-- Sales Contributions of $30 million Expected in This Fiscal Year --
LOS ANGELES, Aug. 06, 2019 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.(Nasdaq:MPAA) today announced the strategic expansion of its automotive aftermarket brake product offerings, with the introduction of brake calipers.
“The launch of a brake caliper program complements our current braking system products and is consistent with our strategy to leverage our expanding manufacturing footprint by approximately 370,000 square feet in Tijuana, Mexico -- supported by the company’s new state-of-the-art 410,000 square foot distribution facility. We have significant initial customer commitments representing approximately $30 million for the remainder of the current fiscal year. We are attracting additional strong interest for this product, and look forward to fully ramping up production, growing this category, and reporting milestones as fiscal 2020 evolves,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts of America, Inc.
“This category represents a significant growth opportunity, leveraging our more than fifty-year history in the aftermarket industry and the company’s highly regarded competency in remanufacturing. Equally important, the launch of this product line solidifies our position as a full-line brake supplier, which provides the company with solid growth opportunities and favorable financial metrics,” Joffe emphasized.
“We have made significant investments to support our initiatives to become a leading multi-product line supplier and this launch further strengthens our position,” Joffe added.
Industry sources estimate the aftermarket size today for the brake caliper category in the United States is approximately $1.1 billion at the retail level.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer, manufacturer and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearing and hub assemblies, brake calipers, brake master cylinders, brake power boosters, rotors, brake pads and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. Motorcar Parts of America’s products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with facilities located in California, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia and Canada. In addition, the company develops, designs and manufactures testing solutions for performance, endurance and production testing of alternators, starters, electric motors, batteries, inverters and belt starter generators for both the OE and aftermarket. 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. 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 factors. 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 2019 and in its Forms 10-Q filed with the SEC 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.
Gary S. Maier
Source: Motorcar Parts of America, Inc.