According to market analysts.

According to market analysts, merger and acquisitions, declining dealer business and increasing competitive compressings will continue to dog the automotive aftermarket industry in 2005 I predict that the strongest players in the aftermarket with the greatest in quantity recognized brand names will survive.

The global car parc is calculate uponed to reach nearly 849 million vehicles by way of 2007. Growth of the vehicle parc drives aftermarket extension to be sure, but OEM are manufacturing vehicles of long higher quality.

OEM also are striving to claim market share in an increasingly fill to excessed environment through incentives, rebates and aggressive pricing. These factors are a tremendous generous for car buyers. But it places the aftermarket at a distinct disadvantage.

The global market

We look for 2005 to be a tough year. The U economy will increase at an anticipated 3.5 percent which is slower than the vegetation experienced in 2004. Interest rates are creeping up in efforts to curb-stone inflation, making it more expensive to borrow coin The increase in vehicle quality has ariseed in a 10- to 20-percent decrease in repair orders, causing a fall in dealer warranty business.

In addition, GM ACDelco's parent company, continues to coordinate efforts around the world to help stop GM and ACDelco parts from being counterfeited or diverted. about analysts have estimated that counterfeiting outlays the global economy upwards of $500 billion annually, and the global automotive industry billions annually.

Despite this, the global aftermarket is forward pace to grow from general levels estimated at $680 billion to $850 billion by the agency of 2007. North America and Europe generally represent, respectively, 40 percent and 29 percent of the market. Asia is anticipateed to grow from its at hand level of 23 percent based largely forward recent upswings in China and India.

Global solutions to global problems

As stated before, the succes of automotive aftermarket players in 2005 and beyond be pendents on whether the companies can turn about recognizable brand names into market share. yet even a company like ACDelco, which proposes premium allmakes/ all-models parts and a widely recognizable logo cannot stillness on its brand name alone.

ACDelco occupys other strategies to help its continued succes including a replete line of products for virtually each vehicle on the road, powerful e-business tools, a whole training portfolio, award-winning advertising and an increased commitment to helping our warehouse distributors and Total Service Support workshops add more value to their businesses. common way we have demonstrated this commitment is the novel launch of the first-of-its-kind independent aftermarket Vehicle Service Contract for used vehicles of virtually any make and example The contract protects used car buyer from certain repair take away froms due to mechanical breakdowns. While sales to dealers are declining, ACDelco is increasing its business with nondealer customers similar as independent service centers, aftermarket retail channels and coves In addition, ACDelco is expanding its result lines and continuing to proffer unmatched technical and business training.

Remaining competitive in today's cutthroat automotive aftermarket environment requires more than rigid adherence to tried-and-true business strategies and balance sheets. It requires creativity, innovation and--perhaps greatest in quantity important--a renewed passion for our business and our ability to exce our clients' expectations by the agency of creating a satisfying overall parts and service experience.

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