ArvinMeritor chief says aftermarket storm still hasn’t calmed

TROY, Mich, (Sept. 25, 2002) — Tom Gosnell, president of ArvinMeritor’s Commercial Vehicle Systems and Commercial Vehicle Aftermarket, recently told members of the Wheel and Rim Association in Banff, Alta. that the industry will be facing troubles for at least one more year.

“We aren’t facing the same difficulties as we were six months ago, but the market isn’t as good as we thought it was two months ago,” he said in a keynote speech at this year’s NWRA annual meeting, which was titled “Navigating the Storm.” He said he’s confident the market is poised to recover, but because of the sluggish economy, it will take longer than previously anticipated.

“While the aftermarket is a cyclical industry, and will continue to be, the next few years will bring us many changes and advancements,” he said. “We have begun to see the used truck surplus reducing, the trade cycles will continue to extend to about five to seven years, and the overall fleet
population will continue to expand.”

As the used vehicle surplus decreases, the vehicle age will increase, which will lead to higher parts demand and consumption and to the increased need of service centres, Gosnell said. He also suggested that both financial stability and technology adoption is critical for the entire aftermarket if it hopes climb out of the recession.