The Week in Review offers a snapshot of the most read stories of the week as seen on aftermarketNews. To access the complete stories, simply click on the highlighted links. If you missed reading one of our daily news emails, click on any of the dates listed at the bottom of the page to begin catching up on the latest industry news.
The top story on aftermarketNews (AMN) this week provided readers with an update on Federal-Mogul’s pending emergence from bankruptcy. After six years under bankruptcy protection, the Michigan auto parts supplier is nearing the light at the end of the tunnel. The company was in a U.S. Bankruptcy court this week for the last major hearing in its bankruptcy case. The hearing, where Federal-Mogul is seeking approval for its reorganization plan, has not yet concluded. The court extended the hearing until July 9-10.
In other top news this week from Federal-Mogul, the company’s Champion brand has unveiled a new line of performance additives and lubricants. The new Champion additives and lubricants line includes eight exclusive formulas engineered to enhance the performance and reliability of passenger cars, light trucks, sport utility vehicles, motorcycles and other applications. These advanced formulas include Champion Complete Fuel System Cleaner, Octane Booster, Engine Protectant Oil Treatment, Diesel Fuel Conditioner/AntiGel, Super Concentrated Fuel Injector Cleaner, Truck/SUV Super Concentrated Fuel Injector Cleaner, Power Steering Fluid and Chain Lube Multi-Purpose Spray Grease.
Automotive maintenance and repair is the lifeblood of the aftermarket, so when news reports indicate Americans are cutting back on their driving as a result of rising gas prices, AMN readers perk up their ears. New research by Quinnipiac University shows that rising gasoline prices are a “very serious problem” according to 41 percent of American voters. According to the study, 58 percent of American voters say they have “cut back significantly” on how much they drive as a result.
AMN readers were also interested to learn more this week about the Leadership Development Network’s (LDN) “Next Step” program. LDN, a volunteer committee of the Automotive Aftermarket Industry Association, is encouraging junior-to-mid-level aftermarket professionals to develop lasting involvement in the industry and the association by participating in the Fall Leadership Days. The "Next Step" program, which represents the next step in automotive aftermarket leadership, allows those who are new to the industry an opportunity to see – up close – how the association and various aspects of the industry work. As people become more connected and involved in the industry, they are more likely to build long-lasting careers in the aftermarket.
News of restructuring plans at Remy International was also of high-interest to AMN readers this week. On Monday, Remy announced that it had reached agreement with holders of approximately 83 percent of its 8 5-8 percent Senior Notes, 84 percent of its 9 3-8 percent Senior Subordinated Notes, and 75 percent of its 11 percent Senior Subordinated Notes on the terms of a consensual financial restructuring that would reduce the company’s debt obligations by approximately $360 million. The agreement also includes restructuring through a prepackaged plan of reorganization.
A highly read exclusive editorial from Counterman magazine Editor Brian Cruickshank offered up some good news for the aftermarket industry. While for years now the aftermarket has been keeping a close eye on car dealerships and their increasing grip on the parts and service market, it looks like that grip may finally be loosening a bit. The latest data shows from the National Automobile Dealers Association (NADA) show an encouraging trend for the aftermarket: Collective wholesale parts purchases from new car dealers is on the decline from a high of $13.9 (billion) in 2003, to $13.44 in 2004, to $13.14 in 2005, to $12.22 in 2006. At the same time, dealership bays appear to be a little quieter these days too: New car dealers’ mechanical service business has gone from a total of $30.05 (billion) in 2003, to $29.92 in 2004, to $30.19 in 2005 and down to $28.73 in 2006.
To view all of the news from the past week, simply click on the link for each corresponding day:
