Phoenix car parts supplier: We’ll pay more to stay in business
Phoenix car suppliers are facing the prospect of raising prices, as they struggle to maintain their market share in the booming, new auto parts industry.
The company behind some of the most popular Phoenix carparts brands, Blue Line, is seeking to keep the business running as they battle for survival, said Ryan McPherson, the company’s president and chief executive officer.
Blue Line is a wholly owned subsidiary of Blue Line Automotive, which is owned by the parent company of Phoenix-based Phoenix Automotive.
Blue Line is also a wholly-owned subsidiary of Phoenix’s own Phoenix Automobile Group.
Blue Lines products are made in Phoenix by Phoenix-area manufacturing companies.
The company’s inventory is sourced directly from the Phoenix area.
McPherston said the company has made some changes to the way it sells car parts.
But, he said, he and his team are still focused on providing affordable parts for the Phoenix market, and that includes Phoenix Automobiles.
McPhillsons company also has been involved in other Phoenix auto-parts deals, including the $25 million sale of parts to a subsidiary of the United Auto Workers union.
BlueLine Automotive employs approximately 300 people, including roughly 30 full-time workers, and about 50 subcontractors, according to the company.
Phoenix Automotors has about 100 full- and part-time employees and is based in the Phoenix suburb of Glendale.
McPhailons company is the largest car parts producer in the nation.
It sells about 6.6 million parts annually to carmakers and distributors in the U.S. and around the world.
McPHailons spokesman Brian McPheeters said he believes the company will be able to make its financials more competitive in the long term.
But that means making some hard decisions, he added.
The stock price of BlueLine Automobiles has risen by as much as 11 percent since the election of President Donald Trump in November, when he said he was against raising the federal gas tax.
The Phoenix company has been in the red since March.
The stock is down about 3 percent this year, but has been recovering lately.
McPeeters said BlueLine is in talks with the Federal Trade Commission, the Consumer Product Safety Commission and other regulators about potential changes to its business model.
He said Blue Line hopes to raise prices and compete more effectively against its competitors in the auto parts business.
The FTC declined to comment.
McPhilses company has said it will keep paying the existing gas tax, but that it will raise its prices for some customers who would pay more.
It also has proposed raising rates for some drivers and other customers who use BlueLine’s vehicles.
McCallum said the price hikes will likely be offset by lower costs for BlueLine vehicles sold by other companies, which will make up the shortfall.
Blueline Automotive’s stock has declined from $21.40 on Wednesday to $19.10 Thursday, according the Nasdaq Composite index.
McHailings CEO Mike McPhailins’ company has a combined net worth of $1.2 billion.