Quality Parts Coalition: Fighting for Autobody Repair Industry

Industry representatives speak out about the importance of competition in the independent replacement crash parts industry at national convention

Washington, D.C. — As the greatest annual gathering of autobody repairers, distributors and manufacturers begins this week at the International Autobody Congress and Exposition (NACE) in Las Vegas, Nevada, the Quality Parts Coalition (QPC) seeks to draw attention to the big auto companies’ attempt to monopolize the crash repair parts industry. Such a monopoly threatens the future vitality of the independent auto parts industry, representing thousands of American jobs. The QPC recently launched a campaign that urges Congress to include a "repair" clause or exemption in U.S. design patent law to protect competition and consumer choice when it comes to collision repair parts.

Due to a recent patent ruling, consumers no longer have an alternative option for many quality replacement parts for the 2004 and newer Ford F-150 pickup trucks. These alternative replacement parts – including the items consumers typically need to repair their vehicles after a crash: bumpers, tail-lights, and grilles – cost anywhere from 26 percent to 50 percent less than parts manufactured by the large automobile companies. Moreover, they carry warranties that often exceed those offered by automobile manufacturers.

The loss of competition for quality parts will cause autobody repair shops to lose business in two ways: More expensive parts and more totaled vehicles. Roughly 13 percent of repair shop customers pay collision repair costs out-of-pocket. With increased parts prices, customers may forgo repairing their vehicle. Additionally, higher prices will force insurance companies to declare more damaged vehicles as "total wrecks," meaning less work for autobody repair shops.

Here’s what industry insiders and consumers are saying about the importance of competition in the replacement collision parts market:

"Over the past five years, design patents awarded to the major automobile manufacturers have dramatically increased to about 20 to 25 percent of the total U.S. patents awarded to those manufacturers. We believe the ITC decision, in combination with this disturbing trend, indicates a business plan by the automotive companies to completely monopolize the replacement crash parts market," said Eileen Sottile, executive director of the QPC.

"All of the facets of auto repair – paint shops, companies that make auto body repair tools and sandpaper – not just auto body shops, should understand that the QPC is fighting to protect our industry," said Don Feeley, president of repair shop City Body & Frame. "When reparability is impacted, we all suffer – the shops, shop suppliers and the consumers."

"Shutting out competition in the auto parts industry will drive up costs to consumers and threaten thousands of American jobs," said Aaron Lowe with the Automotive Aftermarket Industry Association (AAIA). "In the 1990s, Congress said ‘no’ to the auto industry’s attempt to enact legislation providing copyright protection for replacement parts because of the enormous cost a monopoly would impose on consumers. As we face yet the same situation, it’s time for Congress to say ‘no’ again."

"It is one thing to prevent car manufacturers from copying each other’s new car designs, it is quite another to prevent a consumer from choosing lower-priced, quality, replacement parts," said Sandy Bass-Cors, executive director for Coalition for Auto Repair Equality (CARE)."

"We foresee that the ITC’s decision and the remedial action it entails will trigger a plethora of new Section 337 cases aimed at foreclosing competition for automotive parts produced other than by vehicle manufacturers. The inevitable effect of such cases, if successful, will be serious harm to American consumers, to innovation in competitive value and supply chains, and to the American economy. The development of effective auto aftermarket parts competition over the last 20 years has created numerous new business opportunities for independent parts importers, distributors, wholesalers and retailers. This has multiplier economic benefits, in the form of jobs, price and quality competition, and consumer spending-power, throughout the United States," excerpt from a July 31, 2007 letter sent by American Insurance Association, Automotive Aftermarket Industry Association, Automotive Body Parts Association, Coalition for Auto Repair Equality, National Association of Mutual Insurance Companies and Property Casualty Insurers Association of America to the U.S. Trade Representative.

"If the auto industry is allowed to continue their efforts to patent the design of these parts, crash repair bills will significantly increase, quality will suffer in the absence of real competition, and safety will be compromised as families are forced to forego necessary repairs because of the high cost of replacement parts," excerpt from letters sent July 2007 to Members of Congress from the Consumer Federation of America (CFA), Public Citizen, Advocates for Highway and Auto Safety, and the Center for Auto Safety.

"RetireSafe strongly supports the QPC’s efforts to preserve competition in the auto replacement parts market," said Michelle Plasari, RetireSafe’s president. "Many seniors already are struggling with limited income and significant increases in vehicle repair costs. A repair parts monopoly will cause more of a strain on their pocketbooks and many of America’s seniors may be forced to forgo driving and lose their treasured independence."

For more information, visit www.qualitypartscoalition.com

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The Quality Parts Coalition represents the interests of the independent parts industry, the insurance industry and consumers. It is the goal of the Quality Parts Coalition to develop and secure a permanent legislative change to U.S. design patent law to preserve competition and to protect the consumer’s right to benefit from quality, lower-cost alternative replacement parts.