State Issues
Weekly State Reports
Aftermarket Crash Parts
Emissions Inspection and Maintenance
On-Board Diagnostics (OBDII)
Periodic Motor Vehicle Safety Inspection
VOCs - Consumer Products
Resources
AAIA distributes an update of state government, legislative and regulatory news with the weekly Capital Report newsletter. Contact govaffairs@aftermarket.org to sign up for this members-only publication.
The Issue: Seeking to gain monopolistic pricing powers, vehicle manufacturers have lobbied state legislatures to enact prohibitions on the use of aftermarket crash parts. In recent years, the car companies' state legislative efforts have failed, leading some to believe that car companies will bring this issue to Capitol Hill.
What are Aftermarket Crash Parts?: Aftermarket crash parts are the sheet metal and plastic parts that are replaced on vehicles to repair collision damage. These parts are important to the appearance of a vehicle and are sometimes referred to as cosmetic replacement parts.
Aftermarket Crash Parts Reduce Consumer Insurance and Repair Costs: In the collision repair industry, the introduction of non-original equipment manufacturer [non-OEM] crash parts has reduced the cost of body repair work, resulting in lower insurance premiums and fewer vehicles being "totaled out." Many non-OEM crash parts are priced 20-50% below the comparable vehicle manufacturer part.
In recent years, state legislatures across the country have studied the use of non-OEM crash parts to determine if insurance companies' use of these parts needs to be regulated. Overall, while some states have decided to require greater consumer disclosure, states have found that the availability and use of these parts is beneficial to the public.
Crash Parts are not Structural/Safety-Related: In the past year the General Accounting Office studied the safety of aftermarket crash parts and published a report on January 31, 2001 [GAO-01-225 Aftermarket Crash Parts]. After extensive research that included examining several scientific studies and conducting interviews with more than 40 trade organizations, parts distributors and vehicle manufacturers, the GAO study did not lead to any recommendations for regulatory or legislative restrictions of aftermarket crash parts.
The report stated that "although NHTSA has the authority to regulate aftermarket crash parts, it has not determined that these parts pose a significant safety concern and therefore has not developed safety standards for them."
Additionally, the Insurance Institute for Highway Safety has crash tested vehicles with and without sheet metal parts and has concluded, "There is no reason to believe - let alone assume - that cosmetic crash parts significantly affect car crashworthiness."
Congress Should Preserve Competition: The GAO report should put to rest any congressional action on this issue. If the issue does arise, however, Congress should support a competitive market for the crash parts industry and resist any attempts to restrict the use of aftermarket crash parts.
AAIA Staff Contact: Aaron Lowe
The Issue: The U.S. EPA requires states in serious non-attainment areas for NOx, carbon monoxide or hydrocarbons to develop state implementation programs to reduce these pollutants. Most of these states have implemented enhanced emissions tests to measure vehicles' emissions and identify high-polluting vehicles. Unfortunately, the public is often opposed to these tests due to inconvenience and the possibility that repairs will be required.
The Impact: Emissions inspections reveal necessary repairs and provide an incentive for motorists to properly maintain their vehicles. Lack of emissions testing programs could lead to a reduction in demand for vehicle maintenance parts and service as well as increased air pollution.
AAIA Position: AAIA supports implementation of effective and convenient state emissions inspection programs.
AAIA Staff Contact: Aaron Lowe
The issue: On-board diagnostics systems (OBDII) are key to the proper performance and maintenance of various automotive emissions and safety-related components. The ability of the aftermarket to utilize and service OBDII systems is essential if consumers are to retain their freedom of choice in selecting service facilities. Further, aftermarket manufacturers must have information necessary to ensure that their components will operate properly with the vehicles' sophisticated on-board computers. Vehicle manufacturers and their allies have attempted to eliminate or restrict the aftermarket's access to critical OBDII service tools and information.
The Impact: Should vehicle manufacturers succeed in controlling access to certain OBDII codes and scan tools, consumers would be forced to patronize dealerships and aftermarket service facilities and parts suppliers would be deprived of a huge repair and maintenance market.
AAIA Position: AAIA has aggressively fought to deny vehicle manufactures the ability to restrict access to key OBDII systems. AAIA played a key role in the passage of landmark legislation in California that guarantees aftermarket access to OBDII service information, tools and operating parameters in that bellwether state.
Links for additional information:
The Issue: Since the federal government repealed provisions which tied highway funding to state safety inspection programs, a number of states have eliminated their programs while others have decreased the frequency of the testing.
The Impact: The absence of maintenance of key vehicle safety systems such as brakes further poses a significant danger to the motoring public.In most instances, reductions in the frequency of safety inspections have also hurt the aftermarket by eliminating a key tool for identifying potential maintenance/repair needs. This contributes to an estimated $60 billion in unperformed maintenance each year.
AAIA Position: AAIA strongly opposes efforts to weaken state safety inspection programs. Situations such as the Firestone tire failures highlight the need for more intensive testing programs and create a political climate in which constituents are more likely to support safety inspections.
AAIA Staff Contact: Aaron Lowe
The Issue: Under pressure to reduce pollution in many metropolitan areas, the California Air Resources Board (CARB) is revising its volatile organic compound (VOC) regulations. These new regulations could result in required VOC reductions that are unachievable without product bans or sales limitations.
The Impact: Overly burdensome regulations can force extensive reformulation of automotive products such are brake cleaners, waxes & polishing compounds, intake/carburetor cleaners, degreasers, and other similar products. Product efficacy is often adversely affected. Bans or sales reductions could dramatically impact product marketability and profitability in California. Moreover, as a bellwether state, California often sets the regulatory agendas for many other states.
AAIA Position: AAIA is working closely with CARB to ensure that VOC regulations remain reasonable and that all states agree on a single, regional or national standard that can help ensure cost-effective compliance.
Links for additional information:
California Air Resources Consumer Products website: www.arb.ca.gov/consprod/consprod.htm
Ozone Transport Commission website: www.otcair.org
Automotive Specialty Products Alliance (ASPA) website: http://www.aspalliance.org/