Download - The Roll of OEM Scan Tools in Aftermarket Repair Shops

C.A.S. of New England

The Roll of OEM Scan Tools

in Aftermarket Repair Shops


? Who is C.A.S. ?

Mission Statement

To provide only the best quality scan tools,

information and after sales support to the

automotive aftermarket repair industry

through an organized network of

professional automotive consultants…


? Who is C.A.S. ?

• Offices located in New England – 16 years of learning & growing [“Pach Kaahs”]

• Direct Technical Sales Force– Direct coverage of eastern half of USA

• Web presence : www.oemtools.com• Scan Tools are our only focus

– Aftermarket / Specialty / OEM / HD / Laptop’s

• We Offer ‘Turn Key’ VAR Solutions– Hardware - Software -Training - Support …


? Who is C.A.S. ?• Our Typical Customer?

– Aftermarket Repair Shop– Fleet Garages– Multi Store Chains– New and Used Car Dealers– Vocational Schools

• Currently support 4,200 shop locations representing an estimated 5,700 ‘active’ scan tools including 700-800 laptop based platforms…


Topic Areas

• Scan Tool Linguistics

• What drives I/A towards OEM level tooling

• What drives them away from OEM tooling

• Future trends that one can expect to see

• Items and issues that can shift the future…


Definitions of Scan Tools• OEM Scan Tool: The current or past scan tool that is the

exact same item as used in the franchised dealer service department

• OEM Level Scan Tool: Any tool that any aftermarket scan tool company wishes to term as such.

• Aftermarket Scan Tool: Any scan tool built for industry use that is not a recognized OEM scan tool. Coverage to include Dom / Asian / Euro.

• Specialty Scan Tool: A scan tool with a particular car line(s) focus. Euro only, Euro/Asian, VW/Audi only, Volvo only, etc. Typically if it does not attempt to cover the ‘Domestic Big 3’ it is not considered ‘general purpose’…


What Drives Shops Towards OEM Tooling?

• Frustrations with Aftermarket Tooling

– What vehicles does it actually cover?

– What sub-systems are in the coverage

– Special Functions missing

– Data Errors

– Cost of updates w/out improvement in operation

• Some still are looking for the ‘Holy Grail’…



• Efficiencies Realized with OEM Tools

– 38% Tech Productivity Increase w/ OEM scanners (?)

– Topology Map of the car ECU’s!

– Who’s reporting? Who has codes?

– Pending Calibration files indicated and available!

– Key Coding / Security System access!

– Maybe 38% isn’t that hard to believe!…



• The Desire to Compete and Stay Current

• Costs associated with sending cars out

– 50/50 Parts - Labor mix

– $80/Hr Labor = $160/Hr lost revenue

• Poor experience at dealers / Closing dealers

• Prior experience with OEM Level Tools

– Past Dealership experience with an OEM Tool…


What Drives Shops Away from OEM Tools?

• Initial Cost of Entry as a % of GPM

– NE Shops $300-850K Gross Revenue

• Confusion over what tool to buy

– DRB-III / StarScan / StarMobile / Wi-Tech

• Confusion on compatibility between tools

– One laptop for every tool?

– Who co-exists with who on the PC?


What Drives Shops Away from OEM Tools?

• Lack of Comfort in the Windows/PC world

– Who sets it up? – How do I repair it?

• Fear of OEM tools obsolescence

– Ford IDS Noise?! – GM Tech-2 / MDI

• Cost of Maintaining Multiple OEM Tools

– Subscriptions must be paid or function stop

– ‘Time Bombs’…


Individual Responses to ‘The OEM Situation’

• Stay the Course (aka: Do nothing)– Stick with Aftermarket Tools only

• Specialize in one/two/three car lines– Honda/Acura – GM/Ford/Chrysler

• Contract OEM Level Services out– ECU Reflash / Security Issues (keys)

• Buy as many tools as business will allow

- Wife will allow -‘Tool Freaks’ found here…


Industry Wide Trends that will Shape the Future Shop


Industry Wide Trends That Will Shape the Future Shop

• A Single Location Aftermarket Shop ?

– 1st General Purpose Aftermarket Scanner

• 1st line of attack! Quick - Easy - Dependable

– 2nd Specialty Scanner

• This tool is there to fill the holes of 1st scanner

– 3rd OEM Scan Tool or tools

– 4th J-2534 device...



• Meet the ‘Mobile Diagnostic Super Tech’

– Multiple OEM tools on board his mobile truck

– Internet enabled (3G/4G)

– Lots of on-going experience w common problems

– Non-Compete situation with independent shop

– Allows a fix that includes some profit for the shop

– Transparent to the customer/vehicle owner!...



• Increasing # of ‘Pods of Shops’

– Small groups of independent shops

– Combined purchase of needed OEM tooling

– Tools/Laptop shared between shops ‘as-needed’

– Designated central location as ‘home’

– UPS / Parts House / Employees act as ‘mules’

– Tool costs are shared…



• ‘Hub and Spoke’ Arrangements

– Typically used by multi-store chains

– Multiple OEM scanners at central ‘hub’ location

– Other stores ‘Spokes’ send work to ‘Hub’ shop

– Advice is provided by ‘Hub’ on viability of repair

– Leverages chains ‘Top Techs’ skills

– Helps uncover internal issues…


Industry Issues That Can Alter The Future


Issues That Can Alter the Future• Single Channel Source for OEM Tooling

– Trend is for OEM’s to direct all orders to 1 party

– Lack of competition produces poor results

• DRB-III’s months to obtain any due to ‘parts’

• IDS’ Typically on back order every 60 days

• Subaru Tool – 12 weeks typical wait time

• Delivery deadlines routinely not met

• Providing dual channels for delivery would help…


Issues That Can Alter the Future

• Method of providing service to aftermarket

– Web based solution for tools delivery is easy

– Web based solution for tool repair not so easy

• I think it’s broke?

– Send an e-mail and wait for response

– Receive an e-mail response with suggested C of A

– Send an e-mail with results of C of A

– Receive an e-mail with directions of next step

– Repeat above steps - OR - - Tool is shipping out for repair…



• Trend to shut down tools / penalize owners

– Ford’s IDS Subscription Policy

• $500 - $550/yr updates and cal files

• Expire and you eventually lose ability to re-flash (60-90)

• Renew after being out of subscription for months (8 months)

– Penalty fee of $500 for back filling past months

– Plus $500-550 renewal fee

– 180 days later and you have to renew again at $500-550

• This situation drives I/A away from OEM tooling



• Telematics ‘On-Star’ or ‘Non Star’

– Some feel this is a huge threat to Aftermarket

• Scan tool manufactures wonder if it will effect them

• Aftermarket shops fear being out maneuvered

• Access to OEM level Telematics may be a huge

game changer depending on direction of OEM’s

– NASTF / ETI involvement may be critical…



• Cloned OEM hardware and software

– Continued issue for all parties

• OEM’s

• Aftermarket Shops

• Scan Tool Manufacturers

• Actions to limit/stop cloning will effect what the

future of scan tool development looks like…



• J-2534 Type Device Developments

– Will this be the ‘Holy Grail’ ?

• Laptop / iPad / Tablet PC

• J-2534 device

• Common interface for multiple OEM’s

• Daily day pass for any car line

• Cloud Computing at it’s finest…!?!


• Technology changes will continue as we have all come to accept. The future in some cases is fairly clear, but in other areas still fuzzy and uncertain.

• What is certain is that the wants, needs and desires of the aftermarket repair shop owner have not really changed at all over the years.

• There is great opportunity for all who listen and respond to those customers wishes...!

SUMMARY


The Roll of OEM Scan Tools

in Aftermarket Repair Shops

? Questions / Comments ?____________________________________

Contact [email protected]