Shop owners and the Ohio Tire & Automotive Association are all strongly urging lawmakers to change language in pending bills that would keep independent tire dealers and repair shops from handling OE warranty work, recalls or perhaps even selling direct replacement tires.
Nearly identical, Ohio House Bill 364 and Senate Bill 204 were first introduced last November, and primarily address the rights of car dealers facing the potential loss of their vehicle maker franchises. The bills were introduced in the wake of efforts by GM and Chrysler to trim their dealer rosters.
But language buried in the bill, according to Gordon Gough, executive director of the OTAA, could easily be interpreted as shutting independent tire dealers and repair shops from handling OEM warranty work, providing recall-related service or even selling OE direct replacement or downstream tires.
The specific language in questions is:
“Sec. 4517.59. (A) Notwithstanding the terms, provisions, or conditions of any agreement, franchise, or waiver, no franchisor shall:…
…(13) Provide reimbursement to any non-franchised individual or entity for labor and parts used to fulfill warranty and recall work;
(14) Directly sell, distribute, or otherwise make available to any non-franchised individual or entity any original equipment manufacturer motor vehicle parts, accessories, or other commodities that would otherwise be sold by a franchised dealer…”
“We’re not sure if this language restricts tire companies from selling certain OE tires to tire dealers, or prevents tire dealers from participating in any tire recalls dealing with OE tires,” said Gough. “The language is so broad, we’re not sure of the exact intent.”
The Automotive Aftermarket Suppliers Association (AASA) is also on the case. In its Mar. 22 letter to HB 364 sponsor Rep. Matt Lundy (D-57), AASA noted, “Aftermarket manufacturers are deeply concerned with language contained in HB 364 ... We believe this provision eliminates consumer choice by requiring individuals to obtain replacement parts only at automobile dealerships.”
Sen. Mark Wagoner (R-Ohio 2nd District) introduced the companion SB 204 in the Ohio Senate.
The AASA letter notes that the provision would affect both independent repair shops and do-it-yourselfers. “The language restricts the access to original equipment parts only to auto dealers. Vehicle owners would no longer perform their own maintenance with the parts of their choice. Moreover, independent repair shops would no longer have access to the full range of parts that consumers may need for vehicle repair,” the AASA letter noted.
Gough urged OTAA member tire dealers and non-members alike to contact their state representatives and senators to urge they reconsider the language in the bills.