The new MICAR Plus program launched jointly by Automotive Recyclers of Michigan (ARM) and the Michigan Automotive Service Association (ASA) can help you substantially increase sale of recycled parts to the automotive collision and repair industry.  MICAR Plus members will also be identified and recognized as recyclers who are committed to not only meeting environmental and safety standards, but also providing consistent quality parts and exceptional service.

Currently, Michigan’s collision and repair shops do not use nearly as many recycled parts as they could.  Despite pressures from the industry to use more recycled parts, repair shops often only consider certain types of recycled parts, or only purchase parts from a few long-term trusted recyclers.  There are a variety of reasons why there is a reluctance to use more recycled parts:  limited parts availability, poor or inconsistent quality of parts, incorrect parts, uncertain delivery times that interfere with scheduled repair cycle times, and difficulties with returns and credits.  Similarly, recyclers can become frustrated with selling parts to repair shops that fail to understand the nature of recycled parts, do not order the correct parts, and expect unreasonable delivery times and return policies.  ARM and ASA concluded that using more recycled parts would benefit both the recycling and repair industries, and that many of these obstacles to using recycled parts could be solved by improving communication and developing agreed-upon quality and service standards.

ARM and ASA are promoting and marketing the MICAR Plus program to their members to support the increased use of recycled parts.  To help address concerns about using recycled parts, a set of standards that include delivery requirements, return and credit policies, transaction procedures (digital photographs and body cut sheets upon request), and minimum written warranties (including an optional extended parts and labor warranty) were agreed upon.  To administer the program, complaint investigation procedures, an arbitration board, compliance audits, and mandatory training requirements were established.  Participating repair shops will attend special I-CAR training that explains the vehicle recycling process and promotes the use of more recycled parts.

 


MANASSAS, VA – In a letter to ARA Chief Executive Officer (CEO) Michael Wilson, the Federal Trade Commission (FTC) this week affirmed the use of recycled automotive parts in warranty repairs. In the letter, the FTC says: “Warrantors may not claim that a warranty is void simply because a consumer has used an authorized or recycled part.”

“Tying warranties to the use of new, authorized replacement parts is illegal under the Magnuson-Moss Act,” said Wilson. “Several months ago we asked the FTC to review position statements by several automobile manufacturers that implied that recycled parts are lesser quality parts than new OEM parts and that there use could void a manufacturer warranty,” said Wilson.

ARA raised concerns with the FTC that the position statements of the automobile manufacturers might mislead consumers into thinking that using recycled parts in a repair could void their warranty. As a result, the FTC announced the update of a consumer alert entitled Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must? The revised alert specifically notes that the mere use of recycled parts does not void a warranty and that it is illegal for warrantors to void a warranty or deny coverage simply because a recycled part was used. An updated version of the alert can be found here.

Since 1943, the Automotive Recyclers Association (“ARA”) represents an industry dedicated to the efficient removal and reuse of “green” automotive parts, and the proper recycling of inoperable motor vehicles. ARA represents the interests of over 4,500 auto recycling facilities in the United States and fourteen other countries around the world. With programs such as the Certified Auto-motive Recycler Program (CAR) and other partnerships, ARA members continue to provide consumers with quality, low-cost alternatives for vehicle replacement parts, while preserving our environment for a “greener” tomorrow.

To learn more about the Association, visit ARA’s Home Page at www.a-r-a.org or call (571) 208-0428.