Fall Policy Shifts For The Aftermarket

Welcome to Traction Control, where we cover the latest headlines and the hottest topics shaping the automotive aftermarket. I'm your host, Stacey Miller. Let's get to it. Today, we're looking at several developments this fall that matter to automotive aftermarket businesses. We'll cover things like right to repair, trade policy, refrigerant sales requirements, rising motor oil and gasoline costs, and changes to federal fuel economy standards. For each story, we'll explain what happened, how it could affect your business, and what you may need to do.

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Let's start with repair access. To understand the right to repair debate this fall, we need to revisit an important congressional action from earlier this year. On May 21st, the House Energy and Commerce Committee advanced the Motor Vehicle Modernization Act with narrower repair provisions in place of the full Repair Act language. Landline Media reported that Repair Act sponsor Representative Neil Dunn objected to the approach. He said, and quote, a simple codification of an outdated memorandum of understanding is insufficient. And we do agree. AutoCare welcomed provisions covering heavy-duty trucking and new enforcement authority for the Federal Trade Commission, or FTC. But we also said the legislation fell short of the protections vehicle owners and independent shops need, particularly access to wirelessly transmitted repair and maintenance data. For aftermarket companies, the implications extend across the supply chain. A shop needs access to the information and functions necessary to diagnose and repair a vehicle. Parts manufacturers, distributors, and retailers depend on those shops being able to complete the work. And when access becomes difficult, that can mean additional time, added expense, or a customer being sent somewhere else. So what can your company do about this at this stage in time? Firstly, document the barriers you encounter. Record the vehicle, the information or the function you cannot access, and the outcome. Did the repair take longer? Did you need outside assistance? Did the customer incur an additional cost? And share those examples with AutoCare's government affairs team. They help lawmakers understand how repair access affects a business and the people it serves. And when you discuss right to repair with customers or elected officials, help connect it to the practical outcome. Consumers being able to choose their repair provider and independent businesses being able to compete.

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Next up, trade policy. In late September, the United States and China released lists covering approximately $30 billion in goods from each country for potential tariff reductions. Associated press reporting described selected non-sensitive products and noted that strategic categories, including electric vehicles and batteries, were excluded. AP quoted U.S. Trade Representative Jamison Greer, describing that goods could, quote, benefit from more favorable tariff treatment. The announcement did not establish broad tariff relief for automotive aftermarket parts. USTR's September statement described recommendations for future treatment of selected products. That distinction matters if your company imports finished products, buys imported components, or purchases from suppliers whose costs depend on trade policy. Now, a broad trade headline does not tell you what happened to the duty on your specific shipment. Your actual exposure depends on the product's tariff classification, country of origin, applicable duties, and implementation date. The U.S.-Canada trade dispute also escalated this fall. On September 29th, the United States began prohibiting selected Canadian imports, including certain motorcycles. Reporting for the Associated Press, trade attorney Patrick Childress said the action, quote, certainly won't do anything to help the trade tensions between the United States and Canada. The automotive-related proclamation applies to listed products. It also preserves other existing duties. Companies need to review those classifications to understand their exposure. For aftermarket businesses operating across the border, start with a couple of practical questions like what do you purchase from Canada? What do you sell into Canada? And where do your suppliers depend on cross-border inputs? And don't forget to capture the business impact. How much has a cost changed? How long would a sourcing adjustment take? Would it affect the availability of a particular part? Those details help AutoCare explain how trade uncertainty reaches repair businesses and vehicle owners in our talks with the administration.

Public broadcaster WIPR covered the regulation in July. In a translated excerpt, the regulation's scope includes, quote, industrial, commercial, domestic, equipment, cars, or boats. WIPR also reported potential penalties of up to $5,000 per violation. In its September 28th update, AutoCare reported that DACO, DACO, the territory's Department of Consumer Affairs, had moved from education into enforcement. AutoCare's update described buyer verification requirements and daily sales logs, including the buyer's licensing and certification information. The restrictions also affect small can automotive refrigerant sales. If your company sells these products into Puerto Rico, review how the requirements are handled when an order is placed. Can employees verify the buyer's credentials? Does your system capture the required information? And are online orders covered by the process? Distributors should also check whether their retail customers understand their obligations. A compliance update needs to reach the people processing transactions. Make sure store managers, sales teams, and customer service staff have clear instructions and confirm current requirements with AutoCARE's regulatory affairs team.

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Another development this fall affects a service almost every driver needs, an oil change. On September 25th, the Wall Street Journal reported that rising motor oil costs were affecting retailers and service businesses. The article described the Detroit shop owner seeing customers bring their own oil to save money. Discussing an oil change costing around $100, he told the journal, that's a lot for an oil change. And that's a direct quote. The Financial Times separately reported that U.S. prices for group 3 base oil had nearly quadrupled since February, citing Argus pricing in its September 20 story. That is an ingredient used in many synthetic lubricants. It does not mean every bottle of motor oil quadrupled in price. Gasoline has been adding pressure too. On September 24th, AAA reported a national average of $4.48 per gallon for regular gasoline, up from nearly $0.00 the previous week. That is a dated September figure rather than the pump price on the day you're listening. So just keep that in mind. Gasoline and motor oil do not necessarily move together. And the Independent Lubricant Manufacturers Association explains that finished lubricant prices reflect base oils, additives, freight, and inventory costs. Tight base oil supplies can keep lubricants expensive even when crude prices decline. For aftermarket businesses, the potential effects include tighter margins on oil changes, higher inventory replacement costs, and additional fuel expenses for delivery operations. Customers facing higher fuel bills may also become more sensitive to maintenance prices. So what should companies do? Start with your supplier invoices. Review the cost and availability of the grades you use most. Ask about lead times and allocation limits. If you need an alternative product, verify that it meets the vehicle manufacturer's required viscosity and performance specs. And for repair shops, check whether your advertised oil change packages still reflect your costs. Explain price adjustments before starting the work. And make sure service advisors can describe what the customer is receiving. For distributors and retailers, communicate availability changes early enough for customers to plan. And if a driver is considering delaying maintenance to save money, help them understand the manufacturer's recommended interval and the effect of their driving conditions. Higher oil prices alone are not a reason to extend that interval. And of course, we all know what happens when you do not hit the recommended oil intervals on your vehicle and how that can result in a higher cost later down the road. For our advocacy work, help us gather concrete examples of how rising input costs affect your business and customers. Those experiences help explain why affordable parts and competitive repair options matter when we speak with lawmakers. Those ownership costs provide context for our final story.

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On September 28th, the federal government released revised corporate average fuel economy standards for passenger cars and light trucks. The new standards will require a fleet average fuel economy of 34.9 miles per gallon by model year 2031. NHTSA describes that figure as a projected industry fleet-wide average requirement. The rule also ends trading of credits between manufacturers beginning with model year 2028 and changes fleet classification rules beginning with model year 2030. For the aftermarket, these changes belong in longer-term planning discussions. New vehicle policy can influence the mix of vehicles that eventually enter the service market. But a regulatory change does not immediately transform the vehicles already on the road. If you manufacture or distribute parts, review the assumptions behind your product development and inventory plans, consider different scenarios for gasoline vehicles, hybrids, and electric vehicles. A really great place to get this information is at APACs, where we have plenty of educational sessions where we talk about the aftermarket's outlook for the future. For repair businesses, use the vehicles in your market and the work entering your base to guide training and equipment decisions. National policy is one input. Your customers and local vehicle population are others. And when discussing affordability, look at the full ownership experience, purchase price, fuel, maintenance, and repair. Projected reductions in vehicle production costs do not guarantee a particular customer will pay less to buy or operate a vehicle. The useful

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next step is to connect each development to someone inside your business. Repair access examples can go to your advocacy contact. Trade changes need purchasing and customs expertise. Refrigerant requirements need an operational review. Oil and fuel costs need attention from purchasing, finance, and customer-facing teams. AutoCare's government affairs and regulatory affairs teams can help members understand these issues and identify where their experiences can strengthen our advocacy as well as the entire industry.

Thank you for listening to Traction Control on Auto Care on Air. I'm Stacey Miller. We'll see you next time. Thanks for tuning in to another episode of Auto Care on Air. Make sure to subscribe to our podcast so that you never miss an episode. And don't forget to leave us a rating and review that helps others discover our content. Auto Care on Air is a production of the Auto Care Association, dedicated to advancing the autocare industry and supporting professionals like you. To learn more about the association and its initiatives, visit autocare.org.