DEARBORN, Mich., May 8 /PRNewswire/ -- Manufacturers' unwavering efforts
to maintain a "sustainable competitive advantage" based on innovative, highly
differentiated products and powerful new business relationships will play
pivotal roles in accelerating the growth of the international automotive
aftermarket, Federal-Mogul Chairman and Chief Executive Officer Frank E.
Macher told an audience of industry executives today during the 2003 Global
Automotive Aftermarket Symposium.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO )
Macher pointed to the automotive service industry's century-long history
-- and Federal-Mogul's own success in revitalizing and improving some of the
industry's best-known brands -- as a roadmap to enhanced success in the face
of today's competitive challenges.
"The same spirit of innovation will enable all of us to develop clearly
differentiated products that command premium prices and will help us attract
and retain the business of a new generation of vehicle owners," Macher said.
"I can tell you with certainty that Federal-Mogul will succeed on the merits
of products that deliver exclusive, demonstrable performance and durability
advantages -- because we understand that offering 'just another replacement
part' is a strategy doomed to failure."
Macher addressed six primary barriers to industry growth: pricing
pressure; the increased quality and service life of modern automotive parts;
growing market complexity; the threat of commoditization of vehicle
components; parts counterfeiting; and manufacturers' willingness and ability
to identify and serve emerging global markets.
"None of these challenges is insurmountable," he said, "but I can assure
you we won't overcome them by sitting still. Bob Dylan wrote, 'If you're not
busy being born, you're busy dying.' That describes the philosophy that will
enable leading aftermarket manufacturers, distributors, jobbers, retailers and
service providers to enhance their growth and profitability."
At the core of this philosophy, according to Macher, are institutional
commitments to innovation and product differentiation, strong brands, and a
strategy of "co-opetition" -- unconventional yet mutually beneficial business
partnerships.
"We know this approach works because we've seen it work at our own
company," he said.
Macher cited several recent Federal-Mogul successes -- including the
Wagner(R) ThermoQuiet(TM) brake pad, one of the few replacement-parts
technologies to win the Automotive News PACE Award for Product Innovation --
as signs of the company's rebirth. "We have filled our product pipeline with
truly differentiated technologies serving the on-the-job demands of today's
engine builders, undercar specialists, underhood technicians and do-it-
yourselfer," he said.
These products, he added, are offered under brands trusted by automotive
technicians and do-it-yourselfers worldwide. "Professionals trust our
industry's best brands because these brands -- and the performance they
represent -- have satisfied millions of consumers for the better part of a
century. It's our opportunity, and our collective responsibility, to
capitalize on this power to grow the automotive aftermarket," he said.
Growth in today's global aftermarket also requires a willingness to forge
non-traditional business relationships, according to Macher, noting that
Federal-Mogul has a variety of joint ventures and other strategic alliances
targeting new markets, technologies and products. "I'm confident we will see
many amazing new business partnerships emerge over the coming decade as
manufacturers, distributors and other aftermarket organizations exploit
synergies to enhance their success," he said. "It's happening in virtually
every technology-intensive industry, and it will become common in ours, as
well."
Macher, who joined Federal-Mogul in January 2001 as CEO and was appointed
chairman of the company's board of directors later the same year, has nearly
40 years of automotive industry experience. This includes experience at
global automotive suppliers and 30 years at Ford Motor Company, where he held
a variety of progressively responsible positions in management, manufacturing,
engineering and quality. Established in 1996, the Global Automotive
Aftermarket Symposium brings together leading aftermarket executives and
analysts through seminars and presentations covering competitive issues facing
today's manufacturers, warehouse distributors, jobbers, retail organizations,
parts rebuilders and service providers.
Federal-Mogul is a global supplier of automotive components, systems and
sub-systems serving original equipment manufacturers and the aftermarket. The
company utilizes its engineering and materials expertise, proprietary
technology, manufacturing skill, distribution flexibility and marketing power
to deliver products, brands and services of value to its customers. Federal-
Mogul is focused on the globalization of its teams, products and processes to
bring greater opportunities for its customers and employees, and value to its
constituents. Headquartered in Southfield, Michigan, Federal-Mogul was
founded in Detroit in 1899 and today employs 47,000 people in 25 countries.
For more information on Federal-Mogul, visit the company's web site at
http://www.federal-mogul.com .
SOURCE Federal-Mogul
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NewsCom: http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
Related links:
http://www.federal-mogul.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/306225.html
CONTACT:
Kimberly A. Welch, +1-248-354-1916, or Jim
Fisher, +1-248-354-9809, both of Federal-Mogul
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