Contact:	Bob Redding (202) 543-1440
For Release:	Immediate News Bulletin 97.95 November 13, 1997

Europe Endorses Competition in Aftermarket Parts

Washington, D.C., Nov. 13, 1997 The European Parliament has voted to encourage competition in the aftermarket parts market by rejecting a proposal submitted by the Council of Ministers that would limit competition and instead passed a clause that encourages competition in the aftermarket. This is important not only to the people of Europe, it strengthens the aftermarket parts market in the United States.

John Mock, Director of the ASA Collision Division said, "Competition and the freedom of choice is the American way. It is what we have built our great country on. I feel that aftermarket parts are here to stay. The issue that we now must address is quality. A priority of ASA is to work with either a certification process or legislation that will guarantee the quality of aftermarket parts for the consumer."

The European Parliament substituted the Council of Minister's proposal with a measure previously approved by the Parliament that encourages competition. Out of the 500 present, 386 voted for the measure. Aftermarket, or alternative replacement parts, are those parts that are not manufactured by the original vehicle manufacturer or its licensees.

Bill Haas, Director of the Mechanical Division said, "I try to envision what impact design protection legislation would have had on the operation of my shop had it become law a few years ago, and I am sure that is what the members of Parliament were concerned about when they faced this proposal. The members of Parliament should be appalled that the Council of Ministers tried to discourage competition." The measure approved by the European Parliament requires the producer or importer of aftermarket parts to pay "reasonable renumeration" to the auto manufacturer who owns the design right. The Council's proposal would have protected monopolies by the vehicle manufacturers unless the individual European nations initiated action to provide for competition.

ASA believes that in all circumstances, consumers should have the freedom of choice to select the replacement parts to be used in the repair of their vehicle. ASA supports requiring insurers and auto repair facilities to obtain the express written consent of vehicle owners before installing alternative replacement parts. ASA supports disclosure statements that alert consumers that the use of alternative replacement parts other than those manufactured by the Original Equipment Manufacturer (OEM) may have an effect on their warranties or market value.

ASA Washington Representative Bob Redding said, "We congratulate the European Parliament for encouraging fair competition. We believe that competition in the alternative replacement parts market is the only way to reduce costs and improve quality. For years we have closely watched this issue in Europe. We have to make sure that in this global marketplace that competition is protected."

The Automotive Service Association is the largest not-for-profit trade association of its kind serving more than 12,000 businesses and approximately 55,000 professionals from all segments of the automotive service industry. ASA advances the professionalism and excellence in the automotive repair industry through education, representation and member services.