(source: NAGS press release)
National Auto Glass Specifications (NAGS) has announced that it is moving forward with the rebalancing of the winter U.S. benchmark price list. In the next release, the U.S. NAGS benchmark will be significantly reduced to more accurately reflect retail market price levels and correct for the artificial inflation caused by the truckload list price methodology used prior to 2002. All NAGS print and license customers will receive the Winter benchmark data by early December 2004 as they typically do for the Winter publication. The only difference is that the effective date of the data, which was previously set for January 10th, is now reset for February 28th, 2005.
"We are proceeding with the rebalancing because it is an important step to enhance the value of our data to the industry," said Jesse Herrera, general manager of NAGS. "We have decided to move the effective date of the winter calculator to give the industry extra time to evaluate the new benchmark and revise their trading agreements as they deem necessary."
The effective date for NAGS' Spring publication will follow the normal schedule of early May 2005.
The decision to continue forward with the rebalancing is based on a few critical factors. First, many industry participants are encouraging us to move forward with the rebalancing on schedule. Not only will the change allow NAGS to eliminate 'R' parts, but it is also an important step toward strengthening the credibility and usefulness of the NAGS benchmark. Second, after additional discussions with the Chicago Auto Glass Group, it is clear that they are at least several months away from having a complete data set. They are in the process of conducting a preliminary test of their proposed methodology for 250 parts and are unable to provide a definitive date as to when they will have fully tested their proposed benchmark for all 12,000 parts currently priced in the market. NAGS looks forward to reviewing their preliminary test results and remains open to input and participation of CAGG in our ongoing efforts to improve our products.
To assist customers with the transition, NAGS will offer a proprietary Excel analysis tool. This tool allows customers to enter their unique business mix and analyze the before and after scenarios of proposed trading terms. Customers interested in purchasing this tool may contact NAGS directly at 800/551-4012 x8413.
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