Capitol Connection Latest Legislative Updates from the Hill and Around the Country


ARA Responds to Request that the DOJ Investigate Auto Insurance Companies


RA wrote a letter to Senator Richard Blumenthal (D-CT) pro- viding him critical background infor- mation on recycled OEM parts and urging him to acknowledge that OEM recycled parts are a viable option for automotive repairs. ARA’s letter was in response to a letter the Senator wrote earlier to U.S. Attorney General Eric Holder asking that the United States Department of Justice (DOJ) investi- gate allegations that auto insurance companies are “pressuring con- sumers into repairing their vehicles at insurer-preferred repair shops.” ARA followed up its letter with a meet- ing with the Senator,


A staff, and


Connecticut Automotive Recyclers Association Executive Director during ARA’s 2015 Annual Hill Day in March. Ongoing conversations are expected. In his letter, Sen. Blumenthal refers to “cheaper, salvaged, used or even counterfeit parts of questionable qual- ity and safety.” The Senator made similar comments during a recent CNN Anderson Cooper 360 segment on alleged insurance steering practices. While Sen. Blumenthal’s letter alludes to consumer choice, competition and safety, he unfortunately references “junk yard, remanufactured and used parts” without making any distinctions between these terms. He also states that “substandard quality” parts are becoming “increasingly widely available” without acknowledging that recycled original equipment manufacturer (OEM) parts are a vibrant and in demand commodity in the automotive parts supply chain.


ARA also wrote a letter to Attorney General Holder expressing “...serious concerns with both CNN and the Senator’s mischaracterizations of recycled, original equipment manufacturer parts sold by professional automotive recycling facilities.” While ARA indicated that it did not believe that a DOJ investigation of the auto- motive insurance industry was necessary, the Association did request that if one was done that it must be done in a thorough, fair, and comprehensive manner. ARA also asked to be contacted to provide Department officials critical background information on the automotive parts supply chain and repair processes if an investi- gation does occur. ARA’s letter to Senator Blumenthal, the Senator’s letter to the U.S. Attorney General and the ARA letter to the U.S. Attorney General are located at this URL: http://arav3.timberlakepublishing.com/Files/gov-affairs/Blumenthal%20DOJ%20 Letter%20%282%2013%2015%29.


Senators Introduce Bill to Require Recall Fixes


enators Ed Markey (D-MA) and Richard Blumenthal (D-CN) have introduced legislation (S. 617) that would require state motor vehicle registration agencies to notify vehicle owners of open safety recalls to help ensure that owners get the safety recalls remedied.


S In 2014, a record


63.95 million vehicles were recalled in the U.S.


If states didn’t require owners to com- plete vehicle recalls before renewing their license plates, they would lose highway safety funds. Under the Repairing Every Car to Avoid Lost Lives Act (RECALL Act), owners would have some narrow exemptions. The state agency could grant a temporary registration of up to 60 days under the following situations: • If an owner wasn’t notified of the recall when the registration renewal reminder came out;


• If the manufacturer lacks the parts


or labor to complete the recall; or, • If the vehicle owner demonstrates there was no reasonable opportunity to fulfill the recall.


The measure comes after Congress has held a series of hearings about major auto safety issues involving General Motors ignition switches and Takata air bags. In 2014, a record 63.95 million vehi- cles were recalled in the United States— more than twice the previous record set in 2004. Other bills have previously sought to require used car dealers and rental car firms to complete recalls before selling or renting a vehicle to a customer. It’s the latest in a series of measures proposed in the last year – but none have yet passed. ARA continues to work with Members of Congress and their staff on these bills.


March-April 2015 | Automotive Recycling 69


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