Team Interstate Wrap-up for Feb. 25-27, 2012

Kyle Busch and Denny Hamlin run side-by-side at the 2012 Daytona 500.

NASCAR ran its marquee event on a Monday night for the first time, and fans were treated to quite the spectacle. After being postponed by heavy rains, the 2012 Daytona 500 ran under the lights with nail-biting racing, spectacular wrecks and (literally) explosive drama.

When it ended in the early morning hours on Tuesday, Denny Hamlin would lead Joe Gibbs Racing with a fourth-place finish while Joey Logano took the checkered flag in ninth and Kyle Busch came home in 17^th.  All three JGR entries were able to escape any major damage while avoiding several wrecks, and all were well clear of the night’s most frightening accident on lap 160: Juan Pablo Montoya collided with one of the track’s jet dryers under caution creating a massive explosion. Fortunately no one was injured, but the race was delayed more than two hours while crews made repairs to the track.

Hamlin led for a race-high 57 laps while Logano took his turn at the front on lap 143. Although the pack racing would shuffle the top positions on track, Logano managed to remain near the front of the field for the remainder of the race. He was unable to move out of the traffic on a final green-white-checker restart however and was left with a strong and career-best Daytona 500 finish of ninth.

Busch, who captured the season-opening Bud Shootout All-Star Race a week prior to the Daytona 500, started the No. 18 M&Ms Brown Toyota in 14th and was patient through the early going while avoiding several of the night’s early accidents. Trouble would finally find Busch while he raced inside the top 10 on lap 198 as he was clipped from behind and sent spinning. Busch did a masterful job of keeping his M&M’s car off the wall and brought his car to pit road with minimal damage for fresh tires. He was 16^th on the final two-lap green-white-checker restart, but the track position proved too difficult to overcome as he was unable to make his way through traffic to gain position. Busch went on to finish the night in the middle of the pack in 17^th place.

Matt Kenseth won the Daytona 500 on a green-white-checkered finish.

Bubba Takes Third in Atlanta

JGRMX star James Stewart finished a solid third in Atlanta. (Photo courtesy js7.com)

James “Bubba” Stewart led the JGRMX/Toyota/Yamaha/Interstate Batteries team with a third-place finish Saturday at the Atlanta round of the AMA Supercross Championship. A sell-out crowd of 71,009 saw Stewart dominate his heat race and deliver a solid effort in the main event. Stewart’s teammate Davi Millsaps delivered his best finish of the season so far with a fourth-place effort.

Millsaps began the race in third, with Stewart getting bumped around in the first turn starting the first lap well outside of the top-10. By the eleventh lap, Stewart was in third place, poised to challenge the leaders. A lapped rider’s accident caused the red caution lights to come on, ending Stewart’s momentum and preventing an opportunity to battle for the top-two positions. Stewart currently sits in third for series points with Millsaps ninth.

Related Articles

• WIN: Sparks Fly in Shootout! (joegibbsracing.com)
• Juan Pablo Montoya Crashes, Causes Big Fire at Daytona 500 [Video] (inquisitr.com)
• Kyle Busch on Joe Gibbs Racing’s Offseason Changes (blogbattery.com)
• Stewart Wins Oakland in a Fitting Tribute to Mark “Tex” Adams (blogbattery.com)

If you pick up a copy of this week’s Dallas Business Journal, you’ll see a smiling photo of one of our own. Scott Miller, senior vice president of the Interstate Batteries Independent Distributor Group, is featured in a “Facetime” Q&A about his history with the company.

Scott Miller, Senior Vice President, Independent Distributor Group, Interstate Batteries. (Photo by Jake Dean/Dallas Business Journal)

Scott is the son of Interstate’s Chairman Norm Miller, and he’s worked hard his entire career at Interstate. As a teenager, he swept floors in one of our warehouses and became a route sales manager after college.

On his relationship with his father and how it affected his career, Scott said:

“Every move that I’ve made, up until the last few moves, was my move. Norm got me my first job at Interstate, but he’s never played an active role in my movement or progression. It doesn’t mean he’s not interested.”

Read more of the interview on the DBJ’s website: Scott Miller Climbed the Ladder at Interstate Batteries

Related articles

• Franchise Business Review Interviews Interstate All Battery Center SVP Scott Miller (allbatteryfranchise.com)
• Career Opportunity: Market General Manager (blogbattery.com)
• KRLD CEO Spotlight Features Carlos Sepulveda (blogbattery.com)

Samantha Busch, wife of NASCAR driver Kyle Busch, tells Interstate Batteries how she helped Kyle get into shape during the off-season and what you’ll find on her website, SamanthaBusch.com.

We love to grab interviews like this whenever we’re at the track or at any event with Kyle, Samantha and the team. What would you like to see? Let us know in the comments below.

Related articles

• Kyle Busch on Joe Gibbs Racing’s Offseason Changes (blogbattery.com)
• Samantha Busch on the NASCAR Off-season (blogbattery.com)
• Kyle Busch Wins Daytona Shootout (blogbattery.com)

Carlos Sepulveda, President & CEO of Interstate Batteries

Radio station KRLD-AM in Dallas-Fort Worth recently featured Interstate Batteries President & CEO Carlos Sepulveda in its CEO Spotlight. The segment, hosted by David Johnson, features CEO interviews from successful companies such as Southwest Airlines, Pizza Inn Holdings and MoneyGram.

In the interview, Carlos discusses electric vehicles and the future of the battery market.

“Electric vehicles have been talked about for many years and now they are becoming more of a reality,” he said.

He also mentions how Interstate has Dealer and Distributor locations all over the country and how success is not entirely about Interstate’s size but about how team members work together to generate opportunities that are rewarding, profitable and growth-oriented.

“Our brand is to be Outrageously Dependable® and that is our goal,” Sepulveda said. “The battery itself will not be that but the people around the product will be.”

Listen to the interview now: Interstate Batteries CEO Carlos Sepulveda on KRLD’s CEO Spotlight

We asked Team Interstate‘s Kyle Busch what he thought about the offseason changes at Joe Gibbs Racing, including the two new crew chiefs, Darian Grubb and Jason Ratcliff. He also told us what he and his wife Samantha did during the offseason.

What do you think of JGR’s changes? Tell us in the comments below.

Related articles

• A Quotable 20 Years With Joe Gibbs Racing (blogbattery.com)
• FAST TAKE: Kyle Busch on NASCAR’s New Engines (blogbattery.com)
• Blazing Fast NASCAR Wrap (youtube.com/joegibbsracingtv)

Editor’s Note: Interstate Batteries^® originally published the following four-part series as a full-length article titled “At Today’s Shops, the Trend Is Up, Up… Up?” in the winter 2011 issue of CURRENT magazine. We’ve edited the 1,600-word piece into more manageable chunks to spread the goodness over a couple days and to prevent screen burn-in on your monitors. You’re welcome. Here’s the last part.

(Part 1 | Part 2 | Part 3 | Part 4)

Of the 155 million vehicles sold between 1999 and 2007, just 52 million hit average retirement age in 2012. The remaining 103 million could stretch the car boomer effect out for two more years. The AAIA forecasts general automotive repair shops hitting $41 billion by 2014, the year more than half the “car boomer” generation has passed average retirement.

In a scheduling coincidence, that’s the year forecasters expect U.S. auto sales to recover.

Forecasts from Edmunds, a publication house for the automotive industry, predict U.S. car and light truck sales breaking the 15-million-unit mark in 2014, higher than 2008’s sales figures.

From Edmunds.com

Growth charts for auto sales could look like the incline grade for a driveway. Edmunds analysts expect U.S. auto sales to hit 12.9 million in 2011 and grow slowly from there. Growth in new auto sales is based on the factors that put pre-recession auto sales at 17 million: strong employment numbers and access to credit for car loans.

While auto sales amble to their former levels, repair shops of America can enjoy the new normal for two more years or longer. Thanks to years of high auto sales, the repair customer base grew deeper than ever. Everyone wants to keep their vehicles running as long as possible, relying on 10- to 12-year-old cars to keep them on time to work and away from new car payments.

While the busy culture values fast repairs on a discount, the thing keeping car drivers coming back is the handshake of a trustworthy mechanic.

Youssef Sleiman, a Communications Specialist at Interstate Batteries, still drives his high school car after 14 years of oil changes, kicking tires and prayer.

(Part 1 | Part 2 | Part 3 | Part 4)

Related articles

• At Today’s Shops, the Trend is Up, Up… Up? (blogbattery.com)
• The $36 Billion Business (blogbattery.com)
• The Repair Boom (blogbattery.com)

Team Interstate Wrap-up for Feb. 18-19, 2012

If Saturday was any indication, the 2012 racing season will be one to remember for Team Interstate. Kyle Busch made several amazing saves en route to his victory in the Budweiser Shootout. James “Bubba” Stewart overcame an early incident to score a sixth-place finish in Supercross. And Mike Edwards took the NHRA Pro Stock pole in Arizona before exiting in round 2.

NASCAR: Busch Wins Shootout

Kyle Busch defeated Tony Stewart by a thin, candy shell at the 2012 Budweiser Shootout at Daytona.

Busch, driver of the No. 18 Toyota Camry, led Team Interstate by winning Saturday night’s Budweiser Shootout non-points NASCAR Sprint Cup Series race at Daytona (Fla.) International Speedway.

Kyle Busch flashes that familiar smile after his win.

Busch led twice for three laps and passed Tony Stewart just before the finish line on the final lap to claim his first career victory in the Budweiser Shootout. Busch defeated Stewart by .013 of a second, the closest finish in Budweiser Shootout history.

Hamlin’s Team Interstate companions – Denny Hamlin in the No. 11 Toyota Camry and Joey Logano in the No. 20 Toyota Camry – finished fifth and 18th, respectively. Hamlin scored his fourth top-10 finish in seven Budweiser Shootouts while Logano was involved in a multi-car accident on Lap 54 and was unable to finish the race.

Supercross: Stewart Climbs Back After Stumble

JGRMX teammates James Stewart and Davi Millsaps took on round seven of the Monster Energy AMA Supercross Championship Saturday night at Cowboys Stadium in Arlington, Texas. Stewart and Millsaps transferred to the main from their respective heat races, with Stewart winning his fifth heat race of the season.  The teammates began the main event around mid-pack with Stewart following Millsaps toward the front. On the third lap, Millsaps was in fifth with Stewart right behind when Millsaps fell when exiting a turn. Stewart, having no place to go, ran into Millsaps’ fallen bike, stalling his motorcycle. By the time Millsaps and Stewart got back in the race, they were in 19th and 20th. Stewart rallied up to sixth place at the checkers with Millsaps 15th.

See a lap of the course from Stewart’s perspective:
httpv://www.youtube.com/watch?feature=player_embedded&v=kRhjIYOJgbk

NHRA Drag Racing: Edwards Wins Pole

Mike Edwards and the young men from Young Life Capernaum Phoenix

Mike Edwards set a track record and grabbed the pole for the fourth straight year at Firebird International Raceway in Chandler, Ariz. In the first elimination round, Warren Johnson had the starting line advantage, but Edwards chased him down by half track to take the win. In round 2, however, Edwards suffered a violent tire shake and lost to Rodger Brogdon.

Though the accolades on the track carry a special spot with Edwards, the truly best part of Saturday for him and the entire team was having the honor of hosting a group of young men in their pit area from the Young Life Capernaum Phoenix.

“These are some very special young men, that have some major challenges in their life,” Edwards said. “But when you are around them, you would never know it by the smiles on their faces and the joy they have inside and bring to everyone around them. It was truly an honor to have them with us today.

Learn more about Edwards’ Saturday with Young Life Capernaum Phoenix.

Related articles

• WIN: Sparks Fly in Shootout! (joegibbsracing.com)
• Stewart Wins Oakland in a Fitting Tribute to Mark “Tex” Adams (blogbattery.com)
• Samantha Busch on the NASCAR Off-season (blogbattery.com)

Cars are staying on the road longer, meaning more business for auto repair shops.

Editor’s Note: Interstate Batteries^® originally published the following four-part series as a full-length article titled “At Today’s Shops, the Trend Is Up, Up… Up?” in the winter 2011 issue of CURRENT magazine. We’ve edited the 1,600-word piece into more manageable chunks to save trees if you print this out and to give you something to look forward to this weekend. You’re welcome. Here’s the third part. 

(Part 1 | Part 2 | Part 3 | Part 4)

The reasons behind the industry-wide increase in revenue boil down to two: nine years of high vehicle sales and a subsequent consumer shift from buying to holding and maintaining their cars.

According to Wards, auto sales plateaued from 1999 to 2007 at about 17 million, the highest ever in the history of the automobile. The sheer number of cars can seem staggering: 155 million.

The consumer shift happened with the recession. More of America’s drivers chose to repair rather than replace. According to analyses from automotive research firm Polk, owners are keeping their cars and trucks on the road for 10.6 years on average, up from 8.4 years in 1995.

America’s biggest years in car sales created a kind of “baby boomer effect,” said Tyler Reeves, Interstate Batteries Director of Marketing Research and Strategy. Reeves is referring to the Baby Boomer generation and how adding 76 million children between 1946 and 1964 strained institutions and raised consumption levels. Now the repair and battery markets are seeing this same phenomenon unfold.

Looking at sales numbers and industry statistics from Experian, a global consumer research firm, Interstate researchers have seen a consistent penetration into a third battery replacement. The sweet spot for Interstate Batteries was the first replacement and the second replacement, Reeves said, but since 2008, more cars and trucks are going to the junkyard with a fourth battery in them. All of this translates to good news for general repair shops.

Car manufacturers have done a good job making cars that can handle more mileage, said Ken Williams of Pacific Car Care in Portland, Ore. Spark plugs, once a replacement necessity every 30,000 miles, now last 100,000 miles and beyond.

“It’s not uncommon to see a car with 250,000 miles and it not need an overhaul,” said Mike Holmes of Holmes Auto Repair.

While outliving the traditional 100,000-mile marker, these cars are outrunning their warranties and heading to independent shops. Part of the new norm: Cars and trucks more than a decade old are getting much more maintenance and attention than originally expected. Business for Pacific Car Care has increased 18% from 2007, and Williams attributes it to more maintenance on the older cars coming into his shop.

Less than 1% of the cars going through his Fort Walton Beach shop are new models, the owner estimated. Instead, the new norm is routine maintenance on 11-year-old cars that drivers would have been tempted to replace just five years ago.

Steve Wright’s Arizona shop sees a lot of cars with high mileage, like a 2008 Toyota Camry with more than 80,000 miles. At least half of the cars going through Granite Reef Service Center have more than 100,000 miles on them. Outside of Detroit, about 12 cars a month from model years 2010 or 2011 come through Handlon’s shop. Instead, vehicles about 15 years old or older make up the majority he sees.

The majority of cars going through Pacific Car Care in Oregon are 5 to 18 years old, often over-mileage for their warranty. Williams said he often finds a service the customer hadn’t asked to fix: broken seatbelts, broken radio antennas and even missing license plates.

“That’s the increase sale. If shop owners say sales are down, they’re not looking,” Williams said. “There’s more unsold work on cars than sold work.”

(Part 1 | Part 2 | Part 3 | Part 4)

Related articles

• At Today’s Shops, the Trend is Up, Up… Up? (blogbattery.com)
• The $36 Billion Business (blogbattery.com)

Editor’s Note: Interstate Batteries^® originally published the following four-part series as a full length article titled “At Today’s Shops, the Trend Is Up, Up… Up?” in the winter 2011 issue of CURRENT magazine. We’ve edited the 1,600-word piece into more manageable chunks to preserve your browser’s Temporary Internet File memory and to accommodate any potential attention deficit disorder. You’re welcome. Here’s the second part.

(Part 1 | Part 2 | Part 3 | Part 4)

In the past, more car sales typically meant more cars for America’s repair shops. Since 1994, the American street fleet grew by at least 15 million cars a year – until 2008. Then car sales dropped to 13 million and dropped again to 10 million in 2009. After years of momentum heading toward 20 million new cars on the road, new car and truck sales slumped to half that in 2010.

Fewer car sales mean less revenue for repair shops, right? Wrong.

Instead, the auto repair industry posted its best years since the turn of the millennium. General repair shops reported about $36 billion in 2010 sales. That’s up from $33 billion in 2007, according to the Automotive Aftermarket Industry Association.

For Steve Wright, the owner of Granite Reef Service Center and Interstate dealer in Scottsdale, Ariz., the last three years have been a blast.

“My accountant keeps telling me, ‘I don’t know how you’re doing it. Your numbers just keep getting better,’” Wright said.

For Pacific Car Care, an Interstate dealer in Portland, Ore., business grew 18% since 2008. The owner, Ken Williams, attributes his sales boost to a combination of new consumer habits and his efforts to educate his customers. Even in a down economy, the customers calling Pacific Car Care will pay for maintenance and even repairs because a breakdown could translate to a lost job or greater repair costs later.

For Handlon Bros. Auto Parts and Service, another Interstate Dealer, the years have been a rollercoaster, largely a sign of the shrinking economy in and around Detroit. Rather than seeing his business grow, his sales have held at average while the demographics have changed.

“In my area, it’s changed drastically,” Handlon said, explaining that he and his brother have considered moving shop. “It’s pretty bleak here. The things you read about Detroit, they’re true. That’s the interesting thing: Twenty-five miles out, it’s a totally different life.”

Watching similar economic difficulties in Rochester, Marone altered his business direction. He’s added a business-to-business model, servicing small fleets for construction companies. The population in Rochester’s returning to pre-1910 levels. With it goes much of the growth potential Marone would like to capture. Business has held steady for the New York shop owner, despite significant drops in his customer base.

While general repair shops together made $5 billion more in 2011 than in 2007, about 1,100 repair shops closed nationwide, according to the Bureau of Labor Statistics. Williams has seen it in the Portland area.

“The business gets redistributed,” Williams said.

In 2007, he had more than 35 competitors within 5 square miles of Pacific Car Care; going into 2012, he’s got just 26 competitors.

There’s more business going to fewer garages, but what about the recession? How long will it last? The hit to the economy may be the best news for repair garages since record auto sales in 1994.

(Part 1 | Part 2 | Part 3 | Part 4)

Related articles

• At Today’s Shops, the Trend is Up, Up… Up? (blogbattery.com)
• Winter Battery Tips from Interstate Batteries’ Gale Kimbrough (blogbattery.com)
• Technological Challenges Loom for Auto Repair Shops (prweb.com)
• The Repair Boom (blogbattery.com)

For the 2012 season, NASCAR is introducing electronic fuel injection for the first time. We asked Kyle Busch, driver of the No. 18 Interstate Batteries®/M&Ms Toyota Camry for Joe Gibbs Racing, for his hands-on review of the new engine.

Related articles

• Samantha Busch on the NASCAR Off-season (blogbattery.com)
• Fuel injection gives teams mountains of data (canada.com)