1. Fuel Pump Returns: Do We Have a Problem? October 19, 2005 Romulus Marriott Romulus, Michigan

2. © 2005 Motor & Equipment Manufacturers Association What is MEMA? Founded in 1904 700+ manufacturer members MEMA exclusively represents manufacturers of:  motor vehicle components  tools and equipment  automotive chemicals and related products.

3. © 2005 Motor & Equipment Manufacturers Association AASA: Automotive Aftermarket Suppliers Association MEMA created its aftermarket segment in 2002 Only trade association exclusively serving aftermarket suppliers Allows us to concentrate efforts on supplier issues, which may at times be sensitive

4. © 2005 Motor & Equipment Manufacturers Association

5. Brake Manufacturers Council MEMA “product line group” that focuses on brake manufacturer issues Example:  Was concerned that brake pads and shoes on the market were of poor quality  Developed BEEP – a brake pad and shoe performance program to identify products that meet Federal Safety Standards for OE braking systems.  Now technicians/consumers have confidence when purchasing/installing quality products

6. © 2005 Motor & Equipment Manufacturers Association Motor Vehicle Lighting Council MEMA “product line group” focusing on automotive lighting issues Example  Adoption of HID/Xenon lighting lags in the United States  Create education and media campaign to communicate safety advantages of the new systems

7. © 2005 Motor & Equipment Manufacturers Association An Aftermarket Dilemma Return rates have gotten out of control Some estimate 30% of sales are returned Customers abuse the system because they can Some suppliers have used lax return policies as a sales and marketing tool Customers do not want to address the issue (“not our problem”) With margins eroding, reducing warranty costs can be the difference in being profitable (or maybe surviving)

8. © 2005 Motor & Equipment Manufacturers Association A Knowledge Issue Vehicles and parts have become more complex Diagnosis and repair requires new knowledge and tools Many service professionals, specifically in the independent aftermarket, have not received adequate training

9. © 2005 Motor & Equipment Manufacturers Association Fuel Pump Returns A member raised a concern:  A high number of fuel pump returns were not failed products  Lack of technician knowledge was leading to improper diagnosis and needless returns  Replacement procedures, such as fuel tank decontamination, was not happening – leading to more returns

10. © 2005 Motor & Equipment Manufacturers Association Step 1: Schedule an Exploratory Meeting Airtex Beck Arnley Bosch DaimlerChrysler/ Mopar Delphi Denso Federal-Mogul Ford/Motorcraft GMSPO/AC Delco The Pierce Company TI Automotive/ Walbro

11. © 2005 Motor & Equipment Manufacturers Association What Can Be Done? Is this a real problem? Are most fuel pump manufacturers experiencing similar issues? Can the industry collaborate to develop possible solutions? Are there other issues regarding fuel pumps we need to address? Can AASA take the lead in generating consensus among manufacturers and facilitate next steps?