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:1. No environmental legislation for emissions

related diagnostic information.2. No voluntary agreement with OEMs (only 8 of

31 US manufacturers allow Canadian aftermarket installers to access US repair and service websites).

3. Quebec only jurisdiction with consumer protection legislation that addresses warranty related service work (scheduled maintenance).

4. 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 change1. Coalition of industry partners

• Current AIA members• New Automotive Service Providers Council

2. 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%)

Canadian Access to US Websites based on ASA Letter

Manufacturer Responses Date

BMW No response  

Daimler Chrysler No 2/18/2005

Ford No 3/9/2005

General Motors Yes 2/15/2005

Honda No 2/24/2005

Hyundai Yes 2/15/2005

Isuzu No response  

Jaguar Yes 2/16/2005

Kia No response  

Mazda Yes 2/16/2005

Mercedes Benz No response  

Mitsubishi Yes 2/15/2005

Nissan Yes 2/21/2005

Saab Yes 2/15/2005

Subaru Yes 2/24/2005

Suzuki No response  

Toyota No 2/24/2005

Volkswagen Yes 2/23/2005

Volvo Yes 2/28/2005

Canadian Access to US Websites based on ASA Letter

Manufacturer Responses Date

BMW No response  

Isuzu No response  

Kia No response  

Mercedes Benz No response  

Suzuki No response  

Honda No 2/24/2005

Daimler Chrysler No 2/18/2005

Ford No 3/9/2005

Toyota No 2/24/2005

General Motors Yes 2/15/2005

Hyundai Yes 2/15/2005

Jaguar Yes 2/16/2005

Mazda Yes 2/16/2005

Mitsubishi Yes 2/15/2005

Nissan Yes 2/21/2005

Saab Yes 2/15/2005

Subaru Yes 2/24/2005

Volkswagen Yes 2/23/2005

Volvo Yes 2/28/2005

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.

QUESTIONS?