right to repair
| by Austin Gamble
In the May 2014 issue of aBr we looked at the confusion and misinformation in the automotive aftermarket around the definition of a genuine part, and the
increasing trend of original equipment manufacturers entering the lucrative arena of providing pa rts for vehicles out of their traditional warranty periods.
Now we need to analyse why this has happened.
The Importance of the
Automotive Aftermarket
OEM, OES, P&A, IAM are all acronyms that are bandied about when discussing the automotive parts market, and
they need to be understood when deciding where they fit into the giant jigsaw puzzle of parts supply.
I
t is the common belief
that OES (Original
Equipment Supplier)
parts have to be purchased
directly from the franchise
dealer. OES parts are
manufactured on the same
assembly lines of the
component manufacturers
as the OEM(Original
Equipment Manufacturer)
parts that they manufacture
for the OE assemblers,
except it goes through a
couple of added cosmetic
steps, such as branding of
the part or stamping with
the manufacturer’s logo, and then it gets
packaged in an OEM box. This entails a
small extra cost, but more expensive to the
consumer because of middlemen taking a
significant cut. It is also the common belief
that the IAM (Independent Automotive
Aftermarket) consists of manufacturers and
retailers of aftermarket parts that are copies
of the OEM part, and that these parts are
made to be a more economically feasible
replacement parts than an OEM part.
This is true in the lower segment of the
market, but the reality is that quality
branded aftermarket parts are in most
cases manufactured by the very same
manufacturers who are supplying the OEM
and OES markets, and these parts are
manufactured on the very same assembly
lines. But this is just half the story.
Because of the specifications that have
to be adhered to by the component
manufacturers when manufacturing
OEM and OES parts, it is becoming
increasingly more common for aftermarket
manufacturers to take OEM parts to the
next level of quality. They basically take an
OEM part and reverse engineer the part and
then recreate a replacement part that is of
a higher quality. And the really good news
is that these products are usually supplied
at a price equivalent to an OES part, and
in many cases even at a lower price, whilst
carrying an even better warranty.
These aftermarket manufacturers play
a significant role in the mobility and
safety of motorists, a role that has been
vastly underestimated and grossly
underappreciated, according to Giel Steyn,
| words in action
50
june 2014
South Africa’s guru on quality
and standards in the automotive
industry. To truly appreciate
this point of view, we need
to have a good look at the
South African car parc, by age.
When driving on the highways
and byways one tends to notice
the latest and greatest vehicles,
giving admiring looks at the
gleaming SUV, or that sleek
sports car. And wow, did you
see that amazing roadster?
But take a closer look, and you
will see that the majority of cars
sharing the road with you are
older vehicles. South Africa’s
car parc is in actual fact quite old, with more
than half of the cars on the road over seven
years of age, and over a third 13 years and
older! These are the cars that rely on the
automotive aftermarket manufacturers,
and their extensive supply chain, to keep
them in a roadworthy and safe condition.
Next month, aBr shall be interviewing one
of the industry stalwarts, Richard Pinard,
managing director of TopClass Automotive,
to discuss the various aspects of this supply
chain.