Press Releases and News

COVINGTON SPEEDEE OIL CHANGE AND TUNEUP CO-BRANDS WITH MIDAS


COVINGTON (Dec. 17, 2009) – The Covington location of SpeeDee Oil Change and Tune-Up is expanding its business by adding the globally recognized Midas name and services. This Midas SpeeDee co-brand shop is the first of its kind in the state of Louisiana. The conversion will be completed by January, 1st, 2010.

In April 2008, Midas, Inc., the automotive service provider based in Itasca, Ill., acquired the franchisor of the New Orleans-based SpeeDee system, which has 116 quick-lube and maintenance outlets in the United States and 57 in Mexico.

At the time of the acquisition, Midas officials announced the company's plan for the eventual co-branding of Midas and SpeeDee outlets in locations nationwide where there is not overlap of existing shops. Midas has nearly 1,650 shops in the United States and Canada, and 800 in 13 other countries. SpeeDee’s U.S. shops are located in 13 states primarily in the northeast, mid-Atlantic, southern coastal states and the far west.

“This co-branding strategy is extremely exciting because it enables both Midas and SpeeDee to benefit from the strengths of the two brands’ respective service offerings to provide the three most frequent vehicle maintenance services—oil changes, brakes and tires,” said William M. Guzik, Midas’ executive vice president.

SpeeDee specializes in convenient high-quality oil changes and fluid service, while Midas is known for its full range of automotive repair and maintenance offerings.

Midas services were added to four SpeeDee franchised shops in central California in the second half of 2008 as part of a co-branding test in SpeeDee shops. Four company-owned Chicago-area Midas shops are currently testing the addition of SpeeDee oil changes.

For the second quarter ended July 4, 2009, Midas reported that comparable shop sales increased by 17 percent at the co-branded SpeeDee-Midas shops in central California and by 9.5 percent in the Midas-SpeeDee co-branded shops in the Chicago area.

“We are encouraged by significant increases in both sales and car counts at these co-branded shops in California and Illinois,” Guzik said. “And, daily traffic has doubled in each of the Midas shops in San Diego as we began adding SpeeDee oil change services during the second quarter.”

Guzik said the company is taking what it has learned in the California and Chicago area co-brands and is developing a co-brand operating and marketing strategy. The company expects to begin a gradual roll-out throughout both the Midas and SpeeDee networks in the U.S. in 2010. The company expects to have approximately 25 co-branded locations in place by the end of 2009. The Midas SpeeDee in Covington will be the first shop in Louisiana that will offer both SpeeDee and Midas services under one roof.

Vince Accardo, owner of the soon to be co-branded shop opened his SpeeDee location in May of 1982. Accardo made the decision to co-brand in October 2009. The conversion process includes the addition of the Midas signage, the equipment and products needed to perform Midas services as well as in depth training on Midas procedures and policies. “Providing Midas services such as brake, tire, and general repair services in addition to SpeeDee’s oil change and tune-up services will allow me to provide a one stop shop for all of my customers’ auto maintenance and repair needs. The well known and respected Midas brand and additional service offering will also attract new customers and help my business grow despite the economic conditions,” said Accardo.

Midas, founded in Chicago in 1956, is one of the world's largest providers of automotive service, offering brake, maintenance, tires, exhaust, steering and suspension services at more than 2,500 franchised, licensed and company-owned Midas shops in 15 countries, including nearly 1,650 in the United States and Canada. Midas also owns the SpeeDee Oil Change business, which franchises more than 170 auto service centers in the United States and Mexico.

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Midas-SpeeDee Shop
1256 Business Hwy. 190
Covington, LA 70433
(985) 893-5540

12/17/2009

CONTACT: Tiffany Rhodes (985) 624-2261