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Midway Auto Parts Insurance Company Presentation 03/11.

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Presentation on theme: "Midway Auto Parts Insurance Company Presentation 03/11."— Presentation transcript:

1 Midway Auto Parts Insurance Company Presentation 03/11

2 Midway Auto Parts Family-owned auto recycling business started in 1987 Add New Aftermarket & OE Take-off products in 2008 Business has been built on uncompromising commitment to our customers and our adherence to the guidelines and principals of the recycling industry’s best practice leaders Two locations in Kansas City metro area offering daily delivery to collision repair shops 60,000 square foot warehouse housing over $1,000,000 in recycled original, OE take-offs, new aftermarket products and reconditioned wheels and bumpers 90% Fill Rate 03/11

3 Midway Auto Parts Greg Wilcox – Director – 30+ years in automotive recycling business – Started Midway in 1987 with 5 employees, grown to 75+ in 2011 – Added Auto Sales Division in 2000 with 1.5 acre facility that sells vehicles, motorhomes, motorcycles and equipment – Active industry participant, current board member of United Recyclers Group (URG) Danielle Wilcox – President – 25+ years in business – Manages all administrative and accounting areas Chris Wilcox – Vice President – 17+ years in business – Acting general manager overseeing all operations Royce Smith – Treasurer – 18+ years in business – Title manager for Auto Parts & Auto Sales divisions Aimee Studna – Aftermarket Division – 7+ years in business – Manages accounting and inventory for aftermarket division & marketing and web development for all divisions Ryan Falco – Aftermarket Division – Joined Midway in 2008 – Manages all aftermarket sales & customer service 03/11

4 Midway’s Daily Delivery Area 03/11

5 What is Team PRP? National organization of independent auto recyclers Use identical product quality assurance program based on ISO9000 standards Each member delivers consistent, high quality parts and customer service 03/11

6 Midway/Team PRP Benefits We pay supplements on our parts Open communication to estimator and repairer Lifetime guarantee against corrosion perforation on all sheet metal parts and one year parts & labor guarantee on all mechanical parts National and region shared inventory for immediate parts availability with 24-hour in-stock shipping policy Quotes within 15 minutes and guaranteed for minimum of 7 days No hassle return policy, including cuts 03/11

7 Midway/Team PRP Premium Recycled Products Premium Recycled Parts & standard recycled OEM parts are determined by their condition based on standardized measurements. – Collision Parts are graded in units or hours of damage which are determined by the damaged area size. Utilize United Recyclers Group (URG) standard measurement practice. One unit or hour of damage is comparable to size of credit card – Premium (A) Grade Collision parts have less than one hour of repair allowance – Standard (B) Grade Collision parts have more than one but less than two hours of repair allowance – Mechanical Parts are graded on an average yearly mileage assessment relative to the actual mileage of the vehicle from which the part was retrieved. – Premium (A) grade mechanical parts yield less than 15K miles per model year – Standard (B) grade mechanical parts average 15K to 20K per model year – Mechanical parts in excess of 20K miles per model year are not supplied unless requested 03/11

8 What is the Professional Parts Group? Quality Driven Aftermarket Parts Distribution – Network of Preferred Distribution Professionals focused on supplying the best quality aftermarket parts available – Backed by a consistent, dependable customer service experience Committed to safety, quality and long term customer satisfaction Offer and support only the best available alternative products that meet all industry standards Focused on the collision repair industry at the highest levels 03/11

9 Professional Parts Group Product Categories Structural Parts – Factory equivalent in manufacture process, material content and product performance without compromise or excuses, structural and safety related parts and products will never be substituted with substandard products. Exterior Parts – Only products certified or approved to be functionally equivalent to their intended application are part of the Professional Parts Group Collision parts offering. Lighting Products – Only products proven to meet FMVSS108 and are approved for DOT certification will be offered in the PPP line. Professional Parts Group quality assurance team will retain copies of documentation for all products which require Federal or DOT product standards criteria. Cooling Products – Equivalent material content and performance characteristics are the baseline consideration. 03/11

10 Professional Parts Group Manufacturers Lights – TYC/Genera US division founded in warehouses in US 1 million square feet of warehouse space ISO 9001 Certified ISO14001, QS9000/TS16949 Certified Approved as full participants of CAPA parts certification program for North America since July 2005 They are committed to quality standards in their processes and procedures and they are held accountable by independent third party testing All products meet DOT & FMVSS 108 & 111 government standards where applicable OE Clients include Ford, Visteon, Suzuki, Isuzu 03/11

11 LIGHTS Manufacturing Process Design – Every detail of TYC products is meticulously designed to meet or exceed stringent quality control. Processes – The latest technologies are used in the creation of TYC products. Robotic technologies are used to ensure consistency to product quality. Sensory devices are used in conjunction with production and assembly jigs to help detect any product offset or variation during production process. Five photometric tunnel labs to test reflection intensity and light pattern are available in-house for lighting products compliance. Vehicle Test Fit – Prototypes are created and mounted onto a vehicle. Any adjustment needed is made prior to market release. Each product is fit and performance tested to ensure drop-in, hassle-free installation. Accelerated Fatigue Tests – An array of tests is conducted on each product to assure top-notch quality. Test, such as abrasion, humidity, rain, salt spray, and vibration, are applied to meet or exceed DOT/SAE and industry standards. Compliance Standard – SAE/DOT – FMVSS-108 – FMVSS-111 – ISO9001:2000 – TS16949 – QS9000 – Q1 03/11

12 Professional Parts Group Manufacturers Structural Parts – Diamond Standard by Reflexxion Diamond Standard Structural Parts are Designed to Meet OEM Part Quality and Performance Blueprint for quality – Use material that matches OEM in mechanical properties – Use material that has the same thickness as OEM – Create parts to be the same shape as OEM through reverse engineering – Verify vehicle fit and crash performance vs. OEM 03/11

13 Professional Parts Group Manufacturers Structural Parts – Diamond Standard by Reflexxion Full Assembly Step Bumpers – V-5 Tested to VESC Protocol for Safety and Towability Only USA Made Steel Bumpers – HSLA High Strength Steel – 3 Year Chrome Warranty – IIHS Protocol Tested High Density Absorbers – OE Material – Meets FMVSS 302 Flamability Standards High Strength Steel Reinforcements – Roll Formed HSLA Steel – Safety Tested Brackets, Braces & Supports – OE Style Check Fixtures to Ensure Fitness – Quality Tested for Material and Strength 03/11

14 Professional Parts Group Manufacturers Structural Parts – Facilitated Ordering & Correct Part Delivery/Identification Each Diamond Standard Brand Safety part has been assigned a unique partslink number ending with the suffix “DS”. Estimating systems and distributors can recognize the Diamond Standard parts numbering system to establish Diamond Standard part visibility. Shop identification of the correct part is further enhanced by Diamond Standard branded outer packaging and labeling. – Cradle-To-Grave Permanent manufacturer Part Identification The Diamond Standard Safety part identification standard provides permanent manufacturer identification, lot number and part number engraved or embossed into each Diamond Standard part. This meets all state regulations for manufacturer identification on crash parts used in the repair. – Part Traceability Label & Seal of Assurance A two-part tracking label is affixed to each diamond Standard Brand Safety part, the lower portion of the two- part label can be placed on repair orders or estimates as proof of use of the Diamond Standard part. The two-part label carries a unique serial number which provides “cradle-to-grave” traceability information on the part’s material, material certification analysis, manufacturing/lot history and final quality inspection reports linked to the individual part. The maximum traceability feature built into each unique serial number on each Diamond Standard Brand Safety part is unprecedented in its intensity within the industry and can be accessed at any time. 03/11

15 DIAMOND STANDARD Manufacturing Process Precise Engineering – Purchase all applicable OE samples and perform test fits to establish master sample for scanning – Test OE sample for mechanical and chemical properties by 3rd party laboratory – Scan master sample to create material data and confirm data to sample by CMM – Create part blueprint Tooling Design – Create process flow chart for tooling – Verify tool process through computer simulation software – Complete tooling design with weekly reviews – Casting patterns to be reviewed & approved before going to foundry Tool Building & Testing – When all castings and tool steel are received they go through machine bay – All construction of tooling runs thru die bay – All tryout of tooling runs through one of two internal press bays – VTF performed on 1 st piece from tooling to determine any changes needed. Test fit is repeated until all corrections are made 03/11

16 DIAMOND STANDARD Manufacturing Process Part Approval (PPAP) – Part material thickness is verified to OE thickness using ultrasound tester – Part shape and hole locations are verified on the checking fixture. Cosmetic features are compared to the OE sample in a light booth – After 1 st piece is approved, panels are run to perform a thirty (30) piece capability study. One of the pieces is used to perform a vehicle test fit – Mass production is started upon 3 rd party vehicle test fit approval Impact Testing – Quasi-static 14” pole test performed on (4) OEM and (2) PBSI samples at MGA Research Labs – Impact data is reviewed to determine if changes are necessary – Crash test of OE bumper at 6mph – Crash test of PBSI bumper at 6mph Ongoing Product Validation – All raw material is ordered to same specifications as the approved material and is certified by PBSI vendor 03/11

17 SHEET METAL Manufacturing Process Our manufacturers meet IS0-9002; TS 16949; CAPA; Thatcham, etc. standards – Meaning they are committed to quality standards in their processes and procedures and they are held accountable by independent third party testing 03/11

18 SHEET METAL Manufacturing Process Part Die or “mold” created utilizing strict computer analysis of original (OE) part, often referred to as CAD (computer-aided design) 03/11

19 SHEET METAL Manufacturing Process Stamping – Production run in manufactured “Lots” Lot control is part of the lean manufacturing process Lot control allows for consistency in part production 03/11

20 SHEET METAL Manufacturing Process Assembly – Process is controlled by automated robotics to allow for precision and consistency throughout the production run 03/11

21 SHEET METAL Manufacturing Process Random Testing – At any point in the process a part may be pulled and subjected to testing procedures to ensure conformance to quality standards 03/11

22 SHEET METAL Manufacturing Process Painting & Coating – “Automated Electro-Deposition Painting (EDP) Facility” and “Man- Machine Interface Device” used to monitor all the working processes and conditions, including where the human eye cannot see, during the E.D.P. coating process. – High-Tech Radial Electro-Core Coating is applied, rather than the traditional Flat Electro-core, which avoids the unequal coating on a parts’ surface. – Ultrasonic Cleaning Equipment efficiently cleanses all parts as they pass through the system, removing all residues, silt or other contaminants most other systems or manual processes will miss. – All E.D.P. coated products must withstand SAE recognized 1000 hour Salt Spray or 20 Cycles of Cyclic Corrosion Tests. 03/11

23 SHEET METAL Manufacturing Process Third Party, Independent Testing – Full compliance and participation in the leading, independent parts certification programs 03/11

24 Professional Parts Group Service Commitment Highest Quality Products Available in the Marketplace – Quality & Safety are Priority #1 – Parts Traceability – Problem Free Returns – Prompt Credits – Lifetime Warranty Personal Service from Industry Professionals – Accurate Order Taking, Processing & Delivery – Same Day & Next Day Delivery – Proactive Communications Regarding Order & Delivery Issues – Customer First Attitude – Backed by Leadership with 100+ Years Serving Collision Repair Customer 03/11

25 Professional Parts Group Return Policy and Warranty Problem Free Return Policy – Credits issued within 24 hours Prompt resolution to any issues from return pick-ups to credits Lifetime warranty on all parts we sell for as long as the current owner owns the vehicle R&I reimbursement for parts that have quality issues. Reviewed on case by case basis. 03/11

26 Professional Parts Group Limited Lifetime Warranty The Professional Parts Group warrants that all of its program parts shall be free of defects in materials and/or workmanship for as long as the part remains installed on the vehicle for which the part was originally purchased. We also guarantee our program parts against perforation (metal rust-through) due to corrosion over the course of normal use. Any Professional Parts Group program part found to be defective will be replaced, repaired or the original purchase price refunded at the discretion of the Professional Parts Group Preferred Distribution Partner or company-owned distribution warehouse. In the event of part failure, you must provide proof of purchase to your place of purchase or the business which installed the part. Installation labor may be reimbursed, if incurred as a result of the failure of the Professional Parts Group program part. Labor claims will be reviewed on a case by case basis. This warranty does not cover failure, perforation or defects resulting from accident, damage, abuse or improper installation. This warranty does not apply to commercial vehicles. The Professional Parts Group shall not be liable for any incidental or consequential damages arising out of the use of its parts. Some states do not allow exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you. This warranty gives you specific legal rights. You may also have other rights which may vary from state to state. This warranty applies to vehicles registered and operated in the United States. 03/11

27 MAGNUSON-MOSS Warranty Act Provides that the placing of a competitive replacement part on an automobile does NOT affect the warranty on the remaining parts. December 2010 Federal Trade Commission (FTC) offers Consumer Alert stating… – “Simply using an aftermarket part does not void your warranty. The Magnuson-Moss Warranty Act makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket part.” 03/11 Installation of a non-genuine Ford item…does not, in and of itself, render our warranty void. -Ford Motor Company* *Source:

28 Competitive Advantages Multi-Vehicle Brand Inventory Reduces Local Part Distributors Market Monopoly Competitive Marketplace Pricing 03/11

29 Questions? Midway’s contact person info 03/11


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