Studies Show Imitation Crash Parts Diminish Value Of Vehicles
by Robert L. Redding, Jr. Most motorists will be involved in at least one automotive collision or other traffic mishap that will cause damages requiring automotive repairs. What these car owners know about the quality of the replacement parts used to restore their vehicles could have significant implications to the safety and future value of the cars.
Automobiles are by far the most expensive consumer goods acquired by most households. They are also subject to much greater hazards and risk of damage, through rust or collision, than most consumer goods. Once a consumer has purchased a vehicle, it will demand a continual investment in maintenance because the road worthiness of an automobile has considerable implications to passenger safety. Even a consumer who does not intend to keep a vehicle for more than two or three years will have a considerable interest in preserving its resale value.
Naturally, consumers have a clear stake in the quality of replacement parts used to repair their cars. One obvious reason for this is safety. A second concern, especially in relation to parts used to repair collision-damaged vehicles, is appearance. When auto bodies are repaired, car owners generally insist that the original appearance of the vehicle is restored. For this to be possible, the replacement part must be of identical design and appearance to the original, even if the construction and materials are slightly different.
Why, then, are insurance companies forcing policyholders to use "imitation" crash parts in the repair of their vehicles? Imitation crash parts are copies of parts made by the manufacturer of the vehicle. Imitation parts, sometimes referred to as "aftermarket parts," are often made using thinner, lighter and lower quality materials. Most are not equivalent to the vehicle manufacturer's specifications for fit, finish, structural integrity, corrosion resistance and dent resistance, nor are they effectively safety-tested to ensure optimum crash performance. Insurance companies save millions of dollars each year by insisting on their use. These savings are not passed on to policyholders.
Disclosure laws enacted in some states require that consumers receive written notice of the intent by the insurer to use imitation crash parts, identifying each imitation crash part to be used. These disclosure notices most often require a statement that imitation crash parts are supplied by a source other than the vehicle manufacturer and that they are warranted by the manufacturer or distributor of the part. But, they don't go far enough.
Legislation enacted in West Virginia and pursued in the last state legislative sessions of Florida, Illinois, Rhode Island, Massachusetts and New Jersey, stipulate that insurers must use original equipment manufacturer (OEM) crash parts for vehicles requiring repair work in the year of their manufacture and in the two succeeding years, unless the vehicle owner consents in writing to the use of imitation crash parts.
For now, most car owners have no idea how their vehicles are being repaired. When asked, however, nearly all can spot a shoddy repair caused by defective imitation parts. According to a survey conducted by General Motors in 1995, nine out of 10 survey participants preferred vehicles equipped with original GM parts to those outfitted with imitation parts. Professional appraisers indicated a $740 average reduction in resale value for the vehicle repaired with imitation parts, while consumers indicated an even greater average resale reduction of $1,670. GM identified three areas that both groups agreed reduces the value of vehicles repaired with imitation parts: rust and paint bubbling, faded paint and general fit.
In crash tests performed by Volvo according to federal standards, an imitation Volvo hood crumpled unevenly and one side detached from its frame, while an imitation fender contributed to the impairment of door operation. The genuine Volvo hood deformed according to Volvo standards and remained intact, still welded to the frame and clear of the passenger compartment. The Volvo fender performed to Volvo standards, leaving the door operation unimpaired. Ford has found imitation parts to have fewer, smaller and weaker welds and less adhesive and epoxy. Welds are used to bond door shell components into an integral unit and are critical in anchoring the door latching and hinging mechanisms. In addition, Ford discovered the geometries of crush darts on imitation hoods to be different than those on the genuine Ford parts tested, raising questions about hood crumpling performance. Sheet metal used in imitation parts tested 15 percent weaker than genuine Ford parts.
For auto body repair shops, imitation crash parts create additional problems. These parts take significantly more time to prepare and install than OEM parts and most often prevent repair technicians from achieving the level of quality that adequately restores the vehicle to pre-accident condition. The Automotive Service Association (ASA) has fought for requirements that imitation crash parts be equivalent or exceed vehicle manufacturer parts for fit, finish, structural integrity, corrosion resistance and crash performance. In addition, ASA supports testing and certification of imitation parts by independent certifying bodies to ensure the above criteria are met. The association believes that rigid certification procedures could have the effect of improving the quality of these crash parts to the level of mechanical aftermarket parts, which have the reputation of being at least as good as manufacturers' parts.
Are laws like the one in West Virginia a cure-all for the imitation parts dilemma? Probably not. What they will do, however, is make insurers more accountable to customers for their practices. For consumers who face the diminished value of their cars through the use of imitation parts and the threat to their safety, understanding the repair process is essential. Only by knowing all the facts about the parts being used to repair their vehicles do car owners protect the value of their investments and, more importantly, their lives.
Bob Redding is ASA's Washington representative. He holds a law degree from the George Washington University of Law.ASA Main Page || AutoInc. Main Page
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AutoInc. Magazine ®, Vol. XLV No. 3, March 1997