LOS ANGELES, Feb. 8, 2008 (PRIME NEWSWIRE) -- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today announced it has received an exclusive three-year extension of a supply contract for new and remanufactured alternators and starters from a major automotive retailer, with estimated aggregate sales of approximately $50 million. Terms were not disclosed.
"The extension of this supply agreement secures an important business relationship and enables both of our organizations to benefit from anticipated increasing replacement rates as vehicles age beyond the current 9.4 year average," said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc.
He noted that replacement rates for vehicles within the four-to-seven year age group are estimated to double when these vehicles reach the age of eight to eleven years, with repair rates almost doubling again once vehicles are more than 12 years old. Joffe emphasized that industry sources project 60 million vehicles will enter the eight-to-eleven year range during the next three years -- noting that today there are approximately 49 million vehicles within this category. Industry sources expect registered vehicles within the more than 12-year old category to climb significantly during the next three years, he added.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles and light trucks. Its products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with facilities located in California, Tennessee, Mexico, Malaysia and Singapore. Additional information is available at www.motorcarparts.com
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company, including expected sales from this multi-year contract extension and the benefits derived from an aging vehicle population. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factor. Reference is also made to the Risk Factors set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC)in June 2007 and in its Form 10-Qs filed with the SEC thereafter for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.