One of the leading online aftermarket parts provider, U.S. Auto Parts, Inc. is set to present at the RBC Capital Markets North American Technology Conference at California’s Four Seasons Hotel on from August 7 to 9.

The online aftermarket parts provider’s Chairman of the Board Robert Majteles and Chief Financial Officer Michael McClane are the people tasked to do the reporting on the company’s financial statement from the second quarter sales. The California-based U.S. Auto Parts, which made its debut in the booming aftermarket industry in 1995, will have its investor presentation on the second day of the conference at 11 am (Pacific Time). Moreover, the aftermarket parts company remained true to form with regard to its main medium of transaction – the Internet. For those who will not be able to watch the live broadcast, the presentation will be made available and will be archived in the Investor Relations section of the company’s official website at http://www.usautoparts.net.

The U.S. Auto Parts Inc., which has its warehouse in Carson City, has about 500 or more websites that sells auto parts. Engine parts, body parts, performance parts, and accessories for specific vehicle makes, models, and years are made to be easily accessible to car owners and enthusiasts in the websites. All the products are reasonably priced and can be accessed through the company’s flagship websites at http://www.partstrain.com and http://www.autopartswarehouse.com. 

A US-based supplier of recycled and aftermarket auto parts, LKQ Corporation has found its way in merging with Keystone Automotive Industries, Inc. as part of its expansion strategies.

Merging has been seen as a good strategy to expand the business and will also result to better market presence for the LKQ Corporation. The aftermarket parts supplier has only signed a definitive merger agreement in order to acquire Keystone, which is an aftermarket collision replacement parts provider.

The agreement, however, is still going through the process of approval from the shareholders and other important customary conditions. Although the merging is still under negotiation, Keystone’s Board of Directors has unanimously recommended Keystone shareholders approve the merges, thus LKQ-Keystone is expected to close in towards the end of the year. With the two of the giants in the booming aftermarket parts industry, the transaction has been also expected to generate an encompassing alternative replacement parts business. These two companies have a combined earnings of approximately $1.5 billion and also a North American network of more than 260 branches in the US and Canada.

“LKQ and Keystone are a great strategic fit and this acquisition is a natural progression of our strategy to expand our presence in the distribution of automotive replacement parts, an industry that we estimate to be over $188 billion in size,” said Joe Holsten, president and CEO of LKQ.

In Canada alone, Keystone Automotive Industries has about 11 service locations and uniting with LKQ will make it even a more comprehensive aftermarket parts supplier.

“In addition to providing tremendous value to our shareholders, this transaction delivers a true combination of complementary strengths. Keystone’s aftermarket product offerings are a perfect fit with LKQ’s leading presence in the recycled parts business. The Keystone-LKQ merger presents unique opportunities to provide a comprehensive program of aftermarket, remanufactured and recycled parts to our customers, and we look forward to realizing these opportunities,” said Keystone president and CEO Rick Keister.

Lastly the merger is seen to improve availability of aftermarket parts in the repair process.

Consumer Reports, a monthly US magazine published by information organization Consumers Union, said that 73 percent of adults whose household owns a vehicle had personalized their principal vehicle via some aftermarket mods, or intend to do so.

The survey reveals that car personalization cuts across all major demographic segments, whether the car was purchased new or used. It adds that average spending on aftermarket mods of automotive enthusiasts stands at $711 per car, or an estimated $13.5 billion annually for the total population of car owners ages 18 to 64.

The survey defines personalization as any aftermarket modification from the new or used vehicle’s original condition, made or planned after sale by the owner. It reports that the most common aftermarket upgrade is floor mats but the enhancements range all the way to the performance end of the vehicle.

To learn what aftermarket products Americans buy for their cars, and why, the national research center of Consumer Reports conducted a random, nationwide telephone survey from Oct. 12 to 15 last year, with a survey population of 855 adults ages 18 and older whose household owns at least one vehicle.

The study finds out that both sexes are engaged in car personalizing, with 77 percent of men and 70 percent of women participating in the aftermarket mods tradition. It adds that, despite the effects of car-related movies, TV shows, and video games on the youth, age groups defy stereotypes and are likely to follow their own style. Expectedly, the 18- to 34-year-olds are the most active group—78 percent enhance their ride—while 35- to 54-year-olds follow at 74 percent, and the 55-and-over crowd is involved at 68 percent.

Most aftermarket modifications were done to the interior, with 61 percent of respondents who own a car making the cabin more comfortable and conducive to their mobile lifestyle. Aftermarket floor mats lead the changes at 49 percent. An easy install item, floor mats are not standard on all cars and may be less expensive when bought in the aftermarket segment of the automotive industry.

Plus, custom-made aftermarket floor mats are said to add character to the car, while deep, rubber mats can protect against mud and snow. Other low-cost, low-effort aftermarket upgrades include steering wheel cover (18 percent), seat covers (17 percent), shift knob (5 percent), and dash appliqués (4 percent).

The study likewise reveals that half the car owners surveyed plan to change, or have changed, in-car electronics, with stereo systems heading the list at 28 percent, despite the trend in factory-supplied units sounding better and being increasingly difficult to replace. At 22 percent, aftermarket car alarms and speakers are also common.

Satellite radio units are logged in at 13 percent—a relatively strong return considering that many new car models offer Sirius or XM systems as standard or optional features. Hands-free cellphone setups also came in at 13 percent. Consumers also looked to high-tech luxuries, such as video systems (10 percent) and navigation systems (9 percent).

A third of consumers pursued the exterior modifications in some way, led by aftermarket performance headlights or fog lights (11 percent). Three-quarters of pickup truck owners surveyed have installed, or plan to install, an aftermarket bedliner. This is a significant figure considering some models, such as the Chevrolet Avalanche and Honda Ridgeline, come stockfitted with bedliners.

Other aftermarket modifications are less common and split between cosmetic and functional. At 7 percent, aftermarket spoilers were next in the ranking order, trailed by roof/bike racks (6 percent), brush guards (6 percent), and pin stripes or other body art (5 percent).

On the performance end of the vehicle, the most common powertrain upgrades focused on improved engine breathing, with the aftermarket performance air filter or intake leading at 17 percent, and aftermarket performance exhaust or muffler at 11 percent.

One in 20 drivers, or 5 percent, have made or intend to make a significant performance commitment by adding an aftermarket turbocharger or supercharger, devices that force air into the engine to generate more horsepower. With similar popularity, enthusiasts installed aftermarket performance computer chips (6 percent) and new pulleys (4 percent).

Chassis modifications are made by, or planned by, one-third of personalizers, led by one of the most-effective component upgrades: performance tires (17 percent). Aftermarket wheels followed at 12 percent.

Strong economic growth, coupled with low car ownership rates and rising incomes, has turned Asia into a gold mine for the aftermarket segment of the automotive industry, said an Asian Supplier Report released by SupplierBusiness. The eventual focus shift to Asia of both auto parts manufacturers and retailers has led to a rapid growth in auto parts assembly in many parts of Asia, most notably China, Japan, India and South Korea.

Fueled by personalization and power tuning trends, the aftermarket industry has gone through a complete remodelling over the past decade, which has led to the emergence of a highly competitive auto parts industry. Multinational car manufacturers, likewise, have turned to Asia for the auto parts industry supply chain, and have started using local Asian suppliers for their regional and global auto parts needs.

The report, on the other hand, sounded the bell on the challenges for local and global suppliers that the focus shift presents. Small and medium size aftermarket parts suppliers are being forced to advance technological expertise as rapidly as possible, alongside meeting the requirements of much improved aftermarket quality and delivery performance.

Although targeted initially at servicing the burgeoning local aftermarket sector, new investments by suppliers could also become future substantial low-cost export bases for auto parts, the report added.

Meanwhile, in Japan, auto parts manufacturer Aisin Seiki Co. is set to spend around $81 million to put in a new engine parts production line at a subsidiary’s main plant in southern Japan, Kyodo News reported Tuesday. The increased production capacity from the line in Kumamoto prefecture will go to meet growing demand from automakers in the region and overseas.

The new facility, due to begin commercial production in September next year, is expected to generate annual sales of $63 million through March 2011, said Aisin Seiki. Construction on the line will begin in December.

The booming aftermarket business in Asia provides a sharp contrast to the fortunes of its counterparts in the US. Last week, a Florida-based auto parts manufacturer called Dura Automotive system has closed shop as it restructures operations—including divesting businesses and moving work to lower-cost facilities, a company spokesperson said. The company makes parking brakes, door frames and other products for Ford Motor Co., General Motors Corp. and the aftermarket segment.

Also last week, the federal Environmental Protection Agency proposed the tightening of the nation’s ozone emission standard from its current 0.08 parts per million to 0.075 parts per million or lower. The proposed federal standard for ozone emissions, analysts said, could cost aftermarket auto parts manufacturers and energy producers millions to try to comply with federal clean air laws.

The agency said the standard upgrade is a part of a mandatory five-year review of the country’s ozone law. Ozone, a concoction of nitrogen oxide and other organic particles, occurs naturally in Earth’s stratosphere, where it acts as a buffer against ultraviolet rays. But on hot summer days, the sun’s heat combined with auto emissions, factory smoke and other processes can create a stifling blanket of ozone at ground level that can cause breathing difficulty, lung damage and heart problems.

With a little help from The Fast and the Furious trilogy and cable TV shows like Pimp My Ride and Overhaulin’, the aftermarket parts segment of the automotive industry is experiencing record sales this year, the Specialty Equipment Market Association said in a report released early in the week.

The report, commissioned by the trade organization that represents nearly 7,000 companies in the automotive specialty-equipment industry, said spending on automotive accessories was up 7 percent last year to $36.7 billion. It added that an average yearly growth of 7.4 percent over the past 10 years was recorded, spanning the whole range of the aftermarket parts business from tires and wheels to engine system components.

It might be chrome wheels the size of hula hoops for a 1985 Chevy, a lift kit on a 4X4, high-compression heads for a Honda, or a supercharger designed to give the car extra power. Whatever the vehicle, aftermarket products are available for any individual’s taste and car designs. And the aftermarket business, including new-car dealerships, are paying close attention, expanding their lineup of parts and cashing in on the personalization trend that has presently seeing considerable growth.

“Lifting is huge. We’re doing a ton of that, and (our shops are) staying booked up a couple weeks out. When a person is chasing that off-road look, it’s going to lead them to (buy) wheels, tires, grab-handles and steps to get into it,” said company manager Brad Stevens of the Rick’s Pro Truck.

Aftermarket tuning, for both looks and performance, is a practice as old as the Model T. But its popularity has been supercharged in the past decade, reaching beyond the dedicated car culture. Peter MacGillivray, SEMA vice president of communication and events, said Americans love to personalize.

“This latest business (for the automotive aftermarket) is represented by mainstream consumers buying into the notion of customization. TiVo lets people customize their television watching, cell phones with custom ring tones and backgrounds and think about Starbucks’ ability to make coffee exactly to your taste,” he said.

“Performance can be addictive, like a drug. You’ll have guys come in and want an exhaust system, then nitrous, then everything else. A lot of guys are do-it-your-selfers. They want to build up their cars to their own specs. Some guys will come in one weekend and drop $1,000 on parts then be back the next weekend wanting more,” he said.

The trick to operating the aftermarket business, Inman said, is knowing what products people will want and to give them installation advice. The wall behind his checkout counter is covered in sandwich-sized bags of blue metal fittings.

“Those are replacement parts for nitrous systems. And we sell a lot of them. Some might be $5 and some might be $30, but guys installing a system might drop $250 on fittings alone,” he said. “They may be little parts, but people depend on us to have them in stock. Our customers need to be able to walk in and get it or else they can’t go racing that night.”

Another significant part of the aftermarket’s business comes from dress-up parts, such as stick-on chrome fender portholes, jewel-box tail lamps and exhaust tips. Fashion-conscious buyers might pick out a set of plus-sized wheels, chrome door handles or a custom grille at an outlet such as Big 10 Tires and Accessories.

As increased gas prices have hurt the truck market—and consequently the truck aftermarket—Glenn Powels, manager at Big 10’s State Street Jackson location, keeps his stock balanced between truck and car accessories.

“We see the market turning toward cars, particularly the Dodge Charger and Chrysler 300. People still want a full-sized vehicle but one with better gas mileage,” he said. “You see this more selling to the 20- to 40-year-old demographic. I’d say it’s 70 percent male, 30 percent female.”

The aftermarket has become so personalized Powels stocks different wheels, knowing what look will appeal to men and what will catch a woman’s eye. Area dealers are increasingly offering new and used cars with aftermarket add-ons. A majority of the cars on his lot have some aftermarket upgrade— anywhere from window tint to a lift kit—some of which are installed by dealership mechanics. Other work is subcontracted to aftermarket shops.

“It not really everything you need, its everything you want,” he said. “It taps into a passion of people.”

The annual Automotive Aftermarket Products Expo will have its first ever “Green Zone” to highlight environmentally friendly products, tools and services. The aftermarket expo “Green Zone” will feature products that service providers and retailers can sell to consumers to help make their vehicles more efficient and environmentally friendly.

It also will have aftermarket tools and diagnostic equipment used to repair new green cars, as well as suppliers that recycle waste or remanufacture parts, or that have environmentally friendly aftermarket parts.

“The automotive aftermarket is one of the most environmentally friendly industries in the world,” said Bill Glasgow Sr., show manager of the aftermarket expo. “The ‘Green Zone’ will provide an exceptional opportunity for suppliers to showcase their products to the aftermarket, and for retailers and service shops to advance their expertise in this field,” he added.

The aftermarket expo will be located in the Venetian Hotel Ballroom that adjoins the Sands Expo Center in Las Vegas, Nevada, from Oct. 30 to Nov. 1. In addition, many aftermarket parts exhibitors will promote their company’s green practices at the show, including environmentally friendly manufacturing processes and training programs to encourage employees to be environmentally responsible.

The “Green Zone” is the annual business-to-business trade show representing the global automotive aftermarket and features more than 2,000 exhibitors. The aftermarket expo is jointly sponsored by the Motor & Equipment Manufacturers Association and the Automotive Aftermarket Industry Association.

The aftermarket auto parts association said this year’s exhibit area will feature products that manufacturers from every segment of the automotive industry, from tire dealers to service centers and automotive retailers, can offer to help make consumer vehicles “more efficient and environmentally friendly,” including tools and diagnostic equipment used to repair new green cars, and suppliers that recycle waste or remanufacture parts or that offer environmentally friendly aftermarket parts.

The aftermarket parts expo comes on the heels of recent report from the Society of Motor Manufacturers and Traders that pins the increase of carbon dioxide emission from the rising weight of production cars. The association helps address this problem by introducing aftermarket parts designed to give the cars less load.

“Weight has been increasing by about 1.5% per year over the last 10 years,” confirms Greg Archer, director of the Low Carbon Vehicle Partnership. The automotive weight-gain is counter-intuitive, given that cars these days are built using lighter and more rigid steel than in the past.

The result of all this added weight being piled into cars—which have been designed more for visual impact than for efficient streamlining—is increased fuel consumption and, thus, a rise in emissions of carbon dioxide.

That is significant, given that 10 percent of the energy consumed during a car’s life goes into its production, with a further 5 percent consumed during its dismantling and recycling. In addition, petrol and diesel engines have become ever more efficient.

As it happens, consumers are gradually turning towards green cars, and the industry is already making the most of any green credentials they identify. This, however, has led to accusations of “green-washing,” where some automotive firms make out that their solutions are better than they actually are. The aftermarket expo seeks to show in the Green Zone the capacity of today’s green auto parts.