Dorman Products Inc was incorporated in Pennsylvania in October 1978. The Company is a supplier of replacement parts and fasteners for passenger cars, light trucks, and heavy duty trucks in the automotive aftermarket. It distributes and markets approximately 155,000 different stock keeping units (SKUs) of automotive replacement parts and fasteners, many of which it designs and engineers. Original equipment dealer exclusive items are those which were traditionally available to consumers only from original equipment manufacturers or used parts from salvage yards and include, among other parts, intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation (EGR) coolers and complex electronics modules. Fasteners include such items as oil drain plugs, wheel bolts, and wheel lug nuts. Approximately 84% of its products are sold under brands that it owns and the remainder of its products are sold for resale under customers' private labels, other brands or in bulk. The Company's products are sold in the United States through automotive aftermarket retailers (such as Advance Auto Parts, AutoZone, and O'Reilly Auto Parts), national, regional and local warehouse distributors (such as Genuine Parts Co. - NAPA) and specialty markets, and salvage yards. It also distributes automotive replacement parts internationally, with sales into Europe, Mexico, the Middle East, Asia and Canada. The automotive replacement parts market is made up of two components: parts for passenger cars and light trucks. It markets products for passenger cars and light trucks, including those with diesel engines and, more recently, for medium and heavy duty trucks. Two distinct groups of end-users buy replacement vehicle (automotive and truck) parts: individual consumers, who purchase parts to perform do-it-yourself repairs on their own vehicles; and professional installers, which include vehicle repair shops and the dealership service departments. The individual consumer market is typically supplied through retailers and through the retail arms of warehouse distributors. Vehicle repair shops generally purchase parts through local independent parts wholesalers and through national parts distributors. Automobile dealership service departments generally obtain parts through the distribution systems of vehicle manufacturers and specialized national and regional parts distributors. Spending in the light vehicle aftermarket can be generally grouped into three categories: discretionary, maintenance and repair. Discretionary, such as accessories and performance, tends to move in-line with consumer discretionary spending. Maintenance is composed of products and services, such as oil and oil changes, and tends to be less correlated with discretionary spending. The repair category consists of replacement parts which fail over time and tends to be less cyclical as it is comprised of parts necessary for a vehicle to function properly or safely. The majority of its products fall into the repair category. The Company's products are sold under seven DORMAN sub-brands as DORMAN OE Solutions; DORMAN HELP!; DORMAN AutoGrade; DORMAN Conduct-Tite!; DORMAN FirstStop; DORMAN HD Solutions; and DORMAN TECHoice. The Company faces competition from automobile manufacturers who sell through dealerships many of the same replacement parts that the Company sells.
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