PartsRack & Don Scharf Auto take over VPA

[ACRucrazy]

I haven't seen it mentioned here yet.

Today, Viper Parts of America reached an agreement with a partnership of established Viper Parts vendors to take over all VPA operations.

The VCA and a group comprised of PartsRack and Don Scharf Auto reached an historic agreement to take over all the assets that comprise the VPA. Operations at the VPA will therefore cease on May 11, 2015 (existing phones and email will forward to the new owners).

As many of you know, PartsRack’s JonB is one of the original 14-founding regional officers of the VCA. He has probably answered more forum questions of Viper owners and prospective owners than any other single person, and has been an incredible asset to the Viper Nation.

PartsRack’s partner Don Scharf Automotive has dismantled more Vipers than anyone, and maintains the largest inventory of used Viper parts in existence. The partnership of PartsRack and Scharf will ensure Viper owners a long-time supply of used and surplus Viper parts at reasonable prices.

Q and A:
What are the deal terms?
This is not a windfall for the VCA. Many of the most sought after parts have been sold off, and the VPA reached a tipping point where it received more revenues from new MOPAR parts rather than the original inventory of parts received from Conner Avenue. As such, of the ~500 types of parts in inventory, only ~100 have real value today. As with many business contracts, the financial terms remain undisclosed per stipulations in the sale agreement. The monetary value received by the VPA for its assets are in the high 5-digit range. We believe the terms are agreeable to all parties involved, and no party will unduly profit from this transaction. Additionally, the VCA will maintain its sales of apparel and Viper logo items, as well as back-issues of Viper Magazine.

Why did you reach this decision?
At the time the VPA was formed. Chrysler was in bankruptcy, and the Viper was dead. The reality is now different, Chrysler is wildly successful, and the Viper’s future is safe, thanks largely to Ralph Gilles. The original goals of the VPA have either been met, or are no longer needed. Additionally, VPA is a distraction: a parts business is not a core competency for a car club, and it created needless friction between the VCA and the sponsor-vendors in the community. Frankly, it just doesn’t make strategic business sense to continue it as is. The VPA was created by previous VCA BODs and Officers. The current BOD and officers are focused on returning the VCA to its roots, as the best sports car club in the World, we will leave the parts business to the experts.

We were originally told that the VPA would protect us from gouging on hard to find parts?
Agreed, that was an original goal for the VPA. As such, the new owners have agreed to not charge higher than MSRP (with some inflation adjustments if necessary) for any part received as part of this transaction.

What about any Open Refunds, Returns, and VPA Gift Certificates?
These rare transactions (if any) will be handled on a case-by-case basis by the VCA Administration.

What about the tooling?
The tooling is another “inherited” item from past leaders. We had Chrysler personnel, former Chrysler personnel, parts manufacturers, and other experts in steel/mold injection fields examine the tooling. They all agreed 100% that the inherited tooling is scrap. Much of the tooling was past its lifespan, many items were damaged. Some still had so much resin in them, they are not even eligible to be scrapped, much less used as tooling. We asked many of the largest Viper collectors in the world if they wanted to take some of the tooling, for posterity, at zero cost. Every offer was rejected. Every single person that we thought would have any interest in the tooling has told us this stuff is only usable as scrap.

Why now?
When the current board took over, we made a LOT of changes, re-established connections with PartsRack, changed management companies, changed management at VPA, lowered operational expenses across the board, took a “no payment to any officer or board member policy (including travel or event stipends),” and changed the moderation stance on the website forums. We invite tough questions that were previously not allowed (and even re-instated many persons that were questionably moderated/banned). But when it came to VPA, we promised we would give our predecessors the benefit of the doubt and give it one year to see if it made sense. So at the one year anniversary of the re-vitalized VCA, we began looking into alternatives.

This sounds like a sweetheart deal for the Partnership.
No. Some of the parts have a limited shelf life (the soft panels bend over time), some parts are not worth the weight to transport them (literally millions of bolts), some parts, the consortium already have 100s of they cannot sell in a decade, if ever. They must package, transport, store, insure, process, ALL of this, the good stuff and the bad stuff. Additionally, we have price protection for all the items, and VCA members will receive a discount on parts.

What will the proceeds be used for?
Attorney’s fees, shut-down costs, a modest severance for Keith Laxson, and repayments of all loans to the VCA (which will be used for regional stipends).

Anything else?
Along with a revitalized VCA, we feel this is a way to restore the way the VCA interacts with the vendor community at large. For several years we have competed with dealers and vendors. Now, we are once again a partnership. We appreciate all that PartsRack and Don Scharf have done for the Viper Community in the past, and appreciate their continued support of the VCA and the Viper Nation.

[Victxv10]

I was going to post it but figured this kind of news had to be posted somewhere on here. Good for JonB and Don!!

[swexlin]

Jon B has been, and continues to be the man to go to for all things Viper!

[J TNT]

Glad to see parts and Legacy preserved.

[Granger73]

Glad to see parts and Legacy preserved.

Legacy was the catchword used by the since disgraced VCA board to rationalize the creation of the VPA, even though it was clearly against the VCA by-laws. It was less about Legacy and more about grand theft larceny. The VPA became a conduit to satisfy the greed of a few selfish individuals. Regardless of the reasons, the present VCA board should be commended for their actions.

[TrackAire]

Interesting turn of events.

I always argued that the VCA was paying rent to store scrap metal (better known as tooling). Very sad to think how much money went out in rent for both the tooling storage and the VPA building over the last 4 or so years.

[Thawk97]

This is great news I think (also shows some good decision making by VCA leadership I think). Congrats to Jon B & Paul! Thanks for working to supply our continuing passion!

[XSnake]

This is great news I think (also shows some good decision making by VCA leadership I think).

They are simply running out of $$ and need capital. Not to hard to figure out as their raffle is failing. Congrats to JonB and Scharf!

[GBS]

Congrats Jon, you're the best!

[ViperTony]

Congratulations JonB and Don. This was inevitable.

[Bugman Jeff]

I'm surprised that nobody wanted the tooling. Even if unusable I would think that some of the big Viper collectors would want at least some of it for their collections, if for no other reason than Garage Art.

[venomred]

Ah...the irony...JonB (with Don) steps in to pick
up the pieces of a business that was originally intended
to bankrupt HIM..!!
Also interesting it is announced first here and no word
at all from the VCA...

[Fatboy 18]

Also interesting it is announced first here and no word
at all from the VCA...

Not true, this was announced first on the VCA forums 24hrs before being posted here.

[SmoknTires]

The tooling was never worth much (yes I would agree with your perception - but it's expensive to keep). It in fact costed a ridiculous amount of money to store - that was a big issue. For those who served with the past club, we wanted away form the VPA for a variety of reasons not worth getting into here. However, regardless of how it's spun to people, they did this not because they "wanted" to, but because they had to... $$ We knew the day was coming, not a surprise I sense for many.

On a diff note, I wonder what exactly was in inventory, for years we weren't provided one because it wasn't kept. Hope it worked out well for the buyers.

[ViperTony]

The tooling was never worth much (yes I would agree with your perception - but it's expensive to keep). It in fact costed a ridiculous amount of money to store - that was a big issue. For those who served with the past club, we wanted away form the VPA for a variety of reasons not worth getting into here. However, regardless of how it's spun to people, they did this not because they "wanted" to, but because they had to... $$ We knew the day was coming, not a surprise I sense for many.

On a diff note, I wonder what exactly was in inventory, for years we weren't provided one because it wasn't kept. Hope it worked out well for the buyers.

Some were banned for suggesting selling the VPA in 2013. Not only couldn't we see the inventory but nobody other than a select few were allowed to know the location of the warehouse in Detroit containing the tooling let alone what it contained. The costs for that space were over $4,000/month. At the 2012 president's meeting, the clown posse propped up Herb on the stage and had him try to convince the presidents that the tooling was in good shaped, well preserved, etc. but many could tell he wasn't comfortable with it all. I had actually asked for a list of what the VPA actually had for inventory only to be accused of trying to provide that list to the "competition". Maybe the good-will ferry visited the board and violated them into common sense on this one. Either way, Good *&$^NG riddance to the VPA mess.

[SmoknTires]

Some were banned for suggesting selling the VPA in 2013. Not only couldn't we see the inventory but nobody other than a select few were allowed to know the location of the warehouse in Detroit containing the tooling let alone what it contained. The costs for that space were over $4,000/month. At the 2012 president's meeting, the clown posse propped up Herb on the stage and had him try to convince the presidents that the tooling was in good shaped, well preserved, etc. but many could tell he wasn't comfortable with it all. I had actually asked for a list of what the VPA actually had for inventory only to be accused of trying to provide that list to the "competition". Maybe the good-will ferry visited the board and violated them into common sense on this one. Either way, Good *&$^NG riddance to the VPA mess.

Heh, what you said. I was trying not to seem too direct. And we should also mention the money for storing the stuff was going to a VCA board member... Ugh, don't get me started! ;.) This is why the good old boy network and little transparency only enables this stuff to happen. And while there still hasn't been a lot of transparency, at least it's one last thing that can't be taken advantage of.

I'm laughing. I have the original document for VPA, looks nothing like it does today and even in the last few years continued.

Long ugly history. Glad it's done.

Ps tony if you have some room in your garage, perhaps we can store by you?

[Thawk97]

It'd be fun to see pics of the tooling - I'd love to have a piece of the original equipment used to build my dream car. They could sell bits of it like seats from stadiums that are to be torn down.

"Here we have a small portion of the door panel mold from a '93 Viper RT/10. The full mold had deteriorated to an un-salvageable degree - this is all that remains...."

Could make for some fun garage art I bet - one man's trash...

[ViperTony]

It'd be fun to see pics of the tooling - I'd love to have a piece of the original equipment used to build my dream car. They could sell bits of it like seats from stadiums that are to be torn down.

"Here we have a small portion of the door panel mold from a '93 Viper RT/10. The full mold had deteriorated to an un-salvageable degree - this is all that remains...."

Could make for some fun garage art I bet - one man's trash...

Some pics of the tooling were published in the magazines. As I recall, these were not 20 - 30 pound pieces of equipment but rather TONS and required trains and cranes to move around. I can't imagine having a 4 ton machine sitting in my man cave. Though it would be pretty cool.

[Thawk97]

Some pics of the tooling were published in the magazines. As I recall, these were not 20 - 30 pound pieces of equipment but rather TONS and required trains and cranes to move around. I can't imagine having a 4 ton machine sitting in my man cave. Though it would be pretty cool.

Anyone around here have digital versions they can post (or pics of pics)? I'm curious what the "tooling" actually was - are we talking body panel production molds, or frame racks, or what?

[ViperSmith]

Nice. Jon B has always been terribly helpful to me.

[Drummerviper]

I could write a book have gone through much of this era of shame with Jon as somewhat of a consigliere . I'll just say what he won't :

Karma is a bitch.

[TrackAire]

I could write a book have gone through much of this era of shame with Jon as somewhat of a consigliere . I'll just say what he won't :

Karma is a bitch.

I knew it was bad when you left the VCA and stopped posting.....I think at the time we were both trying to figure out why they wouldn't publish the financials. What a cluster F that was.

Paying out approximately $100k per year in rent for tooling storage in Detroit and the VPA "barn" down in Kansas is one thing....but when the landlords are past club officers, etc, it is downright embarrassing that was even allowed to happen.

[City]

Ah...the irony...JonB (with Don) steps in to pick
up the pieces of a business that was originally intended
to bankrupt HIM..!!

Karma is a bitch.

SO damn true!

[Patentlaw]

SO damn true!

Agreed. This place is turning out to be the old place minus a few individuals.

[City]

Agreed. This place is turning out to be the old place minus a few individuals.

You missed my meaning completely. I was expressing my pleasure that Jon was redeemed for all the undeserved crap he took. Though I haven't had "purchase" dealings with Paul other than having spoken with him a few times, I understand he is a standup guy. As others have mentioned, the irony is glaring.

As for your post, we have polar opposing opinions. And to quote myself, if you are not content here, you're SO damn welcome to leave.