Keystone Automotive Industries, Inc.

Aftermarket Parts In Automotive History

New replacement auto body parts such as fenders, bumpers, hoods, lights, etc., are parts referred to as “aftermarket” or “functionally equivalent” parts when made by a company other than the original car manufacturer (Ford, Chrysler, Chevrolet, and others). Equivalent comparisons in the mechanical parts business would be aftermarket items such as Sears® Die-Hard™ batteries, Monroe® shocks and Midas® mufflers to name a few replacements to the original parts that are not manufactured by original equipment manufacturers (OEM).

Upsetting An Expensive Monopoly

Before the early 1980s, new car manufacturers enjoyed a virtual and expensive monopoly on the production and sale of replacement body parts. Unencumbered by competition, the resulting cost for replacement parts was extremely high. Unfortunately, consumers and auto insurers had no choice but to pay the monopolistic prices established seemingly at will by the auto manufacturers. Then, during the mid-80s, consumers were finally given some much-needed relief when independent manufacturers began making auto body replacement parts. These new competitors priced their parts at a substantially lower cost than those charged by automobile manufacturers for original equipment manufactured (OEM) parts; in some cases the costs were 20% to 50% less. The auto manufacturing industry (which had controlled the collision replacement parts market since the days of the Model T), began waging a massive legal and public relations campaign to discourage the use of these “aftermarket parts.” Contrary to the competitive American marketplace, the auto makers went on attack by proclaiming all competitive parts inferior and unsafe. The auto manufacturers even went so far as to predict that the use of these aftermarket parts would ultimately reduce the value of any vehicle on which they were used for repairs. Meanwhile, the cost of a hood – a simple piece of machine-stamped sheet metal – remained considerably higher than that of a complex piece of consumer electronics, such as a VCR.

Continued Campaigning Against Aftermarket Parts

Today, despite increased public acceptance of competitive parts and proven quality/performance statistics, auto manufacturers continue to oppose their use. In fact, these auto makers spend millions of dollars each year on extensive media campaigns in an attempt to shore up their shrinking control of the market by insinuating that competitive parts are inferior.

The truth, however, is evidenced in the statistics showing increases in the number of certified parts, their usage in auto repair and the subsequent reduction in price of OEM parts in response to the presence of healthy competition.

Competitive Pricing

For example, in 1992 an OEM fender for the Toyota Camry cost $253, before any comparable aftermarket part was available. By 1996, when an equivalent, quality aftermarket fender was available for only $100, the price of the OEM Camry fender had suddenly dropped to $143.88, posing an interesting question: Would OEMs reduce their price that much if they really believed aftermarket parts were inferior? The answer can be found driving on thousands upon thousands of cars and trucks all over North America today.  

Auto owners today enjoy price reductions as much as 40% or more, depending on the part and complexity of repairs involved. In comparison, if a repair shop were to completely rebuild a car using only OEM parts, the cost would still be nearly three times the original retail price! For example, an average Ford or GM car selling for $14,000 on the showroom floor would cost more than $40,000 if purchased piece by piece using OEM parts. That’s not exactly driving a good bargain.

All in all, aftermarket body parts offered by Keystone are a high quality alternative to the much higher priced OEM parts, giving today’s car and truck owners a highly competitive choice.