AAIA Committees: Meeting Highlights

Reviewed the internal audit report presented by Gerry Zack of Zack Accountants & Consultants. All findings have been assigned with completion dates. Staff will report on the status of the findings at the September meeting.
Reviewed the revised form 990 and agreed that AAIA’s treasurer, Tim Lee, will begin reviewing the return prior to filing it.
Met via conference call with AAIA’s new accounting firm, LarsonAllen, to discuss the fiscal year (FY) 2008 audit.

Category Management

The 5th and 6th Application Categories (Fuel Systems and Cooling) have been released reporting both retail and commercial sales in sub category and segment detail. Further attribute reporting will be available in the coming months. Next categories scheduled for rollout are Climate Control, Suspension and Steering.
Industry standardized hierarchy revisions will be implemented with the release of March data, reflecting a revised collaborative industry effort for gathering manufacturer and operator feedback for category reporting purposes.
The committee agreed on multiple process enhancements designed to improve industry participation in the manufacturer solicitation process for the faster rollout of application parts categories. Operators will collaborate to encourage further industry progress on the matter

Education

Brian Cruickshank discussed his vision for the University of the Aftermarket and its connection with the Education Committee.
Mitch Schneider gave an update on CCPN’s discussion of an educational event at AAPEX. This is still pending.
An announcement was made that Steve Hoellein from Felt Auto Parts was this year’s winner of the AAIA Mort Schwartz Education Award. He will be given the award at GAAS.
Sue Kalish discussed the new strategic long-range planning process and will set up a meeting to go through the process before Fall Leadership Days. The co-chairmen of the committee will send out invitations.
Sue will contact program groups for demographic and education needs analysis information before going through the survey process.
A subcommittee will be started to define AAIA seminars for AAPEX.
The student intern program will continue this year at AAPEX for 10 students.

Government Affairs

The Government Affairs Committee discussed the progress of the association’s effort to pass the Motor Vehicle Owners’ Right to Repair Act.

In U.S. Congress, the House of Representatives version of Right to Repair (H.R. 2694) currently has 45 sponsors due to the efforts of AAIA members and a “Dear Colleague” letter that was sent out by House leadership to Democratic members urging their support. While Senator Barbara Boxer, D-Calif., is committed to be the lead sponsor for the bill in the U.S. Senate, a bill has yet to be introduced due to difficulties in obtaining a Republican co-sponsor. Republicans have been concerned about opposition from new car dealers and private right of action provisions in the bill. Boxer has insisted that a Republican sign on before she will move forward with introduction.
While Federal efforts continue, AAIA is focusing considerable resources on obtaining passage of Right to Repair bills on the state level. AAIA, working with the Coalition for Auto Repair Equality (CARE), has put together a team of lobbyists, public relations experts and a grassroots coordinator to develop and implement a comprehensive effort in Massachusetts aimed at obtaining passage of Massachusetts Right to Repair legislation (H.B. 296) this year. We expect that the first major test will occur in the Committee on Consumer Protection and Professional Licensure in mid-May.
In New Jersey, Right to Repair legislation has been introduced in both the House and Senate. AAIA and CARE are attempting to put together a team in that state that is similar to the one in Massachusetts. We are also building a political action committee (PAC) fund that will be sufficient to move the bill forward.
The committee further discussed the effort in Oklahoma where Economic Development and Financial Services Committee voted 11-0 not to move the bill out of committee. The AAIA Government Affairs Committee discussion centered on the need to develop a grassroots networks in as many states as possible that would be capable of generating letters and phone calls to state and federal legislators on issues of concern to the industry. The committee decided to establish a series of captains from program groups and retailers that could be quickly activated either directly by AAIA or indirectly through contacts at the home office of the distributor or retailer.
The committee reviewed efforts that could be undertaken by AAIA regarding serving the legislative and regulatory needs of the new Car Care Professionals Network (CCPN). The committee directed staff to take the following actions:

Develop a matrix of state and federal legislative and regulatory initiatives that impact the vehicle service industry, as well as the position of AAIA on each issue.
Build a Web site dedicated to the vehicle service industry where shops and their employees could send communications to state and federal legislators on issues of concern.
Develop a “report card” for legislators regarding issues of concern to the vehicle service industry. Due to the limited number of aftermarket-specific issues that could be used to develop the report card, AAIA staff might utilize small business report cards developed by the National Federal for Independent Businesses as a method for providing members with an idea on how their elected officials voted.

The committee reviewed the association’s political action committee (PAC).
The annual AAPAC Committee Challenge has raised $11,280 from our volunteer leadership to date as a result of the Spring Leadership Days meetings. We also received another $1,600 in AAPEC contributions. AAIA staff has contributed/pledged more than $4,000 for 2008.

The AAPAC donors from the committee and the two segments with the highest average contribution per attendee will be invited to enjoy an authentic Mexican fiesta on Wednesday, Sept. 3 at Casa Rio on the San Antonio River Walk during Fall Leadership Days. AAPAC will cover food and drinks during dinner. AAIA members that were unable to contribute during the meetings, or if they were not in attendance and would like to participate, have until April 30 to have their contribution count toward determining this year’s winners.
The Government Affairs Committee engaged in a discussion of alternative/additional fundraising efforts. It was suggested that AAPAC/AAPEC undertake a silent auction to be held at the 2008 AAPEX show. Eileen Sottile, Jay Gartman and Bob Segal volunteered to assist in the coordination of the event. However, the committee also discussed the fact that absent a stronger buy-in from the upper ranks of the volunteer leadership, it will be difficult to grow the PAC above its current level.
The committee reviewed intellectual property rights legislation before Congress.

AAIA supports S. 522, a bipartisan Senate bill that would create a permanent and high profile anti-counterfeiting office at the White House level. House legislation, H.R. 4279, with broad bipartisan support from House Judiciary Committee members would go further and include new enforcement provisions and resources.
The Government Affairs Committee will review a new General Accounting Office report that examines the effectiveness of current Federal programs and spending on anti-counterfeiting, to help shape AAIA’s input as the legislation advances.

Investment:

Reviewed the first quarter (calendar year) performance of our portfolio. Had lengthy discussions on the state of the market and its impact on AAIA’s portfolio.
One to three-year projection of cash needs will be presented by staff at next meeting

Leadership Development Network

Jason Porrini, LDN chairman, created five new subcommittees to help committee members become more active in growing and strengthening the group. The subcommittees are: Sponsorship; Web Site Blog/Forum; News/Publications; Marketing/New Member Recruiting; and AAPEX Reception & Events.
LDN received positive feedback on their well-attended Fun Walk & Run and will continue to hold the event in the afternoon of the second day at Spring Leadership Days.
Larry Easterlin, LDN Committee member, challenged the group to each find two or three aftermarket professionals to participate in their Next Step Program. “Next Steppers” would attend Fall Leadership Days in September in San Antonio.
Committee members brainstormed names of possible celebrities who might appear at their AAPEX reception in November. The committee hopes to have someone confirmed within the next couple of months.
Porrini would like LDN to become self-reliant, financially speaking, and hopes to generate enough sponsorship money throughout the year to do so

Market Research

2008 Channel Forecast Model Update: A senior consultant with Global Insight updated the committee on the status of the Channel Forecast Model. The primary discussion points were: (1) Whether the aftermarket baseline figures and (2) The industry growth rate should be changed. After hearing the presentation, the committee recommended a “recast” of the baseline numbers and a change in the growth rate be deferred for one year until the data could be properly reviewed and evaluated by the subcommittee. It was agreed they would begin their review immediately and report their findings at the fall meeting.
AAIA Technician Shortage Survey: Highlights from the AAIA Technician Shortage Survey conducted in March for the University of the Aftermarket were presented. Advanstar Communications volunteered to use their e-mail distribution list to run a follow-up survey. The proposal will be submitted to the University of the Aftermarket workgroup to determine if additional survey work is necessary.
Hidden Costs of Importing Auto Parts: The committee was reminded that a similar study was conducted by AASA in 2007 and that it would probably not make sense to pursue this topic further. Members of this subcommittee should review the AASA report and make a recommendation to the committee.
Committee Interest Survey: Time did not allow the committee to thoroughly review the results of this new survey, but it was agreed that the committee would revisit the findings at the fall meeting.

Marketing and Member Relations

A report on the “Be Car Care Aware” campaign provided trends and data demonstrating the success of the program and the growing interest from consumers and consumer media. Sixty-seven percent of consumers surveyed indicated that they were more aware of the benefits of regular vehicle maintenance today than five years ago when the campaign was launched. Results showed consumer behavior changes as a result of rising gas prices based on a study conducted by Consumer Research Corporation. Of particular interest for the aftermarket was that 75 percent of consumers surveyed said they were maintaining their vehicles better in response to higher gas prices.
A report on the Car Care Council (CCC) Executive Board's conference call reinforced the valuable position the Car Care Council holds as a credible, third-party source of information on vehicle maintenance and car care. The board was pleased with the increased publicity being generated by messages on increasing fuel efficiency through better vehicle maintenance and urged CCC to increase its media outreach in this area.
The committee divided into three groups to brainstorm BCCA/CCC tactics. Each of the groups was presented with one of the following questions:

How can the Car Care Council/AAIA push messages directly to the consumer?
What tools can the Car Care Council/AAIA provide to the industry to help them pull through messages at the point of sale?
What can be done to get more shop owners to participate in Car Care Months and vehicle check-up events?

An update on the joint AAIA/AASA AAPEX Marketing subcommittee indicated that its current make-up might not be appropriate and that more volunteers were needed. Several members volunteered to serve on the subcommittee including Bob Barstow, Bruce Tartaglione, Kevin Judge, Jeff Stankard, Bill Hanvey and Lance Buchner. The AAPEX value proposition, exhibitor ROI and the need to attract repair shop owners was debated with members agreeing that education and training should be the draw for the service and repair community. A discussion of the roles of the Show Committee, the AAIA Board of Directors and the Joint Operating Committee in the strategic direction of AAPEX, resulted in a request to initiate a conference call to further clarify AAPEX strategic planning to include Pam Krebs, Tom Marx, Arlene Davis, Tom Perry (Show Committee Chair), Rich White and Kathleen Schmatz.

Trade Show

The subcommittee reviewed whether AAPEX should consider categorizing the show floor met twice via conference call prior to the AAIA Show Committee in Florida. Tom Perry, subcommittee chair, reported that both buyers and exhibitors participated in the two calls. They buyers represented felt that show categorization was not necessary. The manufacturers were concerned with seniority, proximity to competitors and the cost of hosting several booths on the show floor. The subcommittee had the opportunity to learn more about the new Network Now tool that will be available on the AAPEX Web site. Everyone agreed that this could help the buyers and that at this time we should see what folks think of the new software and whether it will help them. It was recommended that we host a Webinar to review the new software and to see how the 2008 show progresses and to hold off at this time on any surveys regarding categorization.
The AAIA Show Committee approved the topic for AAIA's Town Hall and asked that staff continue moving forward.
The new Network Now software will debut June 1. Webinars will be hosted by AAPEX for AWDA, AAIA Show Committee, AAIA Membership Marketing and the AIA Committee.

Technology Standards and Solutions

The committee approved the release and promotion of a free software utility to support the exchange of part interchange information in industry-standard PIES format.
To support the ACES data exchange requirements of medium-duty vehicle, the committee approved the research and publication of remaining medium duty (class 4, 5 and 6) trucks as far back as reliable data will permit. AAIA currently published 1985 – present.
A duel-stream approach to the development of Internet Parts Ordering (IPO) was approved. An incremental version will be developed for July with asked for extensions and a major release will be developed for September that reflects architectural changes approved by the committee.
The Standards Oversight Subcommittee was tasked with significant responsibility for developing policies and procedures that ensure consistent high quality in the technology and documentation that are produced by the committee

SEGMENT COMMITTEES

Automotive Electric Association (AEA)

Finalized planning of 2008 Annual Membership Meeting for June 2008 in Chicago.
Established list of possible location cities for 2010 annual membership meeting.
Continued discussion to ensure preservation of OE manufacturer participation in the annual membership meeting

Automotive International Association (AIA)

Developed new tools to add more value for the AIA Events sponsors at AAPEX, promote membership and increase the value of the AIA Industry Awards program.
Advanced ideas for marketing the newly-updated AIA import specialist certification program, including use of the new AIA Web site, which is undergoing some final enhancements to its Find It and Promote It features.
Given the backing of AIA member Interamerican Motor Corporation to fund an AAIA white paper on telematics, the board committed to support AAIA development of pro-aftermarket standards and legislation that will ensure information access for the independent aftermarket

Automotive Undercar Trade Organization (AUTO):

Board is looking into ways to capitalize on success of roundtable discussions during the Showpower Expo.
Committee formed to begin work on 2009 Face-2-Face conference.

Automotive Warehouse Distributors Association (AWDA)

Nominated a 2008 slate of the secretary and five board candidates. The slate will be voted upon by the distributor members later this summer.
AWDA’s treasurer will draft a spending/retention policy to govern expenditures from AWDA’s invested reserves. Policy will be submitted to the board for approval by Fall Leadership Days.
AWDA will live up to its previously-made commitments to fund various educational scholarships for AWDA and CCPN members.
Scholarships for Leadership 2.0 will be coordinated with the University of the Aftermarket.
Scholarships for the CCPN Learning Center will be released pending notification from the CCPN board that the Learning Center is fully functional.
AWDA will proceed with planning for the Distributor-Manufacturer Forum scheduled to immediately follow Fall Leadership Days in San Antonio. Details will be worked out with the AAIA meetings department and AASA staff.
AWDA will investigate software upgrade or purchase to enhance the flexibility of meeting scheduling for one-on-ones in 2009. AWDA will develop “needs list” for upgraded software. Staff to investigate capabilities of existing software.
AWDA Board reaffirmed its decision requiring all vendors who participate in the one-on-one meetings to secure at least one exhibit booth at AAPEX. This policy is consistent with AAPEX policy prohibiting meetings between buyers and non-exhibiting vendors.
University of the Aftermarket will organize and sponsor two “Executive Briefings” for AWDA members on the afternoon of Sunday, Nov. 2, in Las Vegas. Work has begun to identify and lock-in the presenters for these sessions.
Paul Meyer will facilitate a strategic planning exercise for the AWDA Board and invited guests, possibly following GAAS. Details are currently being worked out.
AWDA supports the concept of a CCPN education/networking program during Automotive Aftermarket Industry Week and would encourage program groups to sponsor the participation of select repair shop owners.

Car Care Professionals Network (CCPN):

The board is considering options for CCPN offering during AAPEX.
Considering the creation of a standard marketing package to be used at industry functions.
CCPN requested the following from the AAIA Government Relations Committee:

Matrix of aftermarket legislative/regulatory issues.
Congressional report cards.
Congressional letter templates customized for CCPN members.

Engine Repower Council (ERC):

Working to increase ERC involvement among current AAIA membership.
Considering a recruitment/information luncheon during AAPEX.
Considering creating a course on how to sell repowered engines.

Paint, Body and Equipment Specialists (PBES):

Committee finalized plans for the 2007 PBES Town Hall at Mandalay Bay Resort and Casino on Friday, Nov. 2. As of the meeting, the event will make a profit of just over $4,000 compared to last year at just over $200.
Committee is planning on a conference in May 2008 and is looking at an Embassy Suites in Scottsdale, Ariz. The property is under consideration because PBES is serious about producing a break even conference. The committee believes that with the breakfast included in the room rate that the food and beverage will be reduced and help PBES meet budget.
Committee is waiting for the draft of the Area Source Rule and will be supplying comments to AAIA’s government affairs staff.

Heavy Duty Distribution Association (HDDA)

Board members participated in a visionary and productive two-day strategic planning session.
HDDA participated in the recently completed negotiations that brought the Commercial Vehicle Solutions Network (CVSN) in as a co-owner of Heavy Duty Aftermarket Week (HDAW). This achieves the longstanding goal of creating an all-industry, distributor focused event that can provide a common platform for discussion and action on issues important to distributors.
The board reviewed the progress made to date by the new Commercial Vehicle Task Force, comprised of eight leading heavy duty independent aftermarket distributor organizations. The group first met in March and elected Dave Scheer as chairman. The task force has agreed to work to raise industry awareness on problems related to limited access to repair information, and to bring interested parties together to develop a mutually beneficial and accountable agreement that will make technical and product information available to all interested parties.

Rep Council

Gil LaCroix gave update on Dynamacs CRM program. The council is looking for a standardized CRM program that they can recommend to AAIA rep members.
Scott Luckett discussed how AAIA will help promote the Sales Information Standard that is available on our Web site by branding, targeting a blast e-mail and including an article in the Aftermarket Insider magazine.
The council also asked for an update from Scott on the Partnership Network.
Bill Glasgow gave an AAPEX update report.
Roger McCollum gave a report on chargeable services. The council is debating on identifying additional services that manufacturers’ representatives provide for their customers and charging them fees for these services. An ad hoc committee was formed to study this issue.
The council agreed to accept the updated legal opinions Barry Maloney has worked on and will give them to AAIA’s legal representative, George Keeley, for his consideration before they are put up on the AAIA Web site on the Manufacturers’ Representatives segment page.

Retail

Updates on the following topics were covered at the meeting:

University of the Aftermarket
“Be Car Care Aware”
Engine Repower Council (ERC)
Category Management

“How the Internet is Revolutionizing Your Business Presentation:”

Ken Eisner, an independent consultant with 20 years of experience, whose client list includes Sprint Nextel and Goldman Sachs, was the guest speaker at the meeting. His five areas of discussion regarding the Internet as related to revolutionizing business include:

Overview of Online Retail
Upgrading/Enabling E-Commerce
Giant Shift in the Advertising Mix
Emerging a Multi Channel Company
Overview of Open Brand and Web 2.0

Committee To-Do List:
- The committee expressed interest in creating a work group to partner with various organizations, gas stations and retailers to spread the word about being “Be Car Care Aware.”
- Recruit more retailers to serve on the committee.
- Find new vice chairman.

Tool and Equipment

A Committee Interest Survey was conducted prior to the April 10 meeting. The purpose was to identify issues of greatest concern and to determine what areas members would most like to see AAIA help them solve. Responses fell into three broad areas: marketing, operations and the general economy. The committee recommended (1) the survey be refined to focus on the three broad areas, and (2) to survey the entire T & E segment with emphasis on keeping separate the responses from manufacturers and distributors. A subcommittee was created to follow through on this initiative.
According to the Committee Interest Survey, 93 percent of respondents felt that segment members living within driving range of the conferences should be invited to the conference. The purpose would be to: (1) discuss critical areas of importance to the local member, (2) discuss common areas of interest, (3) determine where the committee could best assist the local member and (4) create valuable networking opportunities for everyone involved. Staff liaisons will follow up.
Survey results indicated that areas of greatest news interest were: technology, distribution and finance. Since AAIA would soon be launching a new twice-weekly publication called AAIA Smart Brief, staff liaisons agreed to meet with Marketing and Member Relations to help ensure research and reporting would be focused accordingly.
The survey indicated that almost two-thirds (64.3%) of the committee favored a plan to expand the half-day meeting agenda to a full day so the conference could include a Dutch treat golf outing in the afternoon. Staff liaisons will pursue the suggestion with the AAIA meetings department to assess the possibilities and costs.
The Interest Survey indicated committee members wanted a representative on the AAPEX Show Committee. While a representative was selected, a subcommittee was also formed to analyze all three shows, assess the pros and cons and report back.
Almost two-thirds (64%) of respondents indicated a strong interest in forming a subcommittee to study and recommend consultants or software available to monitor product level business trends. Volunteers were noted.
Almost eight out of 10 (78.6%) respondents agreed to the proposal to link member distributors to each T&E segment manufacturer in the database. Liaisons will follow-up with the IT department to check feasibility of creating a searchable online database of distributors that carry specific products by manufacturer.
An update was presented on the Manufacturers’ Survey summarizing the number of suppliers related to each major product category. A discussion followed identifying possible next steps including the need for staff liaison to meet with IT support to assess the feasibility. A follow-up will be provided at the fall meeting.

Trim

The AAIA Trim Segment Committee met on April 5 following their convention in Amelia Island Plantation, Fla. The committee reviewed the successful convention and began planning for their 2009 convention, which will take place at Planet Hollywood Resort in Las Vegas, Nev.

The major decisions made during the meeting were as follows:

Taking into account the rising cost of producing the convention and the difficulty in obtaining sponsors, the committee decided to raise the cost of exhibiting at the convention in order to pay for receptions and educational offerings. The committee also decided that they would not raise the registration fees for wholesalers in order to continue to promote their attendance.
The committee decided to research the possibility of having the appointments for the one-on-one meetings arranged prior to the convention. Currently, all appointments between wholesalers and distributors for the convention are made during the appointment-making session, which takes place prior to the start of the convention. The committee is interested in exploring the possibility of an electronic means for scheduling one-on-ones, which would require that wholesalers meet with nearly all exhibitors.
The committee decided to reduce the money spent on entertainment at the convention and to put those funds into an educational program at the convention. The committee plans to determine the details of the program during its fall meeting.

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