Brand Positioning Vital as Price Compression Challenges Growth of Steering System Hard Parts Aftermarket, Says Frost & Sullivan

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SAN ANTONIO, TX USA 07/31/2001
    SAN JOSE, Calif., Jan. 21 With demand for steering system
hard parts gradually shifting from premium to less expensive secondary lines,
total industry revenues are growing at a flatter rate than unit shipments.
    Industry revenue and price compression pressures are the dominant factors
shaping the steering system hard parts aftermarket.
    New analysis from Frost & Sullivan (http://transportation.frost.com ),
North American Steering System Hard Parts Aftermarket, reveals that the
industry generated revenues totaling $371.4 million in 2002.  Total market
revenues could reach $416.5 million in 2009.
    "Low end-user knowledge about steering system parts beleaguers product
category development," says Frost & Sullivan Automotive Analyst Christopher
Chen.  "Lack of consumer understanding about chassis parts allows economy line
products to trowel share away from premium product sales.
    "Price compression and growth of the economy tier ultimately pull down
revenues for the industry as a whole, absorbing the potential gains from
increased unit shipments," adds Chen.
    With poor product differentiation and low technological development
further intensifying competition, brand acceleration is one key element to
gaining a strong foothold in the steering system hard parts aftermarket.
    Premium line manufacturers are expected to fight price compression
pressures by strengthening end-user brand awareness.  Federal-Mogul
Corporation and Dana Corporation currently dominate the market, and the extent
to which they displace premium line share from each other is a critical
battleground.
    "The point to watch for is whether their competition against each other
opens up viable opportunities for other companies to gain," says Chen.
    The second line is already witnessing the emergence of a handful of
participants with a strong national presence.
    "While market leaders increase sales at the economy level to avoid losing
market share to the second line companies, the latter are expected to make
inroads into the market by differentiating themselves through price, coverage,
and service," says Chen.
    Frost & Sullivan will hold a conference call at 3:00 p.m. (EST) on
Wednesday, February 12, 2003 to provide manufacturers, distributors, and other
industry participants an overview, summary, challenges and latest coverage on
the North American Steering System Hard Parts Aftermarket.  Those interested
in participating in the call should send an email to Cynthia Cabral - Media
Relations Executive at ccabral@frost.com .
    Frost & Sullivan is a global leader in strategic growth consulting.  This
ongoing growth opportunity analysis is part of the Automotive Aftermarket
Subscription, which also includes market insights on the North American
Automotive Ignition Parts Aftermarket, the North American Brake Parts
Aftermarket, and the North American Sport Compact Underhood Aftermarket.
Frost & Sullivan also offers custom growth consulting to a variety of national
and international companies.  Executive summaries and interviews are available
to the press.

            North American Steering System Hard Parts Aftermarket
                                 Report: A386

     Contact:
     Cynthia Cabral
     Media Relations Executive
     P: 210.247.2440
     F: 210.348.1003
     E: ccabral@frost.com
     http://www.frost.com