A The North American Suspension Parts Aftermarket

Copyright 2003 Frost & Sullivan Confidential Agenda 01: Service Focus 02: Product Coverage by Segment and Competitor Type 03: Total Market Size and Forecast, : Total Market: Revenues by Product Type, : Total Market: Revenues by Geographic Region, : Major Market Drivers and Restraints 07: Total Market: Impact of Competitive Dynamics on Weighted Prices, : Major Industry Challenges 09: Total Market: Actual Vs. Potential Unit Shipments, 2002

Copyright 2003 Frost & Sullivan Confidential Agenda 10: Total Market: Challenges In Decreasing Underperformed Maintenance, : Strategic Opportunities 12: Major Industry Participants 13: Conclusions 14: Service Features 15: Related Reports 16: For Additional Information

Copyright 2003 Frost & Sullivan Confidential 01: Service Focus This study assesses the North American suspension parts aftermarket For each segment and the total suspension parts aftermarket, we provide: Market Sizing and Market Potential Key Industry Challenges, Drivers, and Restraints Pricing Analysis Competitive Analysis Demand Analysis Strategies for Growing Revenues

Copyright 2003 Frost & Sullivan Confidential 02: Product Coverage by Segment and Competitor Type Shock AbsorbersStrutsCoil Springs Standard replacement aftermarket Original equipment service Niche aftermarket (e.g. light trucks, sport compact) Standard replacement aftermarket Original equipment service Niche aftermarket (e.g. light trucks, sport compact) Standard replacement aftermarket Original equipment service Niche aftermarket (e.g. tuner, hot rod, lowering/raising kits)

Copyright 2003 Frost & Sullivan Confidential 03: Total Market Size and Forecast,

Copyright 2003 Frost & Sullivan Confidential 04: Total Market: Revenues by Product Type, 2002 Shock Absorbers 55% Struts 41% Total Suspension Parts Aftermarket, $592.7 Million Coil Springs 4%

Copyright 2003 Frost & Sullivan Confidential Canada U.S.A. 05: Total Market: Revenues by Geographic Region, United States 92.4% Canada 7.6%

Copyright 2003 Frost & Sullivan Confidential 06: Major Market Drivers and Restraints Underperformed ride control maintenance subdues potential revenues Powerful distributors win price concessions Improving original equipment suspension systems dampen replacements Trend to buy or lease new vehicles negatively impacts replacements Niche markets command increased profit margins Technological improvements justify higher premiums Light truck segment buoys suspension part prices Traditional warehouse distributors support prices

Copyright 2003 Frost & Sullivan Confidential 07: Total Market: Impact of Competitive Dynamics on Weighted Prices, Manufacturer-Level Price Trend Struts CAGR -4.5%Shocks CAGR -2.2% Base Year 2002 Average Selling Price per Segment Forecast Year 2009 Average Selling Price per Segment Coil Springs CAGR -0.3% Total Market CAGR -26.% $13.03 $9.60 $24.50 $17.31 $10.81 $8.20 $17.70$16.92

Copyright 2003 Frost & Sullivan Confidential 08: Major Industry Challenges Market Technician training Commoditization Under- performed maintenance Parts oversupply

Copyright 2003 Frost & Sullivan Confidential 09: Total Market: Actual Vs. Potential Unit Shipments, Million Units, Potential Million Units, Actual Million Units, Potential Million Units, Actual 2002

Copyright 2003 Frost & Sullivan Confidential 10: Total Market: Challenges In Decreasing Underperformed Maintenance, Distributor Technician Manufacturer End-user Distributor Manufacturer Technician Prevailing Marketing ModelEmergent Marketing Model

Copyright 2003 Frost & Sullivan Confidential 11: Strategic Opportunities Under-performed maintenance Model proliferation Excess inventory ChallengesStrategic Action Challenges Strategic Action Train technicians to be better product representatives Consolidate product lines Streamline offerings and reconsider coverage strategy Increasing distributor power Niche market opportunities Consumers’ low understanding of ride control Build brand and product category equity as counter- leverage Research market for niche growth opportunities Innovate low- cost, high return education initiatives

Copyright 2003 Frost & Sullivan Confidential 12: Major Industry Participants ArvinMeritor, Inc. Cofap (subsidiary of Magneti Marelli Holding S.p.A.) Dana Corporation Delphi Corporation Eibach Springs Federal-Mogul Corporation KONI North America KYB America, LLC Sachs North America Inc. Tenneco Automotive Inc. ThyssenKrupp Bilstein of America, Inc. Tokico Gas Shocks Union Spring & Manufacturing Corp.

Copyright 2003 Frost & Sullivan Confidential 13: Conclusions Longer lasting original equipment compels manufacturers to seek other avenues for growth Challenge to move product categories away from base commodification To maximize brand equity, companies need to boost low consumer awareness of ride control products and functions Underperformed maintenance holds significant growth potential Companies must utilize technicians as effective product and brand representatives Growth opportunities in niche aftermarket

Copyright 2003 Frost & Sullivan Confidential 14: Service Features Research Leadership Leading-edge market sizing Most extensive report on suspension parts aftermarket available Strategic Focus Addresses strategic issues in the suspension parts aftermarket by major product categories Detailed measurements and forecasts on key aspects for strategic planning Innovative Alternative forecasts to make the strategic planning process more flexible and responsive to industry developments

Copyright 2003 Frost & Sullivan Confidential 15: Related Reports North American Steering System Hard Parts Aftermarket (A386-18) North American Remanufactured Rack and Pinion Steering Aftermarket ( ) North American Brake Parts Aftermarket (A146-18) North American Sport Compact Exterior Appearance Aftermarket (A392-18)

Copyright 2003 Frost & Sullivan Confidential 16: For Additional Information Rudy Luna, Sales Manager Automotive/Transportation Group Tel Inge Matthey, Director Automotive/Transportation Group Tel Nuha Kadri, Media Relations Executive Automotive/Transportation Group Tel