Automakers seek monopoly on repair parts

According to an international trade watchdog, the Automotive Recyclers Association (ARA), automakers Honda and Hyundai have recently given their dealer repair shops guidance in telling customers not to use recycled auto parts. According to the ARA, these automakers claim that recycled or used components will void vehicle warranties.

Recycled auto parts have been used extensively for decades without any challenge to the quality or reliability of these parts that should affect warranty work. An irony of this recent policy change is that Honda or Hyundai recycled parts were manufactured by Honda or Hyundai in their own factories.

Parts manufactured by the same company that produced the original vehicle are called original equipment manufacturer (OEM) repair parts in the automotive industry. Salvage industry recyclers collect OEM parts from salvaged vehicles and offer them for sale to repair shops and consumers with an average savings of 60% over new OEM parts and an average savings of 30% over other parts on the market. newly manufactured accessories. Also, those recycled parts are not of the aftermarket variety; they are simply OEM parts that are reused after the donor vehicle stops working.

So if the recycled parts come from the OEM, reduce landfill volume by reusing automotive components destined for trash, and are cheaper for the customer, then why are Honda and Hyundai warning against using them?

The most likely reason is, of course, that car sales are down due to the continued slow economy. Automakers are looking to grow their OEM parts business with a strong arm wave against their customers. This leaves many consumers without the option of using recycled parts if they face a voided warranty.

For its part, the ARA filed an official complaint letter with the Federal Trade Commission saying the automakers’ actions go against the Magnuson-Moss Act of 1975, which was enacted to simplify warranties.

Most consumers are not driving vehicles that are still under factory warranty and will not be affected by this measure.

Still, it presents an interesting piece of data that large, profitable automakers are putting financial pressure on their customers at a time when many consumers distrust big companies after the 2008 and 2009 bailouts.

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