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Re: A little background on the auto parts business.... (long)

To: "Michael D. Porter" <mporter@zianet.com>
Subject: Re: A little background on the auto parts business.... (long)
From: Joe Curry <spitlist@gte.net>
Date: Fri, 31 Dec 1999 13:28:57 -0700
Cc: triumphs@autox.team.net
References: <199912301857_MC2-92E3-2715@compuserve.com> <386CD1FC.344CEAE4@frontiernet.net> <386CD0D6.AAFB78F4@gte.net> <386D10DE.7AB48006@zianet.com>
Michael,
Once again you succeeded in explaining in 56 lines what I was trying to
do in 5.  Are you sure you aren't a Technical Writer or something like
that?  :)

All the best to you,
Joe

"Michael D. Porter" wrote:
 board of directors, a president and ....  Oh well, it was a thought!
>
> All of which is mostly to describe the relationship of both rights and
> tooling. Most of us probably don't know the charter relationship between
> BMIHT and its "approved" suppliers. Given the term, "approval," what is
> likely meant by that is the right to use the symbols and logos and names
> associated with those parts and little more, although there may be some
> requirements to generally meet OEM standards, or to purchase certain
> amounts of parts from British suppliers, in exchange for those rights to
> names and logos. The rights to any tooling TRF or any other supplier
> might have built, at their expense, to supply no longer available OEM
> parts would certainly be theirs alone, and would be considered assets of
> the company were it to go into bankruptcy.
> 
> As regards all "BMIHT-approved" suppliers, that relationship could
> change, since the rights to OEM parts are retained by the company, or
> its assignees, in this case, BMIHT and its parent, BMW. If BMIHT, for
> example, decided to change the relationship, insisting that only
> "authorized" suppliers could offer parts described as "OEM," or "OEM
> approved equals," that might radically change how and where we in the US
> buy parts for our cars.
> 
> Under those conditions, I could build and sell any part I liked for any
> Triumph, as long as there was not a patent currently in force on that
> item. But, I could not put the logo "Stanpart" or the OEM part number on
> it, nor could I advertise it as an OEM part, even if it were equal in
> appearance and quality to the original, unless I made prior arrangements
> with the holder of the rights to that part.
> 
> Any one or more of the current large suppliers of Triumph parts could
> cease operations at any time, for a variety of reasons--bankruptcy,
> insufficient profit, or local laws and regulations adversely affecting
> their operations, to name a few.
> 
> But, if there's enough money to be made in the business, someone will
> fill the void created by a company's departure. That's fairly certain.
> Equally certain is that the company providing the best quality with the
> best service at competitive prices is going to get the larger share of
> the total business. If one firm or another fails in that effort, other
> companies will benefit, and perhaps, new suppliers will enter the
> market.
> 
> This is not an ever-expanding business. The number of Triumphs,
> unfortunately, is now finite. Hopefully, more cars will be resurrected
> than are destroyed in accidents, etc., and that will increase the
> available sales volume to the benefit of both sellers and purchasers of
> parts. We all applaud the likes of those here and elsewhere who are
> putting Triumphs back into useful form, because it benefits us all and
> preserves the marque. Some credit, therefore, has to be given to those
> supplying parts in that effort, even if their level of service is at
> times uneven.
> 
> And, on that note, I depart shortly to take delivery of the latest need
> for resurrection, a `64 TR4, CT25945LO.
> 
> Cheers.

-- 
"If you can't excel with talent, triumph with effort."
 -- Dave Weinbaum in National Enquirer

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