Press Release

Six Rules for Success in Automotive Aftermarket

09/11/96

Dana Executive Outlines Six Rules for Success in Automotive Aftermarket


SAN FRANCISCO, Sept. 9 -- Companies that want to stay
successful in the automotive aftermarket will have to play by new
rules, a Dana Corporation executive told a meeting of aftermarket
executives today.

Bill Carroll, president of Diversified Products and Distribution for
Dana, listed six new rules of competition in the aftermarket business
during a speech, "The New Rules of Competition," to the Frost &
Sullivan Strategic Aftermarket Conference here today. The conference
was co-sponsored by Aftermarket Business magazine.

Globalization of the auto parts business was the first trend
identified by Carroll. Countries that had little or no automotive
manufacturing a few years ago are now major producers. Thailand is now
the third-largest producer of pickup trucks in the world (following
the U.S. and Japan) and has experienced double-digit growth in vehicle
production each year of the past five.

"It's clear that parts producers who don't make and distribute
products outside their home countries will either disappear or find
their businesses stagnating," he said.

Constant technological change is a second major force in the
aftermarket, according to Carroll.

"Car makers, suppliers, distributors and technicians must stay on top
of the technology curve," he explained.  "Otherwise, they fall behind
and fail. Those who lead with technology will also lead in their
market with sales and profit."

The tide of technological change creates a third trend of growing need
for technical support, he said. Parts and vehicle manufacturers,
distributors, dealers and service outlets all need to invest in
ongoing technical training and honing of skills. Dana has offered the
aftermarket business classes in engine rebuilding and chassis repair
at its Technical Resource Park in Ottawa Lake, Mich., for nearly 20
years.

Product and parts proliferation was the fourth trend identified by
Carroll. Consumers desire vehicles that meet specific needs. Companies
that invest in engineering, research and development to design and
offer unique products will be the market leaders in the future.

Carroll listed electronic communication as the fifth trend.

"Access to information is power," he said. "Actually, information
isn't power; it's superpower. The Internet has enormous potential for
all of us. There will be more marketing, advertising and buying and
selling via the Internet. Companies that are communication leaders
will be market leaders."

Acquisitions and mergers in the aftermarket business will continue,
Carroll said, identifying a sixth trend.

"There will probably be only 30 or 35 truly global suppliers to
original equipment manufacturers by the year 2010," he
said. "Companies must grow by merger, acquisition or
association. That's the best way to survive and prosper."

Taking the challenge of global growth to heart, Dana is aggressively
pursuing opportunities in the international aftermarket business,
Carroll said. Dana has completed 24 acquisitions or mergers since
1993.  Twenty of them involve operations outside the United
States. The company recently announced plans to purchase the
piston-ring and cylinder-liner business of SPX Corporation. Dana's
goal is to obtain 50 percent of its business from outside the U.S. and
50 percent of its sales from the aftermarket by 2000.

Dana Corporation is a global leader in the engineering, manufacturing
and distribution of products and systems for the vehicular, industrial
and mobile off-highway markets. Founded in 1904 and based in Toledo,
Ohio, Dana operates facilities in 29 countries with 45,000 people. Its
1995 sales were $7.6 billion. Named in 1995 by Financial World
magazine as one of the "Best 100 Growth Companies," Dana is noted for
its style of management and its commitment to innovation. It has more
than 37 product research and development centers. The internet address
for Dana's home page is http://www.dana.com.