010109PR

PRESS RELEASE
For Immediate Release
May 4, 2009

Contact: Geoff Crane
Phone Direct: 1-901-398-5759
E-Mail geoff@diamondstandardparts.com

Considering Part Availability During OEM Bankruptcy, Plant Shutdowns & Dealer Closings

The North American Auto Industry has entered what could well be described as a “Perfect” Storm of record losses, bankruptcies, dealership closures, and extended plant closings. The collision repair market should be closely monitoring the marketplace to measure the affects on parts availability, price stability and establishing Alternative parts usage programs to ensure part availability and repairs can be made without delay. As the deteriorating market conditions are already driving increased Alternative part usage be cognizant, especially with regard to safety parts, that the safety part represented as a replacement for the OEM part is a true alternative and not an aftermarket part from some manufacturer’s who will compromise and substitute using non-OE material and forming processes. This yields a part which fails to meet either the function and performance standard which came on the vehicle, the assurance of Diamond Standard Parts performance and/or Federal standards of crashworthiness. Use of these substandard performing safety parts will not properly restore the collision management system’s ability to withstand damage, increasing damage and total losses and can risk occupant safety as proven in extensive crashworthiness testing by an industry leading independent Research facility with results validated by 3rd party crashworthiness experts from NHTSA and The Volpe Corporation.

Importantly, Diamond Standard Brand Alternative Safety parts ARE NOT effected by the North American Auto Industry woes and backed by 5 factories/assembly plants with a manufacturing stream and part availability that are both secure and steady. Having anticipated increased Alternative parts usage and even new supply chain model relationships, Diamond Standard has invested in material, inventory and capacity to meet the needs of the collision repair marketplace now and going forward.

We believe there is systemic risk with this bankruptcy, plant closings and loss of thousands of dealerships when you consider the impact of the precipitous drop in new vehicle volume and tight supply for OE material that a number of Tier II and aftermarket part manufacturers could fail. The domino effect in fact could be substantial beyond those failures and that is price of parts. According to Kimberly Rodriguez, of turnaround advisory firm Grant Thornton, she believes that automakers not surviving on federal loans have been subsidizing their ailing suppliers for months in an effort to keep parts flowing to factories. “You are going to have to pay a lot more to ensure parts if they’re only operating at 20% capacity," she said.

Beyond the Diamond Standard assurance of a secure and steady supply of parts which are true alternative safety part to OEM we provide the assurance of OEM fit, form, function and performance for less. We are proud of our reputation for excellence regarding precision engineered safety parts, uncompromised quality and the ability to supply the market for less as we all weather these most difficult times.

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