Wednesday, Jan. 30, 2008
While automakers battle each other for dominance, they are united in another long-running and increasingly high-tech war: their fight with independent shops over software and repair revenues.
Current law unfairly favors car dealerships, say independent shop owners. In response, Reps. Albert R. Wynn (D-Dist. 4) of Mitchellville and Christopher Van Hollen Jr. (D-Dist. 8) of Kensington are co-sponsoring the Motor Vehicle Owners Right to Repair bill, now in its third go-round on Capitol Hill. The bill, they say, will protect the rights of consumers to have their vehicles diagnosed, serviced and repaired where they want.
The bill would help local repair shops get unlimited access to diagnostics software programs and tools from automakers, said Paul Fiore, director of the Washington Maryland Delaware Service Station and Automotive Repair Association. It is currently in a subcommittee of the House Energy and Commerce Committee, chaired by Rep. John D. Dingell (D) of Michigan, a strong supporter of the Detroit auto industry.
The auto repair industry employs about 5 million Americans in about 500,000 businesses, generating $200 billion in annual sales, according to trade groups.
The bill cites a nationwide survey of 1,000 independent repair shops conducted by Opinion Research Inc., which was commissioned by the after-market association. The survey concluded that limited access to information and tools costs independent repair shops approximately $5.8 billion annually and an average of 5.6 percent in lost productivity per month.
High-tech, high costs
Because of limited access to newer diagnostics software and tools, Edgar Matias, manager of M. Brothers Auto Repair in Rockville, said his shop can work only on vehicles older than 2003 models. Otherwise, he said, ‘‘it is a lot of trouble because there are so many [computer] sensors.”
Lexuses, BMWs, Saabs and General Motors’ Navigators are some of the vehicles that require Matias to purchase expensive diagnostic software to complete repairs. ‘‘It has hurt our business over the last three years,” he said.
However, nearby at the service department at 355 Toyota in Rockville, service managers said they thought Toyota diagnostics tools are available to independent shops, and ‘‘after-market” associations tend to agree that Toyota USA is more generous with repair information than most carmakers.
Some dealers say the House bill could hurt consumers, while the Federal Trade Commission may lean against the bill because of a lack of compromising by leading proponents and opponents.
Neil Kopit, marketing director at Criswell Auto Park, said such a law would put all liability for repairs on dealers. ‘‘That’s not fair,” he said.
Kopit suggested that giving consumers and repair shops all the information would make dealer service centers responsible for non-dealer repairs if the cars come back to the dealer for more repairs. Also, the bill could render warranties useless, he said.
‘‘Why not just void the warranty? I am sure that they are not saying we want to also void the warranty. Besides, I don’t think there are many people now who want to fix their own cars,” Kopit said.
Meanwhile, Wynn wrote in an e-mail, ‘‘Our consumers need the freedom to choose who performs the work on their car, which are often mechanics with whom they’ve built trusted relationships over the years.” He said the bill ensures that small businesses are not squeezed out of business ‘‘by the dealership’s monopoly on repair work.”
The issue has actually improved for some shops since the 1980s, when computer systems started playing a role in automobile systems, Fiore said.
And Kevin Moran, service assistant manager for Reed Bros. Dodge in Rockville, said that more specialized diagnostics equipment has recently become available to the ‘‘after-market” repair shops.
Elite shops with the best mechanics and more money can afford to buy much of the diagnostic software needed for many models, Fiore said.
‘‘But we in the trade association want to equalize benefits. The cream of the crop have better income, will have access to online time and spend money on the equipment,” he said.
Individual scanners to read auto computers cost $5,000 to $10,000 per manufacturer, Fiore said. The scanners provide codes for several hundred sensors under the hood of the average modern vehicle.
Just the threat of the new legislation has prompted automakers to share more information, said Rich Diegle, a spokesman for All Data LLC, a toolmaking company.
‘‘With All Data, there is not a struggle to speak to the manufacturers. Most are OK with using their information,” Diegle said. He said All Data sells a $2,000 scanning tool that will read computer codes for every model of every car. It also offers a subscription for $185 per month for updates.
Maintenance information on newer cars is not available, said Reza Rakhshan, president of A-1 Imports Inc. of Rockville, which sells used imports that are at least 2 years old with partial warranties. ‘‘Even changing brake pads sometimes requires a computer diagnostic program but it is not covered often by a warranty,” Rakhshan said.
‘‘In the long term, the problem will hurt non-dealer repair shops financially,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association. ‘‘The issue is the amount of money they need to train and new tools for scanning computer systems in cars and for updates in repair software. Scan tools software need yearly updates. These cars need regular repairs and software.
This report originally appeared in The Business Gazette.
