TROY, Mich., (September 25,
2002) — Tom Gosnell, president of
ArvinMeritor’s Commercial Vehicle Systems and Commercial Vehicle Aftermarket,
gave the keynote address, themed “Assess the Damage and Rebuild”, at the
National Wheel and Rim Association’s (NWRA) annual meeting, in mid-September in
Banff Springs, Canada. The meeting’s theme was “Navigating the
Storm.”
According to Gosnell, because the general economy
is sluggish, the industry may be facing another year of troubled waters.
“We aren’t facing the same difficulties as we were six months ago, but the
market isn’t as good as we thought it was two months ago.” There
will continue to be a rebuilding of the market, through an increase in
value-added services, efficiencies and driving costs out of the supply
chain.
Gosnell expressed confidence that the aftermarket
is poised to recover; it just may take a bit longer than previously
anticipated. Customers will demand more services, there will be more
technology, more electronics – lots of change.
“While the
aftermarket is a cyclical industry, and will continue to be, the next few years
will bring us many changes and advancements,” said Gosnell. “We have begun
to see the used truck surplus reducing, the trade cycles will continue to extend
to about five to seven years, and the overall fleet population will continue to
expand.”
As the used vehicle surplus decreases, the vehicle
age will increase, which will lead to higher parts demand and consumption and to
the increased need of service centers. Gosnell believes that since there
is a shortage of dealer service capacity, the demand for parts will lead
customers more and more to the independent service garage.
He suggested that both financial stability and
technology adoption is critical for the entire aftermarket and all of its
players for them to compete and to win. Technology has advanced within the
past few years and will continue to be an integral part of this business.
On-line ordering and parts information will continue to be the wave of the
future, with Web sites such as XpresswayPlus.com in the forefront of the
trend.
He also reviewed market data and trends on truck
age, vehicle population, second and third owners, vocational segments and a
digital roadmap across the value chain of the aftermarket.
The NWRA was founded in 1924. It is an
established and highly regarded organization that is exclusively dedicated to
serving and representing the best interests of wheel and rim warehouse
distributors in Canada and the United States, including Puerto Rico. The
National Wheel & Rim Association is dedicated to educating and acquainting
its members in every lawful manner on the subjects of the production, use,
service, maintenance, repair and replacement of the wheel and its related parts
in Automotive Transportation. The National Wheel & Rim Association
will promote the efficient distribution of wheels, rims and related parts and
promote their safe use.
ArvinMeritor, Inc. is a premier $7-billion
global supplier of a broad range of integrated systems, modules and components
to the motor vehicle industry. The company serves light vehicle,
commercial truck, trailer and specialty original equipment manufacturers and
related aftermarkets. In addition, ArvinMeritor is a leader in coil
coating applications. The company is headquartered
in Troy, Mich., and employs 33,000 people at more than 150 manufacturing
facilities in 27 countries. ArvinMeritor common stock is traded on the New
York Stock Exchange under the ticker symbol ARM. For more information,
visit the company’s Web site at: http://www.arvinmeritor.com/.
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CONTACT:
Shannon Gibson-Sysak
1-248-435-5606
