General Motors Corp., apparently pleased with the results of regional testing of their new MyPartsLink program, will roll out the dynamic pricing program nationwide on December 1, 2015.
When MyPriceLink goes live, GM will no longer provide up front pricing information on its parts to insurers, estimating systems and collision repair shops. Instead it will deliver real-time “competitive” pricing on parts as a repair estimate is entered into an estimating system. GM says MyPriceLink works with collision estimating systems that agreed to integrate with the program, including AudaExplore, CCC Information Services, and Mitchell. Those estimating systems that do not choose to integrate have the option of obtaining pricing through the MyPriceLink portal, the OEC CollisionLink, or by contacting an authorized GM dealership.
It is widely believed that GM will use a dynamic pricing algorithm to ensure that prices quoted will undercut the cost of non-OEM parts, effectively shutting out aftermarket parts from the repair process.
MyPriceLink was originally scheduled to “go live” more than a year ago, but was delayed as GM worked to better integrate the system into existing workflows and estimating systems. GM has been conducting two regional pilot programs to test the system and ensure it works for dealers, estimating systems and body shops.
Kris Mayer, General Director, Wholesale Dealer Channel, said in a company press release, “We are pleased to report that both pilots are working as designed. During the pilots, the collision estimating companies (AudaExplore, CCC Information Services, and Mitchell) as well as several DMS have collaborated with us to ensure the technology works as designed. Shops are writing estimates in the same manner as they have always done and dealers are able to process orders and invoice customers.”
What the long-delayed introduction of MyPriceLink will mean to aftermarket parts manufacturers and distributors remains to be seen. The potential exists for a steep decline in the sale of non-OEM GM collision parts, as GM has the ability to manipulate pricing to match or beat published aftermarket prices.
We will continue to monitor the situation closely. In the meantime, what do you think will happen when GM rolls out MyPartsLink? What have you done to prepare to combat the program? We’d like to hear from you.