KPMG to share aftermarket extended terms findings at AASA Supplier Briefing

In its role as the “voice for aftermarket suppliers,” AASA has embarked on a study of extended terms with the goal to promote a dialogue across the industry on this topic.

“This spring, AASA commissioned KPMG, one of the ‘Big Four’ global accounting and consulting firms, to conduct an in-depth study of the impact of extended terms on the industry overall,” says Steve Handschuh, president and chief operating officer for AASA. “AASA’s initial step was to help provide a better understanding of this practice and the potential risks for the aftermarket supplier community and the overall supply chain,” said Handschuh.

The study has now been completed and the results will be discussed with the top executives of AASA supplier members at an August 14 meeting in Detroit. Representatives of KPMG will be on hand to discuss the report findings and insights that will allow aftermarket suppliers to:

• Better understand the value proposition to suppliers, customers and banksbBenchmark aftermarket parts terms and factoring/financing usage versus other industries
• Understand and model the real costs, risks and benefits to the industry
• Assess potential risks/opportunities in realistic future scenarios
• Identify alternative options / approaches that meet the needs of all value chain constituencies.

“While all suppliers and their customers must negotiate their own agreements in their own best interests, in the end, the aftermarket value chain – retailers, distributors, suppliers and financial institutions – need to pursue business practices that promote long-term sustainability and resiliency of the industry,” says Handschuh. AASA looks to help facilitate industry dialogue on this important area.

For more information about AASA visit www.aftermarketsuppliers.org.

MEMA supports its members through its four affiliate associations, Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Motor & Equipment Remanufacturers Association (MERA) and Original Equipment Suppliers Association (OESA). MEMA represents more than 700 member companies with global motor vehicle parts sales exceeding $600 billion and 65 percent of North American automotive supplier sales.

For more information on the motor vehicle parts supplier industry, visit www.mema.org.