What does The Aftermarket Auto Parts Alliance, Federated Auto Parts joint venture mean?

The Aftermarket Auto Parts Alliance Inc. and Federated Auto Parts Inc. have announced a strategic collaboration today. But what does it all mean? The groups provided some answers to questions many will likely have.

Q. Will the two offices be combined?

A. No. Both offices will be maintained and both will continue to focus on marketing programs and other specific areas of member support with a focus on their specific brands.

Q. Does the Alliance become part of the Automotive Parts Services Group?

A. Yes. The Alliance and Federated together become a partner with The Pronto Network in the Automotive Parts Services Group and will share in all activities that are part of APSG.

Q. Will the Alliance begin using The Group Training Academy?

A. Yes. The Alliance will support The Group Training Academy.

Q. Will the Alliance support the APSG supplier programs?

A. Yes. The Alliance will have access to all APSG purchasing terms sheets and will also continue to support certain non-APSG suppliers and private labels.

Q. Will Federated members have access to Alliance private labels?

A. No. Each group maintains exclusive rights to all private or exclusive brands that are marketed by their members. Those brands will not be shared.

Q. Will the Alliance become part of APSG National Account efforts?

A. Yes. Providing National Accounts with the added market coverage and options will enhance the opportunity for all members of APSG.

Q. Who will run the new company?

A. There will be a six-person board with three Alliance representatives and three Federated representatives who will oversee the collaboration efforts initially. Much of the combined activities are managed through APSG reducing the need for added management.

Q. Will there be any people eliminated by the deal?

A. Each group will have specific responsibilities and managed resources that are available to all members so there will be no planned reduction in people but rather redeployment of some redundant efforts to improve support and results.

Q. Will the two Co-Man warehouses be combined?

A. No. There are actually three co-man DC’s available to APSG members including The Network Products facility. All will remain as servicing operations with some potential rationalization of lines/efforts and all three are available for any member.

For the latest news and information on the global automotive aftermarket industry, visit https://aftermarketintel.com. Do you have news? Contact Aftermarket Intel Editor Mark Phillips at mark@lpnewmedia.com. He’s on LinkedIn here.

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