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MI HB4344 Aftermarket Parts Amendment Will Limit Choice and Raise Prices for Michigan Consumers

Michigan HB4344, the Motor Vehicle Service Repair Act, was recently amended to prohibit collision repair shops from using the majority of the aftermarket parts available today in the first six years of a vehicle’s life. The bill would require that the only non-automaker parts used in repairs be “verified by a nationally recognized automotive parts testing agency.”

The Automotive Body Parts Association (ABPA) strongly opposes this language that would raise prices and limit consumer choice in vehicle repair.

“This is a misguided attempt to legislate against fair competition in the automotive repair business,” said Ed Salamy, ABPA executive director. “The HB4344 aftermarket amendment is driven by the car companies and aimed at creating a vehicle manufacturer parts monopoly in Michigan at the expense of consumer choice.”

The aftermarket collision parts industry ensures that there are economical parts options available in the marketplace. The availability of aftermarket parts also helps keep the prices of car companies’ replacement parts lower.

While members of the aftermarket parts industry employ quality assurance programs, including NSF International and Certified Automotive Parts Association (CAPA), the bill would make over 85 percent of the replacement parts market for insurance paid repairs dependent on OEM parts for the first six years. There is no part certification process for auto company-produced parts. With more than 50 million vehicles recalled in 2015, the car companies clearly do not hold the high ground on safety and quality.

“The ultimate test is providing assurance to consumers that the parts used to repair their vehicles are safe and will deliver performance that is functionally equivalent to OEM parts,” Executive Director Salamy continued. “Aftermarket parts do that every day, providing consumers with significant cost savings. Michigan legislators should strip this bad amendment before moving forward with the bill.”

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