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  Chairman's Message

ASA Adds to DRP

Posted 11/5/1997
By Robert Anderson, AAM

- Since 1990, the Automotive Service Association's (ASA's) position on direct repair programs (DRPs) has been that participation in these programs is an individual business decision, and not one that should be dictated by the association. ASA recently added language to its DRP position that states, DRPs should protect the customer's freedom to select a repair facility of their choice; allow repair facilities to provide quality repairs; allow repair facilities to maintain profitability; allow any shop meeting the insurer's criteria the opportunity to participate; not use special negotiated rates and concessions to the detriment of non-participating shops; and not impose unfair limits on the customer's rights. Consistent with ASA's original position, it remains each member's inherent right to determine whether or not they wish to participate in DRPs and to choose how to conduct their business.

ASA's position reflects that of the majority of its collision members. A recent study done by Automotive Body Repair News showed that 62.9 percent of ASA collision members participate in DRPs. In addition, 88.21 percent said they did not plan to drop any DRP partners; 91.62 percent said they did not plan to switch any DRP partners; and 73.83 percent said they plan to add DRP partners. The study had a 56 percent response from 2,000 randomly selected ASA Collision Division members.

A 1996 study done by this magazine, also of 2,000 randomly selected ASA Collision Division members, showed 66 percent participate in DRPs, a slightly higher number than determined by the ABRN study. When AutoInc. asked these same members if DRPs are good for the industry, 32 percent said "yes;" 32 percent said "no;" and 36 percent noted they were "undecided."

With this data, it would be incorrect for ASA to denounce all DRPs. However, we will continue to cautiously monitor the activity of DRPs and will work vigorously to ensure the freedom of consumer's choice. We will work to resolve industry abuses for the betterment of the industry, including the insurer's refusal to pay for necessary operations, steering of customers, cost shifting, capping of materials and limiting the consumer's coverage under their policy. ASA will also concentrate its efforts on educating consumers and the insurance industry to stop unfair claims handling practices.

There are rapid changes taking place in the collision repair industry - some present great opportunities, while others present great complexities. ASA's purpose is to represent shop owners and help advance their professionalism through education and member services. Its purpose is not, however, to tell shop owners how to conduct their businesses; that is not the role of ASA or any trade association. It is time to start seeing the good in what is being done and I encourage everyone to jump on a wagon moving in a positive, forward direction and that we, together, put a stop to attempts to bring down the industry and association.

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