Affinia FAQ

Q. What is the history of Affinia?
A. Affinia Group began operations in December of 2004 following the acquisition of the aftermarket business of Dana Corp. by the Cypress Group. During the past five years, Affinia has implemented a global transformation program representing an investment of $152 million. Today, Affinia is a global organization with more than $1.8 billion in annual revenue and 10,000 associates based in 11 countries.

Q. Where did the name Affinia originate?
A. The basis for the name is the word "affinity," which means "a shared community of interests." Affinia is a customer-centric organization dedicated to mutually beneficial relationships with trade partners and active support for professional installers who rely on Affinia branded components every day.

Q. What led to the need for Affinia’s "global transformation?"
A. Affinia undertook a global transformation for two reasons, the first having to do primarily with cost and the second related to emerging growth markets.

Throughout the 1990s, replacement parts manufactured off shore continued to expand in volume and increase in quality. For Affinia to meet its customers’ needs, the company was challenged to create a more diverse manufacturing and sourcing footprint, including deployment of operations in China, Mexico, India and Eastern Europe.

Increased prosperity in emerging markets also led Affinia to adopt a heightened global perspective. Private vehicle ownership is increasing in markets such as China and India and active participation in this growth requires that Affinia operate manufacturing and service facilities worldwide.   

Q. What have been the essential elements of global transformation for Affinia?
A. The most visible evidence of this transformation is the deployment of manufacturing, sourcing, distribution and service facilities around the globe. Today, Affinia has facilities in 11 countries and sells into 70 others. As part of the diversification of its assets over the past five years, Affinia has closed 44 facilities representing 2.4 million square feet of space.

Another essential element in global transformation has been the creation of a multi-faceted corporate infrastructure, including treasury, legal, human resources, IT, strategic planning, corporate communications and others. Seasoned professionals in each of these areas have played key roles in the restructuring program, which has been self-funded and completed without the need for outside consultants.

Q. What other changes have taken place within Affinia since its founding?
A. Innovation is a driving force within Affinia, evidenced by continual process and product enhancements throughout the company.

Affinia has expanded its use of information technology in support of customers, developed electronic solutions for product category management, invested in research and development and launched innovative new products, all the while receiving accolades from key accounts for product quality and service. Customer-focused promotions have helped fuel brand loyalty and maintain close working relationships with trade partners and professional installers.

Q. What does it mean when Affinia says it is a purpose-driven company?
A. As a purpose-driven company, Affinia champions the highest possible ethical standards in every relationship, including customers, suppliers, trade partners, industry, shareholders and employees.

The company is driven by a philosophy of shared objectives and common purpose among all stakeholders. Our mission statement encapsulates our purpose: "We will inspire our people, delight our customers and impress our investors with the world’s most innovative aftermarket products and services that are of consistently high quality and always market competitive."

Q. What is the significance of Affinia’s global quality commitment?
A. As a result of Affinia’s global transformation program, the company today sources and manufactures aftermarket components in 11 countries.

Our global quality commitment means that regardless of where a product is manufactured or sourced, it is built to Affinia’s specifications and meets our quality standards. It is essential that we deliver consistency in fit, form and function for all products regardless of country of origin. Our global quality commitment is an assurance to our customers and to their customers that they can always rely on Affinia products.

Q. How financially strong is Affinia?
A. Affinia is a very strong company financially, which is another benefit of global transformation.

By way of example, at the end of the second quarter of 2009 the company reported a gross profit margin as a percentage of sales of 19.1 percent, which compares to 14.1 percent when the company was founded at the end of 2004. More than 70 percent of margin improvement is directly attributable to the successful implementation of the restructuring program.

Affinia is also achieving growth and diversity as a result of its global transformation. Sales from outside of the U.S. represented 45 percent of total sales during 2008, an increase of more than $100 million from the previous year.

In addition, the company recently completed refinancing of its debt through $225 million in senior secured notes and a new $315 million asset-based revolving credit facility. The result is increased liquidity and flexibility for future growth.

Q. What does Affinia mean when it says it is "98 percent pure aftermarket?"
A. This statement means that 98 percent of the company’s annual revenues originate with the sale of aftermarket or replacement parts and services as opposed to original equipment (i.e. new vehicles).

Historically, the aftermarket has been a more stable segment than original equipment, which tends to be heavily affected by economic cycles. The demand for replacement products and services tends to grow steadily and predictably each year. The long-term forecast for the aftermarket is positive given the increasing number of vehicles in service worldwide.

Q. What markets does Affinia serve?
A. Affinia serves a great diversity of markets - automotive, construction, transportation, agriculture, marine, small engine and commercial - virtually any market that requires filtration, brake and chassis components. For example, Affinia manufactures filters used in the hydraulic systems of wind-powered electric generators. Diversity of markets is a core strength of the company.

Q. Does Affinia enjoy market share leadership positions?
A. Affinia enjoys substantial market share leadership. The company is No. 1 in filtration in North America and Eastern Europe; No. 1 in brake in North America; No. 2 in chassis in North America; and No. 2 in brake in Argentina.

Q. What brands fall within Affinia Group?
A. Affinia Group includes some of the oldest and most respected brands in the aftermarket: WIX® Filters, Raybestos® Brand Brakes, Raybestos® Chassis Components, Brake Pro, Nakata®, Aimco®, McQuay-Norris® and WIX-Filtron.  The company also markets a number of regional brands which enjoy sales leadership in their respective markets.

Q. Who are Affinia’s customers?
A. Affinia serves the world’s leading distributors of aftermarket components for professional installers. Many of these relationships have been in place for decades and represent shared values and mutually beneficial partnerships. Affinia’s brands have often received customer awards for product quality and dependable service.

Q. With global transformation essentially complete, what is Affinia’s focus for the future?
A. Affinia is focused today on the continuing enhancement of its global operations through innovation in all aspects of the business. With the complex process of transformation essentially complete, priorities include continuing the company’s leadership in product enhancements and customer service. Senior management is optimistic and confident about the future because of the fundamental changes that have taken place within Affinia, positioning the company for long-term leadership in the markets it serves.