July 30, 2012—The Automotive Service Association of Arizona criticized State Farm Insurance’s parts procurement program through PartsTrader in a position statement it release_notesd to the industry.
Earlier this year, the program was launched as a pilot in four regions. State Farm has said the program is meant to provide many benefits, including improving customer experience, quality, part availability and efficiency.
But the ASA of Arizona says all aspects of the repair process should be up to collision repair professionals, and that “the mandatory use of PartsTrader is contrary to the free market principles that this country was founded on.” The organization went on to say it believes the program will have a negative effect on cycle time, consumers and the local economy.
“This system does not benefit the collision repair shops, but could encourage short cuts that would have a negative effect on the consumer,” the statement says.
