Industry Review May, Brake & Front End, May, 2003

INDUSTRY REVIEW


BENDIX BRAKES’ ELBERTON, GA SITE RECEIVES ISO 14001 CERTIFICATION
Bendix Brakes® recently announced that its Elberton, GA facility has received ISO 14001 certification. Compliance with the standards of the International Organization for Standardization’s (ISO) 14001 guidelines demonstrated the Bendix plant is committed to various aspects of environmental management.

The 108,000-sq.-ft. Elberton site employs 375 people and has been producing Bendix® branded disc brakes for cars, trucks and commercial vehicles since 1991.


CARQUEST TECHNICAL INSTITUTE EARNS CASE CERTIFICATION
CARQUEST Technician Institute (CTI) has earned CASE certification from the National Institute for Automotive Service Excellence (ASE). Continuing Automotive Service Education (CASE) is a voluntary ASE certification program for training entities that provide continuing education to working automotive technicians. The National Automotive Technicians Education Foundation (NATEF) administers the program and ASE grants the certification.

"For CARQUEST Technical Institute to be deemed CASE certified is a great honor," said Mike DeSorbo, CARQUEST national director of training. "By being CASE certified, professional automotive technicians can be assured CTI will deliver the most advanced training in the industry."

The CASE program offers a certification of providers of training for working technicians. The National Automotive Technicians Education Foundation (NATEF) will evaluate the training providers’ process of developing and delivering training and then recommend certification as an ASE Certified Training Provider of Continuing Automotive Service Education (CASE).

ASE certification for CASE is valid for three years. CTI is required to submit an annual report to NATEF which identifies any changes within the organization that have occurred during the year.


TIMKEN RECEIVES SUPPLIER AWARDS FROM TOYOTA
The Timken Company recently received three regional quality awards from Toyota Motor Corporation. The awards, Certificates of Achievement in Quality Performance for 2002, were presented to Timken for outstanding operations in Europe, Japan and North America.

"Timken offers customers much more than bearing products. We are dedicated to the entire relationship, from product innovation to service and support," says John Dix, vice president - automotive business development. "Toyota is an important global customer that expects us to provide them with quality products and services, no matter where in the world they are or we are. And we appreciate their recognition for exceeding that expectation."


ARI APPOINTS LARRY PAVEY AS NEW CEO
ARI recently announced the appointment of Larry Pavey as its new Chief Executive Officer and his election to the Board of Directors. Until recently Pavey headed Brake Parts, Inc., a unit of Dana Corporation’s Automotive Aftermarket Group, with annual revenues of over $1.2 billion. Pavey’s key focus at ARI will be on maintaining the company’s strong market position in remanufactured products and building ARI’s complementary brake and clutch programs.

"We are extremely fortunate to have Larry join ARI as its Chief Executive Officer. Larry’s experience and market knowledge is second to none in the automotive aftermarket," stated Robert F. Smith, Chairman of the Board.

"With the recent acquisition of Car Component Technologies, ARI has developed into a market leader in the remanufactured automotive products market sector and the addition of Larry further strengthens the company," said Tim Campbell, ARI’s President.

"ARI has developed into a market leader in remanufactured products and brake and clutch components. It is a fantastic opportunity to work with a great team of people," stated Pavey.


MIDAS NAMES MOTORVAC AS IT’S NEW MAINTENANCE EQUIPMENT SUPPLIER
MotorVac Technologies has entered into an agreement with Midas Inc. to become the first authorized manufacturer under its new maintenance service program.

This program was recently developed to expand the menu of maintenance services at Midas shops. MotorVac will be designated as an authorized vendor and will provide Midas shops the opportunity to enhance the fluid maintenance services they provide their customers.

MotorVac’s product line includes the CarbonClean and CarbonTune fuel cleaning systems, the TransTech automatic transmission fluid exchanger, the CoolantClean exchange and flush system, the OilClean lubrication system cleaning and exchange service and the LeakChek Plus and EVAP LeakChek leak detection devices that utilize vapor trace technology.


BWD AUTOMOTIVE AND O’REILLY AUTO PARTS ANNOUNCE WINNER
BWD Automotive and O’Reilly Auto Parts recently announced that Andy Cox with Custom Muffler & Brake in Columbia, MO is the winner of the Winter Installer Sweepstakes Promotion.

The first quarter contest rewarded installers with a sweepstakes entry form each time they purchased a Borg-Warner brand part from any O’Reilly Auto Parts store or independent Auto Value jobber.

Cox won an all expense paid trip for two to the fall NASCAR Winston Cup Series race at Kansas Speedway.


AAIA ELECTS NEW OFFICERS AND BOARD OF DIRECTORS
The Automotive Aftermarket Industry Association elected the 2003-2004 officers and board of directors at its spring meeting in Amelia Island, Fla.

"Member driven associations demand strong and involved volunteer leadership," said Alfred L. Gaspar, AAIA president and CEO. "Individuals who serve on AAIA’s board of directors represent all segments of the aftermarket industry. We are very fortunate to have assembled this dynamic group of thought leaders with the vision, talent, knowledge and influence to help guide our association."

AAIA’s elected officers of the board of directors are:

  • Chairman, Michael Moshontz, Blue Magic, Inc.;
  • Vice Chairman, David Caracci, Robert Bosch Corporation;
  • Vice President, J. David Bell, Erie Drive Train, Inc.;
  • Vice President, Steve Handschuh, NAPA Headquarters
  • Vice President, Richard Morgan, Aftermarket Auto Parts Alliance;
  • Secretary, Tom Swoboda, Ducker, Findlay and Swoboda Associates;
  • Treasurer, Joe Grobarek, Great Lakes Representatives; and
  • Past Chairman, Lou Merz, Aftermarket Growth Concepts.

Ten other individuals were elected to the 30-person AAIA board of directors, including:

  • William Baker, NYSAA;
  • Michael Coran, J&R Auto Body Supply;
  • Ira Davis, Forecast Products;
  • Julie Diehl; and
  • Larry Pavey.

LINCOLN ACQUIRES MITYVAC PRODUCTS
Lincoln recently completed the acquisition of the Mityvac® line of vacuum/pressure pumps, specialty tools and accessories for the automotive industry. The product line was acquired from Prism Enterprises LP.

"Lincoln is pleased to add the Mityvac product line to our extensive product offering," said Lincoln President Mark Schroepfer. "These unique products are a natural fit with our existing products for the professional mechanic, auto repair shops and the skilled do-it-yourself individual. With this acquisition, two well-regarded brands — Lincoln and Mityvac — have been brought together under one management team."


COMPACT PERFORMANCE MARKET IS OUTGROWING ITS COMPACT NAME
According to SEMA, the compact performance segment of the automotive specialty equipment market witnessed astounding growth in 2002.

Retail sales of accessories and other products for compact vehicles grew 55.9 percent in 2002, totaling $2.367 billion in the U.S., compared to $295 million six years ago. SEMA has tracked sales in this new niche of products for cars and trucks since 1997.

SEMA reports that the market niche has experienced consistently high growth rates in the past six years. In 1998, the growth rate was 48.5 percent; 1999, 72.6 percent; 2000, 58.7 percent; and 2001, 26.5 percent.(SEMA speculates that the flatter growth curve may be attributed to 9/11).

SEMA’s research in 2002 showed that five of every eight compact performance enthusiasts purchased their vehicle used (62.7 percent). New vehicle sales in this consumer segment accounted for 24.7 percent of the vehicle market, and 12.6 percent reported receiving their compact cars as a gift.

The compact performance market consists of three major types of small car modification — exterior or appearance, engine and interior (audio/electronic products, seating and gauges).


MONROE RIDE SAFE TOUR DRIVING EXPERIENCE MAKES NATIONAL DEBUT AT EASTERN MICHIGAN UNIVERSITY
The Monroe Ride Safe Tour, a multi-million-dollar interactive driving safety experience that will visit more than 150 U.S. markets this year, made its national debut at Eastern Michigan University in Ypsilanti, MI.

Featuring electronic driving simulators, one of the world's only full-size vehicle rollover simulators, interactive "Vehicle Knowledge Center" kiosks and a broad range of hands-on educational experiences, the Ride Safe Tour is designed to encourage consumers to protect their driving safety through periodic inspections and maintenance of the components that determine vehicle steering, stopping and stability characteristics.

"The Ride Safe Tour is a fascinating and fun opportunity for consumers to learn about the automotive systems that help protect their safety and the safety of their passengers," said Richard Alameddine, vice president of marketing for Tenneco Automotive, manufacturer and marketer of Monroe products.

The Ride Safe Tour is the first comprehensive mobile consumer education experience focusing on vehicle ride control technologies.

The Tour will make stops at events like the popular "Taste of Chicago" festival in Chicago’s Grant Park and will be part of Detroit’s Woodward Dream Cruise on August 16, 2003.

The Tour rig is expected to attract more than one million visitors this year.


AKEBONO USES CERAMICS TO OPTIMIZE BRAKE PERFORMANCE
Brake noise, vibration and harshness (NVH), as well as brake dusting, are major considerations among virtually all motorists. In an effort to address these concerns, ceramic friction material was developed. During the last several years, ceramic friction’s market share has continued to grow. Today, an estimated 40 percent of all new vehicle models sold in North America feature ceramic friction materials as original equipment.

At a recent press conference for Babcox editors in Akron, Ohio, Bill Hilbrandt, vice president, research & development, at Akebono, talked about Akebono’s commitment to product research and development. With 100 dynamometers being used for testing, Akebono’s extensive R&D effort has produced hundreds of unique ceramic friction formulations designed for specific vehicles.

Each Akebono pad application features carefully engineered, scientifically applied chamfers and slots to reduce and/or eliminate noise. Precision-fit shims are incorporated into the design to eliminate noise as well.

Akebono’s strict quality standards have resulted in a reject rate of virtually zero (2 ppm) at its manufacturing facilities in Kentucky, establishing a new quality benchmark. For the technician, this consistency means they can be confident that vehicle owners will experience quiet braking, superior brake fade/recovery performance, more consistent vehicle brake system response and reduced pedal effort.

What is the next breakthrough going to be in ceramic braking technology? Akebono thinks the next major advancement in ceramic technology will undoubtedly address high-temperature, severe-duty conditions. The result will be a friction formulation that provides consistent stopping power in performance situations that also optimizes NVH performance.


DANA AUTOMOTIVE AFTERMARKET GROUP ANNOUNCES REORGANIZATION
Terry McCormack, president of Dana’s Automotive Aftermarket Group, has announced a fundamental restructuring of his organization to bring it functionally in line with the rapidly changing environment of today’s aftermarket.

According to McCormack, the changes make sense for a variety of reasons.

"The pending sale of our Engine Management operations and subsequent restructuring of the Under Hood Group, coupled with the departure of Larry Pavey from the brake side of our business, provided an opportunity to sit down with a clean sheet of paper. The result is an approach that uniquely deploys key resources for a better customer focus.

"We strongly believe that, rather than being organized by product groups as we have in the past, it makes much more business sense to move to a functional division structure, aligning the roles and responsibilities and the skills of our people with the current and emerging needs of the marketplace," said McCormack.