Longer Warranties Increase Consumer Confidence, Driving Rebuilt Engine And Transmission Sales

TORONTO, Jan. 14 -- Rebuilt engine and transmission sales have long endured the ``used parts'' stigma. In an effort to boost sales, remanufacturers are extending warranty coverage to promote consumer confidence.

New analysis from Frost & Sullivan (transportation.frost.com ), North American Rebuilt Transmission and Engine Aftermarket, reveals that this industry generated revenues close to $4 billion in 2000 and is projected to reach more than $5 billion by 2007.

``As the number of vehicles in operation increases, the demand for remanufactured engines will follow,'' according to Frost & Sullivan's Automotive Analysts. ``With prices of new replacement parts continuing to rise, consumers are more willing to invest in a remanufactured engine or transmission to lengthen the life of their vehicle.''

Though there has been a definite increase in the number of individuals willing to purchase rebuilt engines or transmissions, drivers are demanding assurance that rebuilt parts will be consistently reliable. Technological advancements have allowed for refined remanufacturing techniques, and production engine remanufacturers have responded by improving warranty coverage as a symbol of faith in their product.

``In most cases, warranty coverage on rebuilt and remanufactured transmissions and engines matches or exceeds that of new parts, indicating the enhanced quality of reconstructed parts,'' states Frost & Sullivan. ``With longer warranty coverage, consumers will be confident that overhauled components have features comparable to a new unit, and this added security is driving sales.''

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the North American rebuilt transmission and engine aftermarket. These market specific awards are presented to: Jasper Engines and Transmissions and Delco Remy International Inc.

The following is a list of key industry participants: Accurate Transmissions, Inc.; AER Manufacturing; Aftermarket Technology Corp.; American & Import Engines; ATK North America; Cummins, Inc.; Delco Remy International Inc.; Consolidated Manufacturing; Four Star Engines & Parts; Fred Jones Enterprises LLC; General Motors Service Parts Operations; H & A Transmissions, Inc.; Howard Engineering Corporation; Jasper Engine & Transmission; K. Watanabe Corporation; Karway Remanufactured Transmission; Marshall Engines; Precision Engine Rebuilders; Recon Automotive Manufacturing, Inc.; Springfield Remanufacturing Corporation; Top Line Automotive Engineering, Inc.; Transmission Exchange Company; and Yamato Engine Specialists.