SOURCE: Rothman Research

Rothman Research

March 10, 2010 09:26 ET

The Component and Controls Industry

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 10, 2010) -

The global output for automobile components is estimated to reach $742.8 billion in 2010 compared to $605 billion in 2006 to cater to the growing demands of emerging countries like China, India and Eastern Europe. The main drivers behind this are low production costs and high local demands in the region. In the North Americas and Japan growth in the automobile component industry will come to a standstill in 2010 according to studies. Bradley McCoy, senior analyst at stated, "It is true that original equipment takes a big proportion of the automobile component market pie. With an average warranty period of 3 years, original parts are as a rule used for maintenance and replacement during that time period... reasons being that depreciation on the car value is still bearable. But with the current economic environment, we see more and more end-users opting for non-original parts once the warranty period expires."

Studies conducted by leading research firm evaluate two key companies involved in the auto parts industry, Johnson Controls Inc (NYSE: JCI) and Arvin Meritor Inc. (NYSE: ARM).

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"We have seen an explosion in the demand for car customization in recent years and this has helped boost the expansion of the after-sale market within the auto parts sphere," added Bradley McCoy. Learn more about this industry by registering as a complimentary member at

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Johnson Controls Inc. makes car batteries and interior parts for passenger and hybrid electric vehicles, as well as energy-efficient HVAC systems for commercial buildings. Car interior products include seating, instrument panels, and electronics. Major OEM customers include GM, Daimler, Chrysler, and Ford. The battery unit makes car batteries for retailers such as Advance Auto, AutoZone, Pep Boys, and Wal-Mart. The building efficiency division makes, installs, and services mechanical equipment that controls HVAC, lighting, security, and fire systems in commercial buildings. The unit also offers on-site facility management.

Whereby, ArvinMeritor Inc. is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves commercial truck, trailer and specialty original equipment manufacturers (OEMs) and certain aftermarkets, and light vehicle manufacturers.

Visit to see how this company has grown over the past years.

To learn more about Johnson Controls Inc. and Arvin Meritor Inc., log on to for a free research report, to help you make the right decision.

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