The Aftermarket Auto Parts Alliance, located in San Antonio, Texas, and Staunton, Virginia-based Federated Auto Parts, have announced a strategic collaboration to combine certain activities and resources to reduce costs and improve service and efficiency to their respective members.
The collaboration provides a framework for sharing benefits and costs in a number of administrative and support areas and includes shared ownership in The Automotive Parts Services Group (APSG), a joint venture with The Pronto Network.
John R. Washbish, Alliance president and CEO, commented, “We are happy to partner with Federated and APSG in a number of important areas that will provide enhanced value and opportunities for all our shareholders while maintaining our unique marketing identities and focus on local markets and the needs of professional service providers. The Alliance continues to be dedicated to shareholder member success and this collaboration will support those initiatives by reducing costs and strengthening our ability to focus on customers and their needs.”
“Federated is excited about the opportunity to work closer with The Alliance and share resources and ideas in areas such as data management, communications and other important support initiatives while also working together through our APSG joint venture,” added Sue Godschalk, president of Federated Auto Parts. “We look forward to continued improvement and providing added value to our members through this collaboration.”
“The Federated-Alliance agreement continues the consolidation of efforts that began with Federated and Pronto forming The Automotive Parts Services Group in 2014, and follows Pronto joining with The Automotive Distribution Network, bringing in Parts Plus and AutoPride members,” explained Larry Pavey, CEO of The Group. “It is exciting to see the major groups dedicated to working together in areas that provide benefits to their individual members such as IT support, national accounts, training, and purchasing and it also provides benefits and efficiencies to suppliers as well. Working together in areas that require collaboration and eliminating redundant efforts and cost while maintaining a focused approach on marketing and customer service is really a win-win for all members of The Group.”
In making the announcement, The Alliance shared answers to some potential questions about the partnership. Among them, The Alliance shared that both Alliance and Federated main offices will be maintained. A six-person board, with three Alliance representatives and three Federated representatives, will oversee the collaboration efforts initially. The Alliance will become a partner with The Pronto Network in the Automotive Parts Services Group and will share in all activities that are part of APSG. As such, The Alliance will support The Group Training Academy. The Alliance will have access to all APSG purchasing terms sheets and will also continue to support certain non-APSG suppliers and private labels. However, each group maintains exclusive rights to all private or exclusive brands that are marketed by their members. Those brands will not be shared.