NEW VEHICLE..TRAVEL SAME RD.doc

WALDEN CONSULTANTS


252 Pond Street
                                                                            
                                                    Hopkinton, MA 01748

NEW VEHICLE SALES AND RELIABILITY TRAVEL THE SAME ROAD

Immediate Release
Confirmation: 508 435-4882

Hopkinton, Mass. – Passenger vehicles are indispensable to American
lifestyles.  There are motorists whose lifestyles demand vehicles that are
ready to roll at any time or, in another way, vehicles with high
availability.  For some, this transcends style or handling performance in
the specifications of their choice of vehicle.

According to Walden Consultants’ Repair Frequency Comparison (RFC) index
there are sharp contrasts between vehicle brands with fewer repairs that
require time in the shop, and other brands with more frequent repairs.
“Most stark,” says Henry P. Allessio managing director of Walden
Consultants, “low repair incidences are associated with vehicle brands that
have had noticeable sales increases” (see chart).  Allessio acknowledges
that the analyses by his firm cannot establish causality between repair
incidences and vehicle sales.  “However,” he adds, “similar quantitative
relationships have emerged from theses kinds of studies for more than twenty
years.”

Mr. Thomas J. Mortimer, Walden Consultants’ research director, compiled
these recent data and is equally bullish.  Mortimer suggests, “Where there’s
smoke, there’s fire.  Vehicle brands such as Toyota and Honda have
repeatedly demonstrated low repair incidences, and have had consistently
strong new vehicles sales in the USA.”  RFCs are based on an array of auto
parts that, in their failed condition, typically immobilize a vehicle,
making it unavailable.

“Some of the difficulties of the domestic vehicle manufacturers,” argues
Allessio, “can be alleviated if vehicles were more reliable.”  Mortimer
agrees:  “It doesn’t eliminate the need for style and handling, but when a
multi-vehicle household has one in the shop and one on the road, it can ruin
the repurchase loyalty associated with the vehicle brand requiring more
frequent repairs.”

Data used for creating RFCs are from Continuing Consumer Auto Maintenance
Survey, copyright 2005, administered by IndustrialMR Inc., Oak Brook,
Illinois.  Walden Consultants Ltd. regularly conducts corporate strategy,
marketing, competitive analysis, and acquisition planning assignments for
domestic and foreign clients.  Automotive businesses are one area of
specialization for the management consulting firm which has offices in
Hopkinton, Massachusetts.

Enclosure
Also available by request:
-         chart in .ppt format
-         recent RFC chart