LOS ANGELES — Motorcar Parts of America (MPA) has received an exclusive three-year extension of a supply contract for new and remanufactured alternators and starters from a major automotive retailer, with estimated aggregate sales of approximately $50 million. Terms were not disclosed.
"The extension of this supply agreement secures an important business relationship and enables both of our organizations to benefit from anticipated increasing replacement rates as vehicles age beyond the current 9.4 year average," said Selwyn Joffe, chairman, president and chief executive officer of MPA.
He noted that replacement rates for vehicles within the four-to-seven year age group are estimated to double when these vehicles reach the age of eight to eleven years, with repair rates almost doubling again once vehicles are more than 12 years old. Joffe emphasized that industry sources project 60 million vehicles will enter the eight-to-eleven year range during the next three years — noting that today there are approximately 49 million vehicles within this category. Industry sources expect registered vehicles within the more than 12-year old category to climb significantly during the next three years, he added.
