SAN ANTONIO — The Aftermarket Auto Parts Alliance Inc. (AAPA) and Federated Auto Parts Inc. have agreed to collaborate on certain activities and resources to reduce costs and improve service and efficiency to their respective members.
The "strategic collaboration" involves 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 Cooperative.
San Antonio-based AAPA is an aftermarket distribution and marketing program group for independent warehouse distributors; Federated, headquartered in Staunton, Va., is an auto parts distribution and marketing organization.
APSG, known as The Group, is a joint venture of Federated and Pronto.
The Alliance and Federated said they will maintain their own offices and both will continue to focus on marketing programs and other specific areas of member support with a focus on their specific brands.
There will be a six-person board with three Alliance representatives and three Federated representatives who will oversee the collaboration efforts initially. Much of the combined activities will be managed through APSG, reducing the need for added management, the groups said.
Alliance and Federated together become a partner with The Pronto Network in the APSG and will share in all activities that are part of APSG, they said.
"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," Alliance President and CEO John R. Washbish said.
"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," he said.
"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," Federated President Sue Godschalk said.
"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 when Federated and Pronto formed the APSG in 2014.
"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," APSG CEO Larry Pavey said.