Toronto, Ontario — LKQ Corporation has announced its acquisition of Auto Data Labels, a New York-based manufacturer and distributor of replacement vehicle information labels. Finalized on Dec. 13, 2019, the acquisition will see Auto Data Labels integrate within LKQ’s recycled and aftermarket parts services to provide vehicle identification, Federal Safety certification, tire pressure, under hood, door, and warning labels.
“Auto Data Labels is an excellent fit to our existing parts and services offerings, providing a one-stop-shop solution for our customers,” wrote Terry Fortner, North American vice president of sales and marketing at LKQ, in a statement. “For example, a customer would buy a hood from LKQ that will simultaneously provide for easy access to the under hood labels from Auto Data Labels, making the complete part acquisition process that much easier.”
Todd Ackerman, senior director of vehicle and business technology at LKQ, further justified the need for a replacement oriented vehicle information label manufacturer and distributor.
“As with many of our acquisitions, we look to firms that are leaders in their space where we don’t already participate, and that also dovetail nicely with our existing businesses,” he said. “For vehicle information labels, I think [the acquisition] has probably been a long-term thought by many. I’m sure many workers have looked at the labelling process at some point in their time in the parts space or collision repair space and thought, ‘there has to be a better way.’
Ackerman said that in some cases, repairers may opt-out of replacing labels, which in some regards devalues a vehicle. Further, labels are very vehicle specific. Trim levels and option packages are often overlooked attributes of a vehicle label’s specific makeup.
“If the vehicle has leather seats and a moonroof as part of VIN specific option package—that might mean a completely different tire pressure than one that has cloth seats and no moonroof. It sounds ridiculous, but those are accurate representations of why these labels are so important. They must be researched and produced to the specific subject vehicle.”
Ackerman explained that if sought from a regular dealer/manufacturer supply chain, vehicle information labels can take four to five days to produce at a minimum—often times requiring one to two weeks before production and shipping, which could explain why some repairers would rather forgo obtaining them.
“There is, without question, a time-saving, efficiency and cycle time improvement factor,” says Ackerman. “Within 24 to 48 hours, a shop has received the label they had requested using Auto Data Labels merely by sending them an email request with photos, using their website, or their phone apps.”
Ackerman went on to describe the current relationship between the two companies just one month past the initial acquisition.
“It’s been just over one month now and it has been going extremely well,” said Ackerman. “They have a great team, that they have become LKQ family members. They have done a wonderful job putting together a business that isn’t just profitable—it’s meaningful and instrumental to the collision repair industry, insurers, and vehicle owners alike.”
According to LKQ, the former owner of Auto Data Labels, Scott Saal, will continue as general manager of the company to help it through its transition and growth.
