Back in the ’60s, not a few doubted made-in-Japan imports. Flowing into the US market at a surprisingly steady and frightening pace, quality concerns met the peak of Japan exports. Now, it’s China’s turn to answer similar quality concerns as made-in-China auto parts flood the US automotive industry.

Aftermarket auto part exports from China witnessed a more than six-fold increase in the last five years from 2002–2006, breaching the $1 billion mark in April 2007 and rising among the rapidly growing category of Chinese industrial product sold overseas.

Over half of these auto parts are exported to US followed by Europe and Japan. The increase in China’s aftermarket auto part exports is an aspect of a broader scenario. China is shifting its focus from producing essential goods such as shoes, textiles, and toys towards producing high-value industrialized goods as the production of high-value goods provide better wages.

Rising output levels at Chinese aftermarket auto assembly plants are generating a huge demand for auto parts and creating the economies of large-scale production that was earlier possible only in North America, Europe and Japan.

Car exports to follow aftermarket auto parts

Chinese auto parts would soon find a demand in overseas markets not just in crates but also as part of fully assembled cars as several Chinese automakers are planning to export in the coming few years, said an RNCOS report titled “China Automobile Industry Forecast.”

RNCO, a global industry research firm, said Chinese auto parts in the aftermarket segment of the automotive industry would witness a good growth in the near future as global manufacturers look for local sourcing of the components. Domestic producers are looking for avenues of growth in the export market.

The report added that the revenue generated by the Chinese auto part market in the year 2005 to 2006, covering auto engines, parts, tyres and other related product exports, respectively generated foreign exchanges of approximately $22 Billion.

China’s shift from light to heft

To date, the Chinese government’s efforts to cultivate national champions in higher-end industries such as autos, aircraft and semiconductors have met with mixed results. Haier has carved out a profitable niche in the USA selling small refrigerators and other appliances. But Chinese automakers have penetrated only less competitive markets such as the Middle East.

US companies, which operate their own factories in China and use Chinese suppliers, say they employ rigorous safeguards to ensure that their goods are sound. Goodyear Tire & Rubber, for example, puts potential suppliers through an intense “process audit” of its production system and quality controls before placing its first order, Goodyear spokesman Ed Markey says.

‘If it doesn’t meet the standards, it’s destroyed’

Goodyear suppliers also must obtain a certification called “ISO 9000,” which attests to a company’s use of consistent quality procedures and must be periodically renewed.

The tiremaker has a corporate office in Shanghai, which allows it to maintain close oversight of a Chinese tire factory in nearby Hangzhou. That supplier began producing tires for Goodyear in the middle of last year, for sale in the USA under private-label brands, not the Goodyear name, Markey says.

Each tire that comes off the Chinese assembly line is individually balanced and visually inspected. “If it doesn’t meet the (Goodyear) standards, it’s destroyed,” Markey says.

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.”

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.

The original equipment manufacturer (OEM) sector has been flooded with various types and versions of tire pressure monitoring systems (TPMS) products in the wake of the passing of the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act. This act makes it mandatory for all new vehicles in the United States to be equipped with a TPMS.

A study on the North American tire pressure monitoring systems market by Frost&Sullivan, a global growth consulting company, reveals that the research and development of aftermarket indirect systems is in the final stage and may directly threaten the TPMS industry in the OEM sector due to price advantage.

“While on one hand many suppliers are developing increasingly advanced systems, on the other several vehicle manufacturers are considering TPMS a commodity, and are in constant search for more cost-effective systems. The market supports those participants who offer inexpensive products without comprising on quality and who have a strong brand image,” Frost&Sullivan reports.

The study adds that many end users are expected to abandon direct systems in favor of the considerably lower-priced indirect ones, once the systems meet TREAD Act’s requirements. Currently, indirect systems are not fit to be implemented as OEM issue, but ongoing developments in advanced indirect systems is expected to change this and help the technology wean customers away from direct systems.

Meanwhile, the rushed implementation of TPMS in the OEM sector, technological advancements and product proliferation have created parts standardization issues within the market, and has especially affected the aftermarket segment of the automotive industry.

“Almost each vehicle model had a distinct TPMS type and some are not compatible with certain diagnostic tools,” said 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.”

To take the new OEM implementation in their stride, the study adds, the aftermarket maintenance participants and tire retail channel have emphasized on technician training and consumer education. Since approximately 19 million TPMS-fitted vehicles are expected to be sold annually, it is vital for technicians to have an in-depth knowledge and training about the system.

“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 and diagnosis process for different applications,” the analyst added. “This will help eliminate unnecessary costs such as compensations for damages.”

According to the report, the adoption of TPMS has not only necessitated specific training for technicians but also discouraged the offer of complimentary services such as tire rotations to preferred customers, as TPMS servicing is labor and time intensive.

It adds that maintenance participants also have to invest in TPMS diagnostic equipment to carry out repairs, replacements and re-calibration. Due to the volume of TPMS in use, it is crucial for workshops to have the appropriate equipment to work on TPMS-equipped cars.

Quantum International, manufacturer of high performance engines and drive trains for the original equipment and aftermarket auto parts industries, spearheaded this week the launching of Norsk hydrogen refueling station as part of Europe’s effort to build a “Hydrogen Highway” across the continent.

Lines of Toyota 2007 Prius took to the refueling station outside the company’s research center at Heroya, Porsgrunn, Norway. It was officially opened on June 12 by State Secretary Steinulf Tungesvik of the Norwegian Ministry of Transport and Communications, and Norsk Hydro’s president Eivind Reiten.

The planned Hydrogen Highway between Oslo and Stavanger will cover a total of 580 kilometers of road. The Norwegian HyNor plan calls for five refueling stations along the main highway from Oslo to Stavanger, the center of the national petroleum industry that makes Norway the world’s third largest oil exporter, after Saudi Arabia and Russia.

By 2009, HyNor plans to have enough fueling stations along the 580 km route to allow hydrogen-powered vehicles to routinely make the trip. The ultimate goal is to extend the hydrogen infrastructure network through much of Scandinavia under the Scandinavian Hydrogen Highway Partnership, a joint organization formed by HyNor, Sweden’s HyFuture, and Denmark’s Hydrogen Link earlier this year.

“We are excited to participate with Miljobil Grenland, Norsk Hydro, Statoil, and the Norwegian government in building the foundation for one of the most progressive public-private hydrogen partnerships in the world,” said Alan Niedzwiecki, president of Quantum International. “Quantum’s hydrogen hybrid Priuses are generating increasing interest from around the world as clean, fuel-efficient alternatives to petroleum-fueled vehicles.”

“Based on the enthusiastic reception we received at the grand opening of the Norsk Hydro hydrogen station, we believe that opportunities will continue to grow for Quantum’s hydrogen hybrid Priuses throughout Europe and North America,” the Quantum president added.

Europe’s planned shift to hydrogen fuel cells came on the heels of a poll done by CarGurus.com, a US-based automotive community site, which revealed that a majority of the more than 500 respondents, or 80 percent, have no plans to buy a hybrid vehicle as their next car despite rising gas prices and a growing interest in curbing the emission of gases that contribute to global climate change. Hybrids cut emissions and gas use by using a fuel cell, like hydrogen, at slow speeds.

“Taking these results with the results of another survey we did in January, which showed the top two reasons car shoppers have for buying a new cars is better performance and better gas mileage, I think the concern here about hybrids is they don’t deliver on performance,” said Langley Steinert, CEO of CarGurus.com.

Hybrid cars do deliver better gas mileage. The 2007 Toyota Prius gets a combined city and highway gas mileage of 70 km per gallon, according to the US Department of Energy. That is far higher than the 35 kpg average fuel efficiency for other vehicles in the midsize car segment. But the 2007 Prius goes from 0 to 80 kph in a sluggish 10.1 seconds and achieves a top speed of only 130 kph, which could leave many new-car buyers cold, Steinert said.

There may be other road blocks for hybrid sales, which have wobbled since August. These include a decline in gas prices late last year and the fact that Toyota has run up against a federal limit for tax credits that have helped drive sales of the gas-friendly sedan. Another reason is recently revised fuel mileage standards from the Environmental Protection Agency that are designed to more accurately reflect how Americans drive their cars and will cut fuel economy estimates for cars like the Prius by an average 8 to 12 percent beginning this year.

ACDelco, the aftermarket parts arm of US automaker General Motors, showcased its wide range of auto parts at the Automechanika Gulf Exhibition 2007. The exhibit, billed “All Cars, All Models, All Quality Parts,” set the stage for the company’s planned push to build a strong, dynamic and growing aftermarket business across the region, providing customers with a quality line up of automotive parts.

In the face of strong market demand, the network of very popular and convenient ACDelco Service Centers is also set to expand by 50 percent by the end of the year (up from 30 percent year-ago level), significantly increasing the availability of parts and aftermarket service across the region.

ACDelco has expanded its range of high quality aftermarket parts for Asian, European and North American vehicles, with the inclusion of a wide range of oil, air and fuel filters, gas and fluid filled shock absorbers and struts, universal wiper blades, brake pads and non asbestos brake discs, universal spark plugs, light bulbs, and resistors with premium platinum coating. All the parts come with a 12 month warranty and are manufactured to the highest EU quality standards. High point of the ACDelco aftermarket parts is their significantly lower price compared to genuine parts.

Automechanika Gulf 2007 was held at the Dubai World Trade Center from May 27 to 29, and catered to the rapidly developing automotive aftermarket segment in the wider Middle East and Africa. The exhibit covered the full range of parts for motor vehicles, as well as components for the drive, chassis, body, electrics and electronic groups, equipment for vehicle service and repair, bodywork repair and painting, tires, batteries and performance systems.

Glenn Heller, general manager of ACDelco Independent Aftermarket at General Motors, said: “We have seen the ‘All Cars, All Models, All Quality Parts’ range increasing in popularity as more and more people, whose vehicle warranties have expired, recognize the quality and price competitiveness of ACDelco parts.

“We will be looking to build on this success over the coming months, notably with the introduction of parts for European vehicles and the expansion of the ACDelco Service Center network.

“We have seen strong market demand for the latter from customers who require a fast, efficient and unbeatable automotive service that’s supported by the use of quality parts backed up with a 12 month warranty.”

ACDelco has been an integral part of the automotive industry for almost 100 years, establishing a reputation for setting industry standards for top quality automotive parts. Since ACDelco’s launch in the Middle East in the early 1990s, the brand has quickly become synonymous with quality, safety and reliability. ACDelco is already the market leader in automotive batteries, supplying a battery suitable for every vehicle available in the Middle East.

ACDelco is a market leader with the capability to handle all makes and all models of automotive vehicle regardless of the manufacturer. Today, it supplies more than 75,000 component parts in 57 different component classifications backed by a regional distribution center in Dubai.

It consistently brings new advances in parts technology, smart inventions and innovative ideas to the marketplace ahead of its competitors. All parts are engineered and rigorously tested to ensure that they meet or exceed original manufacturers’ specifications. General Motors’ aftersales business, in which ACDelco plays a significant role, posted a record year in 2006, with sales increasing by more than 22 percent.

Goodyear is hitting the trail with a “self-healing” carbon-loaded drive belt that can reduce the possibility of a long walk home. The Goodyear Gatorback Sport is the first Continuously Variable Transmission (CVT) belt with carbon fiber reinforcement in its body construction, according to Loren Danhauer, Goodyear chief belt engineer.

“Threadlike strands of carbon fiber are strong and flexible and weigh much less than steel of similar strength,” said Danhauer. “The fiber alignment in the rubber compound provides added stiffness across the width of the belt.”

Jonathan Cocco, marketing manager for Goodyear aftermarket products, said a Goodyear survey of quad riders shows they want precise, immediate throttle response and off-road durability whether for hunters, ranchers, fire rescue teams or sport enthusiasts.

A CVT system varies the working ratio of two v-shaped pulleys linked by the belt, said Cocco. The distance between pulley flanges can fluctuate, allowing the belt to ride smoothly up or down the pulley, continuously changing the gear ratio and varying vehicle speeds.

The pulleys are part of a power sensing drive that increases tension during acceleration and lowers tension when power is reduced. Danhauer explained that conventional CVT belt sidewalls can glaze and char from heat build up when engaged with pulleys under extreme loads. Materials from the top width of the belt then turn down and inward, creating vibrations that can quickly destroy the belt.

“Gatorback Sport regulates itself under extreme events,” said Danhauer. “Its carbon fiber in the rubber compound allows desired edge slippage without losing top width. When extreme demand subsides, the belt self-heals and again picks up the load.”

Danhauer added that tests he conducted show significantly improved top width wear and reduced belt weight loss. Cocco said Gatorback Sport is responsive and durable. “Its aggressive carbon fiber material maintains pulley grip without sacrificing belt wear,” he said. “It provides quick, clean throttle response to help riders conquer steep hills and nasty mud pits, while withstanding inadvertent abuse, such as spin-and-runs.”

Gatorback Sport’s performance was born from race technology introduced last year. Hendrick Motorsports and eventual NASCAR Nextel Cup Series champion Jimmy Johnson turned to Goodyear for help after making mid-season engine adjustments for added horsepower that increased demand on cam drive belts by 50 percent.

Goodyear quickly responded by mixing carbon fiber reinforcement in rubber compounds for the new timing belt. The result was an advanced composite that withstood the increased loads and higher temperatures, allowed engines to run more efficiently, and provided precision timing in every harsh environment.

“Buoyed by our success with carbon fiber, we went to work on the CVT belt for all-terrain vehicles,” said Cocco. “Its performance earns it the Gatorback name, joining a growing family of popular Gatorback automotive belts that are used by all major NASCAR Cup Series teams and are available in auto part stores and service centers.”

While Gatorback Sport’s lateral strength comes from carbon fiber, its longitudinal strength comes from Goodyear Flexten aramid cords traveling the circumference of the belt. Flexten minimizes stretch, stabilizes overall length and maximizes horsepower transmission.

“It adds up to predictable tension performance,” said Danhauer, “and tension is as important to belts as air pressure is to tires.”

Engineers also took care when designing belt dimensions, precisely duplicating most major manufacturers’ original equipment profiles and measurements for top width, length and sidewalls to ensure proper fits. Gatorback Sport’s top width range is 17 to 35 millimeters or 0.68 to 1.37 inches, while its length range is 679 to 1106 mm or 26.75 to 43.56 inches.