MAY 2023 AFTERMARKET 9 www.aftermarketonline.net Parts to reassure its members that the business will be fully divested from LKQ in terms of aftermarket parts supply in the UK. IGA Chief Executive Stuart James observed: “We are pleased that GSF has reached out directly to the IGA to provide reassurance to independent garages. As the trade body and voice of the independent garage sector, we welcome engagement with the parts sector to ensure garages have access to a fair and competitive aftermarket parts supply chain, and we are satisfied that GSF’s management are committed to ensuring full and fair competition is in place.” He added: “It is clear from our dialogue with GSF that they are aware of the concerns of the sector and plan on making sure their customers continue to receive a quality and competitive service, ensuring businesses and consumers alike continue to benefit from a fair marketplace.” Ongoing consolidation There has been a trend of ongoing consolidation in the market for a while now, with major names being absorbed, and their branches becoming parts of other chains, which were themselves then absorbed. Just in the last decade, Camberley Auto Factors were bought by Andrew Page, who went onto take on 21 Unipart sites, with more going to Euro Car Parts. Andrew Page then found itself being bought by Euro Car Parts, which led to a period of wrangling due to the Competition and Markets Authority (CMA) deeming the deal anti-competitive in ten areas across the UK. Meanwhile, Autosupplies Group bought up Butlers Automotive and Leisureways UK. The list goes on. Commenting on the overall trend towards ongoing consolidation, IAAF CEO Mark Field commented: “In many respects the distribution sector has been consolidating since the turn of the century, so it is not a new phenomenon. I believe competition to be as healthy as ever and motor factors continue to offer an exceptional level of service to independent garages, which in terms of deliveries may not be sustainable long term. It’s therefore important for businesses to communicate better, something which was identified during the Coronavirus pandemic. At IAAF, we’re seeing investments made by motor factors of all sizes to improve every part of their business, which in turn benefits the garage.” Mark added: “The work of the IAAF in the coming years, with our growing garage membership will be to bring garages and motor factors even closer together, enhancing communication and training so that the aftermarket continues to represent itself as the only credible choice for vehicle service and repair.” Global market picture Explaining where the LKQ/Uni-Select deal sits in terms of the overall global market picture, Quentin Le Hetet, Country Director at GiPA UK observed: “The aborted IPO of PHE was the last big news in the global news of part distribution. This one is the biggest deal since NAPA purchased AAG.” On the surprise nature of the announcement, Quentin said: “Perhaps there were some signs with recent change of management at Uni Select top level, however we did not see it coming either.” As it stands, with LKQ Corporation looking to sell on GSF Car Parts, the impact on the UK market may not be that significant. Quentin concurred: “The communication of the divestment regarding GSF Car Parts seems to indicate that this will not impact the UK market at all. “ On who could be interested in buying an operation the size of GSF, Quentin mused: “Some important European players might want to get a better footprint on the UK market.” It would not be a case of plug-and-play for an overseas newcomer to the UK aftermarket though: “If the buyers are not currently in the UK market, they will definitely need to learn to understand how the UK aftermarket works. This is quite different from the US, or some major European markets.” On how all of this might affect UK garages, Quentin added: “I would say it is impossible to speculate at this stage. To be continued.” The Garage Equipment Association e Upholders of Industry standards since 1945 ard ! reditation c for hisac Ask your engineer f cr IS Y . Y ent A For peace of mind always use a Garage Equipm Association member. GEA accredited engineers work to an industry code of conduct Your assurance their skills and knowledge have been independently assessed. YOUR EQUIPMENT ENGINEER GEA ACCREDITED? Th .c www.gea co.uk xp Dat GEA ACCREDITED ENGINEER Name Company Discipline E te ID Number XX123456 XX123456 XX123456 XX123456 XX123456 In many respects the distribution sector has been consolidating since the turn of the century, so it is not a new phenomenon ”
RkJQdWJsaXNoZXIy MjQ0NzM=