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According to the international trade association, The Automotive Recyclers Association (ARA), car makers Honda and Hyundai recently gave their dealers advice to tell customers not to use recycled auto parts. According to ARA, these car makers claim that recycled or used parts will void the vehicle’s warranty.
Recycled auto parts have been in common use for decades without any challenge to the quality or reliability of these parts, which should impact warranty performance. The irony of this recent policy shift is that Honda or Hyundai’s recycled parts were manufactured by Honda or Hyundai in their own factories.
Parts manufactured by the same company that produced the original vehicle are referred to in the automotive industry as Original Equipment Manufacturer (OEM) repair parts. Recycling companies collect OEM parts from damaged vehicles and offer them for sale to repair shops and consumers with an average of 60% savings compared to new OEM parts and an average of 30% savings compared to other newly manufactured parts in the aftermarket. Moreover, these recycled parts do not belong to the aftermarket variety; they are simply OEM parts that are reused after the donor vehicle has been removed from service.
So if recycled parts come from OEMs, reduce landfill by reusing garbage-dumped car parts and are cheaper for the customer, why are Honda and Hyundai warning against using them?
The most likely reason, of course, is that car sales are falling as the economic downturn continues. Automobile manufacturers are looking to expand their OEM repair parts business by making strong arm movements against their customers. This leaves many consumers unable to use recycled parts if at risk of voiding the warranty.
For its part, the ARA filed an official letter of complaint to the Federal Trade Commission, claiming that the car makers’ actions were contrary to the Magnuson-Moss Act of 1975, which was enacted to simplify warranties.
Most consumers do not drive vehicles still covered by the factory warranty and this traffic will not be affected.
Still, it presents interesting data that large and profitable car manufacturers are putting financial pressure on their customers at a time when many consumers fear big business after the 2008 and 2009 bailouts.
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Source by Zachary Staples