Press Releases

THURSDAY,
March 13, 2009

For Immediate Release

 

Contact:

Kimberly Schrader
(800) 353-1274

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WASHINGTON AUTOMOTIVE WHOLESALERS ASSOCIATION URGES ACTION
ON AUTOMOTIVE “REPAIR CLAUSE”
Newest Member Strengthens Quality Parts Coalition’s Pursuit of Legislative Change

WASHINGTONAs Congress continues to make huge loans to the major car companies, the Washington Automotive Wholesalers Association (WAWA) today joined the Quality Parts Coalition (QPC) to give voice to American consumers forced to delay or forgo vehicle repairs because of the ongoing recession. In recent years, car companies have adopted a monopolistic strategy in the repair parts market, preventing manufacturers and distributors of quality, alternative parts from joining the industry, much to the detriment of the motoring public. An automotive “repair clause,” or a permanent, legislative change to U.S. design patent law, would guarantee consumers access to affordable repair parts for their vehicles.

The number of design patents granted to the major car companies on collision replacement parts has increased dramatically since the 1990s, following Congress’ rejection of a car company strategy to enact legislation providing copyright protection for replacement parts. Since 2005, when Ford Global Technologies (“Ford”) made its first attempt to gain a monopoly by enforcing 14-year design patents on seven collision replacement parts for the 2004 Ford F-150 before the International Trade Commission (ITC), car companies have ratcheted up efforts to corner the market and push out manufacturers of low-cost, high-quality replacement parts. Following a ruling in favor of Ford, the number of design patents held by the car companies has more than doubled.

“The car companies are pursuing an anti-consumer strategy that is stifling the market,” said Eileen A. Sottile, executive director of QPC. “In 2008, Rep. Zoe Lofgren (CA-16) introduced legislation that would create a narrow exemption to patent law, allowing motorists to enjoy the benefits of quality, alternative replacement parts. We are encouraged by the Washington Automotive Wholesalers Association’s commitment to alerting the 111th Congress to this issue and to giving Americans a much-needed break.”

“The 13 percent of Americans who pay out-of-pocket for vehicle repairs are already delaying maintenance on their cars as food prices rise and credit lines dwindle,” said Tom Janssen, president of WAWA. “A monopoly on replacement parts would spell disaster for the consumer on-a-budget and for the industry, which employs millions of Americans. Lawmakers should intercede to protect their constituents and one of the cornerstones of the American economy – competition.”

Typically 26 to 50 percent less expensive than car company-issued parts, alternative replacement parts provide Americans with an enormous savings. However, the current and rising trend of car companies obtaining and enforcing 14-year design patents on collision replacement parts could remove this important benefit to consumers and the economy. The Quality Parts Coalition and its diverse roster of supporters, ranging from the independent parts industry to repairers and insurers and from consumer groups to senior organizations, are dedicated to securing a permanent legislative change.

For more information, visit www.washingtonautomotive.org and www.qualitypartscoalition.com.

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Washington Automotive Wholesalers Association (WAWA) represents automotive aftermarket businesses in the state of Washington. It was founded in 1960 to join businesses together to deal with management, financial, regulatory and legislative matters, both on the state and federal levels. Its purpose is to provide support to the automotive aftermarket that will enhance the industry's productivity, image and role in the various communities it serves.

The Quality Parts Coalition represents the interests of the independent parts industry, repairers, insurers, consumers and seniors. It is the goal of the Quality Parts Coalition to develop and secure a permanent legislative change to U.S. design patent law to preserve competition and to protect the consumer’s right to benefit from quality