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Dahmer Powertrain enhances its distribution role with value-added services, options, and full warranties
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Lee's Summit, Mo.--In 2002, Jerry Dahmer sold Cable-Dahmer Chevrolet and devoted his full attention to Dahmer Powertrain Inc., previously a division of the dealership, said his son, David Dahmer.


Since then, Dahmer, vice president of sales and marketing, said his inventory has grown so much that he had to start leasing a second warehouse. With one warehouse in Lee's Summit and another in Lake City, Dahmer Powertrain now has more 50,000 square feet in space, he said.  Dahmer Powertrain now has a $6 million inventory of powertrain systems including engines, transmission, differentials, transfer cases, and turbo chargers.


"We have evolved into more of a service type company," he said. "In the old days, we were just dealing with surplus--we would buy 100 engines and sell them, buy 80 more engines and sell them -- but now, we are trying to stock full lines of products."
For example, Dahmer said that for GM, he tries to stock everything from a 2.0 for a cavalier to 6.6 Duramax diesel engine, and for Ford, from a 1.8 for an Escort to a 6.0 diesel.


Occasionally, Dahmer said he will be void of a specific OE engine. To fill those holes in stock, he said, he introduced a rebuilt line of engines.

 
"We introduced the remanufactured line to give us more coverage and give our customers more options," he said. "If you call the dealership and ask for an engine, you are going to get one option. When you call a salvage yard, you might get two options-one with 100,000 miles, and one with 80,000. When you call a remanufacturer, you get one option."

In 2002, Dahmer Powertrain Inc. became a separate entity from Cable-Dahmer's powertrain division. Since the move, Vice President David Dahmer says the business has grown tremendously.
Dahmer said he is able to potentially offer customers four engine options -- a new OE complete drop-in, a new long-block, a remanufactured long-block, and a new takeout.


"If a shop owner can give the customer four options, why would the customer even need to go shop somewhere else," he said. "The more options I can give my customers, the more options they can give their customers, and in turn, I get more business."


Dahmer said that business model led to $20 million in sales last year, and he is forecasting $23 million in sales this year.


A quality product and multiple options are important, but Dahmer said it is really just a people business, and he has great people that do an excellent job.


"They are conscientious, they care, and we do the right thing, he said.

Inventory Control Special Bill Johnson pulls a 6.0-liter GM engine that is ready for shipment.
Dahmer said his warranty department is really what sets Dahmer Powertrain apart from the competition.

 
Regarding warranties, he said Dahmer Powertrain deals directly with the shop working on the vehicle rather than the shop where the powertrain system was installed.


"We send the parts or replacement to the shop where the vehicle is located," Dahmer said. "When they are finished, they send us a bill, and we pay with our company credit card. Then we call the original installer and let him know that his customer has been taken care of.


"We pay full posted shop labor rate--we pay fluids, diagnosis time, car rental, tow bill, and whatever else is required," he said. "That is what our customers love about us."


Dahmer said he learned from his father that there is one way to do business, and that is the right way. Operating under this mantra is what has gotten Dahmer Powertrain where they are today, he said.

Dahmer Powertrain has a $6 million inventory of powertrain systems in two warehouses. Vice President David Dahmer says all engines are tested before they go to the customer.
Dahmer Powertrain also does full testing on its engines to make sure each component works properly before it goes out to the customer, he said.


"My vendors know that we don't pay for anything until we know it is good," he said. "That is another reason why our products are good, because we don't have anybody trying to sell us junk. They know if it doesn't pass the test, we are not going to pay for it."


When Dahmer started at Cable-Dahmer Chevrolet in 1994, he said the powertrain division focused on the fleet market. Now, he said, he works with a number of markets, including dealerships, extended-warranty companies, fleet maintenance companies, independent repair facilities, and, most recently, government agencies. Dahmer Powertrain has also started broadening its applications into marine and performance industry, he said.


When Dahmer branched off of Cable-Dahmer's powertrain division in 2002, he said he had eight employees. Today, he noted that he has 28 employees and records between 650-800 powertrain system transactions each month. 


"There are no tricks or secrets," Dahmer said. "We just take good care of our customers."



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