"Although people generally think of us as a company based in Japan that supplies Japanese auto manufacturers, the U.S. domestic business is currently a large growth area for Denso," Jack said. 

The Denso aftermarket parts program grew out of the lines that the company was supplying to car manufacturers, Jack said, including air-conditioning systems, starters and alternators, engine management, spark plugs, oxygen sensors, and fuel pumps.

In some lines, such as oxygen sensors, Jack said the company offers full-line coverage with products made by Denso, while on others it partners with other OE makers to expand coverage beyond the products manufactured by Denso.  "When possible, we design and produce it so that it fits and functions like the OE part," he said.

As Denso's OE business has continued to grow -- from more than $16 billion in 2000 to more than $34 billion in 2007 -- the coverage it could offer in the aftermarket has also expanded, Jack said.  "Our penetration as an A/C supplier is growing tremendously because we provide technological excellence at competitive prices," he said.  "More than 40 percent of all new vehicles this year will have a Denso compressor." 

 
Denso's push into the aftermarket was also partially due to a changing attitude among parts distributors, Jack said.

"Distributors are increasingly willing to buy from the OE supplier even if they aren't offering full-line coverage," he said.  Denso products are currently available at major buying groups, he said, including NAPA, CARQUEST, AutoZone, and WORLDPAC.

Denso is continuing to develop new lines and plans to add products to its aftermarket lineup in the near future, Jack said.
He said the trend toward stocking more original equipment supplier parts is driven by installers recognizing the advantages of buying a part that is designed and functions just like the one that originally came on the vehicle -- reducing failures and comebacks.

"The trend toward replacing a part with the OE component is increasingly critical as the technology on vehicles advances," Jack said. 

"Because replacement rates are declining, less business remains to go around. So when a shop gets a repair, it must make sure to get the job done correctly the first time to keep the customer coming back," Jack said.

Jack, recently re-elected to his second term as vice chair of the Mobile Air Conditioning Society Worldwide (MACS) board, said the association sees more shops that once specialized in A/C diversifying as repair and replacement rates continue to drop.  Meanwhile, he said the technology being used in A/C systems continues to increase, making the association's role in supplying information and training that much more important.

"Because technology on new vehicles is increasing dramatically, it's more important than ever for shops to be properly trained," Jack said.  "MACS is making sure it delivers quality information and data so its members can service and install to the highest degree of quality.  MACS really is the single best source of information for the A/C industry."

Jack added that MACS is currently on a membership drive and encouraged any shop that performs A/C work to check out what the association has to offer by visiting its Web site at www.macsw.org or calling the association offices. 

 
Jack said Denso also believes that training is becoming increasingly critical and offers a wide variety of technical training for repair shops as an adjunct to its products.