Advance Auto Parts Stock: Old Vehicles Require Continued Maintenance (NYSE:AAP)

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Advance Auto Parts, Inc. (NYSE:AAP) is a leading automotive aftermarket parts provider in North America. The types of products sold by the company include parts & batteries, accessories and chemicals, and engine-related maintenance products, such as air filters and transmission fluid. Their customers include both professionals and DIYers. As of December 31, 2021, sales to professionals accounted for nearly 60% of total net sales.

As an aftermarket parts supplier, AAP benefits from providing automotive solutions to older vehicles that need more continuous repairs & maintenance. In the current market environment, AAP is poised to benefit from widespread affordability constraints of purchasing a vehicle.

In May 2022, the average new-vehicle transaction price is expected to reach nearly +$45K, which would be up 16% from 2021. Prices for used cars offer no better alternative, with prices up nearly 30% from January 2021. As such, there is a greater likelihood of individuals holding onto their cars for as long as they can. In fact, the average age of vehicles on U.S. roadways reached a record high of 12.2 years in 2021. For AAP, this means increased demand for brakes and brake pads, batteries, tires, and other accessories.

AAP also benefits as total vehicle miles traveled increases. In 2019, total miles driven reached 3.26T, before plummeting to 2.83T during the height of the COVID-19 pandemic. The data has since improved and is now at or near 2019 levels. With increased travel comes greater maintenance requirements.

U.S. Federal Highway Administration, Moving 12-Month Total Vehicle Miles Traveled [M12MTVUSM227NFWA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/M12MTVUSM227NFWA, May 28, 2022.

U.S. Federal Highway Administration, Moving 12-Month Total Vehicle Miles Traveled [M12MTVUSM227NFWA], retrieved from FRED, Federal Reserve Bank of St. Louis

With the wind at their back from an aging vehicle fleet and total miles driven, one would not expect AAP to be underperforming the broader market. Yet, AAP is down nearly 20% YTD, which is worse than the S&P’s 13% decline over the same period. For investors seeking an under-the-radar play in the automotive sector, AAP is one name worth extra attention.

Earnings Review and Other Reportable Events

In the first quarter ended April 23, 2022, AAP reported total net sales of +$3.4B, which was up 1.3% from the same period last year, but +$20M short of estimates.

Through the first ten weeks of the year, AAP had a strong start, with YTD comparable store sales up mid-single digits. The final six weeks, however, came under pressure from flagging DIY sales, resulting in mid-single digit declines in comparable sales.

Weighing on the DIY comparisons were the impacts of economic stimulus payments in the prior year and a slower start in the current period, especially in the northern regions, due to colder and wetter weather patterns.

Despite weakness in DIY, overall comparable store sales were up 0.6% from the prior year and 25.3% on a two-year basis. The increase represented the 8th consecutive quarter of comparable store sales growth. Likewise, both adjusted operating income and adjusted EPS grew for the 8th straight quarter.

Gross profit margins came in at 44.6%, which was

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Global Additive Manufactured Polymer Automotive Parts Market Report 2022 – Impact of the Rise of Electric Vehicles

DUBLIN, May 03, 2022–(BUSINESS WIRE)–The “The Market for Additive Manufactured Polymer Automotive Parts: Europe and North America Regions” report has been added to ResearchAndMarkets.com’s offering.

The automotive market is one of the longest-standing users of 3D printing technology, has been one of the first to produce rapid prototypes, then rapid-tooling.

Today, a convergence of several technological, market and environmental trends is radically transforming the automotive industry, and 3D printing is being turned to as a critical tool to enable this transformation, from the transition to electric vehicles (EVs) to the drive towards making supply chains more sustainable.

This report analyzes the future of 3D printing of polymers within the automotive industry through the lens of megatrends that are already having profound effects on the supply chain, design cycles and market strategies of the world’s biggest automakers.

By strategically assessing the automotive value chain, this report identifies the areas of opportunity for 3D printing adoption and growth, and forecasts the long term revenue potential for 3D printing hardware and materials within the automotive industry focusing on jigs, tools and end-use parts.

This report will be followed by a publication of 3D-printed metal parts for the automotive industry.

Key Topics Covered:

Chapter One: Opportunities for AM in the Automotive Industry: A Strategic Appraisal of the Value Chain

1.1 AM and the segmentation of the automotive value chain

1.1.1 Upstream opportunities: Rapid prototyping and supporting the design process

1.1.2 Midstream opportunities: Supporting the manufacture of parts through indirect process support or direct additive manufacture of parts.

1.1.2.1 Production support assets

1.1.2.2 Low volume production runs

1.1.2.3 Customization

1.1.2.4 Advanced part designs

1.1.3 Downstream opportunities

1.1.3.1 Mitigation of obsolescence

1.1.3.2 Digital inventory management

1.1.3.3 Distributed aftermarket production

Chapter Two: Impact of Major Automotive Trends on Additive Manufacturing Polymer Adoption

2.1 Rise of electric vehicles

2.1.1 The effects on the value chain moving from ICE to EV construction

2.1.2 Opportunities for AM in EV part and assembly design

2.1.3 AM within native EV and mixed EV/ICE assembly lines

2.1.4 New entrants enabled by low-volume and flexible additive manufacturing

2.2 Autonomous driving technology

2.2.1 Opportunities for 3D printing in autonomous vehicle development

2.2.2 Mass reduction opportunities for AM

2.2.3 How AM can support a mass-reduction strategy

2.3 Commitments to decarbonisation, supply chain sustainability and the “race to zero”

2.3.1 Reduction of non-recyclable materials and plastics in vehicle design

2.3.2 How AM materials and hardware providers can meet the demand for recycled materials

Chapter Three: Material Assessment for 3D-Printed Polymer Parts in the Automotive Industry

3.1 Evolution of materials within AM industry

3.1.1 Composite materials

3.1.2 Advanced materials

3.2 Eight-year materials forecasts

3.2.1 Thermoplastic filaments

3.2.2 Thermoplastic powders

3.2.3 Thermoset resins

3.2.3.1 VAT resins

3.2.3.2 Jetted resins

3.2.4 Distribution material by region

3.2.5 Eight-year CAGR

Chapter Four Polymer 3D-Printing Hardware for the Automotive Industry

4.1 Developments in key AM technologies in automotive

4.1.1 Powder bed systems

4.1.2 Material extrusion

4.1.3 VAT systems

4.1.4 Material jetting

4.2 Eight-year forecast for AM hardware

4.2.1

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Business surges at auto repair shops as Minnesotans try to make vehicles last longer

Tim Curtis considered buying a new Chevrolet Silverado pickup last year, but the $58,000 price was more than the cost of his first house.

Since prices for used cars are also inflated, he decided to stop shopping and instead maintain his 2004 GMC Envoy and 2015 GMC Terrain. His largest repair in recent years at Brausen Auto in Roseville cost $1,200, which was for brakes and tires on the Envoy.

“The price of used cars has gone up so much, so it’s more cost effective to keep my cars running and I know those cars, too, and what’s been done,” said Curtis, 64, of Maplewood.

Auto repair shops are seeing more customers invest in keeping their vehicles running because of the extreme distortion in the auto and truck market.

As the economy snapped back when the pandemic began to abate last spring, manufacturers couldn’t keep up with demand and key parts remain in short supply. As a result, prices soared for both new and used cars. For many people, repairing a car makes more sense than engaging in a transaction.

April marks the 10th straight month in which U.S. consumers on average are paying well above sticker price for a new vehicle, Kelley Blue Book reported. Used car prices last month were down from a recent peak but were still 23% higher than a year ago, according to the Manheim Used Vehicle Value Index.

“It used to be someone who needed something major repaired would buy a new car,” said Hunter Darth, an owner of German Auto Works in St. Louis Park. “Now they say, ‘Oh my God, car prices are crazy so I’ll fix my car.'”

Some shops report business is as much as 30% greater than in previous springtimes. “We see a lot of older cars today,” said Ted Brausen, owner of the auto shops in Arden Hills and Roseville. “I think that group of customers has expanded because of the prices.”

At his shops, he’s recently seen a 2006 Acura, 2009 Saturn, 2009 Toyota RAV4, 2010 Mercury and 2014 Cadillac Escalade.

“If you would have told me that we would have had a pandemic and that things would have been better business-wise, I would never have believed you,” Brausen said.

The range of maintenance work varies. “You have the one end of customers doing what is necessary,” said Raks Pham, who runs Tuan Auto Repair in St. Paul. “And on the other end, you have folks who want us to go through the whole car and get their car back to tip-top shape.”

Brausen tells his customers to pay close attention to regular maintenance for the first 100,000 miles so their cars are in good condition to go another 100,000.

“The best news about planning your maintenance is you very rarely break down,” said Mike Weinhagen, who owns Weinhagen Tire Co. in St. Paul.

As his shop’s downtown clientele worked from home, Weinhagen’s repair business dipped 20% in 2020. But it recovered quickly as customers opted to

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Worldwide Automotive Technical Inspection & Certification Services Industry to 2026 – Increasing Electric and Hybrid Vehicles Presents Opportunities | News

DUBLIN, March 4, 2022 /PRNewswire/ — The “Global Automotive Technical Inspection & Certification Services Market (2021-2026) by service Type, Application, Sourcing Type, Use, Geography, Competitive Analysis and the Impact of Covid-19 with Ansoff Analysis” report has been added to ResearchAndMarkets.com‘s offering.

The Global Automotive Technical Inspection & Certification Services Market is estimated to be USD 16.8 Bn in 2021 and is expected to reach USD 22.3 Bn by 2026, growing at a CAGR of 5.8%.

Key factors such as increasing automobile production, rising adoption of automotive electronics, and growing inclination towards outsourcing are boosting the market growth. Increasing awareness related to product quality and safety and government norms mandating Periodic Technical Inspection (PTI) of vehicles across developed economies is further escalating the market growth. In addition, rising instances of vehicle recall and increasing industrialization are providing growth opportunities to the market.

However, factors such as time-consuming and limited availability of skilled workforce are likely to restrain the market growth. Moreover, decreasing global vehicle sales is a major challenge for the market.

Market Segmentation

  • The Global Automotive Technical Inspection & Certification Services Market is segmented further based on service Type, Application, Sourcing Type, Use, and Geography.
  • By Service Type, the market is classified as Certification Services, Inspection Services, and Testing Services.
  • By Application, the market is classified as ADAS & Safety Controller, Chassis & Body Controller, Cockpit Controller, and Functional Safety.
  • By Sourcing Type, the market is classified as In-House and Outsourced.
  • By Use, the market is classified as Electric Vehicles, Hybrid Electric Vehicles, and Battery Systems, Electrical Systems and Components, Fuels, Fluids, and Lubricants, Interior and Exterior Materials and Components, Telematics, Homologation Testing, and Vehicle Inspection Services (VIS).
  • By Geography, America is projected to lead the market.

Countries Studied

  • America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
  • Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
  • Middle-East and Africa (Egypt, Israel, Qatar, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
  • Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes a Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Why buy this report?

  • The report offers a comprehensive evaluation of the Global Automotive Technical Inspection & Certification Services Market. The report includes in-depth
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Apple’s Self-Driving Vehicles Coated 13,000 Miles Last Year

Apple CEO Tim Cook on stage at an event.

Tim Cook, observed hailing a self-driving Apple taxi.
Photo: Justin Sullivan / Team (Getty Illustrations or photos)

Rumors of the possible existence of an Apple auto have been creating rounds for ages. In excess of the a long time, various executives have appear and long gone, and numerous automobilemakers have been tied to the job. And now, there’s additional proof that Apple is producing methods for a car or truck thanks to new filings from the California Division of Motor Vehicles (DMV).

In get to acquire its eyesight for a motor vehicle of the long term, Apple has been screening its automotive driving tech on the streets of California. As component of the tests of these systems, the firm is necessary to log all miles coated by self-driving automobiles with the Condition of California.

The firm does this along with organizations like Waymo and Cruise, which are also creating self-driving cars. Weirdly, Tesla does not fear by itself with these types of paperwork. Alternatively, it just lets normal individuals free on the streets with its newest autonomous driving beta.

But I digress.

After corporations have logged all their miles with the California DMV, the section publishes a report of the miles covered and any incidents encountered alongside the way. This is the state’s Disengagement Report.

A photo of a Weymo self-driving Jaguar I-Pace

Demonstrate me the Waymo to go dwelling.
Image: Justin Sullivan / Staff (Getty Photos)

And, according to the most recent installment of this thrilling read through, Apple and its fleet of self-driving autos protected more than 13,000 miles over the training course of 2021.

This year’s Disengagement Report notes Apple has a fleet of 37 vehicles that are certified to examination out its autonomous driving capabilities. Two of those weren’t analyzed past yr, but the remaining 35 clocked up an spectacular 13,272 miles of self-driving in 2021.

Along the way, Apple reported 662 incidents exactly where exam drivers were being pressured to choose management of the car or truck. That averages out at just one disengagement each 20.05 miles.

The explanations for these disengagements vary wildly. Some are for “map discrepancies, which I’m guaranteed any Apple Maps consumer will be equipped to sympathize with.

Other troubles examination drivers faced provided autos not appropriately recognizing website traffic signals, “incorrect predictions” designed by the systems, and “not adequately” adhering to driving etiquette.

It is excellent to see these difficulties becoming ironed out just before any car tends to make it into the fingers of your normal purchaser.

A photo of a Lexus RX SUV at sunset.

One Lexus, two Lexi?
Image: Lexus

But as Apple has logged a lot more than 13,000 miles of autonomous driving, does this mean fleets of Apple cars and trucks have been sneaking all over California un-found?

Not quite, the organization is just tests its self-driving systems, instead than its very own car. That signifies its using all set-made take a look at automobiles to operate the units on.

The Disengagement Report lists the VIN quantities

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Bond in Movement: 60 yrs of 007’s motor vehicles at the Petersen Automotive Museum


Geoffrey Morrison/CNET

We all know the legitimate stars of each James Bond film are his autos. Exotic sports activities vehicles outfitted with extraordinary (and generally fantastic) add-ons like device guns, bulletproof glass and the occasional ejector seat. 

Rocket launchers? Way too mundane. Rocket boosters are much more like it. Who among us would not gladly trade a kidney for a Lotus that turns into a submarine? Maybe which is just me. 

The closest any of us will get to becoming a super-outfitted superspy is a stroll via the new Bond in Motion show at the Petersen Automotive Museum in Los Angeles. Some of Bond’s greatest cars and trucks, boats and far more are on display screen for all those without the need of double-O position to single-O ogle. Here’s a appear around.

Optional extras

The most iconic Bond car or truck is, unquestionably, the 1964 Aston Martin DB5. Featuring oil slick dispensers, tire slashers and more, it 1st made it to film in Goldfinger and has been in 10 movies to day, together with the most up-to-date, No Time to Die. The auto in this article was in that movie, moreover most of types with Daniel Craig and a number of of people with Pierce Brosnan.

When most associated with British makes like Aston and Lotus, about the program of 25 films Bond has driven a variety of vehicles. A person of the Ford Mustang Mach 1s in Diamonds are Permanently is here, as is the Mercury Cougar XR-7 driven so expertly by Bond’s shortly-to-be-spouse from On Her Majesty’s Solution Service. 

Then there is certainly the AMC Hornet X. One of the cars and trucks made use of in The Male with the Golden Gun is right here, but it isn’t really the a single that was used to conduct just one of the finest stunts in movie record:

Soon after the Aston, 1 of the most unforgettable Bond autos is, of program, the white Lotus Esprit submarine from The Spy Who Liked Me. A number of Esprits were transformed for the motion picture, most exhibiting the car or truck/sub in a variety of states of transformation. The instance right here is one of all those. Only one particular was a doing the job submarine and it really is currently owned by Elon Musk

It really is not just vehicles at Bond in Motion possibly. There are two Glastron fiberglass boats, an precise submarine and the small, Chevy-run jet boat highlighted in The Planet Is Not More than enough.

And, of study course, more recent BMWs and Astons from the ’80s, ’90s, and 2000s Bond films.

The Petersen

In a metropolis so formed by the vehicle, it is fitting that LA has one of the greatest vehicle

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