OEConnection LLC, an online parts and service exchange in the automotive industry, announced today that Volkswagen of America, Inc. has selected OEConnection’s CollisionLink Web-based parts ordering and fulfillment solution for Volkswagen dealerships and its collision repair facility customers nationwide.
Central to this agreement is CollisionLink’s Parts Marketing Administration (PMA) technology, which automates and manages automaker parts programs. An enhanced capability of CollisionLink, PMA was designed to help dealerships take advantage of automaker incentives and discounted promotions to sell more OEM parts to body shops as an alternative to lower-priced aftermarket and salvage collision parts.
CollisionLink is an all-makes, all-models, online part ordering and fulfillment solution endorsed by multiple automakers and used by thousands of automobile dealerships and collision body shops nationwide. Joining American Honda, Ford Motor Company, General Motors, Chrysler and Nissan, Volkswagen of America represents the sixth automaker and the first European-based manufacturer using OEConnection’s PMA technology to manage its parts marketing programs through CollisionLink. Volkswagen of America will manage its Genuine Advantage collision parts marketing program exclusively through CollisionLink.
“We welcome Volkswagen and its wholesale parts distributors to our online OEM marketplace,” said OEConnection Sr. Vice President and Chief Commercial Officer Mark Tomasetti. “The implementation of CollisionLink, combined with Volkswagen’s strategic parts pricing strategy, creates growth opportunities for Volkswagen of America, its dealerships and their collision repair facility customers. Industry-wide, dealerships that use CollisionLink’s PMA technology are converting originally-specified non-OEM parts to OEM parts sales at steadily rising rates up to 70 percent of the time for some automaker programs.”
OEConnection’s CollisionLink streamlines the OEM collision parts ordering process between body shops and supplying dealers by reducing, if not eliminating, inefficient phone and fax ordering. CollisionLink’s PMA technology takes it a step further, the company says. It seamlessly integrates OEM parts marketing programs into the users’ order processing workflow. Dealers “see” a body shop’s intended non-OEM parts order, identify the parts that offer pricing incentives through an OEM’s marketing program, and seize an upsell opportunity. Based on a set of rules defined by an OEM, the technology automatically calculates parts discounts, alerts both body shops and dealers that a part qualifies for the discount and handles the administrative work between the competitive sale and the automaker reimbursement.
Dan Ducharme, parts strategist for Volkswagen of America, said, “As the largest European carmaker and the third largest automaker in the world, Volkswagen has a network of more than 580 U.S. dealerships that act as wholesale distributors of OEM collision parts. This new arrangement emphasizes Volkswagen’s goal of helping these dealerships sell more OEM parts and building relationships with their repair facility customers. Everyone who uses CollisionLink has something to gain. As the manufacturer, we can easily manage our Genuine Advantage collision parts program; our dealerships will have the opportunity to efficiently process parts orders and sell more Volkswagen OEM parts; and repair facility customers will be able to easily purchase OEM parts at completive prices. Ultimately, Volkswagen owners benefit because they receive better quality parts for collision repairs.”
Volkswagen will launch this program to select dealerships in August 2010.
Volkswagen Genuine Advantage program