Auto Service World
News   October 18, 2004   by Auto Service World

Keystone Suspends Sale of Two Aftermarket Light Applications


Keystone Automotive Industries, Inc. has announced that it has voluntarily suspended the sale of aftermarket headlamps for the Ford Taurus (’96 –’04) and for the General Motors Pontiac Grand Am (’99 — ’04) as a result of independent tests indicating that at the present time, these headlamps do not fully comply with the federal standards.
As a result of the publication of the independent test results, at least six insurance companies have indicated that they have also suspended the use of the non-complying aftermarket headlamps in repairing damaged vehicles. In addition, Keystone believes that one or more insurance companies may have discontinued specifying all aftermarket headlamps in vehicle repair.
Keystone’s sales of headlamps for the Taurus and Grand Am during the last 12 months constituted less than one-half a percent of its total sales and the sales of all headlamps during the period constituted approximately 12 percent of total sales.
“Rigorous testing and ongoing evaluation of products are fundamental to our industry. While the temporary suspension of the sale of these headlights is unfortunate, this action highlights Keystone’s commitment to product safety and quality. Aftermarket parts are an important
alternative to OEM brands, providing favorable economics compared with original equipment parts. This factor and Keystone’s quality assurance programs continue to drive the acceptance of the company’s products by collision repair shops, the insurance industry and consumers,” said
Richard L. Keister, president and chief executive officer of Keystone Automotive.
The company noted that sales to date have not been materially and adversely affected by recent suspension actions by certain insurance companies and the discontinuance of the sale of the Taurus and Grand Am
headlamps will not have a material adverse effect on Keystone. However, a discontinuance of the specification of all aftermarket headlamps by a number of insurance companies would have a material adverse impact on
the company’s financial results.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 126 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 19,000 stock keeping units that are sold to more than 25,000 repair shops throughout the United States and Canada.


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