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ARA Statement on Passage of Rhode Island Legislation Restricting Recycled Parts Utilization

The Automotive Recyclers Association (ARA) expressed disappointment today with the enactment of legislation in Rhode Island that has serious anti-competitive consequences for consumers, professional automotive recyclers, and independent collision repair professionals across the country.

Senate Bill 2679 went into effect on July 4, 2018 and would require that automotive repairer facilities in the state comply with the recommendations of the original equipment manufacturer (OEM).  ARA was on record expressing serious concerns with the legislation as it sanctions automotive manufacturers’ surreptitious campaign to restrict the reutilization of recycled OEM parts.  ARA believes that manufacturers are using the imposition of repair standards to discourage the use of genuine OEM recycled parts and to secure a market that establishes manufacturers as the only source of parts and services for the repair of consumers’ vehicles.

“Over the past ten years, automobile manufacturers have become more aggressive in their efforts to force recycled OEM parts out of the replacement parts market,” said ARA Interim CEO, Sandy Blalock.  “Manufacturers have done this by releasing position statements, repair specifications and procedures prohibiting the reutilization of recycled OEM parts. The fact is that recycled OEM parts went through the same rigid testing as “new” parts to ensure they are integratable and functional with all vehicle systems. Prohibiting any repairer from using repair specifications or procedures that differ from narrowly-defined OEM recommendations serves to limit the reutilization of alternative replacement part options and is a detriment to all.”