Dana To Sell Mr. Gasket Performance
CSK Will Open Service Centers in Bay Area
California to Pay Public To Scrap Their Old Cars

DANA TO SELL MR. GASKET PERFORMANCE

Dana Corporation has announced that it plans to sell its aftermarket-focused Mr. Gasket Performance Group.

The Mr. Gasket Group manufactures and markets of high-performance ignition components, fuel pumps, camshafts, rocker arms, and chrome accessories sold under the brand names of Hurst, Mallory, ACCEL, Hays, Lakewood, Erson, DFI, and, of course, Mr. Gasket.

The Group reported sales of $72 million in 1999 and employs approximately 360 people at two facilities in Carson City, Nev., and Cleveland, Ohio.

Larry McCurdy, president of Dana’s Automotive Aftermarket Group, said, "This move is best for both parties in the long run, as it will allow these operations and their people to grow with a new parent and enable Dana to focus on growing its core businesses."

CSK WILL OPEN SERVICE CENTERS IN BAY AREA

CSK Auto Corporation has signed a deal to open 28 automobile service centers in association with its Kragen auto parts stores in the greater San Francisco Bay area.

The service center space will be either leased or sold -- depending on the location -- to Morgan Tire & Auto, Inc., which does business as Wheel Works in that region. The service centers will be opened either adjoining or sharing a parking lot and customer access with the Kragen stores.

The financial terms of the transaction were not disclosed.

The deal will allow CSK to market to the "do-it-for-me" customer as well as the traditional aftermarket, expanding opportunities for traffic at their existing stores.

"This transaction is consistent with our strategic focus on auto parts retailing. We are pleased and excited to have a market leader like Wheel Works and Morgan Tire as our neighbor at these 28 locations and believe they will deliver the level of service that service center customers need and want. With this transaction, we have reduced our involvement in the servicing of customers’ vehicles and can now focus more on expanding our commercial sales in this region, " said Maynard Jenkins, Chairman and of CSK Auto Corporation.

Jim Curley, Morgan Tire’s Western Region Vice President, said, "These service locations fit perfectly with our current operations and strengthen our market presence in the Greater San Francisco Bay area."

The service centers will be operated by Morgan’s Wheel Works Division, which will have a total of 53 service centers in the Northern California market. This transaction brings Morgan Tire’s total to 395 locations throughout the U.S. in 15 states as operating under the Olson Tire, Wheel Works, Hibdon, Avellino's, Michel Tire, and Performance Discount Tire brands.

CALIFORNIA TO PAY PUBLIC TO SCRAP THEIR OLD CARS

The state of California is launching a new Consumer Assistance Program (CAP) to pay people to scrap their older vehicles.

The program, which in some form has been utilized in California for the past 10 years, is designed to get older cars -- considered higher polluting -- off the road, cutting back on air pollution in the state.

The new program, announced in July, will pay $1,000 to consumers who volunteer their vehicles for retirement. Consumers who have received their DMV renewal notice and then failed their biennial Smog Check test can "jump-start" the process by dialing the Department of Consumer Affairs’ toll-free hotline at 800-952-5210. Eligible motorists can receive a check for $1,000 for turning in their car to be scrapped.

The Consumer Assistance Plan seeks to repair or retire 50,000 major polluters over the next four years.

"In keeping with Governor Davis’ commitment to environmental protection, California is paying eligible consumers $1,000 to retire their coughing clunkers, " stated Kathleen Hamilton, director of the California Department of Consumer Affairs. "This investment will help clean the air, give consumers a break and create a healthier future, " Hamilton added.

The Consumer Assistance Program is run by the Department of Consumer Affairs’ Bureau of Automotive Repair.

Originally published in the August/September 2000 issue of Automotive Booster Magazine.
Copyright 2000 by KAL Publications Inc.