Franchise News Release: Bala Cynwd, PA - (Aug-20-1999)


AAMCO Transmissions, Inc. Reports Record Results for Period Ending June 1999


AAMCO Transmissions, Inc, the world's largest chain of transmission specialists, today reported record system-wide revenues for the six-month period ended June 30, 1999. System-wide revenues increased 8.2% t $227.2 million, compared with $209.9 million for the same period in 1998. During the past five years, system-wide revenues are up 48%. /font>

"The company's record performance confirms AAMCO's leadership position in the industry and reflects our commitment to staying on the cutting edge of transmission repair technology and continued dedication to our customers and franchisees," said Keith A. Morgan, Chief Executive Officer of AAMCO Transmissions, Inc.

Driving this year's performance are a number of initiatives headed up by Mark H. Wurth, who joined the company in February as President and Chief Operating Officer. Wurth was previously with AAMCO from 1977 to 1988 - first in sales management and culminating as Vice President of Operations. He was instrumental in recruiting much of AAMCO's top talent at that time, from customer service managers to corporate operations managers. Wurth subsequently held senior management positions with Nutri/System and Jenny Craig, and prior to returning to AAMCO was Chief Operating Officer of Thermolase Corporation.

"I couldn't be more pleased that we were able to get Mark Wurth for this position," said Morgan. "He brings the perfect blend of talent and experience back to us: He has eleven prior years with AAMCO, during which he learned every aspect of our business and then another eleven with other well-known successful Franchise companies."

CEO Morgan brought in Wurth to help drive AAMCO's focus on meeting the needs of its customers, employees and its franchisees. Together Morgan and Wurth launched the following programs designed to increase market share and add value to AAMCO customers.

  • New National Warranty Program - AAMCO now offers the most comprehensive coverage in the transmission repair industry, from a basic warranty on a minor service to lifetime coverage for an automatic transmission. AAMCO has significantly upgraded its basic transmission warranty to 12 months with unlimited mileage. Superseding the old two-year warranty option is a three-year/50,000 mile coverage option, and AAMCO continues to offer its signature Lifetime Coverage. The new warranty program, whose system-wide rollout was completed in May 1999, has proven to be extremely popular with consumers.
  • National Advertising Campaign - AAMCO continues its long history of celebrity advertising, using popular spokesman James Brolin. The campaign capitalizes on the company's high level of brand recognition and sets new standards of lead-generation for the chain. Also, for the first time in its 35-year history, AAMCO has begun advertising a national toll-free number that connects callers directly to any of the 700-plus AAMCO centers.
  • NASCAR Sponsorship - AAMCO and Exxon Superflo have teamed up to sponsor a NASCAR racecar for the 1999 season. Managed by the HVP Motorsports race team, the Number 63 Chevrolet Monte Carlo is driven by 22 year-old, second-generation driver Bobby Hamilton, Jr. The AAMCO/Exxon Superflo NASCAR runs in the Busch Grand National Series and carries the new national phone number emblazoned across its tail section. Posters of the AAMCO/Exxon Superflo NASCAR with spokesman James Brolin are also used at point-of-purchase in AAMCO centers.
  • Job Corps Technical Training Program - AAMCO has entered into an agreement with the U.S. Department of Labor to create the AAMCO Job Corps Program - an advanced transmission training program for youths between the ages of 16 and 24. The program finds young people who want to learn a trade and will be hard-working employees once given an opportunity and matches them with a job in an AAMCO center. AAMCO supplies the instructor, specialized equipment, curriculum and expertise for the program while the Labor Department covers a significant portion of the costs involved. The training consists of more than just transmission technology: if the students don't already have a high school diploma or GED, they will be schooled in whatever areas they need to earn their GED. A special new AAMCO training facility in Edison, New Jersey, is nearing completion, and students from across the country will begin the program there shortly.
  • Automotive Parts Initiatives - In an alliance with Transtar Industries, Inc., AAMCO has created an all-new parts program -AAMCO Parts Plus, designed to better meet the needs of the more than 700 AAMCO dealers. AAMCO Parts Plus offers AAMCO dealers the same AAMCO branded quality parts that have always been the quality standard of the industry but now with the added benefits of more than 12,000 available parts for one-stop shopping and next day delivery to approximately 85% o AAMCO centers- all backed by Transtar's and AAMCO's stellar credentials in the transmission industry.
  • Preventive Maintenance Program - AAMCO has begun offering a new preventive maintenance service for automatic transmissions. The new AAMCO Power Purge Service, currently in test in select New England cities, includes a comprehensive road test to gauge transmission performance and replacement of 100% o the old transmission fluid with clean fresh fluid. Market research indicated a large number of consumers overlook regular transmission maintenance, which can lead to premature transmission failure. By offering this service, AAMCO is establishing relationships with customers so they consider AAMCO for their future transmission needs.

AAMCO is the world's largest chain of transmission specialists, with more than 700 franchise locations in the United States and Canada. AAMCO centers have served more than 20 million customers since the company's founding in 1963.



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