Building bridges with OEMs

This story first appeared in the May issue of AutoTalk – CLICK HERE to download the magazine FREE

The relationship between Australia’s aftermarket and carmakers is stronger than ever before, and the rivalry isn’t what it once was.

Speaking to AutoTalk at the Aftermarket and Collision Repair Expo, Australian Automotive Aftermarket Association chief executive Stuart Charity says he’s had enough of the two industry counterparts butting heads.

Charity says what has in the past been two sides with staunchly opposed positions on servicing and repairs, parts and vehicle warranties, as well as in the accessories and off-roading enhancements market, now have a lot to gain from each other.

He says a mutual, respectful relationship, even at the dealership level, could bring what he describes as a “Mexican stand-off” to a win-win situation.

“It isn’t quite as serious as it was a few years ago and quite frankly I want to see the end of this Mexican stand-off between us and OEMs, it’s something we talk about a lot,” Charity says.

“We’re all in this industry together, we can work hand-in-glove with companies competing vigorously with each other, but in the end we’re all trying to support the consumer.

“The structure of the industry is changing and I can see some of those barriers and walls are coming down in Australia,” Charity adds.

The AAAA says with the trend of global manufacturers relying on fewer core platforms across all or multiple regions means aftermarket businesses are being increasingly relied on in local markets by those consumers.

“Due to economic pressures we’re seeing platform rationalisation, so more vehicles are coming into our market which can’t have the same OE equipment on them to suit all our customers and every end use,” Charity says.

“If someone’s towing a heavy caravan, or a boat, or they’re going off-road to regional areas, they’ll need auxiliary lighting, frontal protection, reinforced suspension and towing equipment, and the aftermarket has really pioneered that market, almost created it with lots of its own IP.

“What we do and what the car companies do – and they can’t do everything to the same degree of quality, refinement and testing that some of our companies do – can work in harmony,” he adds.

Charity highlights this with the Ford Ranger as one example, where 4×4 accessories and fit-for-purpose add-ons, particularly in the fleet sector, are important areas where intellectual property needs to be shared with the aftermarket.

He also says the fact more brands are using non-genuine parts to outfit their vehicles under warranty from the dealership is testament to the ingenuity and engineering nouse of Australia’s aftermarket.

Ford’s Ranger Raptor features Fox shock absorbers, HSV fitted SupaShocks racing suspension and features the aerodynamic design of Aeroflow Performance in the rear spoiler bolted to the GTSR W1, and Toyota Australia dealerships are honouring warranty on bullbars from Frontline Australasia, LED lighting from Narva (Brown & Watson International), rock rails and recovery points from ARB and hard tonneau covers from ERG Group for the Rogue, Rugged and Rugged X range.

“We’re not expecting to see Toyota fall over themselves to work with us from day one, but I think we will see more and more co-operation, because we have companies who all compete vigorously with each other to support the consumer,” Charity says.

While the term aftermarket refers to any part that is designed for, sold and fitted to a vehicle after the completion of manufacture, Charity says increasingly OEMs are bringing those specialist brands closer to the production line – even at dealership level.

“The aftermarket stands ready to work with the dealership networks to provide parts solutions to give their customers a choice and more options, and our members invest a lot into innovation, R&D and branding with strong products people will demand,” Charity concedes.

“It’s not the dealers’ fault though, it’s the OEMs dictating terms of their arrangements, so we welcome discussions with the dealer associations on opening that because it’s a win-win opportunity,” he continues.

Charity also acknowledges the inability for brands to embrace the aftermarket in their dealership contracts means fewer bums testing seats in the showroom.

“Every business is about having a relationship with the customer,” he says.

“Especially around customisation, people are getting their new car on-spec, driving out of the dealership and taking it immediately to an aftermarket store to put all the gear put on it, so that’s a lost sales opportunity for dealerships.

“We’re also in full support of dealers and OEMs in their efforts to see Luxury Car Tax abolished, which should hopefully be soon,” he adds.

Charity believes in a symbiotic ecosystem between carmakers and the aftermarket and points to the spike in interest (8000 pre-registrations) for the expo seminars signifying the importance of the relationship among the industry.

“There isn’t this big wall between OE parts suppliers and aftermarket, it’s just a different part of the market,” he says.

“We need the new integrated product in the showroom in order to adapt and modify and understand the tech in there to make sure we integrate with it to maintain compliance and so on – we’re all in this together and it’s a big industry, a big pie.”

Charity says talking theoretically or metaphorically about cars being computers on wheels is to be uninformed.

“They’re out there now coming into workshops with telematics, pass-through technology, over 40% of their content now is electronics, you’ve got radar and advanced driver assist systems, and there’s a lot of noise out there about electric cars,” Charity says.

“Our workshops, the automotive trade, have these cars coming in now with new technology and they just want the facts on what’s going to happen, how it’ll happen and how to adjust.”

The AAAA will open an Automotive Innovation Centre in Melbourne and Adelaide in the next year which will be modelled off the SEMA Garage in the United States, to hone skills and develop products for Australian consumers.

Looking at the structure and scale of the United States auto industry, the working relationship between automakers and aftermarket brands here will benefit from the AIC which aims to learn the architectural, technological and electrical infrastructure under the bonnet.

“In the US, OEMs give SEMA Garage users full pre-release vehicles to do product development on because their aftermarket accessories on vehicles at their launch helps drive sales,” Charity explains.

“The car brands can then launch their product at SEMA with the modified vehicle to show what it could look like if they buy one – we’re going to see more and more of this.”

The AAAA says it will take time to catalogue a range of vehicles’ intricate layers of data but will start with the most in-demand models such as the 4×4 dual and single-cab ute segment, 4WD wagons and popular SUVs for modification.