The Ohio Senate voted 33-0 recently to amend Senate Bill 204 that could have
negatively impacted independent repair facilities statewide.
The bill, as originally introduced, would have prohibited the sale of
original equipment manufacturer automotive parts from being sold to
aftermarket tire and auto repair facilities throughout the state of Ohio. In
addition, the bill would have prohibited non-dealer automotive parts and
repair facilities from participating in automotive recall and warranty
programs.
SB 204 (Sen. Wagoner, R-Toledo) and a companion bill, House Bill 364 (Rep.
Lundy, D-Lorain), were proposed as a result of a task force formed by Ohio
Governor Ted Strickland. The companion bills were designed to be Ohio's
version of a nationwide push by the automotive dealers to strengthen and
protect auto franchise laws in the wake of forced dealership closings by
General Motors Co. and Chrysler LLC. However, opponents argue that
provisions in these franchise agreement measures go too far in creating a
monopoly for the auto dealers and would severely limit options when it comes
to repairing vehicles for Ohio's consumers.
The contentious provisions in both bills impose restrictions on the sales
and distribution of auto parts, which would ultimately limit consumer
choice.
The Automotive Service Association of Ohio (ASA-Ohio) and The Ohio Tire and
Automotive Association (OTAA) oppose both bills. The bill is scheduled to
begin its journey through the Ohio House of Representatives.
"Our concerns from the start were twofold: First, the original bill would
have been extremely detrimental to many tire and automotive parts and repair
businesses throughout the state," says John Miller Jr., president of OTAA.
"Limiting what our members can sell and what types of service our members
can offer to consumers would have put incredible pressure on this industry.
And second, the bill would have limited consumer choice by forcing consumers
to buy OEM parts directly from dealerships."
