Final Thoughts
By Michael E. Wilson, ARA Chief Executive Officer
michael@a-r-a.org
Automotive Recyclers Call on Automakers to Cease Deceptive Consumer Campaigns
s this issue of Automotive Recycling goes to print, the professional automotive recycling industry is once again facing a direct assault on its future by another automaker. The latest attack comes from Hyundai Motor America1
A which has
launched an integrated media, advertising and public relations campaign against alternative parts, including recycled. ARA has responded by again calling on automakers to cease these deceptive con- sumer campaigns aimed at disparaging the entire professional automotive recy- cling industry. ARA is dismayed that automakers continue to engage in such deceptive, anti-consumer information. For automakers to turn their back on basic reuse principles that offer even greater environmental advantages than recycling is disappointing and unacceptable. Regrettably, Hyundai’s campaign against the industry is not the beginning of these type of efforts. Last year, Ford launched a similar consumer campaign2 allegedly to help consumers understand why using new OEM parts matters. Ford’s campaign also appears to be a rather transparent attempt to bamboozle con- sumers to boost sales of expensive “new” original equipment manufacturer (OEM) parts and malign equally valuable recycled Ford replacement parts. As ARA member companies and their customers know full well, recycled parts are genuine OEM parts that provide the same quality, durability, fit and finish as the parts made to build the vehicle. They are fully functional and are in most cases identical to original parts. Are Ford, Hyundai and other automakers so arro- gant that the companies are unwilling to recognize the undisputable fact that every motor vehicle driving on our highways and roads today is 100 percent made up of used parts.
In fact, it was not that long ago that Ford made an over $1 billion investment
62 Automotive Recycling | January-February 2016
For automakers to turn their back on basic reuse principles that offer even greater environmental advantages than recycling is disappointing and unacceptable.
in the professional automotive recycling industry through their GreenLeaf acqui- sitions of over 30 facilities.
Following the logic that automakers are conveniently trying to put forward now, the parts and components of every one of their vehicles that has been involved in an accident could be called into question given their assertion that parts that remain on a vehicle post-colli- sion “may” only “appear equivalent.” Automakers have for years failed to cite any valid research to back up their claims that recycled parts are less safe than new parts. ARA’s continued desire is for more professional repair representatives to fix repairable vehicles owned by consumers within the insurance structure. Entities that press for mandated higher priced parts only ensure more vehicles will ulti- mately be declared total losses by insur- ance companies. Regrettably, these “total loss” vehicles are increasingly being pur- chased and repaired by individuals with little to no accountability and sold to unsuspecting consumers.
As automotive manufacturers watch their significant market shares shrink from legitimate competition, they seem be becoming concerned about loss of profit, resulting in unfounded attacks and possibly misleading information being disseminated about recycled OEM parts.
According to the Q4 2015 Mitchell Repair Collision Data report, new OEM parts accounted for 65.16 percent of all parts used in motor vehicle collision repairs, which represents a decline from
previous quarters. For instance, in the second quarter of 2008, new OEM parts accounted for 74.4 percent of all parts used in collision repairs. Much of this decline can be explained by consumers and the collision repair industry becom- ing better educated about quality part alternatives, such as recycled OEM parts. This is also a testament to the educational outreach efforts of many ARA members, affiliate chapters and your Association leaders and staff.
ARA believes the Hyundai and Ford examples are part of an ongoing con- certed effort by the automakers to limit competition in the automotive parts mar- ket by undermining the viability of recy- cled OEM parts. ARA urges the Federal Trade Commission (FTC) to take a seri- ous look into the actions of Hyundai, Ford and other automakers that continue to engage in deceptive and unfair trade practices and make false advertisements without a shred of research to substantiate their claims.
ARA has long been on record with the FTC about holding automakers account- able for their statements and your Association intends to seek additional meetings with the Commission to express the need for increased vigilance and oversight regarding automakers’ mislead- ing claims and their adverse impact on
consumers. 1
https://autoservice.hyundaiusa. com/ConsumerAwareness/MicroSite Template/MicroSiteTemplateLanding
PageLayoutOne/1740 2
http://www.takeagoodlook.com/ auto-parts/
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