The current "soft" economy, coupled with the potential of a recession, is an issue that keeps Paul Johnson, general director
of the Global Independent Aftermarket for GM Service and Parts Operations (SPO), awake at night. But this veteran of the automotive
aftermarket knows from his 18 years of experience that the industry will continue to grow, as long as companies like GM leverage
their global presence to deliver quality parts and services to technicians as well as DIYers.
Johnson developed his forward-looking position on the global economy during his tenure at GM, where he has served as a director
of Investor Relations, a director for GM Europe's Truck & Van Vehicle Line Executive team, director of Service and Parts Operations
— New Ventures and Latin America, Africa and Middle East (LAAM) Regional Aftersales director. In his current position, Johnson
has global responsibility for GM's Independent Aftermarket (IAM) efforts across the U.S. and Europe, Asia-Pacific, and Latin
America, Africa and Middle East regions. Johnson holds a bachelor's degree in aeronautical engineering from Purdue University
and a master's degree in business administration from the University of Michigan.
Although Johnson describes the nation's economic climate as "uncertain," he suggests that aftermarket players turn their more
difficult challenges into opportunities by investing in new technologies and service methods that will position them to participate
in the future of automotive transportation. In Johnson's view, there's always room for top suppliers in the aftermarket supply
chain, a position ACDelco vigorously maintains through training, cutting-edge technologies and the continued innovation of
quality, branded products recognized around the world.
In this exclusive interview with Aftermarket Business magazine, Johnson delves into the aforementioned issues, while also considering the effects consolidation, telematics and
high gas prices have on the aftermarket industry, as well as the end consumer who trusts the ACDelco brand and continues to
buy these branded products for his or her car. But, in the end, he brings it back to the beginning — to technology, stressing
the importance of the latest and greatest innovations that make driving today's vehicles more efficient, safe and fun. Please visit our Web site for an even more in-depth look at Johnson's interview.
Q: A recent Global Symposium speaker said we are not in a recession, rather, we're facing a "soft" economy. What do you think,
and how is ACDelco positioned to deal with a recession — or a soft economy?
I think "soft economy" is a good way to describe the current U.S. situation. While we might not technically be in a recession
as defined by economic indicators, consumer confidence is down and that's what we are concerned with — after all, it's ultimately
the end consumer who keeps us in business.
The U.S. automotive aftermarket is quite large and continues to grow, albeit modestly.
We have to continue to deliver high quality and value to maintain our leadership position. This year has been challenging,
but we think ACDelco is well positioned to weather the storm. We're offering new incentives to our U.S. Warehouse Distributors
to help grow our mutual business. We are increasing our digital marketing efforts to capitalize on the increasing number of
households using the Internet to search for automotive parts and service. And we are continuing to leverage our global size
and scope to provide the best products for our customers.
Q: Being involved with both distribution and service, where in the chain is the economy being hit the hardest? And how is
your company adjusting to these challenges (if any)?
In the U.S. and Canada, there are approximately 8,000 service centers that participate in ACDelco's Total Service Support
(TSS) program, but these are independent businesses. Their owners have to deal with the brunt of uncertain economic conditions
at that level.
