U.S. Lags Behind Europe in Protecting Small Business and Competition

Independent Repair Shops in Europe Receive Protection from European Commission

BETHESDA, Md., Sept. 24 /PRNewswire-USNewswire/ -- The United States lags behind Europe in protecting small business and competition. General Motors, Daimler-Chrysler, Toyota and Fiat, have made a legally binding commitment with the European Commission that these four car manufacturers will provide technical information to independent repair shops in the European Union. Yet while major car manufacturers have committed to providing information to independent repair shops in Europe, they are still fighting the efforts in the U.S.

"We applaud the European Commission for taking the initiative in obtaining the truth in order to protect the ability of independent businesses to compete on a level playing field. However, we find it disturbing that the EC is taking a more aggressive role in protecting consumers from a repair monopoly than the U.S. which has yet to pass Right to Repair legislation," said Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association (AAIA).

"We further are disappointed that the big car companies can reach a legally binding agreement with the independent repair shops in Europe, but do not seem to want to provide the same accommodations to their counterparts in the United States. The car manufacturers' lack of interest in pursuing a legally binding U.S. agreement has forced us to seek a legislative solution in the form of the Motor Vehicle Owners' Right to Repair Act," continued Schmatz.

In announcing the agreement, the European Commission stated "the commitments were given after a Commission investigation found that inadequate access to the full range of technical information could drive independent repairers from the market and the agreements between the carmakers and their authorized repairers would therefore infringe EC Treaty rules on restrictive business practices. The resulting reduction in competition between car repairers could lead to less choice and higher prices for consumers: independent repairers are often cheaper than authorized outlets, sometimes by over 50%. In addition, if repairs were carried out without the right technical information, this could lead to vehicles being driven in an unsafe condition, and add to air pollution and wasted fuel."

The European Commission agreement mandates that all technical information that is provided to authorized repair shops also must be made available to independent shops on a nondiscriminatory basis. It allows the car companies to withhold information on anti-theft or performance-limiting functions of on- board electronics, but requires that the manufacturers ensure that the absence of this information does not prevent independent shops from performing repairs not directly related to these systems.

"Although the U.S. car manufacturers would have you believe otherwise, this issue has always been about motorists having the right to choose where they take their vehicle for service and the ability of independent repair shops in the United States to compete fairly in the marketplace," stated Schmatz. "We hope that the U.S. car manufacturers will be willing and able to reach a legally binding agreement with us regarding the availability of repair tools and service information. In the meantime, we will continue to support the passage of the Right to Repair Act."

About Right to Repair:

The Motor Vehicle Owners' Right to Repair Act (HR 2694), which was introduced by Rep. Edolphus Towns (D-NY) and currently has 30 congressional sponsors, would require car companies to make the same service information and tools capabilities available to independent repair shops that they provide their to their franchised dealer networks. The legislation further provides car companies with strong protections for their trade secrets unless that information is provided to the franchised new car dealers. The bill clarifies the responsibilities of the Federal Trade Commission in enforcing the bill's requirements. For more information about the Right to Repair Act, visit http://www.righttorepair.org/.