October 2016

In this issue ...

ARA Criticizes General Motors’ Position On Recycled Parts Use

The Automotive Recyclers Association (ARA) has released a statement admonishing General Motors (GM) and its Chairman and Chief Executive Officer (CEO) Mary Barra for GM’s new anti-environmental position on the utilization of recycled GM parts.

ARA’s release stated that GM’s revised position on recycled and salvage original equipment manufacturers’ (OEM) parts, found on the corporation’s updated “Genuine GM Parts” website, significantly backtracks on the company’s economic stewardship commitments to conserve resources and protect the global environment, and contradicts its publicly stated Environmental Principles by now attacking the use of environmentally friendly recycled GM part.

ARA said that despite touting a commitment to the basic tenants of a circular economy - recovering all products, components and materials at their highest utility and value - GM now fails to embrace fundamental reutilization of their very own parts once they have left a dealership. “It is reprehensible for GM’s corporate position to be one that does not support the reuse of recycled GM parts in vehicle repair while claiming a leadership role in the circular economy movement,” the association said.

The utilization of recycled OEM automotive parts has been widely accepted for decades and has a long track record of successful and safe use in vehicle service and repairs. In fact, GM acknowledged in their company’s 2010 position statement on the issue that “Recycled original equipment parts may also be used for repair … a recycled original equipment part, may be an acceptable choice to maintain your vehicle’s originally designed appearance and safety performance.”

GM’s revised position statement is not only a reversal, but is potentially misleading consumers with insinuations that recycled GM parts are “non-GM” parts, said ARA.

In the revised position statement GM includes the following paragraph:

“Genuine GM Parts are designed and constructed using metals with specific properties, thicknesses and stamping features built to perform in a consistent and predictable way during a collision event. The use of non-OEM structural components may compromise the overall crashworthiness and occupant safety of General Motors vehicles in a subsequent collision. In summary, General Motors does not support the use of salvage or recycled parts in a vehicle’s repair. GM recommends the use of Genuine GM Parts in repairs to help ensure the vehicle is returned to pre-collision condition.”

Recycled parts are not the same as non-OEM parts. GM parts do not cease to be OEM parts when moved from one car to another, said ARA. References to the “use of non-OEM structural components” immediately before GM stated that it does not support the use of salvage or recycled parts in the company’s position statement is deceptive and ARA believed it is stated in this way to confuse consumers into thinking that recycled GM parts are not GM’s components.

As their market shares shrink from legitimate competition, auto manufacturers have responded with unfounded attacks and misleading information about recycled OEM parts and other part replacement options, stated the association. ARA believes that the Federal Trade Commission should take a serious look into the actions of GM and other auto manufacturers that continue to engage in activities that malign the recycling of their own products without a shred of research to substantiate their claims.

GM and other manufacturers continue to fail to cite any specific data or research to back up their claims that recycled parts are inferior to new parts, said ARA.

“We believe the campaign by GM continues to be part of a coordinated and concerted effort among auto manufacturers to limit competition in the automotive parts replacement market by engaging in an ongoing campaign to undermine the recycled OEM part market,” said ARA CEO Michael E. Wilson.

“Regrettably, GM’s revised ‘Genuine GM Parts’ campaign seems to be a rather transparent attempt to hoodwink consumers to boost sales of expensive ‘new’ parts and malign entirely appropriate, environmentally beneficial recycled GM replacement parts,” said Wilson. “Recycled OEM parts are genuine OEM parts built to the same quality, durability, fit and finish specifications as new replacement parts. These recycled OEM parts went through the same rigid GM testing to ensure they are integrable and functional with all specified vehicle systems. These recycled parts are fully functional and in most cases match or exceed the condition of the components before the repair or service,” explained Wilson.

It is disappointing that GM has now taken a corporate position to disavow basic reuse principles that offer undisputed environmental benefits, the association said. ARA believes that GM should stand by the durability and quality of the parts it produces and calls on GM leadership to cease their current anti-environmental and misinformation activities related to maligning recycled GM parts - the very parts that they manufactured.

IAA Announces Loss Advisor Tool

Insurance Auto Auctions, Inc. (IAA) recently announced its newest development, IAA Loss Advisor. The company stated the tool enables insurance claims staff to quickly generate an early total loss recommendation based on information they provide regarding the post-accident condition of the vehicle combined with the ACV (actual cash value) and IAA salvage vehicle market value data. Loss Advisor is the latest advancement in the IAA Total Loss Solutions first-of-its-kind suite of products that ultimately leads to increased management of costs, as well as an enhancement in customer satisfaction and retention.

“The Loss Advisor tool uses insurance company and IAA data to allow for a significant enhancement in the accuracy of the evaluation typically given by existing tools regarding early total loss prediction,” said Pat Walsh, senior vice president of business development, IAA. “Because of this, Loss Advisor decreases storage and advance charges, reduces the cycle time and enhances the customer’s satisfaction.”

“By implementing the Loss Advisor tool, insurers can instill a greater sense of confidence in customers going through the claims process, which leads to increased policyholder fulfillment and retention,” said John Kett, CEO and president, IAA. “This development complements the existing features of IAA Total Loss Solutions, which serve to further exhibit IAA’s dedication towards being the leading industry expert providing a seamless suite of technologies that increases the effectiveness of the total loss claims process.”

Insurance Auto Auctions is a business unit of KAR Auction Services. Headquartered in Westchester, Ill., IAA has over 170 auction facilities throughout North America that offer towing, financing and titling services.

ARANY Plans 55th Annual Convention & Trade Show

The Automotive Recyclers Association of New York is planning its 55th annual event. The group will meet in Verona, N.Y. at the Turning Stone Resort & Casino on Oct. 6 - 8, 2016. The event will provide professional business development, to ability learn about the latest trends, practices, equipment and technology and to celebrate our industry and the accomplishments of ARANY.

Online registration is available until October 5 at www.arany.com.

See You At ARA

The Automotive Recyclers Association will hold its 73rd annual convention and trade show in Baltimore, Md. The event will be held at the Baltimore Convention Center on October 26 - 29, 2016.

The convention will include 24 educational sessions, a Saturday technology forum, an exposition featuring nearly 100 exhibitors, updates from ARA committees, the Ladies of Automotive Recyclers Association breakfast and the annual awards dinner with the passing of the presidential gavel.

Make sure to stop by booth 320 and say hello to Locator sales representatives Cindy and Tina. Go to www.araexpo.org.

November Deadlines

  • September 28, 2016: Listings for The Locator Magazine.

  • October 3, 2016: Display ads for The Locator Magazine.

  • October 6, 2016: The Locator Magazine goes to press.

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The Locator's commitment to buyers and sellers of recycled parts has been the driving force for the company for more than 50 years. For the past several months, the data has shows a clear trend for purchasing smaller, easy-to-install parts. Headlights, tail lamps and side view mirrors have been popular among buyers. But buyers also continue to purchase the larger, more expensive parts including engines and transmissions.

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