Aftermarket Body-parts is Inflation-proof Biz: Gordon Auto Body

Taipei, Aug. 12, 2008 (CENS)--Gordon Auto Body Parts Co., Ltd., a major aftermarket (AM) body sheet-metal parts maker and a listed company in Taiwan, recently announced promising operation results for July, including revenue of NT$299.2 million (US$9.81 million at US$1: NT$30.5), up 23.8% from the same month of last year.

In the first seven months, Gordon registered accumulated revenue of NT$1.97 billion (US$64.49 million at US$1: NT$30.5), up 7.7% from a year earlier. The company claimed that the rising figures show AM body sheet-metal parts is an inflation-proof business, with the high revenue in July achieving a surprising trend in the third quarter, a traditional low season.

Gordon pointed out that the AM parts business is closely related to global vehicle ownership volume and car accident rates, so suffer less from weakening spending power and overall economic environment. The world's largest AM replacement parts maker, Gordon, said according to statistics compiled by a company with agreements with major insurers in the United States, the market share of AM auto parts climbed to 13% in 2008 from only 9% in 2000, with that of original equipment (OE) parts declining from 76% to 69%.

Parts makers said that about 93% vehicles in the United States and Europe are insured, so auto insurers' attitude toward AM parts is the key factor influencing market prosperity.

Another positive sign further driving promise in the AM parts market in Europe is, according to Gordon, Thatcham of the U.K. and TUV of Germany, two major certification organizations in Europe, have partnered to cross-license each other's certified items.

In Taiwan, Gordon carries the biggest number of Thactcham-certified products, which are expected to greatly enhance the firm's competitiveness in the bourgeoning AM market.