The robust vehicle sales market is a positive indicator for the auto maintenance sector, as car owners will inevitably require services to keep their vehicles running smoothly. Even during economic downturns, maintenance remains a necessity, encompassing everything from tire replacements to oil changes and car washes. This article highlights two prominent companies in the auto maintenance and service industry that are expected to see significant gains in 2025.
North America's Largest Auto Services Franchisor: Driven Brands
Driven Brands Holdings Inc., operating under NASDAQ: DRVN, has established itself as North America’s largest auto services company with over 5,000 locations servicing nearly 70 million cars annually. Despite not being a household name, its brands are well-known and trusted across various segments of auto care.
The company owns several leading auto service businesses such as Maaco for body repairs, Meineke Car Care Centers for routine maintenance, Midas for comprehensive repair services, CARSTAR for collision repair, Take 5 Oil Changes for quick oil changes, and many more. Driven Brands also operates internationally with brands like IMO Car Wash and ABRA Auto Glass. The franchising model plays a crucial role in the company’s success, with over half of its operations being franchise locations. These franchises contribute significantly to advertising funds and system-wide sales. Driven Systems Advantage, an online marketplace, allows both company-owned and franchise stores to purchase supplies efficiently. The company reported strong same-store sales growth for the 15th consecutive quarter and aims to achieve steady financial performance in 2024.
Goodyear: A Leader in Tires and Service Centers
Goodyear Tire & Rubber Co., trading under NASDAQ: GT, has emerged as North America’s largest tire manufacturer following its acquisition of Cooper Tire. The company provides tires for a wide range of vehicles, including cars, trucks, buses, motorcycles, aircraft, mining equipment, and farming vehicles. Goodyear is undergoing a strategic transformation with its Goodyear Forward plan, targeting $1.3 billion in cost savings by Q4 2025 and divesting non-core assets to focus on higher-margin businesses.
In Q3 2024, Goodyear exceeded EPS estimates and achieved a segment operating income margin expansion for the fourth consecutive quarter. The company’s turnaround strategy includes increasing portfolio optimization and achieving a net leverage ratio of 2.0x to 2.5x by the end of 2025. CEO Mark Stewart highlighted the successful execution of the Goodyear Forward plan, emphasizing consistent performance and margin improvements. Goodyear aims to realize gross proceeds over $2 billion from asset sales and expects to meet its financial targets in the coming quarters. The company’s commitment to strengthening its brand and market position makes it a key player in the auto maintenance and tire industry.
After the holiday rush, many drivers find themselves postponing routine car maintenance to cut costs. However, delaying these essential services can lead to significant expenses in the future. Experts warn that neglecting simple tasks like oil changes and tire rotations can result in costly repairs. According to industry professionals, millions of vehicles are overdue for basic maintenance, with a substantial number of drivers falling behind on crucial services. This article explores the importance of timely maintenance and how it can save you money in the long run.
The Hidden Costs of Delayed Oil Changes
Mechanics across the country frequently encounter cars that have not had their oil changed for far too long. While an oil change may seem like a minor expense, ranging from $50 to $150, it plays a vital role in preventing major engine issues. Dirty or low oil levels can severely damage engines, particularly in modern four-cylinder models that work under high stress. Regular oil changes ensure optimal performance and longevity of your vehicle's engine.
A leading mechanic at a local repair shop emphasized that maintaining clean oil is one of the most cost-effective ways to protect your car. He explained that ignoring this simple service could lead to catastrophic engine failures, which would be much more expensive to repair. Additionally, he pointed out that newer vehicles with smaller engines require even more diligent care due to their intense operational demands. By prioritizing regular oil changes, drivers can avoid unexpected breakdowns and hefty repair bills down the road.
Beyond Oil: Other Essential Maintenance Services
Oil changes are just the tip of the iceberg when it comes to necessary auto maintenance. Other critical services, such as transmission fluid and brake fluid changes, along with air filter replacements, should not be overlooked. Vehicle data analysts estimate that a significant portion of drivers are also behind on tire rotations, which can cause uneven wear and tear, especially in front-wheel-drive cars. Proper tire rotation ensures balanced wear and extends tire life, saving money on premature replacements.
To maintain a healthy vehicle, experts recommend reading the owner’s manual for specific service intervals and discussing tracking systems with your mechanic. Regular battery checks during oil changes are also advised, especially in colder climates where battery power diminishes. Mechanics highlight that consistent maintenance is crucial regardless of mileage, as cars do not take days off and continue to function under all conditions. By staying proactive with these services, drivers can prevent unnecessary expenses and keep their vehicles running smoothly for years to come.
In the rapidly evolving automotive industry, the market for refinish coatings is witnessing significant growth. According to a recent report, the global automotive refinish coatings market reached $10.5 billion in 2023 and is projected to expand to $14.9 billion by 2032, with a compound annual growth rate (CAGR) of 4%. This expansion is driven by multiple factors, including the increasing number of vehicles on the road, advancements in eco-friendly coatings, and stringent environmental regulations. Additionally, the growing trend of vehicle customization and the expanding used car market are contributing to the demand for high-quality refinish coatings.
A Closer Look at the Global Automotive Refinish Coatings Market
In the vibrant autumn of 2024, the automotive refinish coatings sector is experiencing a transformative phase. The market's growth is fueled by several key elements. Firstly, the steady rise in global vehicle ownership has led to a parallel increase in the need for maintenance and restoration services. Consumers are increasingly seeking ways to restore their vehicles' aesthetic appeal and functionality, driving demand for advanced refinish coatings. Moreover, the surge in the used car market has further boosted this demand as buyers look to enhance the visual and functional aspects of pre-owned vehicles.
The technological advancements in coating formulations have also played a crucial role. Manufacturers are now focusing on developing products that offer superior performance, durability, and environmental sustainability. Water-based coatings and low-VOC formulations are gaining popularity due to stricter regulations and heightened consumer awareness of eco-friendly options. Customization trends are another significant driver, with consumers desiring unique appearances for their vehicles, from vibrant colors to specialty finishes.
Regionally, the Asia-Pacific area stands out as a dominant player in this market. Rapid economic growth, rising disposable incomes, and urbanization in countries like China and India have led to increased vehicle ownership, subsequently boosting the demand for refinish coatings. Leading companies such as 3M, AkzoNobel, Axalta Coating Systems, BASF, and PPG Industries are heavily investing in research and development to innovate and meet these growing demands.
The competitive landscape is characterized by established multinational corporations and regional players forming strategic partnerships and expanding into emerging markets. For instance, PPG Industries has introduced waterborne coatings with reduced VOC content, aligning with environmental regulations. Similarly, Axalta Coating Systems has launched a digital color-matching tool to enhance accuracy in automotive refinishing.
Insights and Implications
From a journalist's perspective, the growth of the automotive refinish coatings market underscores the importance of sustainable practices in the automotive industry. As environmental regulations tighten and consumer preferences shift towards eco-conscious choices, manufacturers must continue to innovate and develop greener solutions. This not only benefits the environment but also enhances brand reputation and customer loyalty. The market's success highlights the potential for industries to thrive while prioritizing sustainability, setting a positive example for other sectors to follow.