Palo Alto, Calif. — Frost & Sullivan’s recent analysis of the North American Mechanical/Electrical Collision Replacement Aftermarket recognized Genera Corporation with the 2005 Market Leadership Award for its role in servicing the North American automotive collision repair industry.

This Award is in recognition of the company’s leadership role in servicing the North American automotive collision repair industry.  Companies nominated as market leaders exhibit excellence in their ability to lead the market in revenue market share, building strategies to identify and tackle industry challenges, devise strategies to identify and capitalize on emerging market opportunities, and market penetration.

TYC/Genera Corporation became a supplier to North America’s automotive aftermarket in 1991.  Since its North American debut, Genera’s business has shown tremendous growth, from a modest $2 million in sales in 1991 to much anticipated $150 million in 2005.  Key to the company’s growth is its product lines and market penetration.  TYC/Genera entered the market by supplying replacement lighting products to the automotive aftermarket and have continued to support the industry with an ever-expanding line of performance lighting and high-demand collision replacement mechanical/electrical products including radiators, condensers, cooling fan assemblies, and exterior mirrors.  The North American automotive repair industry has two distinct distribution channels, General wear replacement and Collision replacement.

TYC/Genera has experienced tremendous growth and penetration of the collision replacement channel, while research by Frost & Sullivan covering the automotive mechanical/electrical collision replacement industry outlines the market to lucrative in the short and medium term.  In 2004, revenues generated by collision replacement components represented 66.6 percent of the total, versus wear replacement that only generated 33.4 percent.  Furthermore, Frost & Sullivan’s research indicates that revenues generated by all types of collision replacement components are forecast to rise at double the rate of wear replacement components through 2011.

Throughout the industry TYC/Genera’s lighting line is recognized by collision repair insurers, collision parts warehouse distributors, and retailers as their brand of choice. TYC/Genera’s entry into the North American aftermarket is complementary with the region’s willingness to accept products produced by aftermarket manufacturers as replacements for original equipment.  Aftermarket replacement products offer OE-like fit and performance with competitive price margins.  The breadth and variety of products available, high quality, and value pricing appeals to North American auto insurers who are constantly striving to contain auto repair costs and keep insurance premiums in check.  Vehicle manufacturers and original equipment component manufacturers have taken exception to aftermarket components as they have rapidly eroded revenues and market share in the collision replacement industry.

Anti-aftermarket campaigns have focused on the perception of cheaper quality products that fail to comply with industry standards.  To enhance market positioning and growth, quality-focused aftermarket manufacturers and distributors supported the development of aftermarket certification programs such as those presented by CAPA (Certified Automotive Parts Association) and MQVP, Inc (Manufacturers’ Qualification and Validation Program).  These programs provide a means of ensuring consistent product quality and creating an infrastructure to track the certified parts, thereby enhancing overall market receptivity and customer satisfaction through all levels of distribution.  Most major insurance companies have embraced certification programs; through which they could confidently assure policyholders that quality parts that conform to prescribed North American safety standards are being installed on their vehicles. 

Certification program standards are highly regarded by insurance companies, many of which have started to prescribe CAPA and MQVP aftermarket products on quotations.  In 2004, when confusion arose in the industry around lighting conformity standards, the insurance companies adopted a more cautious approach with aftermarket parts.  For a brief period, top North American insurers not only stopped endorsing aftermarket components but also refused to authorize their use.  TYC/Genera and other aftermarket lighting suppliers experienced a noticeable impact on sales.  As a leader in the industry by volume of product, principal personnel within TYC/Genera Corporation were instrumental in working with CAPA and MQVP, Inc. in clarifying aftermarket component standards.  TYC/Genera’s lighting products were the first products to be placed in a CAPA pre-qualification program at Grand Rapids, Michigan, which provided an enhanced familiarity with the qualification standards.  As of April 2005, TYC/Genera’s pursuit of certification for key lighting components has reestablished support from key insurers, who are delighted at the additional value and quality assurance provided by a proactive aftermarket component manufacturer. 

In 2004, aftermarket products were sold primarily through the warehouse distribution (WD) channel.  Conversely, OE units are primarily sold through the original equipment service (OES) channel.  The WD channel dominates as the channel of choice for radiators and condensers.  Although it is not the primary channel for lighting in 2004, 40 percent of all lighting revenues flowed through the WD channel in 2004.  In 2005, TYC/Genera Corporation serviced the North American aftermarket with 5 state-of-the-art regional distribution centers.  It is expected that the percentage of revenues through the WD channel will continue to rise and that TYC/Genera, as the leading participant to this channel, is well positioned in relation to the industry trends to succeed in the short and medium term. 

Through its actions in sales generation, product offering, price, brand positioning, distribution channel support, and advocacy for industry issues, TYC/Genera Corporation has exemplified itself as a market leader and Frost & Sullivan is pleased to recognize its achievements with this Award.

About Genera

Genera Corporation, headquartered in La Palma, California, is the North American distribution arm of TYC. It is Genera’s policy to introduce at least one new product line each year. Products introduced include automotive air conditioner condensers, radiators, unitized cooling fan assemblies, side mount rear view mirrors, performance lamps, condenser and radiator fan motors, and, most recently, blower assemblies. Each new product line must meet rigid quality and fit standards, and is tested by Genera for fit and performance prior to market release. For additional information, visit www.genera.com

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Contact:

Stacie Jones

210.247.2450

Stacie.jones@frost.com