Motor Age: How has the globalization of information and markets affected how SPX pushes its diagnostics processes forward? Has it made
product development easier or more difficult?
Tanvir Arfi
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Arfi: Globalization of information and markets does make product development and ongoing technology and information content leadership
more challenging. We have a global footprint which allows us to keep pace with the changing requirements for diagnostic solutions
by region. We are the only company in the industry that has close working relationships with automotive OEMs, providing diagnostics
support to them globally and also providing the most comprehensive diagnostic productivity solutions to the independent aftermarket.
Whether the repair facility is an OEM garage in China, a franchised aftermarket shop in Cleveland, a one man operation in
Italy or a DIYer in Missouri, our core competence is providing them with the appropriate diagnostics platform and the appropriate
diagnostics and repair information.
Motor Age: How is SPX using advancing technologies in its tool offerings? What kinds of technologies are offered?
Arfi: We are known for being the technology leaders in the marketplace. We are continually working towards commercialization of
advanced technology, like hardware and components and migrating these over from consumer electronics on to our tool platforms.
Several advanced technologies are now integrated into our diagnostic tools like wireless communications and connectivity;
touch screen and advanced user interface; J2534 reprogramming capability; (and) "sim scroll" technology to allow
techs a quick and easy method to scroll through long data lists, etc. The key advanced technology offering we are most excited
about is our leadership in providing information to the tech at the fender. Information is no longer static, and although
there is an abundance of information on the Web, it is our ability to narrow the information down to the pertinent specific
malfunction and provide it in a user-friendly way on the tool itself that is a key differentiator. Motor Age: In your view, what are the biggest obstacles shops face this year, and what can they do to overcome them?
Arfi: The uncertain economy and lagging consumer confidence may cause an increase in deferred vehicle maintenance. The business
uncertainty caused by the current economic climate makes it difficult for repair facilities to make large capital investments
in their business. With such uncertainty comes great opportunity, and it is the shops that invest today in productivity solutions
that will be best positioned for success in the coming years. Miles driven trends and repair spend are already showing signs
of stabilization, and the realignment of repair spend away from OEM facilities means that opportunity will be there for those
that are prepared.
Motor Age: If the current economic situation continues, how do you see that affecting shops spending on technology solutions?
Arfi: In our experience, shops and techs who invest in technology and innovative tools deliver reliable service, better quality
of repair and improved customer satisfaction. Investment in productivity solutions is a key to shop profitability, and deferring
a productivity investment has the risk of causing a shop to fall behind.
As OEM dealer service bay counts decline with the consolidation of dealership locations in North America, the need for technology
and tools that allow the tech to more quickly determine the problem and then repair the issue correctly the first time has
never been more important. Independent repair shops across the country are experiencing a bump in demand and we are seeing
a split in our product mix. Essential productivity tools continue to do well, while discretionary higher price capital investments
are being deferred. Another interesting strength in this market is the DIY market. As a greater proportion of the vehicles
on the road are those greater than 10 years old, a portion of basic DIFM repair is shifting to DIY, a trend that appears to
have some staying power in this economic environment.
Motor Age: What new diagnostic platforms is SPX introducing in 2009? What impact do you expect them to have on the aftermarket?
Arfi: In late 2008 we introduced the revolutionary Pegisys® diagnostics platform for the independent aftermarket. This diagnostic
tool is the most advanced technology platform in the marketplace today providing wireless linking to the vehicle and the most
advanced and focused diagnostics information/repair content. In 2009, we have announced our new Pegisys PC Scan diagnostics
platform. The PC Scan takes the capability of Pegisys and puts it on a PC. This allows the tech to decide if he wants standalone
hardware or to simply utilize his existing laptop. Early adopting technicians have been diagnosing vehicles with OEM tools
via a PC for some time. We are introducing that technology to the independent aftermarket diagnostics. With PC Scan you have
the most powerful aftermarket scan tool available, running on the PC of your choice. We expect this technology to have a major
impact on the independent aftermarket. With increasingly improved and focused information available to the tech seamlessly,
we expect the tech to be able to undertake more complex and advanced repairs including vehicle reprogramming using J2534 hardware.
