly expand their value to the customer in the supply for commercial vehicles in the field of drivetrain and chassis, including brake and air suspension solutions as well as for future megatrends in mobility as outlined in ZF’s Strategy 2025, ZF says.

“We believe that our businesses are truly complementary and that a combination will offer unique value for all stakeholders,” says Dr. Stefan Sommer, CEO at ZF.

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

Industry Focus

APRA Debuts Core Finder The Automotive Parts Remanufacturers Association (APRA) introduces its new APRA Core Finder, the which the organization says allows its members to quickly and easily locate difficult to find cores.

APRA says using the system works as follows: ■ Members provide APRA with detailed information about the cores they most commonly need ■ APRA quickly distributes the

requests to participating APRA core supplier members in good standing ■ APRA core suppliers review the requests and may directly contact member to reach a solution

APRA says interested parties (members and core suppliers) can sign up for APRA Core Finder by emailing cores@ apra.org, or visiting www.apra.org/ CoreFinder.

People In The News Yokohama Tire Corporation (YTC) has promoted Dan Funkhouser to senior director of commercial sales.

Dan Young has been named product Funkhouser manager for steering and trailer products at Dayton Parts.

Reyco Granning has promoted Christy Meirick to director of Aftermarket Sales.

Meirick succeeds Steve Meirick Denny, who has retired.

SmartTruck has appointed Dean Ford as regional sales director.

Phillips Industries has hired Thomas “Tom” Begin to fill the new role of director of in- Ford novation and emerging technologies.

Don Holt, former executive at Hastings Diesel Service and past president of the Council of Fleet Specialists (CFS), has died. He was 70.

Steve Boyer, president of Fontaine Modification Vocational Services, has left the company to work on a special project for Fontaine’s parent company, Marmon Highway Technologies. Dan Sacconi also has been named general manager of the new Fontaine Modification’s new facility in Avon Lake, Ohio.

Total Truck Parts has promoted Dale Haywood, formerly transit sales manager, to director of marketing.

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Industry Focus

Truck Parts & Service Calendar Event information can be submitted at: www.truckpartsandservice.com/story-ideas/

Sept. 19-22

TMC Fall Meeting & SuperTech Competition, Raleigh, N.C.

Oct. 5-8

Service Specialists Association (SSA) Convention, Charleston, S.C.

Oct. 17-21

VIPAR Heavy Duty Annual Business Conference, Orlando

Oct. 20-22

International Truck Parts Association Fall Meeting, Ponte Verda Beach, Fla.

Nov. 1-3

AAPEX/SEMA Show, Las Vegas

RTS Rig Parts And More Joins HDA Truck Pride

Nomination Period Open For Remanufacturing Award

HDA Truck Pride has added Lubbock, Texas-based RTS Rig Parts and More to its member network.

RTS Rig Parts and More was founded by Raymond and Rachel Gutierrez in 2014 to service the needs of area oil fields. The 3,400 sq. ft. Lubbock facility is strategically located on a main thoroughfare less than a mile from I-27 through the Texas panhandle, HDA Truck Pride says.

“We’re thrilled to welcome RTS Rig Parts and More to the HDA Truck Pride team. It’s a great time to be in the commercial vehicle aftermarket and we’re fortunate to be a partner in their growth as they move forward within the commercial vehicle market,” says Tina Alread, director of Sales and Marketing at HDA Truck Pride.

ReMaTec News is now accepting nominations for the publication’s annual Remanufacturer of the Year award, which it has presented annually since 2005 to an automotive and/or commercial vehicle remanufacturing individual or company that has served the reman industry with particular distinction.

ReMaTec News says the award seeks to honor those who have made a special contribution to the remanufacturing industry, an individual that has shown a continuous excellent performance or whose efforts have proven to be make real difference – to the industry or a specific industry segment.

Nominations can be sent to info@rematec.com.

University Of The Aftermarket Scholarship Created For Jim Moss The University of the Aftermarket Foundation will award two scholarships each year in memory of Jim Moss, founder and long-time publisher of Truck Parts & Service.

“A group of aftermarket veterans and friends came together to honor Jim’s legacy and because of their generosity, two deserving students will be awarded scholarships each year from the University of the Aftermarket Foundation in his memory,” says Tim Lee, MAAP, chairman of the University of the Aftermarket Foundation. “This is a fitting tribute to a man who did so much to support and advance the heavy-duty aftermarket.”

To make a donation, visit www.UofAFoundation.com or call Barbara Cunningham at 816-584-0511.

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

HDAW Announces Jeffrey Hayzlett As 2017 Keynote Speaker Jeffrey Hayzlett, radio and television host, author and business celebrity, has been announced as the keynote speaker for the opening general session of Heavy Duty Aftermarket Week (HDAW) 2017.

From small businesses to international corporations, HDAW organizers say Hayzlett’s creativity and extraordinary entrepreneurial skills have enabled him to lead ventures blending his leadership perspectives, insights into the C–suite and business strategy, mass marketing prowess and affinity for social media.

Hayzlett is the host of C–Suite TV and CBS Radio’s Play. it and C–Suite Radio. He has been cited in Forbes, SUCCESS, Mashable, Marketing Weekand Chief Executive, among many others, and he also shares his executive insight and commentary on television networks like Bloomberg, MSNBC, Fox Business, and C–Suite TV.

Industry Focus

Minimizer’s Breau Earns FleetBrake Award

Firestone Debuts New Product App

Minimizer Territory Manager Bud Breau has been named Fleet Brake’s 2016 Manufacturer Representative of the Year.

“To us, Bud is Minimizer,” says Fleet Brake Vice President of Sales Tim Douglas. “We would feel guilty now if we were to sell any other line of poly fender.”

“I am truly honored to have received such a prestigious award,” Breau says. “The folks at Fleet Brake are some of the best in the industry, and I am truly humbled by this honor.”

Fleet Brake’s executive team as well as all 14 branch managers vote on the award, which the company says has been issued the last four years.

“Our criteria are a rep who is a true expert in their field, as well as a guy who is passionate about customer service, the industry and their products,” Douglas says.

Firestone Industrial Products introduces the Firestone HD Air Springs app, an offline application the company says brings frequently sought resources and product information directly to its customers’ fingertips.

Compatible with both Apple and Android platforms, Firestone says the free app is a practical tool for an industry that operates around the clock.

“We engineered the app to be both convenient and comprehensive so anyone who works with our air springs—whether they are in sales, distribution, maintenance or the drivers themselves—can find the information they need, when they need it,” says Corneliu Bogdan, sales manager, heavy duty aftermarket and OES. “The digital tool is an intuitive and cost-effective way to ensure the industry has access to our most current information and fills a void our customers currently experience.”

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Tech Updates

SAFETY RECALLS Bendix Commercial Vehicle Systems, LLC, is recalling certain SR-5 Trailer Spring Brake Valves manufactured Jan. 1, 2014, to March 4, 2016. These brake valves were improperly machined without a radius on the internal check valve seat, causing a delay of application of the spring brakes while parking. If there is a delay of the spring brake application, the trailer may roll away after it has decoupled from the tractor, increasing the risk of a crash or injury.

Blue Bird is recalling certain model year 20162017 Vision transit buses manufactured Sept.

24, 2015, to May 21, 2016, equipped with 6.8L Ford engines and Gen 3 propane units. The affected vehicles have propane fuel lines that may rub or are crossed and secured together, possibly resulting in line damage and a propane fuel leak.

A propane leak In the presence of an ignition source may increase the risk of a fire.

Forest River is recalling certain model year 20112016 Glaval Titan II Low Floor CNG transit buses manufactured Dec. 30, 2014, to March 7, 2016.

The affected buses may have frames that may crack.

A cracked frame may reduce the driver’s ability to control the vehicle, increasing the risk of a crash.

The following are safety recalls issued by the National Highway Traffic Safety Administration:

Mack Trucks is recalling certain model year 2013 Pinnacle (CXU) trucks manufactured April 16, 2012, to May 4, 2012. These vehicles are equipped with certain Meritor FF967 non-drive front steer axles that may have been incorrectly heat treated. The improperly heat treated axles may fracture, resulting in a loss of vehicle control and increasing the risk of a crash.

Spartan Motors USA is recalling certain model year 2014 Transit Bus Chassis Cabs manufactured Jan. 29, 2014, to Dec. 1, 2014, and built to be completed as transit buses powered by compressed natural gas (CNG). These chassis cabs have frames that may crack. The cracked frame may reduce the driver’s ability to control the vehicle, increasing the risk of a crash.

Navistar is recalling certain 2016-2017 IC Bus CE school buses manufactured June 15, 2015, to May 20, 2016, and RE school buses manufactured June 18, 2015, to April 27, 2016. These buses may have been manufactured without reflective outline tape around the emergency exit roof hatches. As a result, these vehicles fail to comply with the requirements for Federal Motor Vehicle Safety Standard (FMVSS) number 217, “Bus Emergency Exits and Window Retention and Release.” Absence of the reflective outline tape may reduce conspicuity of the emergency exit roof hatches, reducing the ability of emergency personnel to identify and gain access to the emergency roof hatches, possibly increasing the passenger’s risk of personal injury or death during an emergency.

Tiffin Motorhomes is recalling certain model year 2007-2011 Allegro, Allegro Bus, Phaeton, and Zephyr motorhomes, 2007-2010 Allegro Bay motorhomes, and 2010-2011 Allegro Breeze motorhomes. The windshield wiper arms on the affected vehicles may break off. If the windshield wiper arms break, the driver’s visibility may be reduced, increasing the risk of a crash.

TYPICAL DISTRIBUTOR

Volvo Trucks North America is recalling certain model year 2013 VNM and VNL trucks manufactured April 16, 2012, to May 4, 2012. These vehicles are equipped with certain Meritor FF967 non-drive front steer axles that may have been incorrectly heat treated. The improperly heat treated axles may fracture, resulting in a loss of vehicle control and increasing the risk of a crash.

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By Lucas Deal, Editor lucasdeal@randallreilly.com

DOTY Finalist

Weldon Parts

P

roviding quality products and customer experiences has been a priority at Weldon Parts since day one.

Just take a look at the name: You can’t spell well done without Weldon.

“That comes from way back when we first started,” says President Dave Settles, referring to his company’s inception by his father (Leon) and uncle (Dean) in 1955. “They wanted to build well done skids; to do a job well done.”

More than six decades and 18 locations later, it’s clear the duo’s initial message hasn’t been overlooked. While nearly everything else about the company has changed, Weldon Parts continues to thrive because the people at Weldon Parts remain committed to a job well done.

“We’ve always tried to be more a resource than just a vendor [for our customers],” says Settles, the second generation of his family to lead Weldon. “We want to be a supplier, yes, but we also want to have ongoing relationships with our customers.

“We want customers to think ‘I’m going to reach out to [Weldon Parts]’ when they have a problem.”

That’s actually what brought Weldon into the truck parts business in the first place.

Weldon Industries was originally formed as a manufacturer of metal skids used in the paper industry. Dean was the builder and Leon made the sales. But not long after opening, the brothers began receiving requests for help from customers in other areas — specifically trucking.

By the end of the decade Weldon Industries also was providing truck repair and selling parts “out the back door” in an effort to please a growing customer base. Truck parts would

Weldon Parts at a glance

Source: Google Maps, Weldon Parts

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

A veteran management team powers business at Weldon Parts, training employees and instilling a culture dedicated to customer satisfaction.

become the company’s dominant business not long after.

It also would lead to the company’s largest change to date — a 1975 split that saw Leon debut Weldon Parts in Oklahoma while Dean maintained control of Weldon Industries.

For more than 30 years the two businesses operated separately on parallel tracks across the Midwest. Dean and his family grew the Weldon Industries brand in Nebraska, while Leon — and later Dave, his brother Darryl and other members of the family — expanded Weldon Parts into Texas, Arkansas, Missouri and even Florida.

“We’ve been in Orlando since the mid-’70s,” Dave says.

The two businesses eventually joined back into one in 2011.

Settles credits his veteran management team for making the transition nearly seamless.

“I’m a big believer in delegating, and you can do that if you have a lot of good people,” he says. “We’ve been fortunate that over the years we’ve been able to find and keep some very good people.”

He says they’re the ones that keep the ‘well done’ spirit alive.

“Our managers and all of our people that travel, they work together as a team to promote our culture throughout the business and you have to have that,” Settles says. “You have to be consistent with your messaging.”

And it’s clear from the company’s success that they’ve done that. Once a customer comes to Weldon, they stick around.

“We have long-term customers everywhere,” Settles says.

“We still have original customers that buy from us.”

Weldon Parts has 18 locations in six states, and is one of the larger distributors by geographical coverage area in the independent aftermarket.

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Cover Story

By Jonathan Willis, Associate Online Editor jonathanwillis@randallreilly.com

Growing with the times

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

Cover Story

How distributors can tackle an evolving business model

I

n an ever-changing and competitive market, aftermarket distributors are constantly looking into new avenues of growth and expansion.

The business climate is much different than just a decade or so ago, so distributors have many new ways of tapping into their markets.

Whether that’s through an extended product line, offering more trainable and teachable elements to their own business or tapping into the huge growth in e-commerce, distributors who stay on top of change and tackle those issues head on will benefit most.

So, just how does an existing distributor expand its reach within its market and reach out to those just a little farther down the road?

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Cover Story

Keep up with the times Kristen Phipps, director of marketing for HDA Truck Pride, says there are several ways a distributor can grow and blossom in today’s market, but added that a couple seem to be more prevalent than others.

“E-commerce is the No. 1 key right now,” says Phipps.

“More and more parts are available through e-commerce and online catalogs than any time before and that opens distributors up to customers all over.”

HDA Truck Pride offers training, sales and service support, and marketing programs all focused on growing that area of the business for its members and service experts, the company says.

Phipps says companies that specialize in truck parts face new competition from auto parts chain distributors on one side and from industrial distributors on the other.

She says it’s important for independent parts distributors to keep up with changes in technology, such as electronic logging devices, so they can be in a position to supply replacement parts or to service the products when they break down.

“Another important key in the aftermarket parts industry is having more information available through telematics,” Phipps says. “There is much more information available now when someone stops by and needs a diagnostics test ran.”

Staying on top of technology Bill Gryzenia, chief executive officer of AxleTech International, says “the commercial vehicle aftermarket is rapidly changing, and market dynamics affecting distribution channels, technology, product and service offerings will alter the way we do business.”

Gryzenia says technology often can

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Using service as a springboard has allowed Inland Truck Parts to grow substantially in the Great Plains. The company has even built a new technician training center to support its burgeoning technician staff.

be overlooked as a buzzword, but for the commercial vehicle aftermarket, it carries some very heavy weight behind it.

“Ten years ago, telematics in the commercial vehicle segment was dominated by one supplier – Qualcomm. Today, the market has countless solutions for collecting and tracking fleet data,” he says.

“Dealers, distributors and marketing groups understand the critical need for data collection from these telematics systems, which can be used for inventory planning and maintenance scheduling.

The collection and interpretation of data can be invaluable for the truck owner and a source of revenue for the telematics provider.”

Data collected from telematics help provide information on prognostics and preventative maintenance, which enables users to recognize issues earlier, so part failures can be addressed.

Telematics is expected to become a $50 billion market opportunity by 2020, with North America being the highest generating market.

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Provide customer service (centers) Sales of aftermarket parts for Classes 6-8 U.S. trucks, trailers and chassis represent a $30 billion-a-year business, with $16.3 billion more spent annually on replacement tires, according to data compiled by MacKay & Company.

John Blodgett, MacKay & Company vice president of sales and marketing, says truck dealers and OEMs control almost half of the market for parts based

Cover Story

Technology is here to stay and customers demand a great deal of information. It takes investment and planning for the future, but that’s what it takes in today’s time.

– Greg Klein, president of Inland Truck Parts

on the firm’s latest survey of U.S. and Canadian buyers and sellers. Heavy-duty distributors represent 19 percent of the market, with the remaining share made up of independent garages at nine percent; engine manufacturers and dealers at eight percent; specialists at six percent and parts distributors at four percent.

Greg Klein, president of Inland Truck Parts, says his company’s growth can really be attributed to adding truck service centers over the past 20 years. Now, they add one to two new locations each year.

Inland has even added its own stand alone, state-of-the-art training facility with dedicated technicians hired solely for training purposes.

According to MacKay & Company, the number of service centers is expanding, becoming a significant growth area for distributors. The total Class 6-8 aftermarket represents $107 billion, with half – $53.5 billion – on service labor.

While parts ($30 billion) and tires ($16 billion) are a significant part of the total aftermarket, they are insignificant in comparison to the size of the service portion of the business.

“You have to grow these people internally,” Klein says. “Technology is here to stay and customers demand a great deal of information. By having the

computer software and technology available, coupled with a well-trained service staff, we can stay on top of the customer’s demands and needs. It takes investment and planning for the future, but that’s what it takes in today’s time.”

E-commerce is here to stay By preparing for today’s market, distributors must look into areas that are constantly evolving – such as has been the case with e-commerce.

Blodgett notes that 2015 inventory levels in the industry were lower than that of 2014. He says MacKay & Company does not have specific statistics related to the growth of e-commerce, but he believes it’s playing a pivotal role in growth of certain distributors.

“I would certainly agree that it’s a major role,” he says.

According to a recent report by the Auto Care Association, e-commerce in the automotive aftermarket is the fastest growing channel for distribution and is expected to double in size to $13.2 billion by 2018, up from $6 billion in 2013.

Trends that aggressively start in the light vehicle market often make their way into the commercial vehicle industry, Gryzenia says.

“Because of new industry dynamics,

Because of new industry dynamics, including the rise of megadealers and e-commerce, the historic rules of the commercial vehicle aftermarket are changing rapidly.

– Bill Gryzenia, chief executive officer of AxleTech International

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including the rise of megadealers and e-commerce, the historic rules of the commercial vehicle aftermarket are changing rapidly. With the distribution model becoming much less restrictive, it is possible that the methods for delivery will change, making it easier for innovative thinkers to bring in new ideas on how to make the business model more efficient, user-friendly and especially cost-effective,” he says.

(Re)man up Remanufactured parts are another growth opportunity for distributors.

More and more options are now available for reman parts, particularly in electronics, an area that had been considerably behind.

Electronics is one of the highest growth segments in remanufacturing.

According to the Automotive Parts Remanufacturing Association (APRA), electronics now represent more than 30 percent of the average automotive vehicle’s content, and commercial vehicles are heading in the same direction.

It is a significant growth area for the commercial vehicle market, but it is also highly specialized. Some of the biggest brands are becoming key players, including Detroit Diesel, Caterpillar, Cummins, Delphi and Robert Bosch. Electronics could begin to compete with powertrain components for the fastest growing area in remanufacturing.

“Staying on top of trends and how it affects their business is a key component to growing distributorships,” Phipps says.

“Being able to put theories and trends into play on the roads is what makes them successful and grow.”

By Lucas Deal, Editor lucasdeal@randallreilly.com

Service Bay

A steadying influence

Electronic stability control and the next wave of vehicle safety 20

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

I

n less than a year the National Highway Traffic Safety Administration (NHTSA) will begin its rollout of Federal Motor Vehicle Safety Standard No. 136, a crash-avoidance mandate requiring electronic stability control (ESC) systems on new tractors and buses with a gross vehicle weight rating (GVWR) of greater than 26,000 lbs.

The standard, which was first introduced as a proposed rule in 2012 and was finalized on June 23 last year, is the latest in a string of regulations introduced by NHTSA and the Department of Transportation (DOT) in an effort to improve the performance and safety of America’s medium- and heavy-duty truck and bus fleet.

In the aftermarket, where such regulations don’t debut so much as trickle in over time, the ESC mandate is likely still a few years away.

But with manufacturers and vehicle owners in the home stretch

Service Bay

Stability control tests are designed to simulate a rollover situation and allow RSC or ESC systems to take control of a vehicle and correct before an accident occurs.

preparing for the new rules, it’s time the aftermarket was brought up to speed on stability control, and the impact it is likely to have on the trucking industry.

Two types of stability control are prevalent in the North American trucking market today: roll stability control (RSC) and electronic stability control.

In its final rule, NHTSA defines the two systems as follows: “A roll stability control system is designed to prevent rollover by decelerating the vehicle using braking and engine torque control. The

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

other type of stability control system is ESC, which includes all of the functions of an RSC system plus the ability to mitigate severe oversteer or understeer conditions by automatically applying brake force at selected wheel-ends to help maintain directional control of a vehicle.”

Both are readily available in today’s marketplace, but in writing its final rule, NHTSA explicitly chose ESC over RSC as the required technology for future equipment. “[NHTSA] considered requiring truck tractors and large buses to be equipped with RSC systems,” the agency wrote at the time. “When compared to the ESC requirement in today’s final rule, RSC systems would cost less than ESC systems, be slightly more cost-effective, but would produce net benefits that are much lower than the net benefits from this final rule.”

Safety was cited as the deciding factor.

“We believe that by requiring that ESC systems be installed on the rest of truck tractors and large buses, this final rule will prevent 40 to 56 percent of untripped rollover crashes and 14 percent of loss-ofcontrol crashes,” NHTSA said. “We expect that this final rule will prevent 1,424 to 1,759 crashes, 505 to 649 injuries, and 40 to 49 fatalities at $0.1 to $0.6 million net

cost per equivalent life saved.”

This distinction is important, because while RSC and ESC are both mature technologies, they’re still predominately options. In its final rule NHTSA estimated only “34 percent of new truck tractors and 80 percent of new buses” would be equipped with ESC systems in 2018 if the systems remained elective.

By committing to ESC, NHTSA has removed customers’ right to choose.

In most cases that can be problematic, if not devastating, for customers. This does not appear to be one of those cases.

“To an extent NHTSA did this regulation right. They didn’t rush a technology that wasn’t ready,” says Fred Andersky, director, Customer Solutions – Controls, and director, Government and Industry Affairs at Bendix Commercial Vehicle Systems. “They took their time, researched their options and made the decision to go with electronic stability control. “[ESC] can help with more situations that can end up being rollovers.”

As far as government regulations go, FMVSS 136 is impressively straightforward.

The rule applies to all new threeaxle truck tractors weighing more than 26,000 lbs. GVWR manufactured on or

S e p t e m b e r 2 0 1 6 | T R U C K PA R T S & S E R V I C E

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Service Bay after Aug. 1, 2017, and all other truck tractors, including two-axle tractors, in 2019. The rule also is applicable to buses weighing more than 33,000 lbs. GVWR in 2018, and buses weighing between 26,000 and 33,000 lbs. GVWR in 2019.

This distinction includes motor coaches.

Straight trucks are not included in the mandate.

Andersky commends NHTSA for targeting tractors instead of trailers.

Though the latter may be what people think of when they envision a rollover, “rollovers and loss of control start at the front of a vehicle,” he says.

“The head of the snake always knows what the tail is doing. By having the system on the tractor we can read [potential rollover data] earlier and react sooner than a trailer-only system. It allows for a faster intervention to prevent the rollover.”

Michael Lambie, marketing department manager at Meritor WABCO, says ESC technology “builds upon the current ‘self-learning’ capability whereby the system is designed to automatically monitor and adapt to changes in vehicle characteristics and wear without the need to reprogram a separate electronic control unit (ECU).”

At the OEM level, North American truck makers are well on their way to integrating ESC systems into future truck models.

Freightliner has offered Meritor WABCO’s stability systems for nearly a decade, says Keith Harrington, manager,

Above: A test truck executes a high-speed turn without electronic stability control. Below: The truck executes the same turn with a functioning ESC system.

product strategy at Daimler Trucks North America (DTNA).

Though RSC has long been the more popular option due to its lower cost, Harrington says most customers understand and accept the reasoning behind the ESC-centric mandate.

And because the systems are both well developed and about to grow rapidly in

By having the system on the tractor we can read [potential rollover data] earlier and react sooner than a trailer-only system. It allows for a faster intervention to prevent the rollover.

– Fred Andersky, director, Customer Solutions – Controls, and director, Government and Industry Affairs at Bendix Commercial Vehicle Systems

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

production rates, Harrington says DTNA is confident that the additional upfront cost will quickly be absorbed by truck buyers.

He references the highly publicized June 2014 accident where a Wal-Mart driver collided with a limousine, killing one and injuring comedian Tracy Morgan and two others.

“We saw a real spike in the interest of safety systems after that,” he says. “It’s one thing for us to design a truck and protect the driver but the best truck is the one that avoids an accident in the first place.”

He adds, “People are accepting. They are starting to see safety systems as where they need to spend their money.”

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Service Bay standard with MY 2017 trucks, far ahead of next year’s August 1 deadline.

Both Bendix and Meritor WABCO have enhanced production capabilities of their ESC systems to meet the demand boom, and are working to train OEMs, dealers and fleets on the functionality and requirements of the systems.

For the most part, electronic stability control is a maintenance and service-free system.

Andersky likens the product to other electronic systems found in vehicles, such as a radio. So long as the components used by the system are well maintained—in ESC’s case, that means tires, brakes, ABS sensors, etc.—the system will do its job when called upon.

“You don’t replace your stereo every year,” he says.

“As it is with a lot of electronic systems it’s either going to work or not right off the bat,” adds Harrington. “So once it’s on there and working it’s going to go.”

In the aftermarket that won’t lead to many new part sales, but that doesn’t mean the system can be ignored, either.

ESC systems are susceptible to damage from roadside debris and accidents— “the system cannot prevent tripped rollovers caused by hitting a curb, sliding into a ditch or traveling on a very soft shoulder,” Lambie says—and also can be negatively impacted by improper service on other components.

Andersky notes alignments, frame service and other front work as services that may require recalibration of key ESC sensors — done using free diagnostic software from Bendix.

“If you do a front-end alignment, you need to recalibrate the steer angle sensor.

If you move the sensor on the frame rail, you need to put it back in the same spot with the same orientation and recalibrate,” Andersky says. “Recalibration is easy with our free, downloadable ACOM software.”

24

Today’s stability control systems are built on top of existing ABS technology, and rely on carefully positioned sensors to evaluate vehicle performance in real time.

Lambie agrees, and says proper “diagnostics software is needed to calibrate or diagnose the system” during a service event.

And this level of caution will become increasingly more important in the future, as more tech-based safety systems are introduced and adopted for Class 8 trucks. Just like stability control was built upon existing ABS technology, Harrington says it’s likely ESC will be used as a building block for even more safety systems. Some of which may not even be mandated.

“NHTSA is starting to encourage OEMs to voluntarily make [safety systems] standard” because building regulations takes too long, he says.

In either case, experts are confident

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

the enhancements will be accepted by the industry. Safety is an end game everyone can agree on, Harrington says.

“The industry has shown no pushback [regarding ESC],” he says. “Everyone seems to recognize the value of safety.”

There are other tangible benefits as well, Lambie says.

“The technology advancements with self-learning will save manufacturers time and cost in the validation and application process, dealers save inventory costs due to fewer parts to stock, and fleets reduce downtime due to more likely availability of parts at the dealer for a part replacement or the elimination of the need to reprogram the ECU every time the fleet has a truck and/or trailer configuration change.”

Marketplace

The Buzz The five hottest products as determined by readers of truckpartsandservice.com

Replacement differential components for Isuzu models Midwest Truck & Auto Parts’ World American has released two dozen new replacement differential components for model year 1990 to 2015 Isuzu NPR trucks.

World American says the new parts include internal kits, ring and pinions, axle shafts, carrier bearings, pinion seals and bearings, and complete drop in assembly. Most of the products are available now and ready to ship, and World American says the remaining parts will be available soon.

Mixed-service tire line

Diagnostic crossover cable NEXIQ Technologies has developed and released its CAN 3 – CAN 1 Crossover Cable.

NEXIQ says the new cable is designed for use with the following 2016 vehicles: Peterbilt, Kenworth, Volvo with Cummins engines. The company says the product provides the ability to move J1939/CAN 3 diagnostic communications over to the J1939/CAN 1 channel.

Enhanced air spring warranty TRP has announced an enhanced warranty on its complete line of all-makes air springs.

The TRP Air Spring Performance Guarantee is a promise to buy back any TRP air springs that do not fully satisfy customer expectations up to two years after purchase, through any TRP retail location in North America and Latin America.

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Goodyear has expanded its range of hardworking mixedservice tires with the addition of the new Goodyear Workhorse line.

The Goodyear Workhorse MSA has been designed to help deliver superior over-the-road performance. It is available in three sizes: 11R22.5 (Load Range H); 11R24.5 (Load Range H); and 315/80R22.5 (Load Range L – 10,000-lb. capacity).

The Goodyear Workhorse MSD has been designed for both on- and off-road applications. It is available in two sizes: 11R22.5 and 11R24.5, both Load Range H.

Expanded bearing line NTN, the parent company of BCA Bearings, has announced the addition of the BCA seals product line to its current wheel-end offering.

BCA seals have multi-contact seal and grease lips to keep lubricants in and contaminants out, providing continuous lubrication to reduce wear and aging, the company says. Additionally, BCA seals are said to have shown superior operation in a wide range of temperatures, ensuring optimal performance and long life. BCA says their seals also have low seal swell, reducing torque and improving vehicle gas mileage.

Marketplace

Deluxe grease kit Amsoil introduces its Deluxe Grease Gun Kit, which the company says provides smooth mess-free application in commercial equipment.

Developing up to 3,500 psi, Amsoil says the grease gun is engineered to offer improved pumping performance and ensure adequate grease is applied for the application.

The kit includes two grease-distribution options, flexible hose and rigid pipe.

The pistol-grip design and rigid pipe allow for one-handed grease application, while the flexible hose is designed to access hard-to-reach locations.

Two head ports allow for increased flexibility and comfort, while the plastic tip cover helps protect against contamination from debris. A plunger also helps simplify loading, the company says.

Brake force tester Innovative Products of America (IPA) introduces the 9107 Electric Brake Force Meter with Dynamic Load Simulation and Circuit Testing (patents pending).

Designed for use on 7-spade equipped vehicles, this new technology automatically recognizes the electronic signature of both Integrated Trailer Brake Controllers (ITBC) and aftermarket Trailer Brake Controllers, simulates trailer load and displays real-time, brake-controller output gain and application timing.

The 25 ft. cable allows for one man, in-cab testing and is easily stowed inside the provided soft case, the company says.

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Marketplace

Next generation oil drain valve

Crankcase, differential cleaner

Fumoto has introduced the SX-Series, its newest generation engine oil drain valve.

Fumoto says the SX-Series is comprised of two distinct yet fully integrated parts: the through bolt and oil-flow control body. The SX can rotate 360-degrees, which Fumoto says allows orientation to achieve a smaller profile and maximum protection.

The unique through bolt design also can be tightened independent of the valve body, allowing for a simple installation that easily avoids obstructions, the company says.

Diagnostic kit for electrical systems Purkeys has developed an electrical tool kit that it claims has everything a technician needs to test and diagnose a variety of electrical issues on heavy-duty vehicles.

The Purkeys Electrical Tool Kit is an all-in-one package that comes with a heavy-duty industrial multimeter, a wide-range mini IR thermometer, a bead wire type K temperature probe, a mini DC clamp-on ammeter, and general purpose test leads.

External cleaner pre-filter Freedom Air Filters says its external cleaner pre-filters are engineered for installation over the top of the intake grille, which helps prevent large particles of debris such as grain chaff, rubber, dirt and sand from getting into and clogging the air filter element.

The reusable pre-filters are treated with a hydrophobic waterrepellant process to help keep out rain, ice and snow. They are fastened over the intake with elastic to facilitate quick, easy installation and are cleaned easily with soap and water, the company says.

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T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 6

Penray has introduced 7612 Crankcase and Differential Cleaner, an innovative chemical blend the company says can dissolve sludge and other deposits and collect moisture so these contaminants can be safely drained out of a crankcase or differential before they can cause damage.

Suitable for use in the crankcases of gasoline and diesel engines, as well as in differentials, Penray says this new blend includes a combination of solvents that dislodge crankcase and differential deposits so they can be removed by simply draining the oil. In the process, it also removes harmful deposits from valve train components, pistons, and piston rings, where such deposits could otherwise compromise engine performance and longevity, the company says.

Aftermarket fuel pump AFA has introduced a new fuel pump for Detroit Diesel Series 60 engines.

The new pump is not rebuilt or remanufactured, and is made and and calibrated to OEM standard specifications. Available now, the pump part number is D23537686 and interchanges with part numbers 680350E, 23505245, 23532981 and 23517845.

Expanded interface module product line Ametek Vehicular Instrumentation Systems (VIS) has added the CAN I/O X Expander Module to its family of CAN Interface Modules used to enhance vehicle instrumentation systems.

The CAN I/O X is able to convert switched, analog or pulsed input into a standard or proprietary J1939 CAN data bus message for any device on a vehicle instrumentation system, Ametek says. It provides manual transmissions and mechanical engines a means to connect with electronic instrumentation by converting pulsed inputs to digital information. It also allows switched and analog inputs to be converted to digital data and converts pulsed input into a J1939 CAN data bus message. Ametek says the module features ten switched and analog inputs and a minimal footprint of 18.7 sq. in.

Marketplace

Expanded drive tire sizes Toyo Tire has announced a size expansion for its Toyo M920 drive tire.

The M920 drive traction tire is used on trucks that require all-season capabilities to deliver loads in any weather condition in regional or long-haul applications, the company says.

It has wide, staggered tread blocks for improved traction and performance while additional features assist in wet performance, longer tire life and reduced irregular wear.

Toyo says it has added three sizes to the M920 line up; 11R22.5 LRG, 11R22.5 LRH, and 295/75R22.5 LRG, with plans for additional sizes later in 2016.

Off The Line Spotlighting a new OEM innovation Cummins debuts nextgeneration engine family Cummins has introduced its next-generation engine family, the 15-liter X15 (available in two configurations) and the 12-liter X12 heavy-duty diesel engines.

Both engines build off the legacy of Cummins’ ISX platform and offer a variety of design and performance improvements depending on the model, the company says.

The X15 Performance Series boasts from 485 to 605 horsepower, torque ratings from up to 2,050 lb.-ft., and as much as 600 braking horsepower. The X15 Efficiency Series ranges from 400 to 500 horsepower and 1,450 to 1,850 lb.-ft. of torque, and 400 braking horsepower at 1,300 rpm.

The X12 Series engine ratings range from 350 to 475 horsepower and 1,250 to 1,750 lb.-ft. of torque.

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NEWSTAR has partnered with ONYX to offer a complete line of ABS wheel speed sensors for truck, bus and trailers. Based in the UK, ONYX is one of the world’s largest OEM manufacturers of ABS wheel speed sensors.

The range of sensors are made to exacting standards, are fully watertight, and compliant with IP68IEC 529, and offer a one-year 100,000 mile warranty.

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Automann offers three reference catalogs: • Air Spring: 250 pages with more than 500 air springs, bellows charts and extensive cross references.

• Steering: 408 pages with more than 1,200 detailed pictures, progressive size and OEM charts and an index with more than 6,000 cross references.

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More than 3,500 detaled pictures, dozens of charts and OEM and industry cross references.

MERITOR MRH2PW AND MXH2PW SINGLE TIRE HIGHSPEED DRIVE AND STEER AXLE CATALOGS The MRH2PW Catalog (PB15105) includes diagrams, parts numbers and descriptions for the MRH2PW Single Tire High Speed Drive Axle, Single Tire H2 Planetary Wheel End, Brake Assembly, Carrier Assembly and related kits.

The MXH2PW Catalog (PB1572) covers part numbers and diagrams for the Steer Axle, Wheel End, Brake Assembly, Carrier Assembly and related kits.

For more information, see meritorpartsonline.com or download the catalogs (PDF only) at Meritor.com/LOD.

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meritor.com

IFC

Meritor, Inc.

meritor.com

31

Meritor, Inc.

meritor.com

32

Midwest Truck Parts

800-934-2727

17

Minimizer

800-248-3855

9

Minimizer

800-248-3855

11

nada.org/academy

7

800-324-8588

27

NADA ProMiles

Contact Info

Page

randallreilly.com

29

S & S Truck Parts, Inc.

800-621-1553

23

S & S Truck Parts, Inc.

800-621-1553

31

SAF-Holland Original Parts

800-876-3929

3

Shell Rotella

rotella.com

IBC

successfuldealer.com

10

BITIMEC International

877-637-1900

31

Direct Equipment Supply Co.

800- 992-1478

30

FinditParts

888-535-2635

30

Radiator Works

877-723-9675

30

Successful Dealer Award

Classifieds

This advertisers’ index is a service to readers. Although every effort is made to maintain accuracy, Truck Parts & Service cannot assume responsibility for errors or omissions.

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