The week of June 07, 2010
Non-OEM parts industry discusses latest battle over structural parts
by John Yoswick
The fallout in recent months from concerns raised about non-OEM bumper and structural parts raised by industry trainer Toby Chess was clearly on the minds of the parts manufacturers and distributors gathered in Indianapolis, Ind., this spring for the Automotive Body Parts Association's 30th annual meeting.
At the Collision Industry Conference (CIC) this past November and January, Chess demonstrated key differences between some non-OEM structural parts and the OEM parts they are being sold to replace. The demonstrations have led at least four insurers to pull back from asking shops to use certain non-OEM parts, and has led to new testing and certification efforts related to such parts. Chess' latest presentation on such parts at CIC in April was halted at the last minute after he said he was threatened with a lawsuit by LKQ Corporation, parent company of Keystone Automotive.
In an unsuccessful bid for a seat on the ABPA board, Rob Wagman of LKQ Corporation told attendees if elected he would push ABPA to be more proactive on such issues.
"I reached out to the association in November after the first CIC demonstration, and quite frankly, I didn't think ABPA did enough to get out in front of this thing," Wagman told the 150 people attending the ABPA event. "I think on the board I would push to get the association out there, defending its membership and really getting in front of these guys who are coming after the industry. If we don't act soon, I think we're in a lot of trouble as an industry. If I was on the board, I'd want to make sure...that everyone knows we're a quality industry that's trying to help the industry and not bring it down." Wagman and another potential new ABPA board member were defeated in the election for three open board seats by current board members winning reelection.
Like Wagman, ABPA Treasurer Jim Smith, a consultant in the non-OEM parts industry who was reelected at the meeting to his position on the association's board, told those at the ABPA meeting that the non-OEM parts industry is under attack like at no time since the State Farm parts lawsuit a decade ago.
He pointed to the Automotive Service Association's meeting this spring with senior officials from the National Highway Traffic Safety Administration (NHTSA) at which ASA reiterated its request that the agency regulate non-OEM crash parts.
"Of all the things that can happen to our industry, being regulated by the government has to be right there at the bottom," Smith said. "It's a shame that ASA would try to take our industry in that direction."
Smith also said the non-OEM parts industry - even those that sometimes resent LKQ / Keystone for its dominant position in the market - owes the company thanks for its actions in preventing Chess' planned demonstration at CIC about problems with non-OEM hood latches.
"I don't care if you like LKQ or not, but what they did in quieting Toby Chess was absolutely necessary for our industry," Smith said. "While you may want to kick them in the butt when they're doing things in your market that make you scratch your head, you need to pat them on the back when they spend the money to do the things that make your business survive," Smith said.
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