Steady Growth Projected for Automobile Maintenance Service Markets

    SAN JOSE, Calif., Sept. 10 As North American vehicle sales
decrease, consumers are keeping cars longer and investing in maintenance
rather than replacing the vehicle.

    According to new analysis by Frost & Sullivan
(http://www.transportation.frost.com ), North American Automotive Maintenance Service
Market, the total market is estimated to be nearly $27.3 billion in 2000.  By
2007, the value of this market could surpass $29 billion.

    In addition to keeping cars longer, rising fuel prices will encourage
owners to optimize their cars' performance and a faster accumulation of miles
on each car will motivate car owners to take their vehicles for service more
frequently.  Consequently, the market for automotive maintenance services
should experience steady growth over the forecast period.

    "Quality is the number one factor affecting consumers' choice of where to
get their car serviced," says Frost & Sullivan Industry Analyst Joerg Dittmer.

    In a highly competitive field, maintenance service providers are finding
it increasingly difficult to distinguish their offerings from those of their
competitors.  While many have resorted to dropping prices to attract
customers, resources might be better spent promoting quality and convenience.

    Consumer preference for quality is reflected in the increased use of
specialty stores for service.  Customers believe these outlets perform more
efficient and accurate work than they could do on their own.  Specialty chains
have developed brand awareness, and with it, customer expectations of quality.

    Marketing quality and reinforcing the need for service will be crucial as
automakers attempt to expand distance between suggested maintenance intervals.
Furthermore, service providers must educate consumers as to the dangers of
neglecting service.

    Frost & Sullivan presents the 2001 Marketing Engineering Awards to
companies that have worked diligently to make a positive contribution to the
automotive maintenance service industry.  These market-specific awards are
presented to: CustomerLink Systems Inc., Internet E-Commerce Innovation,
Internet Marketing Strategy Leadership, and MyRepairShop.