 The End Of The Automotive Aftermarket?
This year (2008) will certainly go down in the history books as one with unprecedented ups & downs, both inside our industry and for those normal souls in the world not affected with our addiction to speed. Quite frankly, many within our industry are downright worried about their personal livelihood and the future outlook for our slice of the automotive industry. Bankruptcies, credit freezes, bailouts, layoffs – does it spell the end for the automotive aftermarket and motorsports industry?
Maybe I’m being the eternal optimist or just plain foolish, but I think the automotive aftermarket will survive just fine, albeit not without some serious changes. No doubt things are bad out there, and unfortunately, good people are suffering. However, I believe strongly that when good people and businesses get knocked down – the very best among them pick themselves up off the mat and fight back. There’s a very good chance that we will lose some iconic brands/businesses within our industry before we emerge from this downturn. Unfortunately, many of the most respected brands in the automotive aftermarket today are only a shell of what they were during their heyday – due to being “bought up” by investment companies in the past decade. These investment companies are in the money business first and foremost, and without a true passion for this industry it is unlikely they will have the stomach or cash flow to make it through to an economic recovery. It will be sad to see these brands disappear – some never to be heard from again.
With that being said, better days are on the horizon and while our industry will probably have a different look on the other side of this economic downturn, those companies that emerge will be strong & poised to innovate like never before. Innovation has always been a hallmark for our industry but now, more than ever, it will separate the “haves from the have-nots”. The cars, the engines, the racing and most certainly the technology are all changing at a blinding pace (some of it being fast forwarded by the economy) that has never been experienced by our industry. Those that cannot adapt their products and business models will find themselves on the outside looking in very soon. Who knows what tomorrow may hold – is it possible that we will be unloading electric race cars at the local drag strip or dirt track? I’m not sure anyone can answer this one today, but one thing I can tell you is that the COMP Performance Group™ companies will be there, leading the way. In fact, every time I step back into the CPG™ R&D Center I catch glimpses of what’s coming next – and let me just say it’s going to be one hell of a ride.
Racers & hot rodders are a resilient bunch, and I know deep down that everything is going to be fine over the long haul. After all, most racers/enthusiasts (myself included) are used to struggling to find the money to race or finish their latest project even in the best of economic times. My point is that our fellow enthusiasts will continue to find a way to follow their passion and nothing – not economic downturn, technology changes or other outside influences – will stop them from pursuing it. Our passion is both a curse and a blessing, but it will keep us soldiering forward even under adverse conditions. Today and always – it will continue to be cool to go fast!
Chris Douglas
Director of Marketing
COMP Performance Group™
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