---

Auto Component Branding Has Become Regular Part of Consumers' Decision

15 September 2000

The Planning Edge's Study Indicates Automotive Component Branding Trend Has Become Regular Part of Consumers' New Vehicle Purchase Decision Process

    FARMINGTON HILLS, Mich., Sept. 15 According to the final
version of The Planning Edge's dynamic Supplier Branding Study 2000(R), key
automotive suppliers and upstarts like Motorola, Sony, Michelin, Bose, Harman
International, Johnson Controls, Panasonic, Alpine, OnStar, AT&T, Delphi and
others will probably benefit a great deal from the trend to utilize more
branded automotive components.  In addition, consumers' increased desire for
these products should aid in a new wave of supplier consolidations and
alliances.  The ideas and trends identified in this comprehensive quantitative
study could have a major long-term financial impact on Tier I automotive
suppliers and their customers.  Original equipment manufacturers like General
Motors, Ford (including the Premier Automotive Group), DaimlerChrysler,
Toyota, Honda and Hyundai can clearly benefit from an expanded and
comprehensive component and system branding program.
    In the critical area of branded components' influence on individual's next
purchase decision, every component and system category registered an increase
in influence between the 1999 and 2000 studies.  Some categories like Security
Systems and On-board Computers recorded gains of over 100%.  This pattern
helps to prove TPE's thesis that once consumers become aware of brand name
components and systems it becomes part of their purchase consideration
equation and can help make one vehicle superior to another.  As Michael L.
Schmall, Managing Partner of The Planning Edge, pointed out, "The fact is that
once people understand and are interested in component branding they are not
likely to go backward and stop making supplier branding part of their purchase
decision process."
    The Supplier Branding Study (SBS) 2000(R) is divided into three major
sections: Safety, Interiors and Telematics and thirteen sub-categories. Over
700 consumers participated in this study.  The SBS 2000(R) contains seven
studied vehicle segments:

    *  Compact Cars
    *  Mid Size Cars
    *  Luxury Cars
    *  Minivans
    *  Mini Sport Utility Vehicles/Hybrids
    *  Compact Sport Utility Vehicles
    *  Pickup Trucks

    Another key factor that is an aspect of component branding is the concept
of "plug & play" systems (when electronic systems can be "plugged" into a
vehicle or removed depending on the driver's needs and desires).  As Kathleen
K. Rizk, Managing Partner of the Planning Edge, stated, "It is very likely
that the concept of  'plug & play' systems will have a major effect on
automotive interior supplier branding."  Other critical issues that appear in
this year's study include the increased level of competition that will occur
between the automotive original equipment market and the aftermarket as well
as the growth in consumers' understanding regarding navigation and global
positioning satellite systems.