Auto Service World
Feature   January 1, 2007   by Auto Service World

Over The Counter January 2007

U.S. Collision Repair Market Grows 4% to $38.2 Billion in 2005

Total collision repair industry sales grew 4.4% in 2005 to $38.2 billion (U.S.) according to “2006 Collision Repair Trends: Industry Statistics & Analysis”, published by the Automotive Aftermarket Industry Association (AAIA).

Independent paint and body repair shops accounted for more than half of the collision repair market at $20.8 billion(U.S.). “Collision repair shop sales for the past five years have been averaging about 5.7% annually,” says Kathleen Schmatz, AAIA president and CEO. “This steady growth has been driven by several factors, including increases in the number of registered vehicles, miles driven on U.S. roads, increased road congestion and the higher cost of collision repairs per vehicle.”

“Collision Repair Trends: Industry Statistics & Analysis” combines the latest available industry data from original AAIA research, government sources, and independent research suppliers about the size and scope of the collision repair segment of the industry and the paint and body equipment aftermarket.

AAIA is a Bethesda, Md.-based association whose more than 8,000 member companies and affiliates manufacture, distribute, and sell motor vehicle parts, accessories, service, tools, equipment, materials, and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores, and distribution outlets.

Aftermarket Charity Chairman Touts Expense Free Fundraising

The chairman of Shad’s R&R, an aftermarket charity that has raised more than $3 million for the Muscular Dystrophy Association of Canada (MDC), has declared that 100% of all funds raised have gone toward research.

“Shad’s R & R takes pride in the fact that we operate at a zero expense base with everything from prizes, to printing, to mail, to administrative being donated by participating companies,” says John Vanstone, chairman of the 30-year-old charity organization.

The statement was made in the wake of some other charitable organizations being taken to task for the amount of money spent on fundraising, sometimes with less than 20% of the dollars raised going to fund the work. For Shad’s R&R, the only expenses generated are the meals and golf fees at the annual golf tournament that marks the cheque presentation.

“For most organizations, you would be at the mercy of the charity to assure they are keeping their costs in line, and in fact MDC has been cited by Imagine Canada and by the Association of Fund Raising Professionals as having excellent and transparent accountability standards and controls.

“The important facet of our annual Shad’s R & R donation to MDC is that it goes into a ‘restricted’ fund, whereby it is designated as 100% for research projects.”

In addition, the money raised is matched through other organizations, says Vanstone. “All of these monies become part of a combined Neuromuscular Research Partnership (a partnership with the Canadian Institutes of Health Research and the ALS Society of Canada).

“Our annual donation of $150,000 is matched by both of these partners to in fact create a $450,000 pool of funds for MDC Research Projects–a tripling of our fundraising efforts.”

Engine Rebuilders Association Names Board

The AERA-Engine Rebuilders Association has announced its new board of directors.

Elected to serve one-year terms during the recent RPM Show in Indianapolis, Ind., were chairman Rob Munro, Valley Speed Machine Shop, Kamloops, B.C.; first vice-chairman Domingo Gonzales, Pan American Machine Shop, Pharr, Tex.; second vice-chairman Allen Lyon, Auto Parts & Equipment, Farmington, N.M.; and treasurer John De Bates, Auto Machine Inc., St. Charles, Ill.

Elected to serve three-year director terms were Mark Daniels, Precision Machine Service, Jacksonville, Fla.; Dwayne Dugas, Dugas Engine Service, New Iberia, La.; Dimitri Elgin, Elgins Custom Grinding, Redwood City, Calif.; and Ron McMorris, Lordco Parts Ltd., Maple Ridge, B.C.

Serving two-year terms are Mike Eighmy, Precision Automotive Diesel, Rockford, Ill.; Jay Foley, Foley Marine & Industrial, Worcester, Mass.; Dean Yatchyshyn, Cresap Automotive Machine, Cumberland, Md.; and Scott Wichlacz, Manitowoc Motor Machining & Parts, Manitowoc, Wisc., who was elected as Advisory Board chairman.

These new directors join current directors on the board representing the Associate Member Council: Gary Lewis, De Anza College, Cupertino, Calif.; Dave Monyhan, Goodson Tools & Supplies for Engine Builders, Winona, Minn.; and Hal Fowler, Fowler Sales & Service, Griffin, Ga.

Delphi Secures New Financing

Delphi Corp. has announced that it has accepted a proposal for an equity purchase and commitment agreement with affiliates of Appaloosa Management L.P., Cerberus Capital Management L.P., and Harbinger Capital Partners Master Fund I, Ltd., as well as Merrill Lynch & Co. and UBS Securities LLC (collectively, the “Plan Investors”) to invest up to $3.4 billion in preferred and common equity in the reorganized Delphi to support the company’s transformation plan announced on March 31, 2006, when its plan of reorganization framework agreement was also filed.

The Plan Framework Support Agreement, signed by Delphi, the Plan Investors and General Motors Corp., outlines the expected treatment of the company’s stakeholders in its anticipated plan of reorganization and provides a framework for several other aspects of the company’s Chapter 11 reorganization.

Separately, Delphi accepted a proposal from JPMorgan Chase Bank, N.A. and a group of lenders to refinance in full the company’s existing $2.0 billion DIP facility and approximately $2.5 billion additional loan facilities.

The company is filing motions seeking approval of the agreements with the U.S. Bankruptcy Court of the Southern District of New York and will be filing the relevant agreements with the Securities and Exchange Commission.

Delphi Chairman and CEO Robert S. “Steve” Miller says that the agreement was a significant milestone for the company.

“Delphi has long emphasized its commitment to pursuing a resolution of the principal issues in our restructuring. The agreements announced today demonstrate real progress toward that objective,” he adds.

New Lear Seats are Soy Comfortable

Lear Corporation announced it has developed SoyFoam, a soybean oil-based flexible foam material for automotive interior applications. The advantages of SoyFoam include that its production features a lower environmental impact; the soy-based foam material is up to 24% renewable as opposed to traditional non-renewable petroleum-based foam; it reduces dependency on volatile energy markets; and it offers the potential for reducing foam costs as use in automotive applications reaches critical mass.

Ford Motor Company was the first automotive manufacturer to express an interest in soy foam for automotive applications and the first to demonstrate that soy-based polyols could be used at high levels (~40%) to make foams capable of meeting or exceeding automotive requirements.

In 2004, a partnership was formed between Ford and Lear for the purpose of commercializing SoyFoam applications, with initial work concentrated on the moulding of headrest and armrest components.

Today, Lear and Ford lead the industry with market-ready applications for this renewable resource.

Lear also is collaborating with the United Soybean Board – New Uses Committee (a group of 64 farmers/agricultural industry leaders), Urethane Soy Systems Company, Bayer Corporation, and Renosol Corporation on SoyFoam development.

“Our research and testing has proven that SoyFoam solutions will withstand a mass production environment and meet or exceed performance requirements,” says Ash Galbreath, director of Lear’s Environmental Comfort Engineering. “As a result, the recent breakthroughs in SoyFoam technology ar
e of great interest to our worldwide customers.” Lear Corporation is one of the world’s largest suppliers of automotive interior systems and components. Lear provides complete automotive seating systems, electronic products and electrical distribution systems as well as interior trim components.

With annual net sales of $17.1 billion in 2005, Lear ranks #127 among the Fortune 500 and is headquartered in Southfield, Michigan.


Louis Mottet of Grant Brothers Sales announced that Joe Botta has been appointed as district sales manager for the Nova Scotia, New Brunswick, and P.E.I. regions. Botta has a strong background in sales, most recently working as a vehicle salesperson in Moncton, New Brunswick.

RPDL 40th Anniversary Trade Show

Toronto warehouse distributor Replacement Parts Depot Limited is holding its 40th Anniversary Trade Show March 22, 2007. Contact RPDL for details at (416) 243-7399.

ASC Honoured by Alliance

ASC Industries, Inc., a United Components, Inc. company, has been recognized as outstanding private label supplier of the year for the third straight year by the Aftermarket Auto Parts Alliance, Inc.

ASC also received the gold level supplier award for outstanding shipping performance for order fill rates in excess of 99%.

Richard Morgan, president and CEO of the Aftermarket Auto Parts Alliance, presented awards to ASC representatives during their December 5 meeting in Florida at which vendors and shareholders were present.

In prior years, the Alliance honoured ASC with both the outstanding private label supplier of the year and the silver level supplier award.

U.S. Brakes and Filters Market Reports

The Automotive Aftermarket Industry Association (AAIA) has recently released two new U.S. market research reports on aftermarket brakes and filters. The primary research supporting the “Report on Brakes for the U.S. Automotive Aftermarket” and the “Report on Filters for the U.S. Automotive Aftermarket” was conducted in 2006 by Ducker, Findlay, Swoboda & Associates, LLC, a consulting group with headquarters in Bloomfield Hills, Mich.

The reports contain key findings in a variety of areas, including industry performance, which focuses on the overall industry performance of leading suppliers. The section also estimates market share, annual growth, and the strength of national part brands. The market size and segmentation portion of the reports illustrate the estimated market share among suppliers, and future market trends and the status of pay-on-scan are also detailed.

For more information on the reports or to order a copy, contact AAIA at 301-654-6664 or visit

Print this page


Have your say:

Your email address will not be published. Required fields are marked *