Stakeholders Seeking Consensus Without Legislation

CHICAGO (Sept. 13, 2005) - Automakers and aftermarket stakeholders are making a meaningful attempt to reach a non-legislated solution to the Right To Repair legislation issue that works for all. 

David Parde, president of the Coalition for Automobile Repair Equality (CARE) said that the meetings were "requested" by Representative Joe Barton (R-TX) and Senator Lindsey Graham (R-SC) as one final attempt to see if an agreement could be reached without legislation. According to Parde, Barton set a Sept. 15, 2005. Should the talks fail, the Motor Vehicle Owners Right to Repair legislation, sponsored by Barton in the House and Graham in the Senate, will be reintroduced into Congress.

John Cabaniss, director of Environment & Energy for the Association of International Automobile Manufacturers (AIAM) also confirmed the series of meetings. He said the Council of Better Business Bureaus (BBB) is facilitating the meetings. The major stakeholders are attempting to work out differences that achieve a "win-win" resolution for all. Aftermarket participants include the Automotive Service Association (ASA), the Automotive Aftermarket Industry Association (AAIA) and CARE. Automakers were being represented by AIAM and the Alliance of Automobile Manufacturers (AAM); the dealerships are represented by the National Automobile Dealers Association (NADA). The Federal Trade Commission (FTC) also is participating, but as an observer only and will issue a report to Barton and Graham.

Central to the discussions and potential legislation is the issue of surety and enforcement of access to service, tool and training information from automakers, which legislation proponents assert will provide consumers with a free choice in where to repair and maintain their vehicles. 

Cabaniss did have a general comment about the good faith shown in the meetings to date: "There has been progress in developing a blueprint for an agreement for independent dispute resolution. We hope that the remaining open issues can be addressed in the limited time left for negotiations." 

At the AAIA's first Financial Symposium held in Chicago last week, Kathleen Schmatz, president of AAIA apprised the participants of the legislation's progress from her organization's perspective. Schmatz told the audience that Representative Joe Barton was holding off moving on the legislation for a couple of weeks, given that there were discussions underway that might preclude the need for a legislated solution. 

Schmatz also told the listeners that Representative Barton has assured her that he has sufficient support to carry the legislation in the House this session. In a question-and-answer session later in the symposium, Schmatz again spoke to the participants about the legislation, and she urged her members to reiterate their support for it by e-mailing letters to that effect to their Congressional representatives. She also requested that members consider asking their employees to do the same.

Cabaniss noted that nothing was ever certain. While Representative Barton was willing to move after the deadline if there was no resolution, Cabiniss said, "Senator Graham indicated he will wait for the outcome in the House before taking up a bill in the Senate." He added, "It is never clear how any bill will fare in the Congress. Of course, we and hopefully the other negotiating parties are optimistic that a voluntary agreement can be reached which will preclude the need for further consideration of legislation."

None of the parties - Parde, Schmatz and Cabaniss - wished to address the specifics of the meetings until after the deadline passed, wishing to maintain the integrity, spirit and good faith of the discussions. Yet the deadline is approaching, and the tight-lipped and right-to-the-wire nature of these negotiations suggests that the industry just might be able to find harmony and move forward on this divisive issue.

(Sources: AIAM, AAIA and CARE)