General Motors (GM) is aggressively pursuing the electric vehicle (EV) market, yet alongside this revolution, the automotive giant is making significant investments in a seemingly contrasting sector: aftermarket car parts. While EVs capture headlines and future aspirations, GM is strategically bolstering its infrastructure for distributing replacement parts for its vast fleet of existing vehicles, predominantly those with internal combustion engines (ICE). This move underscores the enduring strength of the traditional automotive market and GM’s commitment to serving its current customer base with Gm Aftermarket Car Parts.
The surge in demand for GM aftermarket car parts is undeniable. Since the onset of the Covid-19 pandemic, GM’s aftermarket parts sales have experienced double-digit annual growth. To meet this escalating demand, GM is injecting over $100 million into modernizing its primary parts processing center located in Burton, Michigan. This substantial investment signals GM’s recognition of the aftermarket sector’s current vitality and future potential.
Several factors are fueling this growth in GM aftermarket car parts. The global microchip shortage and subsequent supply chain disruptions of recent years have significantly hampered new car production. This scarcity left countless consumers unable to purchase their desired new vehicles, prompting them to extend the lifespan of their current cars and trucks through repair and maintenance. Consequently, the average age of vehicles on US roads has climbed to approximately 12.6 years, up from 12 years in 2022, according to GM. This aging vehicle park naturally translates to increased demand for replacement parts to keep these vehicles operational.
“Car sales were impacted, but the number of GM vehicles on the road remains exceptionally strong,” John Roth, GM global vice president of customer care and aftersales, stated. He further projected a robust 12% growth in the automotive aftermarket industry over the next three years. This optimistic outlook reinforces GM’s strategic decision to invest heavily in its aftermarket operations.
The modernization of GM’s Burton facility involves integrating advanced automated storage, retrieval, and loading systems, along with a sophisticated conveyor network to streamline parts movement to employee workstations. This state-of-the-art upgrade will significantly enhance efficiency and throughput at the center, which already operates at a large scale, employing around 1,460 individuals and processing approximately 15,000 parts orders daily. The Burton site serves as the primary distribution hub for both GM Genuine Parts and ACDelco parts, two key brands within GM’s aftermarket car parts portfolio.
Roth emphasized the importance of providing customers with genuine GM aftermarket car parts: “We understand that customers are actively seeking out genuine GM parts. They are engineered for precise fit and performance. This has cultivated strong customer loyalty over the years, and now we are capitalizing on that even further.” He highlighted GM’s commitment to enhancing customer experience by improving speed and efficiency in parts delivery, aiming to eliminate friction and simplify the process for end consumers seeking GM aftermarket car parts.
Beyond the Burton modernization, GM has also made substantial technology investments in parts centers in Ypsilanti, Michigan, and Memphis, further demonstrating its nationwide commitment to strengthening its aftermarket network. In total, GM operates 12 regional or function-specific product distribution centers across key US markets and a global network encompassing 88 parts distribution facilities. This extensive infrastructure positions GM to effectively meet the growing demand for GM aftermarket car parts both domestically and internationally.
“Our business sweet spot lies in vehicles aged four to six years,” Roth explained, indicating the core target market for GM aftermarket car parts. However, he also noted the company’s ability to fulfill orders for even vintage vehicles, such as 1953 Corvettes, highlighting GM’s long-term commitment to supporting its entire vehicle heritage through its aftermarket parts division.
Looking ahead, the future of GM aftermarket car parts appears bright, potentially fueled further by another significant trend: EV skepticism. A considerable portion of the American population remains hesitant about fully embracing battery-electric vehicles. This resistance, for various reasons ranging from range anxiety to charging infrastructure concerns, may lead consumers to prolong the lifespan of their existing ICE vehicles. Maintaining these vehicles will inevitably drive continued demand for GM aftermarket car parts, ensuring the sustained growth and importance of this business segment for General Motors, even as the company accelerates its EV transition.
