Automotive Repair & Maintenance Services

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Environment 5
Population 8
Personal Consumption Expenditures 11
Light Vehicle Overview 12

III. REPAIR & MAINTENANCE SERVICE TRENDS 15
General 15
Vehicle Quality Improvement 18
Labor Pricing Trends 22
Technician Capabilities 23
Technology & Materials Trends 25
Global Supply & Demand Trends 28

IV. REPAIR & MAINTENANCE SERVICES 31
General 31
Mechanical 33
Filters 35
Engine 40
Drivetrain 43
Steering & Suspension 45
Cooling System 49
Brakes 53
Exhaust/Emission System 57
Air Conditioning System 64
Fuel System 65
Exterior & Structural 68
Body Repair 69
Windows & Glass 71
Tires & Wheels 73
Electrical 75
Ignition Systems 76
Batteries 80
Lighting Equipment 82
Charging Equipment 84
Other Electrical 86
Electronics 87
Diagnostics 89
Entertainment Systems 92
Controls, Modules & Sensors 94

V. REPAIR & MAINTENANCE SERVICE PROVIDERS 97
General 97
New Light Vehicle Dealerships 99
General Repair & Service Stations 102
Body Shops 105
Specialists 106
Tire Stores & Repair Chains 109
Quick Lubes 111
Other 113

VI. SERVICES BY PROVIDER 115
General 115
Revenues by Service Provider 117
Collision Repair Service 119
Ignition & Engine System Service 121
Routine Maintenance Service 123
Drivetrain System Service 125
Temperature Control Service 127
Brake System Service 128
Glass, Mirror & Lamp Service 130
Steering & Suspension Service 131
Exhaust System Service 133
Electrical System Service 134
Computer & Emissions System Service 135
Other Service 137

VII. INDUSTRY STRUCTURE 139
General 139
Industry Composition 140
Market Share 142
Mergers, Acquisitions & Industry Restructuring 145
Product Development & Manufacturing 148
Marketing 150
Distribution 151
Company Profiles 155
AAMCO Transmissions Incorporated 156
Asbury Automotive Group Incorporated 157
Ashland Incorporated 158
AutoNation Incorporated 159
BFS Retail & Commercial Operations LLC, see Bridgestone Corporation
Big O Tires Incorporated, see Sumitomo Corporation
Bridgestone Corporation 161
Car-X Associates Corporation, see Tuffy Associates Corporation
CarMax Incorporated 162
CARSTAR Incorporated 163
Diamond Glass Companies 164
Discount Tire Company Incorporated 165
Driven Brands Incorporated 166
Econo Lube N'Tune Incorporated, see Driven Brands Incorporated
Exxon Mobil Corporation 167
Goodyear Tire & Rubber Company 168
Group 1 Automotive Group Incorporated 169
Hendrick Automotive Group Company 170
Jiffy Lube International Incorporated, see Royal Dutch Shell plc
Lithia Motors Incorporated 171
MAACO Enterprises Incorporated 172
Marathon Oil Corporation 173
Meineke Car Care Centers Incorporated, see Driven Brands Incorporated
Midas Incorporated 174
Monro Muffler Brake Incorporated 175
Penske Corporation 177
Pep Boys - Manny, Moe & Jack 178
Prestige Auto Glass Incorporated, see Diamond Glass Companies
ProCare Automotive Service Solutions LLC, see Monro Muffler Brake Incorporated
R&S Parts and Service Incorporated, see Monro Muffler Brake Incorporated
Royal Dutch Shell plc 180
Safelite Group Incorporated 181
Scheib (Earl) Incorporated 182
Schwab (Les) Tire Centers 183
Sears Holdings Corporation 184
Settles Glass, see Diamond Glass Companies
Somerset Tire Service Incorporated 185
Sonic Automotive Incorporated 186
Sumitomo Corporation 187
TBC Corporation, see Sumitomo Corporation
TCG International Incorporated 189
Tuffy Associates Corporation 190
United Auto Group Incorporated 191
Valvoline Company, see Ashland Incorporated
Wal-Mart Stores Incorporated 192

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Environment 8
2 Population 10
3 Personal Consumption Expenditures 12
4 Light Vehicle Overview 14

SECTION III -- REPAIR & MAINTENANCE SERVICE TRENDS
1 World Light Vehicle Service by Region 30

SECTION IV -- REPAIR & MAINTENANCE SERVICES
1 Automotive Service Revenues by System 33
2 Mechanical Service Revenues 34
3 Filter Service Revenues 36
4 Engine Service Revenues 43
5 Drivetrain Service Revenues 44
6 Steering & Suspension Service Revenues 47
7 Cooling System Service Revenues 50
8 Brake Service Revenues 57
9 Exhaust/Emission System Service Revenues 59
10 Air Conditioning System Service Revenues 65
11 Fuel System Service Revenues 67
12 Exterior & Structural Service Revenues 69
13 Body Repair Service Revenues 71
14 Automotive Windows & Glass Service Revenues 73
15 Tire & Wheel Service Revenues 75
16 Electrical System Service Revenues 76
17 Ignition System Service Revenues 78
18 Battery Service Revenues 82
19 Automotive Lighting Equipment Service Revenues 84
20 Charging Equipment Service Revenues 86
21 Other Automotive Electrical System Service Revenues 87
22 Electronics Service Revenues 89
23 Electronic Diagnostic Service Revenues 92
24 Entertainment System Service Revenues 94
25 Electronic Controls, Modules & Sensors Service Revenues 96

SECTION V -- REPAIR & MAINTENANCE SERVICE PROVIDERS
1 Automotive Service Revenues by Provider 99
2 New Light Vehicle Dealer Service Revenues 102
3 General Repair & Service Station Service Revenues 104
4 Body Shop Service Revenues 106
5 Specialist Service Revenues 108
6 Tire Store & Repair Chain Service Revenues 110
7 Quick Lube Service Revenues 112
8 Other Service Provider Revenues 114

SECTION VI -- SERVICES BY PROVIDER
1 Automotive Service Revenues by Job Type 119
2 Collision Repair Service Revenues by Provider 121
3 Ignition & Engine System Service Revenues by Provider 123
4 Routine Maintenance Service Revenues by Provider 125
5 Drivetrain System Service Revenues by Provider 126
6 Temperature Control Service Revenues by Provider 128
7 Brake System Service Revenues by Provider 129
8 Glass, Mirror & Lamp Service Revenues by Provider 131
9 Steering & Suspension Service Revenues by Provider 132
10 Exhaust System Service Revenues by Provider 134
11 Electrical System Service Revenues by Provider 135
12 Computer & Emission System Service Revenues by Provider 137
13 Other Automotive Service Revenues by Provider 138

SECTION VII -- INDUSTRY STRUCTURE
1 Revenues for Selected Automotive Service Providers, 2005 142
2 Selected Acquisitions & Divestitures 147

LIST OF CHARTS

CHART NUMBER PAGE

SECTION III -- REPAIR & MAINTENANCE SERVICE
TRENDS
1 US Light Vehicle Production by Company, 2005 17
2 Quality Impact on Major Aftermarket Parts & Components Segments 19
3 Vehicle Durability Comparison 21
4 Aftermarket Value of Increased Durability 22

SECTION VII -- INDUSTRY STRUCTURE
1 Automotive Service Market Share by Company, 2005 145