capital report february 19 2019

Commerce Delivers Report on National Security Threat of Imported Autos and Auto Parts

On Sunday, the U.S. Department of Commerce sent a report to President Trump containing findings from its investigation into the impacts of imported vehicles and auto parts on national security. Commerce has not yet disclosed the contents of the report. The president now has 90 days to publicly announce whether he will act upon its recommendations, which many speculate will include new tariffs on imported parts.

“The U.S. auto care industry relies on an integrated global supply chain in order to offer consumers competitive pricing on vehicle parts and service,” said Bill Hanvey, president and CEO, Auto Care Association. “In addition, imports and exports support a broad range of U.S. jobs, from manufacturing to distribution. Last year, the Auto Care Association commissioned a study that found that a 25 percent tariff on imported auto parts would cause a loss of over 100,000 U.S. jobs due to unperformed maintenance. Additionally, unperformed vehicle maintenance creates real highway safety concerns.”

As soon as the report is made public, Auto Care will notify its membership.

Visit the trade resources page: www.autocare.org/trade

 

2019 State Legislative Update

Below are some of the pending “priority bills” that the Auto Care Association is tracking at the state level. For more information on these bills, contact Tom Tucker, director, state affairs, at tom.tucker@autocare.org.

Missouri – House Bill 451 | This bill would repeal the requirement that all vehicles must obtain a vehicle safety inspection in order to be licensed.

  • Position: Oppose
  • Status: Committee has approved; moves to a floor vote.

Montana – Senate Bill 251 | This bill would require auto repair shops to conduct repairs in accordance with all directives from the OEMs.

  • Position: Oppose
  • Status: Expected to pass committee; however, a similar bill was heard and not voted on in the House.

New Jersey – Senate Bill 1712 | This bill would require vehicle manufacturers to provide notice to new vehicle purchases or leasees of their rights under the Magnuson-Moss Warranty Act.

  • Position: Support
  • Status: Committee passed unanimously.

Hawaii – Senate Bill 823 | This bill would require insurers to provide the consumer a choice of OEM crash parts or aftermarket crash parts. If the consumer chooses the OEM part, the consumer shall not be required to pay the additional cost for repairs using that OEM part.

  • Position: Oppose
  • Status: Committee will hear bill on Feb. 21 and it is expected to pass.

New Hampshire – House Bill 664 | This bill would require an insurer to reimburse an automobile repairer for all repairs if the repairer follows OEM-recommended collision repair procedures.

  • Position: Support with amendment
  • Status: An amendment has been submitted to exempt certain parts from the OEM-recommended procedure. The committee heard the bill and the amendment was received favorably.

California – Assembly Bill 142 | This bill would increase the amount of the manufacturer lead-acid battery fee to $2 and enable the fee to continue indefinitely.

  • Position: None
  • Status: The bill has been referred to a committee. Auto Care is working with an industry coalition to determine fiscal impact and industry position.

New York – Assembly Bill 2208 | This bill would enact the Cleaning Product Right to Know Act, which establishes labeling requirements for cleaning products that contain hazardous ingredients.

  • Position: Oppose
  • Status: No action to date.
 

Auto Care Testifies and Hosts Reception on Capitol Hill

Last Monday, Feb. 11, as part of an event at the Capitol Visitor Center hosted by the U.S. Vehicle Data Access Coalition, Bill Hanvey, president and CEO, Auto Care Association, testified before congressional staff on the issues surrounding vehicle data access. Hanvey gave an overview of the auto care industry’s impact on the U.S. economy and reiterated the industry’s position: vehicle owners must have control over their vehicle-generated data.

Other members of the coalition include the American Property Casualty Insurance Association, the American Bus Association, the American Car Rental Association, the National Motor Freight Traffic Association, the Telematics Industry Association and the National Consumer League.

On Tuesday, Feb. 12, the Auto Care Association government affairs team kicked off the 116th Congress Auto Care Caucus with an evening reception open to U.S. Representatives and their staff. The purpose of the Auto Care Caucus is to build a coalition of legislators who advocate on behalf of our industry through engaging with their fellow elected officials. Vehicle data access and the technician shortage are two key issues in which Caucus members can help us garner support on the Hill.

The Auto Care Caucus co-chairs are Reps. Scott Perry, R-Pa. and Brendan Boyle, D-Pa.

If you know a U.S. Representative that you think would be a good addition to the Auto Care Caucus, please contact Matt Robbins, director, government affairs, at matt.robbins@autocare.org.

 

Get the Latest Coverage of the 2020 Elections

Thanks to support from the Auto Care Political Action Committee (ACPAC), we are pleased to bring Capital Report readers the latest Inside Elections with Nathan Gonzalez, a bi-monthly nonpartisan analysis of U.S. elections.

Read the latest issue: https://www.autocare.org/Government-Affairs/Capital-Report/Election-Updates/inside-elections-021519/

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