Aftermarket Auto Parts Alliance expands into China

Dec. 16, 2014
The Alliance announced the creation of the China Aftermarket Auto Parts Alliance (CAAPA), which will go to market in China under the Auto Value brand.

The Alliance announced the creation of the China Aftermarket Auto Parts Alliance (CAAPA). CAAPA will initially consist of five established, well- financed warehouse distributors currently operating successfully in various regions of China that will form the charter members of CAAPA and be responsible for guiding its growth and development. The group will go to market in China under the Auto Value brand.

John R. Washbish, president and CEO of the Alliance, said, “Our goal has always been to create a global aftermarket alliance that can take full advantage of both mature and emerging markets. We are fortunate to have found such outstanding partners in China.”

Mr. Xiwen Zhang, the General Manager of Shanghai Jiapei Electronic Commerce Company and the chairman of CAAPA’s steering committee said, “The Chinese auto aftermarket is going through a profound consolidation period. As a result, this arrangement among China's top distributors is the ideal business model to assure maximum success.”

Zhang went on to speak about why he felt joining forces made the most sense for his business and for the group. "The longstanding success of the Alliance in North America is a reflection of operational expertise and management support. Outperforming our competition will be easier with the help and support of someone who has already waged the battles that we now face. We need efficient e-commerce platforms, a common parts store brand, as well as the introduction of premium brand products and private brands. The Alliance has done all that and can provide specific help in those areas and others.”

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