March 2007 was the year when a Missourian county court gave $17 million to 315,000 state residents> This was in a class-action suit against American Family Mutual Insurance Company involving aftermarket auto parts. The lawsuit declared that the insurer used inferior aftermarket parts, among other charges related to mending damaged vehicles. The insurer, which does not employ aftermarket parts on vehicles that are less than three model years old or to replace safety-related parts such as air bags, intends to seek an appeal on the verdict.

In December 2006, a United States International Trade Commission administrative law judge gave out a preliminary ruling that, if followed, could put a stop to imports of certain aftermarket parts that the Ford Motor Company claims infringe on its patents. Though some patents were not infringed, the judge found some that were. The ruling will be taken up by the International Trade Commission, which must give its decision before the date March 5, 2007.

Ford filed a design patent infringement complaint in December 2005 against Keystone Automotive Industries as well as other suppliers of aftermarket automotive parts. Supporters of the use of aftermarket parts fear that if this case gets the nod, although few parts will be affected, success could lead other automobile manufacturers to use similar strategies to ultimately reduce and eliminate non-OEM part suppliers from the automitive market.

In a triumph for consumers all over, the U.S. Supreme Court refused to hear an appeal from the plaintiffs in State Farm v. Avery in March 2006, with the class action lawsuit targeting the use of aftermarket parts. The Illinois Supreme Court had overturned lower court rulings, learning that the utilization of an aftermarket part did no, in any way, breach State Farm’s contract with its policyholders. Thus, the class action was proved to be had been wrongly certified.

The lawsuit had charged State Farm with violating the contracts it had with its policyholders when it specified the use of non-original equipment (non-OEM) parts in the repair of vehicles that were damaged in crashes. The suit covered the entire United States, with the exception of two states: Arkansas and Tennessee. In addition, there were some State Farm policyholders in Illinois and California as well that were subsumed under this law, depending on the date of their crashes. The loss of the appeal made it easier for insurers to start using generic auto repair parts after that. Several insurers had reverted to using the generally more expensive OEM parts, in the wake of the lower court rulings. The use of aftermarket parts that demonstrate the same if not exactly that of a higher quality than those seen in OEMs were given credit for keeping down the cost of car repairs.

The Illinois Supreme Court ruled that the claims in the case–in the court’s ruling on the validity of the class action certification—which sprang from repairs using many different parts from a great many vendors following accidents in 48 jurisdictions, each with its own brand of insurance laws as well as regulations, were much too different to be dealt effectively with as a class action.

Back in the days before 1970, there was only one place for auto repair shops to acquire any and all of the repair replacement parts that they needed: from auto manufacturers themselves. These were the OEMs. This gave way to uneven market conditions, making the auto repair shops more and more reliant on the OEMs. Because there were no other possible source for replacement auto parts that the repair shops needed in growing numbers—since by this time, more and more people were finally financially able to purchase a car—one can very well imagine what eventually happened: a monopoly. And of course, since a monopoly of any kind never once made for an ideal situation, because it always places unfair advantage on one party often at the expense of the greater majority—lobbying for price adjustments became an iffy issue.

OEMs gained a good hammerlock on the industry. This placed the market directly into the hands of the OEMs. Some very happy OEM owners must have found themselves punching their fists in the air at that time, if they knew full what they had at that time. The arrangement gave the companies in question the wherewithal to set prices for their parts quite high in the queue. It came at a point that the prices were reaching mile-high but there was nothing to be done about it. The resulting circumstances gave full expression to the essence of capitalism: I have something you want. The only thing is, how much are you willing to pay for acquiring it? Or as the saying goes, a thing is worth only as much as one is willing to pay for it.

This continued until the arrival of the aftermarket part suppliers sometime in the year 1970. Finally, some new blood was pumped into the business. The aftermarket suppliers attracted immediate attention from several consumer markets. Soon, manufacturers independent of affiliations with auto manufacturers were springing up left and right in a considerable number of portions all over the world. Soon, competition was putting life back into the market that had remained stodgily dormant through the years.

Predictably enough, the OEMs weren’t too happy with the upstarts. But since each and every thing in the world changes—that ever constant notion of progress as a force that, by and far, proves itself unstoppable—all the OEMs could go on with was a gradual acceptance of the facts. This time, OEMs got a dose of their own medicine as they planned how best to proceed.

By the time the 1980s set in on the industry, independent suppliers were already generating parts designed to allow compatible performance with a number of vehicle models that were produced by all the auto manufacturers. From aftermarket performance parts to crash parts, these alternate providers gave the OEMs a run for their money. By offering quality aftermarket parts at a price that was a great deal more affordable, consumers who had their eye on saving a few dimes and nickels on the side were immediately hooked.

A reversal of fortune was forcing OEMs to implement major changes in their organizational structures. The relatively young aftermarket business was going off the ground faster than the established companies had predicted. The succes of the aftermarket providers though was due to more than mere mechanics. Aftermarket suppliers keyed in to the fact that consumers weren’t going to be too keen on payiung for parts at a price that’s a wee bit too rich fir their blood when there were other viable sources on the table. It was to this need that the aftermarket suppliers that made the aftermarkets industry into a strong and successful one.

These days, one can obtain nearly all automotive components essential to a car, like crash parts or performance perts for instance, through two ways: by ordering these parts from an auto manufacturer which are companies that market these items stamped with their names. These are the original equipment manufacturers or OEMs as opposed to the aftermarket parts providers, the latter being companies that commercially distribute generic auto merchandise. That is, parts that carry no brand names. The fact of the matter was, before the aftermarket performance parts manufacturers emerged into the light and threw the OEMs into a fervent rush to stay on top of the game, OEMs were able to set prices as high as consumers would allow it. A thing costs as much as anyone is willing to pay for it—as the saying goes.

However, the arrival of the aftermarket parts manufacturers in the landscape altered everything for consumers and OEMs. Competition bloomed, preventing OEMs from ever assuming the degree of control that these companies had previously enjoyed. This admittedly threw a crimp in the works on the part of the OEMs since they were forced to share the profit with the Afternarkets. Nothing, though, could be done about the matter. Progress is an up-ward and onward movement, after all.

This resulted into a leveling down of prices on a considerable number of OEM products. Prices for a majority of these were dropped a near 30 percent. Consumers, though, can consider the matter as a decided blessing since the emergence of aftermarket parts initiated significant changes in the market dynamics that essentially improved a great deal for buyers.

This later gave way to the existing competition between OEM and aftermarket performance parts. And though talks discussing the merits of one over the other have already been made, time and again, the conclusions have been rhetorical at best since decisions ruling whether OEM pieces are better than aftermarket performance parts or vice versa, has proven moot so far. Both sides afford consumers a great deal of advantage in terms of functionality and durability.

Still, hecklers cannot be avoided and each has had its own share of complaints.

For instance, of the many issues that involve these two are talks of safety. Some critics say that using an aftermarket performance part does quite a lot in undermining the performance one’s vehicle by compromising a number of automotive processes.

However, on this note, the Insurance Institute for Highway Safety or IIHS decidedly shed a different light on the matter as it released an official statement stating the fact that there the employment of such parts had no direct adverse effect in the driving performance of the machine nor did it pose any danger to the safety of consumers. The IIHS declared these claims on the basis of the crash test results that the institute had conducted.

Providing further support to the claims generated by the IIHS, the Certified Automotive Parts Association (CAPA) also informed the public of that generic parts do not, in any way, ruin the existing warranty of a vehicle. The company even contributed to the growing body of discussion about OEMs and aftermarket parts by putting forward the idea that a number of generic parts are produced by the same companies and are constructed in the same manner.

Thus, there is not a particle of truth to the notion that having aftermarket parts in place of OEMs is a sure invitation for danger as well as risk. Still, whether one chooses to use an aftermarket performance part or an OEM component, one can breathe easy knowing that one can go for either one without having to worry about safety concerns and issues.

If one ventures forward to inquire into the strong popularity of automotive accessories, one will find themselves confronting one and one idea in all its various interpretations and expressions: personalization. Each case is distinctive. One may wish to equip one’s Honda with a lift kit enabling the car to go toe-to-toe with any four-by-four vehicle that it happens to drive alongside the road with and one has all the freedom to do so as well as the werewithal to put that plan into action. The aftermarket market is at hand at all times.

When it comes to performance parts, one can find equal satisfaction in the market, if not actually greater since performance parts abound in a great many models and forms. The matter is not without financial advantages either since aftermarket performance parts are significantly more affordable when it comes to their prices rather than parts from OEMs or Original Equipment Manufacturers.

This accounts for the considerable interest that the market has succeeded in gaining over the years from consumers. And since companies producing aftermarket auto components have made great strides in providing performance parts that demonstrate nothing but great durability and function, consumers often decide to go for an aftermarket performance part in place of an OEM piece.

Understanding the dynamics of the current situation is simple, of course. It’s the principles of supply and demand at work. However, with the arrival of these aftermarket automotive part manufacturers, OEM businesses have been forced to face the music. After all, before the emergence and eventual growth in the number of aftermarket performance parts manufacturers, OEMs had a nice and  absolute hammerlock on the profit pie. However, when the aftermarket makers started rolling in with their band of parts, consumers began to take notice and the notice was considerable. Seeing how the market was first dominated by OEMs, the first aftermarket part producers must have operated on nothing more than mere chutzpah. That is, until consumers began to go for aftermarket parts against OEMs.

Given this situation, it is no wonder why OEMs have long since been obliged to topple aftermarket players in the scene. The strong competition that have sprang up between OEMs and Aftermarket suppliers have since been fraught with intense rivalry.

One can hardly fault those who place their money on the side of aftermarket makers though. Cheaper parts that demonstrate similar or at times even greater performance than OEM ones, there is no contest.  At least, that is one way to look at it. As supporters of OEMs put particular emphasis on the superiority of parts that carry the manufacturer’s brand name, those who are keen on saving a dime or two look simply take such comments in stride and continue on in their use and support of aftermarket parts.

On the other hand, for the case of those who have big, big plans to customize their rides, to outfit them in the manner that would suit their tastes and style, no matter how odd or eclectic the mix may be—think airplane wheels on a road car—there is no escaping the fact that having aftermarket parts available take a lot of the sting out of the costs. On this front, one can conclude with all confidence that aftermarket parts have kept  one up over the OEMs very well, indeed.

A great stampede of tire pressure monitoring systems (TPMS) merchandise greeted the aftermarket performance parts market along with the OEs after the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act was passed. This precedent has made it a mandatory rule for all new cars in the U.S. to have a TPMS in place.

Companies are now seen in a mad scramble to comply as they equip their vehicles with the kind of pressure monitoring systems that would operate in accordance with the act in question. Studies of the Frost and Sullivan, North American Tire Pressure Monitoring Systems Market states that the research as well as the development of refined indirect systems is in the final stage and has all the potential of threatening the directive of the act in the sense that it threatens the direct TPMS industry—though this is only applicable in large part to the OE sector for the price advantage.

However, the aftermarkets performance parts may suffer but only to a lesser degree since it provides a cost-effective solution to the problem. The market after all affords stronger support to players in the field that offer products at a more attractive rate. Consumer interest must be obtained and maintained as much as possible. Otherwise, the market suffers.

In lieu of this act, as companies involved in the production of Aftermarket performance parts do each and every conceivable step they can do to reduce the obvious disadvantages of the situation have taken on more active roles in implementing several campaigns that put notable focus and emphasis on the training undergone by each and every technician they have on board.

Why is this essential? With the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act, the production of tires became more specialized and thus gave way to a bit of standardization issues in the market, particularly among consumers. This, in turn, has entailed that the aftermarket performance parts market reach a stand in such issues in a way that consumers would be able to interpret as advantageous and effective.

Consumer education is another factor that the Aftermarket part manufacturers touched on, stressing the fact that as consumers were now very much aware of the kind of service and tire performance they demand, are able to choose with more care and insight. After all, given the fact that nearly 19 million TPMS-fitted vehicles are expected to be sold to customers at an annual rate, it is extremely crucial for technicans to hold considerable working knowledge as well as training about the system in question.

“Almost each vehicle model had a distinct TPMS type and some are not compatible with certain diagnostic tools,” states Frost & Sullivan Industry Analyst Kyu-min Oh. “Standardization of direct TPMS technologies by OEMs and production of diagnostic equipment that are compatible with the variety of systems by aftermarket tools manufacturers is expected to go a long way in aiding the overall market.”

He further adds that: “It is critical for aftermarket maintenance and tire industry participants such as tire retailers to educate technicians on the wide variety of TPMS products and the repair/diagnosis process for different applications. This will help eliminate unnecessary costs such as compensations for damages.”

Representatives of the automotive aftermarket community in California met with the Golden State legislators just recently. The meeting was intended to be part of the significant strategies of the Specialty Equipment Market Association (SEMA) Sacramento Legislative Rally.

Many of the concerns taken up by the two assemblies revolved around matters involving health care and emission standards along with vehicle rubbish and others that were deemed to be of equal importance.

Health care concerns of course are nothing new. Groups expressing their concerns over the effects that a number of automotive technologies have given rise to have been making their opinions known since initial reports on the damaging effects of car engine emissions first appeared in public. However, the world is a long way from those troubles. Today, devices for better emissions are in place, keeping and reducing the count of noxious gases in the atmosphere to a bearable degree.

Talks of the current emissions standards too have been raised. This is believed to be in connection with the rumors circulating of late that a number of big players in the car manufacturing industry are planning to ask the government to lift emissions standards that are presently being followed. Though a considerable number of places the world over still have to wait out confirmation of this data, groups like this California-based unit are already expressing strong opposition to the proposal.

For auto makers, the point of raising the emissions standards that car engine manufacturers adhere to involves the subject of money. Higher standards mean that more improvements can be explored and a number of alternate technologies can be developed. However, since these will employ higher emissions counts, no matter the extent of engine boost that they can generate, they can expect solid resistance from the public.

Vehicular waste and the disposal of the said materials were also mentioned. In this case, commendable attention was given to companies that distributed and supplied re-manufactured auto products. This has, in turn, reduced the count of car rubbish significantly during the last few years. And with more and more consumers going for auto products that have environmental attributes, the count of vehicular scrap are expected to drop a few notches lower. The rising popularity of green technology in many of the prominent members of the automotive industry also makes this likely.

“SEMA has been engaged over the years with California (legislators) on a series of industry-specific issues and a range of business concerns impacting the health of the state’s specialty equipment industry.” This was the statement that Steve McDonald released regarding the gathering. McDonald is the current-acting SEMA vice president of government affairs.

It was largely believed by members of the parties involved that the rally “helped further increase awareness of our industry.” It addition, the event “signaled SEMA’s intention to increase its contribution to the debate on significant issues.”

There are, overall, larger issues at work and members of the Specialty Equipment Market Association know as well as understand that in striking a balance between better cars and safer environments, combining their efforts with the local government is a decisive and key action for the community.

Pundits and analysts in the after market parts field are speculating on the forthcoming growth in company sales. With the growing awareness of the community regarding matters that pertain to environmentally friendly auto products, a number of aftermarket parts suppliers are turning their eyes to one common direction: green technology. The production of products the likes of BMW aftermarket performance parts, Toyota performance parts and others of the same breed with the use of greener materials are gaining more than just a cursory look from companies. Whereas previous actions constituted of companies merely glossing over these intended plans, serious considerations are now being given to the said proposals.

Ecologically sound means of dealing with the ever-present emissions problems that have long since plagued and bedeviled the auto parts market have been satisfactorily gotten to in many respects. Fuel filter systems and other fuel system add-on devices that reduce the amount of harmful emissions that are allowed into the atmosphere are now in place in most cars, in most parts of the world.

Aftermarket part providers are wholly aware of this. Still, it has not been until of late that significant developments have started to take full effect. Interest in the production of greener aftermarket performance parts have never been stronger as it is now.

One can tie this up to recent events in the car community itself. To be more specific, to the renewed and energetic responses that prominent members of the automotive industry have been giving to the notion of offering consumers with cars that are able and competent in fulfilling roles as environment-friendly vehicles. With more and more cars being launched in strategic global markets, the count of consumers opting for cars and car manufacturers that exhibit more than a passing attention to such matters is certainly showing a marked climb. With the combined efforts of the car industry with institutional leaders in environmental concerns, it is not a surprise that the message about the conservation of the earth’s current and dwindling resources is getting across to the public.

Consumers are now waiting for the aftermarket performance industry to follow suit. And judging by the technologies that a considerable number of these institutions are studying to bring to consumers all the world over, such developments won’t be far behind.

This also includes companies that concern themselves with re-manufactured performance parts. Re-manufactured auto parts, after all, hold true to the environmental rule of recycling. By the time the mid 1990s arrived, the robust attention in the market had served to lower the count of the car industry’s waste produce. This is particularly true for rubber waste that spring from the many millions of tires that get dumped every year. Companies that supply re-manufactured products thus are largely responsible for eliminating waste materials of this sort.

Studies reveal that re-manufactured parts make up more than 75% of the sales in the UK aftermarket industry. Though the UK market has always been primarily geared toward the distribution of manufactured parts, the jump in their sales is phenomenal from 40%, which was the previous figure their sales amounted to.

Formed by Shelby Automobiles along with Scott Drake Enterprises Inc., a new performance parts business is set to be launched at the 33rd Annual Mid-America Ford Performance and Shelby meet on the 14th of July, 2007. The new company, which will carry the name Shelby Performance Parts, LLC is expected to provide a wide and comprehensive line-up of products certain to improve on 2005 and latest of the Ford Mustangs models, Shelby’s GT’s and Shelby’s GT500’s. A considerable number of the principal elements from Shelby’s collaboration with Ford Racing will be at the celebration. One will be introduced to the racing circuit with the new Super Snake package intended for the Ford Shelby GT500 model.

“Genuine Shelby parts will pump up the capabilities of any contemporary Ford or Shelby Mustang,” remarked Amy Boylan, Shelby Performance Parts Co-Founder. She further adds that “The aggressive suspension and engine packages are taken from lessons learned during development of Ford Shelby cars. Working with Scott Drake Enterprises, we developed components and packages that will power these cars to the front of the pack.”

The packages that will be made available from the company will include enhancements to the handling, styling as well as power of all present V6 and V8 Ford Mustangs and Shelby’s. Fresh developments on the designs are certain to bring the engines performances greater than previously observed. The queue of individual performance parts will have upgraded brakes, supercharged packages along with suspension components and cosmetic items such as hoods as well as fascias that are exclusively created at the Shelby Automotives. Engine turning choices will begin at 300 HP (with warranty) for the V6 Mustang and is expected to reach to over 725 HP from the 5.4L V8, with this one having no warranty. Shelby Performance Parts will also supply consumers with the Shelby CS6 and Shelby GT500 40th anniversary packages that comes with clothing and other accessories.

Some of those parts are included in the new Shelby GT500 Super Snake package for the year 2007 and 2008 Ford Shelby GT500. At the Shelby rig, the prototype hot rod Shelby will be put on display all throughout.

In the meantime, Scott Drake, co-founder and Managing partner of Shelby Performance Parts, shares the following:

“We’re announcing Shelby Performance Parts at the Mid-America Ford and Performance Meet because the enthusiasts who attend are always seeking a new competitive edge. Our goal is to give enthusiasts more ways to enjoy their pony cars. By combining the experience at Scott Drake Enterprises with the performance expertise at Shelby Automobiles, we believe Shelby Performance Parts will become a hot spot for serious performance fanatics.”

The Mid -America Ford Performance and Shelby Meet is expected to offer a wide array of activities that include drag racing, a cruise night and road racing exhibitions. A car show and banquet is also in the order of things. Several Shelby models that have been in stock or those that have been modified are also to be displayed at the event headquarters, located at the Tulsa Marriott south of the I-44 at the Lewis Avenue exit.

In the industry, reports on the general exclusion order for particular Ford aftermarket performance parts—already put into effect–is making life a wee bit harder for Keystone Automotive Industries, Inc. The said company had previously filed a petition for reconsideration with the International Trade Commission regarding the matter of Ford’s patents and the sale of Ford aftermarket performance parts. However, members of the commission decided granting the petition and thus, ordered the enterprise to put an end to its ongoing investigations that had to do with the patents. The general exclusion order that the said commission had issued strongly discouraged the importation of Ford aftermarket performance parts or collision parts by any importer—of which Keystone is one–that was clearly and obviously doing a huge injustice to the car maker giant, Ford, by violating the distinctiveness in any of the seven design patents from Ford. All seven have been determined to be valid patents under Ford.

The final decision that the International Trade Commission gave provided the onset of the mandatory 60-day Presidential review period for the case. Respondents in the case, though, believe that they would have to appeal to the United States Circuit Court of Appeals for the Federal Circuit, at a later date.

Just one day following the United States Supreme Court’s April 30, 2007 decision in the KSR Inernational Co. VS Teleflex Inc., Keystone, along with the other respondents, filed the petition for reconsideration with the Comission.

Rick Keister, chief executive officer of Keystone, had released a statement earlier, saying: “As we have continuously stated, the industry and consumers greatly benefit from the utilization of quality replacement parts and a competitive marketplace. There are clearly broader issues related to the validity of design patents in the collision industry, and they need to be addressed. The International Trade Commission’s determination was not surprising and we intend to vigorously defend our position on behalf of our shareholders and consumers. We look forward to a successful resolution of this matter.”

Keister further details that of the parts being offered at this point by Keystone related to the ruling stood for less than .1 percent of the total sales in fiscal 2007 of the company.

Keystone Automotive Industries, Inc. at large part, distributes its products to collision repair shops through its distribution facilities. On this note, there are a total of 137, all in all. 22 of these are used as regional hubs, placed in 39 states of the United States as well as in other strategic areas in Canada. Automotive body parts, bumpers and re-manufactured alloy wheels along with paint and other materials that are made used of in restoring a damaged car model –all these constitute the product lines of the said company.

Significantly, the report stresses the aggressive campaigns being taken by a car manufacturer to rain on the parade of the aftermarket collision replacement parts industry. This includes the subject of patenting vehicle parts old by the aftermarket that have ultimately led to the instigation of litigation proceedings involving trademark violations. Legislation that lends support to the OEM’s, too, seems to be possible. At this time though, it remains to be seen whether OEM or aftermarket performance part suppliers will get trounced in the negotiations.

A number of aftermarket suppliers are set to participate in the Nicole Racing Japan Co. at the 30th Anniversary Celebration to be held on June 29, 2007. The celebrations will be held at Fuji International Speedway located in Fuji, Japan.

A considerable lot of the participating parties remain as respected and esteemed top market leaders in the distribution as well as manufacture of lifestyle products and top notch Aftermarket performance parts of the most well known automotive names in the industry. Some notably supply performance parts for the Mini ™, the one that collectors know and recognize as a classic as well as for the BMW Mini Cooper. Thus, the acceptance of the organizations’ heads of the invite for the coming event places several after market part providers in the midst of one of the most exciting gatherings for those in the car racing circuit. These auto part companies will be expected to take part in the exhibition laps in the race that are part of the program for the said festivities.

The celebration will happen at the Formula 1 (F1) race track located just at the fringe of Fuji, Japan. Fuji International Speedway was built in the year 1967, occupying one of the most prime spots for racing. As most prime places for racing events, the said location has one of the richest natural settings in the field that affords the racing community with a number of truly exceptional views of the renowned Mount Fuji. That, in itself, is enough of an inducement for visitors to come and observe the upcoming activities set to begin in motion at the Fuji International Speedway. The course length measures about a stretch of 2.8 miles. It’s front straights is one of the longest on the world F1 circuit, reaching over a mile.

Don Racine—from one of the participating parties in the program–is expected to drive the Fuji circuit for the very first time. On the occasion, he remarks “I am thrilled with the opportunity to not only demonstrate the World Class performance of our MINI on this world class track but am extremely honored to represent Nicole Racing on this special occasion.” Racine has raced throughout the USA and has used his knowledge in the field to develop and improve on a considerable number of auto components for the market. He has been racing for thirty years and his expertise on the matter is considered to be among the best in the industry.

Several cars like the Mini Mania BMW Mini Cooper S race car, was shipped to Japan in preparation for this particular event. The Mini Cooper S is only one of the many test cars in the said event. Other car products from several participating parties are also anticipated to be employed in a bid for publicity, with the cars providing the racing community with the varied advantages of different company product development programs. Most of the models would have been designed and built to perform extraordinarily well in terms of endurance racing at the many club events in the United States so visitors and competitors alike will be in for a thrilling ride.

As this group of global market leaders for top drawer automotive aftermarket parts—with most of them already having their own line of high performance parts that even offer very specialized services to an ever-widening audience base—come together in such racing events, one can expect not only a good measure of thrilling victories but of convivial times that are often rare in the pressure-driven world of racing. Certainly, it’s a good development that serves to keep the community together as each member company commits to one common vision and goal.