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Topline Automotive Buys, Reopens Hylift Facility, Engine Builder, August 2004

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A full-line of flat mechanical tappets, lash adjusters and encapsulated hydraulic roller lifters are again being produced by the original Hylift machines and team. The previous Hylift OE lines that were in Zeeland, MI, have now been relocated to the Muskegon plant.

“The same people who made ‘The Beautiful Lifter’ are back manufacturing with precision and a dedication to quality that has not been seen in the lifter business for quite a few years,” said Topline’s Edward Plebanek. “We feel the real value is not in the equipment or the plant but with the employees who have over 600 years of Hylift experience.”

The Muskegon plant is currently in its third month of production. Topline Hylift-Johnson will continue its historical way of going to market by traditional means of distribution through a select group of customers.

Newport Beach To Host
PERA’s 59th Convention

PERA will be holding its 59th Annual Convention on Sept. 29 – Oct. 2, 2004 at the Sutton Place Hotel in Newport Beach, CA.

The schedule will be as follows:
Thursday, Sept. 30: Golf and Tennis tournaments.
Friday, Oct. 1: Morning: General Business Session. Afternoon: A relaxing harbor cruise sponsored by VEGE/ATK North America, Corteco and Melling Engine Parts. Evening: Friday Night Sports Reception.

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Saturday, Oct. 2: Morning: General Business Session continues.

Evening: President’s Reception & Banquet. Following awards and recognition of industry luminaries, entertainment will be provided by Bob Eubanks (and four willing and adventurous couples from the audience) of “The Newlywed Game.”

A limited number of tables will be available to industry suppliers who will have the opportunity to display new products and convention specials during the Convention’s Group Breakfast on Friday, October 1st (7:00 am – 8:30 am), as well as the morning refreshment break and luncheon. The cost to display is $50 per table. Space will be allotted on a first -come, first-served basis.

For more information about the PERA Convention or to request a supplier exhibit table, visit www.pera.org. For information about this year’s Tourista, contact Bill Levy (630-953-1000 or [email protected]) or Todd LeBoeuf (906-864-3401 or [email protected]).


Jasper Dedicates Willow Springs Reman Facility

Jasper Engines & Transmissions formally opened its Willow Springs, MO, remanufacturing plant on July 6, 2004. The plant, which had been closed since December of 2003, achieved its first day production goal of 25 engines.

Mike Schwenk, vice president of manufacturing for Jasper, stated during the opening ceremony, “Folks, it is truly remarkable to think that just six weeks ago we had no idea where Willow Springs was, and in less than 30 days we took possession, did a total makeover and are up and running.”

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The company’s goal for the plant is to produce 50 gas engines a day and quickly migrate into producing transmissions over the next 120 days.

Hi-Tech Engine Components
To Supply Alliance Group

Hi-Tech Engine Components has been selected as an official supplier of engine kits for the Aftermarket Auto Parts Alliance.

Founded independently in the 1970s, Auto Value, Bumper to Bumper and All Pro merged to form The Alliance in January, 2000. In 2003, stores identifying themselves as All Pro/Bumper to Bumper became simply Bumper to Bumper.

According to Dick Morgan, president and CEO of The Alliance, while the group already has a strong engine parts program in place, the addition of Hi-Tech will complement the existing component coverage and more than double the number of engine kits currently available.

Federal-Mogul Realigns
Heavy Duty Sales Team

Federal-Mogul has announced a realignment of its heavy duty aftermarket sales organization. Don Reimondo, vice president of distribution and heavy duty sales, said that William Mirth has been appointed to the position of regional sales manager, heavy duty West, and will continue to have national responsibility for FP diesel sales.

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Tina Alread has been appointed to the position of regional sales manager – heavy duty, with responsibility for national fleets, dealer direct and training.

Doug Sharp has been appointed to the position of national fleet representative in the heavy duty sales group. This position will report to Alread.

Bruce Clarke has been appointed to the position of Canadian national sales manager, heavy duty and industrial.

Stephen Henman will continue to be responsible for his territory in Eastern Canada, but will also be responsible for the national fleets and will report directly to Clarke.

K-Line Industries Taps
Sales Veteran DeBlasis

K-Line Industries has named Tom DeBlasis as its new aftermarket sales and business development manager. With 28 years of experience in sales and sales management in the engine parts and machine shop supply markets, DeBlasis will be responsible for increasing sales of K-Line products to aftermarket warehouse distributors, production engine remanufacturers and machine shops. In addition, he will be responsible for developing business in new and alternative markets throughout the U.S. and Canada. The company’s aftermarket sales agencies will report to him.

In other personnel moves, K-Line has hired Brian Rose as customer service representative. Rose has several years of customer service experience in sales, cataloging and technical assistance in engine parts and shop supplies. He will be the company’s primary inside contact for the domestic and Canadian trade.

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Gil Hernandez, a seven-year K-Line employee, has been promoted to international account manager. Hernandez has handled customer service and technical assistance as well as being the primary inside contact for K-Line’s export market. Fluent in Spanish, Hernandez is now responsible for sales development to countries outside of the U.S. and Canada. The international sales agencies will report to him.

California to Ban Idling by Non-Exempt Diesels

The California Air Resources Board (CARB) has approved a new rule that will make it illegal to leave diesel-powered trucks and buses running idle for longer than five minutes. The rule takes effect next year, and violators will be subject to a $100 fine.

About 67,000 trucks with sleeper berths would be exempt from the anti-idling rule during federally mandated rest periods for drivers. The exemption will last indefinitely, pending another vote in September 2005 that will take into consideration advances in technology.

DaimlerChrysler Launches HEMI History Web Site

In response to the overwhelming interest and popularity of the HEMI engine, DaimlerChrysler has launched the official HEMI.com Web site dedicated to HEMI owners and enthusiasts worldwide (www.hemi.com). The interactive Web site presents a historical timeline of the evolution of the HEMI engine with vintage photographs and biographical information featuring the people who were behind one of the most famous automotive powerplants in the world.

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For the history buff, the site contains vintage ads from the 1950s and ’60s, when Detroit muscle was king. For the more technically minded, HEMI.com contains specifications for the historic HEMI engines and provides graphic details of how these engines managed to produce their power. Visitors to the site can also download HEMI ads and wallpaper images.

APRA 2004 Membership Directory Released

The APRA 2004 Membership Directory has been published and is available for purchase from APRA Headquarters. The directory features contact information for all APRA members, including rebuilders, manufacturer suppliers, core suppliers, manufacturer’s representatives, warehouse and additional associate members.

The 124-page directory is the definitive guide to the members of the automotive parts rebuilding/remanufacturing industry. The membership directory’s price is $900. For details on ordering, contact APRA at 703-968-2772, ext. 114 or [email protected]
BuyReman.com.

McClure To ArvinMeritor; F-M Names Miller CEO

Federal-Mogul President and CEO Charles “Chip” McClure has left the company to become the new chairman, CEO and president of Troy, MI-based ArvinMeritor. McClure served as president of Federal-Mogul since 2001 and as CEO since 2003.

McClure’s hiring is the culmination of an extensive search conducted by ArvinMeritor’s succession committee of the board. McClure stepped into his new post on Aug. 9, succeeding Arvin-Meritor’s Larry Yost, who has retired.

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Robert (Steve) Miller, Jr., a non-executive chairman of Federal-Mogul’s board of directors, was appointed interim CEO of the company. A member of Federal-Mogul’s board since 1993, Miller twice previously served in a transitional role as CEO of Federal-Mogul in 1996, and again in 2000.

Corteco Appoints Thomas Musgrave as President

Corteco has appointed Thomas Musgrave as its new president. Musgrave will be headquartered in Milan, OH, and will report to Dr. Mohsen Sohi, president and CEO of Freudenberg-NOK. As president of Corteco, he will be responsible for expanding the business unit, which offers a full range of original equipment quality seals, gaskets, engine and transmission mounts, power steering and transmission kits and power steering hoses for the automotive aftermarket.

Musgrave brings more than 20 years of management, business development and operations experience to his new role, most recently as president and COO for Ryobi Die Casting, Inc. in Shelbyville, IN. In addition, he spent 17 years at AlliedSignal Corp. and its successor company, Honeywell International, where he advanced through positions of increasing responsibility in sales, management, marketing and business development at various locations nationwide.

Unser Brothers to Build Racing Museum

Al Unser Sr. and his brother Bobby are bringing to fruition an idea they’ve been kicking around for too long: building a racing museum. “We’ve been thinking about it for five years or better,” Unser said. “Sometimes you don’t think about these things, but plans are moving along now.”

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Soon, the two brothers born into the legendary Unser racing family will open a museum in north-central Albuquerque, NM, dedicated to their beloved sport. The museum will feature cars, driver suits, trophies and memorabilia.

Unser said plans are to revamp 13,000 square feet of existing buildings for the museum.

“We want to take all our race cars that we can find or reproduce and put them in a museum for the racing fraternity and the racing spectator to be able to come and see what went on through the Unser tradition,” Unser said. “It should be a good location.”

Unser won four Indianapolis 500s, and has combined with Bobby (three), and son, Al Jr. (two), for nine victories in the “Greatest Spectacle in Racing.” Al Jr. retired from the IndyCar Series on June 30.

Delco Remy International Changes Name To Remy

Delco Remy International, Inc., has changed its corporate name to Remy International, Inc., effective August 1, 2004, marking the tenth anniversary as a separate company from General Motors Corporation.

The company will continue to market certain starters and heavy-duty alternators for original equipment and aftermarket customers under the Delco Remy trademark, which is licensed to the company by General Motors. The company will also add the Remy trademark to its brand portfolio for a variety of automotive products in addition to using Remy International, Inc., as the new corporate name.

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Under a separate agreement, the company continues its relationship with GM Service and Parts Operations to distribute aftermarket light-duty starters under the AC Delco brand, for the U.S. and Canada.

“This journey started with Remy Electric in 1896. Now we are going back to our roots,” noted President and CEO Thomas J. Snyder. “Our new strategy will offer two top trademarks, Remy and Delco Remy.”

Remy headquarters and the technical center will continue in Anderson, Indiana. Administratively, there will be some changes, but operations, production and deliveries will be unaffected, according to Snyder.

Profits, Engine Sales Surge at Cummins

Diesel engine maker said Friday its net income for the second quarter was $82 million or $1.76 per share, compared with $14 million or 34 cents a year earlier.

Total sales reached a record $2.12 billion, a 38 percent increase from the second quarter of 2003, the company said in a statement.

Cummins said engine sales rose 57 percent to $1.4 billion, led by higher sales in North America for heavy-duty truck engines. Its share of the North American heavy-duty truck engine market rose more than five percentage points in first five months of the year to 26.8 percent, the company said.

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The company also raised its earnings guidance for the full year to $5.55 to $5.75 a share, from $4.40 to $4.60.

U.S. Consumers Not Replacing Parts Often Enough for Maximum Performance

U.S. consumers are replacing vital parts and fluids in their vehicles, but not as regularly as needed to keep the vehicles running in top condition, according to the Automotive Aftermarket Suppliers Association (AASA).

“Replacement Rates of U.S. Automotive Parts,” AASA’s annual pocket guide and the industry’s single source for tracking service jobs, shows an increase in nearly all of the 84 parts categories. Despite the increase, the replacement rates are not being performed as regularly as necessary, noted Frank Hampshire, AASA director of market research.
“Today’s vehicles are equipped with computers designed to adjust the vehicle’s systems to keep it running cleanly and efficiently,” Hampshire said. “But the computer cannot make the proper adjustments if parts and fluids are not replaced as specified by the automaker, ultimately affecting the vehicle’s performance and gas mileage.”
“Replacement Rates of U.S. Automotive Parts” 2004 offers a pocket guide to 84 service jobs – from air conditioning repairs to wiper blade replacement. The handy card shows the percentage of private vehicles receiving specified maintenance. As much as five years of historical trends is shown in the table, when the data is available.
Additional copies of the card are available to AASA member companies for $10 each and $50 for nonmembers. Volume discounts are available. Orders can be placed by e-mailing [email protected]
The Automotive Aftermarket Suppliers Association (AASA) was organized in 2002 by MEMA as its aftermarket segment association to serve manufacturers of aftermarket components, tools and equipment, and related products, www.aftermarketsuppliers.org.
MEMA (www.mema.org) exclusively serves the aftermarket and original equipment automotive and heavy duty product manufacturing industry. MEMA supports its members through its three market segment associations: Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA) and Original Equipment Suppliers Association (OESA).
Rising Auto Recalls Eat Profits
General Motors Corp., Toyota Motor Corp. and two other U.S. carmakers have in six months exceeded the vehicle recalls for last year, reducing profit.
GM recalled 7.92 million cars and light trucks as of July 2, and said repair costs had helped cut first-quarter profit in North America by 18 percent. Toyota recalled 367,000 Highlander sport-utility vehicles, surpassing last year’s total by 74 percent. DaimlerChryslerAG’s Chrysler and Honda Motor Co. also are ahead of 2003.
Recalls are rising as automakers introduce the most new vehicle models in a decade, and profit is squeezed by low-cost financing and higher rebates to win buyers.
“It is very worrying for any manufacturer to have so many recalls,” said David Champion, director of automotive testing at Consumer Reports magazine. “They have been rushing cars to market quicker than they used to. There is more cost-cutting going on. We think it will hurt their reliability data over the next year.”
Higher recall costs in the first quarter contributed to a drop in GM’s North American profit to $451 million, the company said. GM added $1.48 billion to reserves for recall and warranty claims linked to sales and recalls. The Detroit-based company recalled 7.36 million vehicles in 2003.
“Are we concerned with the number of recalls? Absolutely,” said Kevin Williams, GM’s vice president of quality for North America. “We know it is not an out-of-control condition.”
The company recalled 3.66 million Silverado and other pickups in March, the
GM has 46 percent of U.S. recalls so far this year, almost double its market share. The company remained in third place in the J.D. Power & Associates initial quality survey behind Toyota and Honda. Ford Motor Co., the No. 2 U.S. automaker, has recalled 1.69 million vehicles in 2004, less than half its 2003 total.
New recalls were announced Wednesday by Ford of 171,300 vehicles, including 92,000 2003-model F-Series pickups and Excursion sport-utility vehicles, to repair engines that can catch on fire.
Ford also is recalling 53,500 of its 2003-model Ford Crown Victoria and Lincoln Town Cars used in commercial fleets such as taxis, spokesman Glenn Ray said. The rear axle shaft can bend or crack, putting stress on the wheel bearing and causing the rear axle to stop turning.
A third recall includes 25,800 of the 2004 model Ford Taurus, Mercury Sable and Thunderbird cars because defective welding can cause the front seat to become loose and rattle.
R. L. Polk & Co. Introduces Polk Used Truck MarketView
R. L. Polk & Co. has launched its latest information solutions product. The Polk Used Truck MarketView provides commercial OEMs, fleet and leasing companies, dealers and aftermarket component manufacturers with comprehensive reports on used commercial vehicle information.
The product tracks transactions where a previously registered commercial vehicle VIN has changed name and location. Full vehicle detail including make, model series, cab configuration, GVW and other information is available for commercial vans, full-size pick-ups and medium to heavy-duty trucks. Also identified are off-lease units and first time used vehicles.
Acording to Gary Meteer, senior director of Polk’s commercial vehicle group, the product can add perspective to business decisions when it comes to effectively and efficiently running a used vehicle operation. “Polk Used Truck MarketView represents a level of detailed information not previously available within the commercial vehicle market,” said Meteer. “This tool is a Polk exclusive and an industry first for helping commercial truck businesses make smarter decisions in order to most profitably run their operations.”
The new product is accessible via Polk’s TIP Net Web-based commercial vehicle market intelligence system or available in report form on a subscription basis, and can be used to accurately analyze the commercial used vehicle market; plan inventory and sales strategy; identify new market opportunities; and take advantage of market conditions according to Polk.
For more information about Polk, go to: www.polk.com.
High Gas Prices Don’t Keep Americans Off the Road, According to New MEMA Market Research
So far in 2004, high gas prices do not appear to be impacting Americans’ driving habits, according to MEMA’s bimonthly newsletter “Market Analysis.”
The articles notes that the number of miles driven in April 2004 was 3.1 percent higher than April 2003, and the year-to-date total is 3 percent higher. April was in line with the long-term trend in miles driven and the 12-month moving average was 54 billion miles higher than last year and more than 7 billion above the March 2004 average
These numbers are good news for the aftermarket. Some industry leaders have expressed concerns that Americans may chose to drive their vehicles less due to the higher fuel costs which would in turn reduce service and maintenance opportunities. This isn’t the case, however, according to Frank Hampshire, MEMA director of market research.
“These figures are not really a surprise,” Hampshire said. “During the fuel crisis in the 1970s, it was the availability not the price that held miles driven down. However, the combination of high prices and long gas lines did have a powerful influence on the desirability of large cars in the 1970s,” he noted.
“Market Analysis” examines the economy’s effect on the industry and valuable market data such as miles driven and the producer price indexes for motor vehicle parts and accessories. Member companies can have an unlimited number of free e-subscriptions, available upon request to [email protected] .
NAPA Returns to NASCAR NEXTEL Cup Series in 2005
NAPA Auto Parts has announced it will continue its sponsorship of the No. 15 Dale Earnhardt, Inc. (DEI) Chevrolet Monte Carlo for the 2005 NASCAR NEXTEL CUP season.
Two-time Daytona 500 champion Michael Waltrip is piloting the NAPA Chevy in 2005. Waltrip carries the NAPA shield for the fifth consecutive year in NASCAR’s premier series.
“We are pleased to announce our continued partnership with both Dale Earnhardt, Inc. and Michael Waltrip,” said NAPA President Bob Susor. “This partnership began in 1996 and has resulted in two NASCAR Truck Series Championships, a top-five finish in the NASCAR Busch Series points standings in 2000, and four NASCAR Cup Series wins to date — including two Daytona 500 victories. Michael Waltrip and Dale Earnhardt, Inc. are excellent representatives of the NAPA brand. We are proud to have them flying the NAPA colors.”
Waltrip, a native of Kentucky, captured the prestigious Daytona 500 in his first season with DEI. After 36 races in 2002, Waltrip held the 14th position in the point standings and revisited Daytona’s victory lane twice (Twin 125, Pepsi 400). In 2003, Waltrip won the 45th running of the Daytona 500 at the Daytona International Speedway for the second time in three years. In the process, he became the all-time money winner at Daytona International Speedway and just the eighth driver to win multiple Daytona 500s. Waltrip again found victory lane winning the EA Sports 500 at Talladega Superspeedway.
“Driving the NAPA Chevy the last four years has been the best time in my racing career,” Waltrip said. “NAPA embraces our sport as much as any sponsor in the industry. Their dedication to NASCAR and DEI is unmatched and I am the lucky guy who gets to represent them. The guys who make up the No. 15 team complete the NAPA package. I never thought I would meet anyone who was as dedicated to winning as I am. Slugger (Crew Chief Richard Labbe) has a win-at-all-cost attitude which has saturated the NAPA team. As a driver, that is all I can ask.”
Added Richie Gilmore, DEI’s Director or Motorsports, “The partnership with Dale Earnhardt, Inc. and NAPA AUTO PARTS goes back almost a decade. Together we’ve achieved tremendous success winning championships and races. We’re looking forward to continuing both relationships into 2005.”
NAPA distributes automotive replacement parts, accessories, tools and equipment to 6,000 NAPA Auto Parts stores and more than 12,000 NAPA AutoCare Centers nationwide.
Be Car Care Aware Campaign Distributes New Brochure to Shop Owners
Every month, the Be Car Care Aware campaign distributes marketing materials to help shop owners run their businesses more smoothly.
To make the service advisor’s job easier, the Car Care Council has developed a new brochure. Simply titled, “Be Car Care Aware,” this full-color, glossy brochure features an illustration of a transparent vehicle which provides views of the various systems and components. From belts to batteries, fluids to filters, numbered arrows mark 22 items with corresponding maintenance suggestions. The popular Service Interval Schedule is included, as well as a list of helpful maintenance tips that reduce the cost of vehicle ownership.
Educators would be hard pressed to teach without textbooks and other resource materials. The service advisor, educating customers about preventive maintenance and repair, is in a similar position. These professionals need tools to familiarize motorists with what’s under the hood and around the car, and the new Be Car Care Aware brochure is one tool that can help.
For a sample copy, e-mail your name, shop name and address to Susan Jones at [email protected] or call 731-644-9926.
BorgWarner Breaks Ground for New World Headquarters in Auburn Hills, Mich.
BorgWarner has broken ground for its new world headquarters in Auburn Hills, Mich. In September 2003, the powertrain supplier announced that it would relocate its corporate headquarters from Chicago to metro Detroit in order to maintain closer connections with the company’s global customers and suppliers, as well as maximize opportunities for collaboration with the BorgWarner Powertrain Technical Center, which is also located in Auburn Hills.
BorgWarner will lease 40,000 square feet of the new, 60,000 square-foot building, which will be owned by Etkin Equities. Contruction is expected to be completedf by April 2005.
“Every day we get a few steps closer to establishing ourselves in metro Detroit — the heart of the global automotive industry, home to several of our customer organizations, and the headquarters of three of our global business units,” said Tim Manganello, BorgWarner chairman and CEO. “We are already seeing the benefits of a Detroit-based location for a leading powertrain supplier that is focused exclusively on providing solutions for enhancing fuel economy, reducing emissions and enhancing vehicle stability and performance.”
About 70 employees will eventually be based at the headquarters, including the staffs of departments such as the chairman and CEO’s office, finance and administration, business development, corporate communications and investor relations, human resources, information technology and legal/patent.
For more information about BorgWarner, go to: www.bwauto.com.
New Location for AAPEX New Product & Packaging Showcase Gives Higher Visibility for New Ideas
The New Product & Packaging Showcase at the Automotive Aftermarket Products Expo (AAPEX), where manufacturers display new products and innovative packaging concepts, will be in a new location at the 2004 show. AAPEX takes place Nov. 2, through Nov. 5, at the Sands Expo Center in Las Vegas.
The 2004 showcase will be at the upper lobby entrance to the Sands from the Venetian Hotel. The showcase is open to AAPEX exhibitors to display new products or packaging introduced since AAPEX 2003 or to be introduced at the 2004 show.
“The New Product & Packaging Showcase is one of AAPEX’s largest and most comprehensive displays,” said William Glasgow of W.T. Glasgow Inc., show manager. “This new location at the busiest entrance will increase manufacturers’ visibility for new products and brands, catching buyers’ attention as they enter the show.”
The early bird deadline for entering the New Product & Packaging Showcase is Friday, Sept. 3, and the final deadline is Friday, Oct. 1. Companies are not limited on the number of products or packages entered. Entry forms and more details are available at the AAPEX Web site: www.aapexshow.com.
Demand for Heavy Trucks
Shows Economy on Rebound
They haul everything from gravel to groceries and now economists say a sustained sales surge in medium and heavy trucks is delivering a strong message – the U.S. economy is revving up.
Demand for heavy duty trucks is up 40 percent this year, according to Standard & Poor’s, prompting manufacturers and component suppliers to substantially boost output for the first time since the booming late 1990s.
At Ford Motor Co., sales of big trucks are up a whopping 113 percent through June.
Demand has soared 90 percent for General Motors Corp.’s large GMC Topkick 6/7/8 series and 78 percent for its Chevrolet twin – the Kodiak.
Ford and GM are stepping up production of big trucks and at least one diesel engine maker has already accelerated its assembly lines.
“The biggest leading indicator on the economy is transportation,” said Bank One Chief Economist Diane Swonk. “(Heavy truck) sales began picking up last year and they were an indication the economy is heating up. We’re moving stuff around again.”
That movement is another definitive sign the economy is on an upswing, says Brett Hoselton, an analyst with KeyBanc Capital Markets in Cleveland.
“Freight demand is what drives demand for trucks,” said Hoselton. “We’re seeing freight demand increasing as the economy is improving.”
Businesses that stockpiled cash during leaner times now feel confident enough to replace aging trucks, says Bank One’s Swonk. The average heavy truck has a seven-year life cycle.
Some companies are also rushing to buy new trucks before more stringent federal emission regulations covering diesel engines take effect in 2007. The rules are expected to result in higher diesel engines prices and operating and maintenance costs, Hoselton said.
The average age of commercial trucks on the road is 5.9 years now – a 10-year high, triggering a robust replacement market, he said.
After several down years for the big truck market, companies must spend money to make more money, says Ford sales analyst George Pipas.
“A truck is a piece of equipment,” says Pipas, “they use to make more money.”
The United States Still Drives the North American Economy
The United States has lost some of its influence on the North American economy and the automotive parts sector, according to the 2004 Automotive Aftermarket Status Report, just released by AASA.
However, the report notes that the economies of Canada and Mexico are still closely linked to U.S. economic health. For example, the U.S. economic slowdown in 2001 was felt immediately by automotive exporters in Mexico and Canada. Canadian exports dropped by more than $6 billion between 2000 and 2001, and in 2003 were still almost $4 billion behind the 1999 peak of $63 billion. Mexico’s parts shipments peaked at $13 billion in 2000 and declined during the next three years. Purchases in 2003 recovered, totaling $10 billion.
The Canadian automotive parts and accessories manufacturing industries employ 230,000 workers. Its automotive parts market was estimated at $23.4 billion in 2002.
Mexico’s automotive parts manufacturing industries employ more than 460,000, not including 168,000 in aftermarket parts distribution and 323,000 service providers. Its automotive aftermarket is estimated at $5 billion in 2003.
Members can order additional copies Status Report for $125 (non-member price: $500). Orders may be placed by calling 919-549-4800 or e-mailing [email protected] mailto:[email protected]?subject=Status%20Report.
AASA Reports Significant Drop in Unperformed Maintenance
The total of unperformed automotive maintenance in the United States dropped by nearly $20 billion in 2003 to $43.3 billion, due in part to consumers’ uncertainty about the country’s economy and their own jobs, according to the 2004 “Automotive Aftermarket Status Report,” just released by the Automotive Aftermarket Suppliers Association (AASA).
According to Frank Hampshire, AASA director of market research, there are several reasons why unperformed maintenance dropped including the consumers’ desire to invest in maintenance with an uncertain economic future, a higher than normal rate of new vehicle sales which took many “maintainable” vehicles off the road and led to a more rapid rate of vehicle scrappage.
“When money is the only issue, for example in the months leading up to Christmas, car owners will neglect vehicle maintenance,” Hampshire said. “When their job or economic future is uncertain, on the other hand, consumers will maintain their cars to protect their investment and to make

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