Saturday, October 30, 2010

Honda, Hyundai issue anti-used-parts memos, junkyards object

The Automotive Recyclers Association (ARA) issued a formal complaint letter with the Federal Trade Commission (FTC) against two car manufacturers, Hyundai Motor America and American Honda. Both companies released statements that warn against the use of recycled auto parts, and indicate that their use will void vehicle warranties issued by the companies. ARA said those statements and their threatened warranty refusals could be violations of the Magnuson-Moss Act.

Use of these recycled parts, a $22-billion industry, has been widely accepted for decades and there is a long track record of their successful use, ARA said. Recycled parts are original equipment manufacturer (OEM) parts. They are fully functional and are in many cases identical to the original parts Hyundai Motor America and American Honda are requiring, according to ARA. Recycled parts were new OEM parts at some point, yet both Hyundai Motor America and American Honda are calling for the use of their own new parts in repairs.

“Neither manufacturer has provided any evidence that parts unaffected by an accident become inadequate once reused, which begs the question why their use is not supported by either company,” ARA’s Chief Executive Officer Michael E. Wilson states in his appeal to the FTC.
“Following the logic held by these companies, as soon as a new Hyundai, Honda or Acura drives off the lot, its parts are unsuitable for use as replacement parts in another vehicle, implying that the parts are unfit for use as soon as the car drives off the lot.”

In addition, recycled parts have several additional benefits compared to new parts:
Recycled parts allow consumers to save on costs while using parts identical to new OEM parts.

Recycled parts are better for the environment, since no additional resources or energy were used to create an unnecessary new replacement part.

Auto recyclers provide warranties on any recycled part used in a repair, indicating that recycled parts are not used in an attempt to cut corners with customers. "We believe the statements made by Hyundai Motor America and America Honda are part of a concerted effort among automobile manufacturers to limit competition in the automotive parts market to try to limit their competition,” said Wilson.

Source (via Autoblog);

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