Mopar to distribute Magneti Marelli parts

[XDCX]

Mopar just announced their agreement to distribute Magneti Marelli parts which will allow their dealers to more-easily perform repairs on non-Chrysler vehicles. Here's a link to the news report - click here

I always wondered why Marchionne selected a Fiat executive to run the Mopar division - now we know the reason why.

That said, I don't know enough about this deal to form an opinion on whether it's good or bad for the Chrysler dealer network. If the Magneti Marelli parts are better quality and lower cost than something the Chrysler dealers are currently purchasing from NAPA, then the agreement is a good thing.

By contrast, if the Chrysler dealers are eventually pressured into using Magneti Marelli parts then it could be a bad thing.

Does anyone out there who is better informed than I am have an opinion about this new program?

[XDCX]

Wow, I can't believe JoeRocket hasn't responded to this thread yet.

Maybe it's just not that big of a deal? As before, I'm still not sure if it's a good thing for the dealers, a bad thing or a non-event?

[ohiobuckeyes]

Originally Posted by XDCX

That said, I don't know enough about this deal to form an opinion on whether it's good or bad for the Chrysler dealer network. If the Magneti Marelli parts are better quality and lower cost than something the Chrysler dealers are currently purchasing from NAPA, then the agreement is a good thing.

This could be a good thing for the Chrysler dealers but a bad idea for your local Napa. I can recall ACDelo filters fitting any make and model besides GM branded vehicles. We had or have a book the crosses Make and Models to get the correct ACDelo filters. I do know that we tried to get this for Mopar and could not find one the would or could cross oil filters and air filters.

I do know that our monthly Napa bill is around 6500.00 month which also includes our bodyshop paint and supplies. Our AutoZone bill is around 3500.00 month just for the shop use.

So this could help a dealers parts bottom line, and your Mopar Rewards levels.

[XDCX]

Originally Posted by ohiobuckeyes

I do know that our monthly Napa bill is around 6500.00 month which also includes our bodyshop paint and supplies. Our AutoZone bill is around 3500.00 month just for the shop use.

Great point. If every Chrysler dealer is spending $10K+ per month to NAPA and AutoZone I can't fault Marchionne for trying to tap into that source of revenue.

Hopefully it will be a win-win for both the Chrysler dealers and Auburn Hills.

[79LilRedExpress]

The way that I see it the only winner will be Auburn Hills.

Unless there is a huge savings for the dealer, taking money out of the local market can only hurt the dealer.

For us, the parts store and there employees' buy their vehicles and have them serviced by us.

I am sure, and I would expect them to do business elsewhere should we stop doing business with them.

[mr4t60e]

How is a parts manager to know what to stock for vehicles s/he may not be familiar with? In my experience, any usage of aftermarket parts for customer pay work has been primarily due to the inability to get factory parts on a timely basis. If M-M parts are 24 hours away or the Napa down the street has the part on the shelf, who are you going to go with? Customers LOVE to hear "we can get that part and install it for you today, sir", and most CP work was sold as a result of being in for something else and is usually an impulse buy. The second issue, to me, is that they will be using Chrysler dealer's (and DC network) as inventory holding facilities for MM parts. Way to push inventory costs off of one company's books onto the other...

[CL Pgh]

Not my area but I've certainly heard some talk. Has there been any mention of the required stocking levels? ($$$)

[XDCX]

Originally Posted by mr4t60e

How is a parts manager to know what to stock for vehicles s/he may not be familiar with? In my experience, any usage of aftermarket parts for customer pay work has been primarily due to the inability to get factory parts on a timely basis. If M-M parts are 24 hours away or the Napa down the street has the part on the shelf, who are you going to go with? Customers LOVE to hear "we can get that part and install it for you today, sir", and most CP work was sold as a result of being in for something else and is usually an impulse buy. The second issue, to me, is that they will be using Chrysler dealer's (and DC network) as inventory holding facilities for MM parts. Way to push inventory costs off of one company's books onto the other...

You make an excellent point and I agree that even if the local Chrysler depot has the M-M part in inventory a parts manager is more likely to purchase it through NAPA if it's in stock at his local store.

That said, I like the idea that Chrysler's trying to expand the dealer's fixed operations but I really wonder how many off-brand customers would go to a Chrysler dealer for retail repairs.

[Slo]

Originally Posted by XDCX

That said, I like the idea that Chrysler's trying to expand the dealer's fixed operations but I really wonder how many off-brand customers would go to a Chrysler dealer for retail repairs.

I see the biggest value in servicing trade in and auction purchases for the used car lot.

[SDCJ]

Originally Posted by CL Pgh

Not my area but I've certainly heard some talk. Has there been any mention of the required stocking levels? ($$$)

My understanding is that they will establish a initial order based on your size dealership. That order will be ARO guaranteed. If prices are the same as NAPA....it's a win win... For dealers and Chrysler.

[possum]

The "if" here is huge.

[XDCX]

Originally Posted by Slo

I see the biggest value in servicing trade in and auction purchases for the used car lot.

I agree 100%.

I know the executives in Auburn Hills used to track parts purchases on the Dealers' Financial Statements and contrast that figure to their parts sales and calculate a "loyalty" figure.

Even if Chrysler's new program failed to attract one competitive make retail customer I'm sure it would be successful if Mopar could get a fraction of the dealers' used car "recon" parts purchases.

[JoeRocket]

Originally Posted by XDCX

Wow, I can't believe JoeRocket hasn't responded to this thread yet.

Maybe it's just not that big of a deal? As before, I'm still not sure if it's a good thing for the dealers, a bad thing or a non-event?

Mostly because I can't find anything about it other than a single e-mail.


Chrysler Group Announces Strategic Agreement That Will Enhance, Grow Service and Parts Business; Mopar, Magneti Marelli and Shell Lubricants Team Up to Offer Comprehensive Service, Parts and Oil for Competitive Vehicles

Chrysler Group dealerships to offer one-stop service shops for customers who own competitive vehicles
Chrysler Group dealers to become full-line retail service and tire centers
Mopar-Magneti Marelli-Shell Lubricants agreement establishes comprehensive servicing of GM, Ford, Toyota, Honda, Nissan, Hyundai and Kia vehicles at Chrysler Group dealerships
Magneti Marelli brings 26 product lines and more than 3,000 part numbers to Mopar’s product portfolio
Shell Lubricants brings Pennzoil® and Shell Rotella® motor oils, the most preferred brands in their respective categories
Mopar announces opening of customer-care lines on Sundays from 9 a.m. to 5 p.m. Eastern
Center Line, Mich. , Apr 13, 2011 - Last year, more than 2.6 million customers with competitive vehicles visited Chrysler Group dealerships for light maintenance, including oil changes and tire rotations. Today, Chrysler Group’s Mopar division announced a strategic agreement with Magneti Marelli and Shell Lubricants that will give its dealership network the ability to fully service competitive vehicles.

“After introducing a number of initiatives to improve service for our customers, including brand-specific customer-care lines, extended service hours during weekdays and weekends and a push for Mopar Express Lanes, taking care of owners with competitive vehicles is the next frontier,” said Pietro Gorlier, President and CEO of Mopar, Chrysler Group’s service, parts and customer-care brand. “For customers with competitive vehicles, Mopar’s agreement with Magneti Marelli and Shell Lubricants effectively creates one-stop service shops at our Chrysler Group dealerships. And with the addition of 3,000 quality-tested parts, our dealership network will now have the ability to fully service customers who drive into our service lanes with competitive vehicles.

“In addition to customers with competitive vehicles, our dealers will now be able to supply independent repair facilities with a full line of premium parts,” said Gorlier. “With this unique collaboration, this move further positions Mopar as a leader in customer care.”

Beginning this month, Magneti Marelli will begin supplying Mopar and Chrysler Group dealerships with brakes, shocks, struts, oil filters, air filters, fuel filters and cabin filters for competitive makes. Other product lines will gradually phase into the Chrysler Group dealership network.

“Over the past few months, we have worked closely with Mopar on distribution synergies and our parts range proposition,” said Dino Maggioni, CEO of Magneti Marelli Aftermarket. “We are ready to develop our presence in the U.S. aftermarket, bringing our product expertise and becoming the brand source for the company’s all-makes parts.”





Other than this, I haven't seen or heard anything....

[JoeRocket]

Originally Posted by XDCX

I agree 100%.

I know the executives in Auburn Hills used to track parts purchases on the Dealers' Financial Statements and contrast that figure to their parts sales and calculate a "loyalty" figure.

What they do now is download all Repair Orders that are created with a Chrysler Corp VIN. Any non-Chrysler Corp. part number counts against your Loyalty percentage, which is factored highly into Dealer Rewards. The minimum loyalty % was 86%....in the last coupla months they pushed it up to 90%, Big surprise.

[XDCX]

Originally Posted by JoeRocket

What they do now is download all Repair Orders that are created with a Chrysler Corp VIN. Any non-Chrysler Corp. part number counts against your Loyalty percentage, which is factored highly into Dealer Rewards. The minimum loyalty % was 86%....in the last coupla months they pushed it up to 90%, Big surprise.

Thanks for the update - I wasn't aware of Chrysler's current method of calculating loyalty.

It will be interesting to see if Chrysler ever starts tracking non-Chrysler VINs in an effort to determine if a dealer is supporting their new line of Magneti Marelli parts.