PACCAR, a global technology leader in the designing and manufacturing of trucks in all ranges, held a ceremony for the laying of the foundation stone of its new Parts Distribution Center (PDC) located in Hungary. Gracing the said event was PACCAR Chairman and Chief Executive Officer Mark Pigott, U.S. Ambassador to Hungary April Foley, Dutch Ambassador Ronald Mollinger, the DAF Supervisory Board, and a select Hungarian state and local officials.

When asked for comment, CEO Mark Pigott reiterated the company’s primary plans regarding this new addition to production: “PACCAR is pleased to locate its new Parts Distribution Center in this strategic economic region near Budapest. This facility will support DAF’s ongoing growth in Central and Eastern Europe. It will provide excellent proximity to our dealers and customers and deliver outstanding service and parts availability. PACCAR and DAF Trucks are recognized as the quality and technology leaders in the industry. In the last decade, DAF commercial vehicles have earned the European Truck of the Year award three times – the most of any manufacturer in Europe. PACCAR’s legacy of technology and innovation has been recognized by the National Medal of Technology, awarded by President Bush.”

PACCAR Parts General Manager and Vice President Rick Gorman further provides the benefits that this new PDC to overall operations: “This Distribution Center will utilize world-class technology such as: advanced logistics systems, radio-frequency identification (smart tags), tablet PCs and computer-generated voice order fulfillment. PACCAR continues to demonstrate environmental leadership by using innovative technologies to reduce the carbon footprint of its facilities, including utilizing electric material handling vehicles, recycled containers for parts shipments and a digitally controlled, high-efficiency environmental management and lighting system.”

DAF President and PACCAR Vice President Aad Goudriaan further asserts: “The new Parts Distribution Center will play a crucial role in DAF’s success in Central and Eastern Europe. In the fast growing market of the twelve new EU member states, DAF’s presence is accelerating as it currently has a 16 percent market share in the 15+ tonne segment in this region, compared to 13 percent last year. It is estimated that the Central and Eastern Europe truck market will expand to 100,000 units in the next five years and DAF is well positioned due to investments such as the new PDC.”

The new 25,000-square-meter Budapest facility is due to be finalized in mid-2008. And upon completion of this PDC facility, PACCAR will be operating 13 parts distribution centers all over the world, each on its own strategic location to provide aftermarket parts support to the industry’s growing base of dealers, retailers, and consumers. Furthermore, this new PDC facility could only equate to the company’s successful streak, as PACCAR Parts was estimated to have tripled its revenues since 1996, almost reaching the $2 billion mark in 2006.

Parts Plus of New Mexico has announced that it has acquired the assets of J&J Auto Parts, a federated distributor in Albuquerque.

President of the Automotive Distribution Network Mike Lambert, who led the Press Release, disclosed the ramifications of such a development: “Our group has seen a lot of expansion into additional markets over the last couple of years. Our members are now in a position to concentrate and strengthen their hold in various communities.”

To allay any fears, Parts Plus assured the public that this buyout would produce no casualties. The existing location of the former J&J Auto Parts would be transformed into a satellite warehouse, while the existing employees left behind would be retained to manage said depot.

But more than that, Parts Plus is very satisfied with the acquisition as it equates to better business. With a new territory, the company is provided access to a whole new prospective market previously not penetrated.

Adam Honegger, CEO of Parts Plus New Mexico, further confirms: “This expansion will enable Parts Plus of New Mexico to increase our market share and strengthen the Parts Plus name throughout Albuquerque. This is our biggest acquisition over the past several years, and it will be a good springboard for future growth in New Mexico.”

U.S. Auto Parts Network, the leading online provider of aftermarket auto parts and accessories, has announced a new member to its prestigious organization. It has appointed Barry Phelps as the new member of the company’s Board of Directors.

U.S. Auto Parts President and Chief Executive Officer Mehran Nia welcomes Phelps to the team with this statement: “Barry is a great addition to our Board of Directors as he brings over thirty years of senior level managerial and financial experience within the technology industry.”

“Barry’s strong background and expertise will be a valuable resource to U.S. Auto Parts as we continue to build upon our leading position within the online aftermarket auto parts industry. We look forward to benefiting from Barry’s insight and advice.”

Rob Majteles, Chairman of the Board, has this to say: “I am very pleased to welcome Barry to our Board and I look forward to working closely with him. We are committed to building a great public company and Barry’s wealth of expertise in the technology industry and shared vision will surely benefit our Board and our Company.”

Phelps, on his part, acknowledges this transfer with much anticipation, “I am excited to join an industry-leading company that has tremendous opportunity ahead of it. U.S. Auto Parts has a world-class leadership team and is well positioned to capitalize on the Company’s significant long-term growth prospects. This is an amazing time for the Company and I look forward to working closely with management and the Board of Directors to drive shareholder value.”

More on Barry Phelps outstanding credentials and achievements was published in a special press release:

Mr. Phelps currently serves on the Board of Directors of Empower RF Systems and BreakingPoint Systems and on the Board of Trustees of St. Lawrence University. From 2000 to 2006, Mr. Phelps served in several executive positions for Spirent Communications plc, most recently as President of the Performance Analysis Broadband (PAB) division. In this role, Mr. Phelps successfully integrated five stand-alone businesses and three technology acquisitions into PAB. He was also instrumental in defining and launching PAB’s next generation platform and developing strategy for market share preservation and growth. From 1996 to 2000, Mr. Phelps was at Netcom Systems, most recently as President and Chief Executive Officer. During his three year tenure as President and Chief Executive Officer, sales grew from $60 million to $200 million. Prior to Netcom Systems, Mr. Phelps held several executive positions for MICOM Communications including Chairman and Chief Executive Officer, and in various financial management roles at Burroughs / Unisys Corporation. Mr. Phelps earned his B.S. degree from St. Lawrence University in Canton, New York and his M.B.A. from the University of Rochester in Rochester, New York.

In a special segment of this year’s customary Town Hall meeting, the Automotive Aftermarket Industry Association (AAIA) will be integrating the concept of the popular YouTube program. AAIA, in its own program, has planned to put up videotaped questions from aftermarket professionals from all over the country.

As Kathleen Schmatz, AAIA President and CEO, remarks: “This year we wanted to add some interactive fun to Town Hall and further engage aftermarket professionals in the program, so we decided to borrow the popular ‘YouTube’ concept and invite videotaped questions from aftermarket folks, and for our special guest Bob Schieffer to answer on stage.”

Featured guest Bob Schieffer is the anchor of “Face of the Nation” and CBS News Chief Washington Correspondent. Other stars of the show would be moderator Kathleen Schmatz and another guest Dick Morgan, AAIA Chair as well as President and CEO of Aftermarket Auto Parts Alliance, Inc.

Hosted by AAIA and sponsored by NASCAR, the 2007 Town Hall meeting will be held on the 31^st of October, 7 am, in the Palazzo Ballroom in the Venetian Hotel.

This early, AAIA is asking for the cooperation from the general public in this YouTube-inspired segment. Video questions recorded from digital cameras, camcorders, cell phones and Web cams should be submitted in the WMV, AVI, MOV or MPG file formats and hopefully no longer than 45 seconds. Videos under 10MB file size can be emailed to townhallvideos@aftermarket.org. Videos over 10MB should be incorporated in a CD and mailed to: AAIA Town Hall, 7101 Wisconsin Avenue, Suite 1300, Bethesda, MD 20814.

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.

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.”

Continuation

The future has a way of arriving unannounced. In the automotive industry it has often been the case that a particular part is already widely used even before one can get to fit it on his car…Following are some of the more prominent aftermarket products that have since become must-haves for every car. It is interesting to note that most, if not all, of these aftermarket auto parts have an OEM counterpart.

Coilovers

Suspension tuning has transgressed into a new generation of performance tuning as today’s sport compact cars and their owners demand a suspension that can handle the demands of both road racing vehicles and street-tuned machines.

In 1990, TEIN Japan, established in 1985, began production of aftermarket suspension products (Type H damper) and became one of the more popular companies to develop a full body aftermarket coilover setup at a reasonable price. The TEIN H damper was designed primarily for the sport compact market in Japan during an era when spring and shock combinations were commonly used.

Exhaust Systems

In the late ’80s, if you were old enough to drive at the time, you found yourself sitting at the local muffler shop for over two hours as the resident welder concocted a pinch-bent exhaust system complete with a popular oval-style muffler known back then as the “Sonic Turbo exhaust.” As time evolved, so had the design of the aftermarket exhaust system for import vehicles.

Aftermarket auto parts manufacturers such as A’PEXi, were one of the first JDM manufacturers to offer a bolt-on exhaust system called the “Dunk,” complete with a canister-style muffler which was unheard of or seen at the time. While the exhaust canister was larger in size compared to the oval muffler, the DUNK canister setup quickly caught fire throughout Japan and filtered to the US as the new must-have product.

Front End Converters

Chances are, at one time or another you either owned or knew of someone who upgraded their cars with a set of clear corner lights. As quickly as the clear corner light trend grew in popularity, it slowly became a dying fad.

The more serious aftermarket enthusiasts stepped things up a notch as they enlisted the help of various companies to ship complete front ends from Honda Type Rs or Nissan Silvias with the goal of replicating aftermarket products and authenticate the genuine look.

Aftermarket Wheels

Today’s aftermarket wheels and their eclectic designs have been a major contributing factor among the growth of the aftermarket import market. Today’s more popular aftermarket wheels are more subtle in appearance, with less chrome and more focus on performance. The first three-piece rim developed in the aftermarket segment was in 1971 by Speed Star Racing otherwise known as SSR. The Mark -1 (MK-1) which looked similar to America’s Centerline rims, was proceeded by the next generation of three-piece wheels known as the MK-2 during the same year.

In 1972, the MK-3 completed the Mark series as the first-known company to develop a true three-piece aftermarket wheel within the JDM market. Over 30 years have elapsed since the debut of the MK series, but exciting news has recently developed as all three rims have recently been on the comeback trail after more than three generations. Tanabe USA has begun selling new batches of these once-rare wheels to the general public along with its optional center caps.

Carbon-Fiber Hoods and Aerodynamics

Carbon fiber spawns the dawn of a new era as fiberglass body panels, hoods, and wings have become second best to this lightweight and durable product. Carbon fiber has been available for over 50 years with its earliest history in the aerospace and military industries.

Although Ford Motor Corp. designed a carbon-fiber composite prototype vehicle in 1977, it was the aftermarket segment who implemented CF onto their daily drivers and weekend track cars. Aftermarket manufacturers began using carbon-fiber products to decrease weight while other companies sold the CF concept from an aesthetical approach, offering its unique looks and contemporary styling to sport compact enthusiasts.

Carbon-fiber GT wings, diffusers and canards made their way onto the aftermarket industry as all three products brought aerodynamics and functionality to vehicles participating in time attack or drifting competitions.

The HKS CT230R EVO, shod in a full carbon body is a prime example of sophisticated engineering and lightweight carbon body construction as the vehicle set a new course record at Tsukuba Circuit in 2006 with a time of 53.999 seconds.

Turbo Timers

While we can’t prove that the aftermarket segment was first to develop the turbo timer, we found an intriguing piece of history from HKS of Japan that dates back to the early 1980’s—and by the looks of ancient piece, you know this thing is old school!

The turbo timer proved to be an invaluable tool among performance enthusiasts as the engine goes through a cool-down period to prevent premature turbo wear and failure. Today, we find this simple, yet effective electronic device used in every performance turbo vehicle, ranging from mild to wild.

The future has a way of arriving unannounced. In the automotive industry it has often been the case that a particular part is already widely used even before one can get to fit it on his car.

Because original equipment manufacturers, where the stock parts of our cars come from, have to walk the line of acceptability and conformity in making auto parts for mass-produced vehicles, it is not typically expected to come out with a technology likely to push the industry standard.

Original equipment manufacturers set the world standard, but it is from a segment of the industry called the aftermarket where the idea that has since become the standard originates.

Composed of a small network of auto parts manufacturers, the aftermarket industry is primarily intended to provide replacement parts for OEM auto parts. It is not unusual that OEM eclipses the aftermarket in resources, but the aftermarket has played an integral role in shaping the sport compact market across the globe as much as the OEM.

From the first aftermarket turbo kit designed for passenger cars to the conception of carbon-fiber hoods on sport compacts, the aftermarket segment of the industry has led the way in pioneering many of the parts we use at the track or showcase at events on our vehicles today.

Following is some of the more prominent aftermarket products that have since become must-haves for every car. It is interesting to note that most, if not all, of these aftermarket auto parts have an OEM counterpart.

Turbo Kits

It’s been 33 years since the first aftermarket turbo kit was introduced. Now, car owners are engulfed with hundreds of aftermarket companies selling turbo kits. Many of which owe a debt of gratitude to the men of Japan who kick-started the movement. In 1974 Hiroyuki Hasegawa, founder of afternarket parts manufacturer HKS Japan, was accredited with designing and building the first aftermarket turbocharger for passenger cars.

The aftermarket turbo kit was first used on an L20B engine of the 240Z, and proved to be a ground breaking movement among the automotive performance world. While HKS was the first to design and build an aftermarket turbo kit, it was GReddy Japan who brought to the market the very first 50-state legal turbo kit for the ‘92-95 Honda Civic.

With the US government imposing strict emissions rules, GReddy played it smart by offering an aftermarket kit that consumers could install without the fear of being pulled over.

Reclineable Seats and Racing Harnesses

While aftermarket reclineable and bucket seats continually flood the aftermarket scene, BRIDE of Japan has continued to show a strong presence in the land of the rising run for over a decade. The BRIX reclinable model, the first seat developed through BRIDE, has proven to be popular among Japanese circuit racing competitors, while the more average street enthusiasts were found cruising the streets of Japan in their daily drivers using the same seats.

Takata harnesses, renowned for its bright green coloring, have been a staple aftermarket product within the motor sports world throughout much of Japan. Manufactured with strict FIA regulations, the Takata 4-point and 5-point harnesses have protected drivers in even the most strenuous conditions such as the GT 300 and 500 Championship series. While US guidelines only approve of SFI certifications on both seats and seatbelt harnesses, U.S. residents and JDM enthusiasts don’t seem to mind this minor setback as both seats and harnesses have been on a solid sales incline over the past few years.

Body Kits

Veilside was one of the first aftermarket body kits sold in the US to catch the attention of mainland car owners—well before the whole F&F craze took to the big screen. Introduced in the early ’90s, Veilside quickly gained popularity among Supra and RX7 (FD3S) owners as a new radical concept in body design.

Veilside and companies like Mugen spawned the dawn of a new era in body kits as US manufacturers took notice and began designing their own kits while others took the simpler path and began gray marketing the more popular Japan-made body kits to much dismay.

(To be continued)

The Hot Rod industry is set to boost the automotive market on Aug. 8 as Eaton Corp. and Promotion Co. hold the annual Dream Cruise, an aftermarket auto parts shopping mall for automotive performance enthusiasts, at the Memorial Park in Royal Oak.

The Dream Cruise runs along 16 miles of Woodward Avenue through nine communities. It reportedly attracts about 1 million visitors annually and some 40,000 owners of classic, muscle, custom and collector vehicles. The first cruise was in 1995 and designed to raise funds for a children’s soccer field.

The event generates a minimum of $100 million for businesses along the route in cities including Berkley, Birmingham, Bloomfield Hills, Bloomfield Township, Ferndale, Huntington Woods, Pleasant Ridge, Pontiac and Royal Oak.

The Eaton Performance Park will feature prominent aftermarket retailers such as Eaton, Barry Grant, Cherry Bomb, Comp Performance Group, Dynomax, K&N and Year One, said James “Jim” Parks, global communications manager of Eaton.

Eaton is a diversified industrial manufacturer of automotive, aerospace, electrical systems and automotive aftermarket products with 61,000 employees in 125 countries.

Live entertainment and family rides will be offered at the park as well as local food vendors. There will be dozens of award-winning vehicles on display, Parks said.

The Woodward Dream Cruise celebrates the heydays of the ‘50s and ‘60s when Woodward Avenue was the heart and soul of cruising in the city that put America on wheels.

Combined with music and fashions of the era, the Dream Cruise is set to celebrate the car culture that made performance cars special. The Woodward Dream Cruise is sponsored by a volunteer committee that coordinates the efforts of the nine host cities, the County of Oakland, media organizations, transportation authorities, corporations, small businesses and charities.

“The Woodward Dream Cruise is one of the country’s greatest car culture events,” said Victor Ruthig, vice president of sales and marketing of The Promotion Co. of Indianapolis.

Eaton has its headquarters in Cleveland but has automotive offices in Southfield, Parks said. Eaton has been a longtime major sponsor of the Dream Cruise. It became the event’s first official sponsor in 1999 and remains one of the event’s largest corporate supporters, he said.

“Vehicle customization and performance enhancement were a big part of the 1950s and ’60s cruising scene, and it remains an important part of the Dream Cruise and car shows today,” said Jeff Romig, Eaton vice president and general manager for performance products division.

“The Dream Cruise itself is large and somewhat unwieldy and a lot of retailers get lost trying to reach the public,” he said. “We’re hopeful that the mall concept will give people a reason to come by the park and do a little shopping while also looking at beautiful cars and displays.”

Eaton and The Promotion Co. have rented parts of the 24-acre Memorial Park at 13 Mile Road and Woodward Avenue in Royal Oak on Aug. 17-18 to have exhibitors display their auto-related and aftermarket products to the public at no charge. The park will be open to visitors from 9 a.m.-9 p.m. each day.

“What we were able to do was get a prime spot on the Dream Cruise route” to allow exhibitors to be in one place to show off their products, Ruthig said.

The aftermarket automotive business has gross sales of about $34 billion a year, Parks said.

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.