What You Need to know about Right to Repair?. AIA Presentation to CCIF Saturday June 18, 2005 Fredericton, NB. "Consumers own their cars, not the car company. It's their right to repair ." David Parde, President, Coalition for Auto Repair Equality. What is the Right to Repair?.
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What You Need to know about Right to Repair? AIA Presentation to CCIF Saturday June 18, 2005 Fredericton, NB
"Consumers own their cars, not the car company. It's their right to repair." David Parde, President, Coalition for Auto Repair Equality
What is the Right to Repair? • 18.4 million light duty vehicles on the road in Canada today • 59% are OBD II • ratio will increase over time • number of vehicle components monitored by OBD II will also increase • tools and software required to access the computer control units on vehicles are increasingly proprietary
If vehicle manufacturers deny access to the tools, training and diagnostic and repair codes to independent installers, they will not be able to repair late model vehicles. “This effectively eliminates consumer choice.” This is a huge problem for the automotive aftermarket!
Right To Repair • Concerns • Consumer perception that: “the Dealer is the only one that can get it right.” • Increasing reliance of aftermarket installer on the dealer network to purchase parts in exchange for data, tools and training.
Right to Repair • Implications: • Existing market shift trend toward dealer service will continue. • Of particular concern with european and asian brands • Casualties and consolidations will result in a concentration of aftermarket retailers (greater purchasing power, less consumer choice). • Erosion of aftermarket branding opportunities.
Right to Repair • BACKGROUND: • Situation in the US: • Existing legislation for emissions related diagnostic information (EPA). • Existing voluntary agreement for all other diagnostic related information available on the internet (ASA and NASTF). • Proposed legislation protecting access to diagnostic, repair and service information with significant support in both the Senate and the House (recently reintroduced). • Existing warranty legislation protecting aftermarket parts and service (Magnuson-Moss)
In the US: 1. Motor Vehicle Owners' Right to Repair Act (HR 2048) reintroduced by Rep Joe Barton (R-TX) and Rep Edolphus Towns (D-NY) 2. Bill requires car companies to make same service info and tools capabilities provided to franchised dealers available to independents 3. 2005 bill language changed to addresses car companies' concerns over trade secrets 4. New language provides more detail on enforcement by FTC 5. Bill has broad bi-partisan support
Right to Repair • Situation In Canada: • No environmental legislation for emissions related diagnostic information. • No voluntary agreement with OEMs (only 8 of 31 US manufacturers allow Canadian aftermarket installers to access US repair and service websites). • Quebec only jurisdiction with consumer protection legislation that addresses warranty related service work (scheduled maintenance). • Canadian installers beginning to experience situations that compel them to send customers back to the dealer.
Right to Repair • Automotive Aftermarket Competitive Advantage: • Flexibility to shift service focus to different manufacturers (not tied to a brand). • Consumer choice argument favors the aftermarket. • Current infrastructure of dealer network is incapable of servicing the entire fleet.
Strategy • Build a Voice for legislative change • Coalition of industry partners • Current AIA members • New Automotive Service Providers Council • Interested government agencies • Federal • Provincial
Right to Repair • Steps So Far: • Working with automotive service provider associations to ensure a single voice for the automotive aftermarket. • Collecting information from technicians on which vehicles they are unable to service (and why), to demonstrate the scope of the problem. • Monitoring the progress of the Motor Vehicle Owner’s Right to Repair Bill in the US and participating in the Lobby activities of the AAIA. • Promoting the importance of consumer choice in the Canadian media and alerting consumers to the problem. • Promoting the message of safety and dependability through the Be Car Care Aware program. • Working with the ASA and NASTF to create a similar website infrastructure in Canada as part of an immediate solution. • Working with governments on a long term solutions.
Canadian Access to US Websites based on ASA Letter • 19 Car Manufacturers Approached • 15 Responses to date (79%) • 4 non response to date (21%) • 4 have declined support in Canada (21%) • 10 have agreed to support Canada (53%)
Collision Industry and Right to Repair • Collision repair shops have a monumental need for easy access to automaker repair data because they encounter new makes and models almost instantly.
Any replacement parts tied to the computer control system requires access to diagnostic and repair codes. Also of concern is flash reprogramming requirements.