Company Profile

 

 

BORLA PERFORMANCE INDUSTRIES has built a reputation as the leader in the design and manufacture of automotive stainless steel performance exhaust.  For nearly 30 years, we have been committed to providing world-class exhaust products that surpass the expectations of our customers in providing the ultimate power, style, and endurance.

 

BORLA products are built to last a lifetime because our main product line is crafted from aircraft-quality T-304 stainless steel. We utilize a metal tough enough to handle the heated gases, moisture and road hazards that bombard an exhaust system every minute an engine is running. Cars are lasting longer and longer, so the average car can require as many as 10 exhaust system replacements, depending on one’s geographic location. T-304 stainless steel has the highest chromium content, making it the most resistant to corrosion. Also, this material allows us to design systems for maximum performance and sound quality.

 

We have pioneered a variety of improvements in the design of performance exhaust.  Alex Borla currently holds five U.S. patents for innovative exhaust technology, and the company has won numerous "Best New" product industry awards throughout the years.  Our dedicated R&D facility employs the latest technology and equipment, including a Quadrant Scientific FlowLab 1400CFM state-of-the-art purpose built flowbench, DynoJet chassis dynamometer 20-1200 Horsepower/up to 200 MPH (model# 248), DynoJet portable motorcycle dyno 0-500 Horsepower/up to 200 MPH. (model #200), a Faro arm coordinate measuring machine (model T10-02), and a Bruel & Kjaer sound meter –30 to +200db (model#2236).

 

Our production facility employs the Toyota Production System (TPS), the latest manufacturing technique.  This continuous flow production system allows for flexibility of smaller or larger runs. We are QS9000 certified and will be TS16949 by the end of 2005.

 

Top engine builders and drivers look to BORLA to give them an edge on the racetrack: Kenny Bernstein, Keith Dorton, Ken Duttweiler, Ryan Falconer, Paul Gentilozzi, Chuck Goldsborough, Brandon Bernstein, Pat Musi, to name just a few. We have been involved with Toyota racing programs as well as Team Viper’s GTS-R, Team Escort, and Team Focus programs from their inceptions. We “rule” the NHRA in exhaust; and have sponsored the Speedvision GT and touring class cars. GM Racing has asked us to help them enhance the sound quality of their Cadillac LMP for the 24-Hours of LeMans.  We have participated in the C5-R race program that  realized great success in the 24-Hours of Daytona.

 

Ordinary people, too, have rediscovered the excitement of owning and driving cars with a lot of get-up-and-go. America’s love affair with the muscle car has endured through gas shortages, the 55 mph speed limit and shrinking parking spaces.

 

We have enjoyed near two decades of mutually beneficial relationships with the OEM. We participate in the design and build up of many concept vehicles for DaimlerChrysler and Ford as well as TRD, Mazda, GM and Lexus.  We have initiated successful promotional programs with Ford and Lincoln-Mercury, including a traffic building sweepstakes, an ad campaign touting the limited edition Cobra R, and a dealer option program for the new Cougar. Ford’s national dealer training videos have featured BORLA project vehicles.  We developed a complete exhaust system, including headers, for the Shelby Series I. We have also worked with Toyota and their Solara as well as Mazda and their Protégé on both aftermarket opportunities and limited production runs as well as contracts with Ford, GM, Toyota and DaimlerChrysler.

 

We are proactive in cross marketing. Over the years, we have developed extensive relationships with the media – print, TV, radio and the Internet. We have established “performance partners” in the automotive aftermarket as well as the youth oriented car stereo and extreme sports industries. Our Ford Expedition project vehicle won “Best Aftermarket Upgrade” at the Consumer Electronics Show. We were among the

first to recognize and focus on the influence of women in the car selection and modification processes with our ’96 Ford Explorer “Beyond the Cup Holder” project. We display project vehicles at the industry’s SEMA show, with some being featured in the OE booths. Due to our aggressive approach, we are constantly being sought after to partner with major manufacturers and publishers.

 

We originated and participated in a successful cross promotion with Pepsi/Ford Motor Company/MTV/DUB whereby Pepsi gave away our Borla Inferno Expedition project vehicle in a nationwide sweepstakes. All involved were so pleased with the results, another promotion is being planned.

 

We are involved in numerous events throughout the year from coast to coast, allowing direct exposure with automotive enthusiasts.  These events – automotive related and other -- give people the opportunity to experience our products as well as promotional vehicles “up close and personal”.  Team Ford and Import Racer! Magazine, for example, have displayed our project vehicles in their booths at the Hot Import Nights and similar events. We are sponsors of the hip, DUB magazine lifestyle events.

 

With a design, development, testing, manufacturing, and sales operation in the USA; manufacturing and sales services in Romania; and sales offices in Germany, the UK and Japan as well as a European marketing/distribution center in the Netherlands,  BORLA is a viable global supplier and partner.

 

Product Summary –

 

BORLA Exhaust products are crafted from aircraft-quality T-304 stainless steel with all-welded construction and mandrel-bent tubing. Our products out flow all other exhausts on the market today and are backed by a million-mile warranty.  As local communities continue to encroach upon racetracks, we have recognized the need to quiet down racecars without compromising power and have developed the XR-1® Raceline – stainless steel headers, mufflers, and collector/mufflers – to lower db levels while maintaining maximum performance.

 

As well as our California headquarters and main plant, we also have production facilities in northern Michigan, Romania and China with a homologation facility in Germany.  

 

Market Stats –   

 

BORLA is a market driven company. The core of our success probably lies in the fact that we recognize (and share) man’s enduring love affair with the automobile. We have grown with our customers by remaining sensitive to the changing needs of the driver. The consumer’s affinity to our brand remains strong because our marketing stays in tune with the changing attitudes of the baby boomers, for example. Years ago, the Japan backlash made car enthusiasts seek products of quality.  We recognized that and filled the need by supplying systems for Rolls-Royce, Jaguar, Mercedes – then SUV’s, Hot Rods, and muscle cars.  As the boomers got more ecologically minded, we developed race products for a quieter environment and increased fuel economy.

 

Our product line is classic rather than trendy, so the younger generation covets the brand name as well. We remain style conscious and understand we are as much in the fashion business as performance; our image appeals to a wide audience, from drivers of BMW’s and Lamborghini’s to Chevy Pick-Ups, to Scion’s.

 

Our products are considered a performance upgrade rather than a replacement item, so we enjoy the largest sales from new vehicle owners; in fact, demand for a newly released system peaks at about 18 months, so we always have something new on the drawing boards.

 

BORLA’s integrated marketing programs build consumer awareness, create product demand and pull product through the sales channels.

 

Extensive market research, including customer surveys, help us identify the most effective ways to reach potential new customers and influence their aftermarket product purchases. Sixty two percent (62%) of our customers identify magazine advertising and editorial as the source of their first awareness. Based on this intelligence, our marketing includes:

v      Extensive advertising in over 60 high-profile automotive and race publications. Starch Readership Reports for AutoWeek magazine consistently rank Borla in the top 4 (and number 1 for the aftermarket) readership indexes which measure the extent to which an ad is seen and read.

v      National and Regional Motorsports Programs.  Borla sponsors top racers such as Kenny Bernstein, Pat Musi, and Wayne Talkington.  Borla’s XR-1® race products are at the forefront of mufflered racing in such venues as NHRA, IHRA, NMCA, SCORE, PSCA and SCCA, to name a few. In fact, winning racers choose Borla even when mufflers are not required!

v      Publicity activities generate close to a million dollars in editorial coverage annually. Our brand’s product and promotional materials are often requested for movie and television sets.

v         Development of product for high profile special edition OE vehicles.

v         Licensing agreements with such top toy and electronic game companies as Mattel, Jada Toys, Rockstar Games, and Microsoft to name a few.

v         Nationwide promotional relationships with such “big players” as PepsiCola and Ford Motor Company.

BORLA’s rate of growth outpaces the industry average 4.5:1. According to the latest available industry data, over 30% of new vehicle buyers modify their purchase with an aftermarket accessory or specialty product to “protect their investment”. Sales of racing and performance products reached an estimated $5.3 billion in 2004, and aftermarket exhaust is the among the top purchase choices. (Source: 2004 SEMA market study).   

 

Customer research shows the major factors influencing purchase of our products are:

v      nearly  67% BORLA reputation (BORLA brand)

v      over 70% improved performance and sound quality

 

Almost 35% of our customers say they only wanted BORLA products when shopping for performance exhaust and did not even consider competitive products. (Source: DCI 2004 Customer Survey)

 

Sales & Distribution Strategy –

 

BORLA distributes its products worldwide to every tier. Our integrated marketing programs have tremendous consumer focus to build consumer awareness, create product demand, and pull product through the sales channels. We, therefore, aggressively keep our brand image strong and pull through sales to our wholesale network.

 

We partner with key distributors that target certain market segments. Examples:

Private Label such as Marketing Worldwide, Mopar Performance, GM Performance Parts, Ford Motor Company, Saleen, Steeda, Shelby and more.

Two-Step Distributors such as Keystone, Atech, Arrowspeed Warehouse. Motorstate Distributors.

Mail Order Giants such as Summit Racing, Jegs Automotive, Performance Products, Mid-America, Ecklers, Crutchfield and more.

                National  and International Speed Shop Networks.

National and International  Jobbers.

Major Internet e-commerce sites.

               

National new car dealers seek after BORLA Exhaust as a performance option. 

 

UPS, with its national fleet of delivery trucks, has been running Borla’s since 1993.

 

BORLA was one of the first two companies to introduce a website at the 1994 SEMA show. Our extensive print advertising schedule drives consumers to our site.  We have a complex back-end system for capturing marketing data as well as set up links with our performance partners. The latest in our leading edge approach includes pass-along “viral” videos, as featured in a Los Angeles Times cover story.