The Motor & Equipment Manufacturers Assn. (MEMA), along with its aftermarket segment, the Automotive Aftermarket Suppliers Assn. (AASA),
and MEMA Financial Services Group (MFSG), have created a task force to examine current trends and developments in the aftermarket and their impact on the financial stability of aftermarket product manufacturers.
Dan Griffin, executive vice president and general manager of MFSG, will chair the task force. According to Griffin, "the goal of the Manufacturers Financial Stability Task Force is to analyze current industry practices and policies and the impacts on the financial and operating health of automotive aftermarket product manufacturers.
"Based on the analysis," Griffin added, "the task force will propose recommendations to the industry manufacturing community which would ensure customers of continued high quality products and services from financially sound sources of supply."
Several leading aftermarket executives have volunteered to serve as charter members of the task force and to help develop recommendations for the various industry challenges.
They include:
Terry McCormack, president, Dana Automotive Aftermarket Group; Alfred "Al" Stecklein, group president, Global Aftermarket Division, The Gates Rubber Co.; Joseph Felicelli, senior vice president, Worldwide Aftermarket Operations, Federal-Mogul Corp.; Larry Pavey, chief executive officer, ARI; and Marc Fleischaker, legal counsel, Arent Fox.
Griffin pointed to several key areas of concern affecting aftermarket product manufacturers including:
-- Increased PPE (property, plant and equipment) investment required to support the ongoing expansion of model and parts proliferation
-- Intense offshore competition
-- Inefficient and costly return practices
-- Pressure on inventory and receivables financing and its adverse impact on working capital
"Clearly, these are just some of the serious issues which require in-depth study and analysis with far reaching implications for the aftermarket," Griffin said.
Founded in 1904, MEMA manufacturers of motor vehicle components, tools and equipment, automotive chemicals and related products used in the production, repair and maintenance of all classes of motor vehicles.