TBC - Competitors

TBC Competition

Now Viewing TBC's competition in: Automobile Parts Wholesale-Retail

Recent Developments

ArvinMeritor to Spin Off Light Vehicle Systems Business - Auto supplier ArvinMeritor joins the ranks of other auto parts makers, such as Dana Holding, that have shifted strategies to focus on more targeted markets such as commercial vehicles, parts for passenger car OEMs, or the auto aftermarket. ArvinMeritor will spin off its Light Vehicle Systems (LVS) division to shareholders. The move is aimed at increasing strategic focus at each of its two divisions, LVS and Commercial Vehicle Systems (CVS), while improving value for shareholders. ArvinMeritor's CVS unit makes axles, transmissions, and brakes for commercial vehicles; LVS makes doors, roofs, wheels, and suspension components for passenger cars.

O'Reilly Reports Lower Profits - Auto parts retailer O'Reilly is acquiring rival CSK Auto Corporation, a transaction that will make O'Reilly the third-largest auto parts retailer in the US after AutoZone (number one) and Advance Auto Parts. O'Reilly Automotive reported lower-than-expected profits for first quarter 2008, citing the slowing economy and rising gas prices. Same-store sales, an indicator of retail growth, dropped 0.4 percent compared to first quarter 2007, when sales had risen 6.8 percent over the previous year.

US Auto Parts Industry Aided by Foreign Demand - US parts makers are relying more on overseas customers as auto production in the US slows due to a weakened economy, high fuel prices, supplier strikes, and few small car offerings relative to some foreign competitors. European and Asian auto production are both up; the increase in demand combined with a weak dollar make US-made parts a bargain. Despite the positive outlook, US exports of motor vehicle parts were down 2.4 percent in the first two months of 2008 compared to the previous year.

Competitive Landscape

Demand for aftermarket parts is driven by the age and mileage of vehicles, generally increasing when fewer new cars are sold. The profitability of individual companies depends largely on inventory management and marketing. Small companies can compete effectively by carrying specialized parts or providing extra services such as machining or fast delivery. Average annual revenue per employee is about $700,000 for wholesalers, $100,000 for small retailers, and $175,000 for large retailers.

Full Industry Overview For Automobile Parts Wholesale-Retail

Automobile Parts Wholesale-Retail Industry Forecast

from Hoover's/D&B subsidiary First Research

Domestic demand for US auto parts is forecast to increase at an annual compounded rate of 5.7 percent between 2007 and 2012.

Domestic Auto Parts Demand Growth Uneven

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.