News and Trends: Right to Repair, Semiconductor Manufacturing, and Electrification

The world moved pretty fast from horse and buggy to automobiles, right? Change happens rapidly in our industry and we must keep up. This section is dedicated to current events that directly impact our industry. Governmental policy changes, aftermarket company structure changes, upcoming industry events and other news should be readily available for our members. To submit an industry topic you’d like to learn more about, contact us at yang@autocare.org.

Government legislation has a significant impact on the automotive industry. New vehicle manufacturers are forced to make vehicles safer (shout out to seat belts, airbags, TPMS…) and more efficient (let’s hear it for turbos, GDI, VVT and computerized controls), oftentimes working closely with the state (looking at you California), as well as the federal government to enact legislation safety and emissions goals for new cars. However, it’s not just the original equipment manufacturers (OEs) that feel the impact of this legislation. As the OEs adjust, so must the aftermarket. There have been multiple pieces of legislation in the news recently that will have a direct impact on the aftermarket for years to come: 

Maine Auto Repair Shops Pursue Right-To-Repair Referendum 
An article published by the Press Herald, reported that a group of independent repair shops in Maine, along with their employees and other supporters have filed an application with the Secretary of State’s Office seeking a statewide referendum in 2023 that would protect their right to repair new cars and trucks.

Congress Passes Investments in Domestic Semiconductor Manufacturing, Research & Design 
In July 2022, Congress passed the CHIPS Act of 2022 to strengthen domestic semiconductor manufacturing, design and research, fortify the economy and national security and reinforce America’s chip supply chains.

U.S. Congressman Buddy Carter (R-GA) sends letter establishing bipartisan group to address vehicle data access. 
U.S. Congressman Earl “Buddy” Carter (R-GA) established a new bipartisan caucus in the U.S. House of Representatives working to address the issue of vehicle data access.

USMCA Rules of Origin 
The USMCA dispute settlement panel deliberating the auto rules of origin dispute between the United States, Canada and Mexico completed its preliminary report and filed a confidential version earlier this week. The U.S. position on the automotive rule of origin, if adopted and implemented, would require dramatic and expensive changes to current supply chains.

New York joins California to ban sale of new gas-powered cars by 2035 
In late September, New York’s Governor Kathy Hochul announced in a press conference that all new vehicle purchases in New York must be zero-emission, starting in 2035. According to CBT News, the governor also spoke about a $10 million investment in New York’s Drive Clean Rebate program to help New Yorkers afford the vehicles. This announcement comes on the heels of California also banning gas-powered vehicle sales by 2035.

Insurers Show Support for Right to Repair 
The American Property Casualty Insurance Association has issued a statement showing support for the SMART (“Save Money on Auto Repair Transportation) Act and the REPAIR Act. According to AftermarketNews, “The APCIA is the primary national trade association for home, auto and business insurers.” The association calls legislators to pass the acts for the good of consumers, to help protect and offset soaring prices and restrictions on repairs.