A proposed law to discourage the sale of aftermarket parts is facing backlash from the associations representing the industry.
A Nevada bill recently proposed calls on insurers to not use aftermarket parts when repairing physical damage to a motor vehicle that is less than five years old.
Should law go into effect, the damage to the aftermarket industry would be severe, said the Motor & Equipment Manufacturers Association in a letter to Nevada lawmakers on behalf of its Automotive Aftermarket Suppliers Association division.
“If this bill passes, consumers will be faced with higher repair costs and fewer repair choices, and supplier manufacturing jobs would suffer due to less demand for aftermarket products,” the letter said, highlighting the fact that the light vehicle aftermarket is worth $246.7 billion. “There is also a significant ‘do-it-yourself’ market, which comprises individuals who perform their own vehicle repair and maintenance.”
For any vehicle 60 months or older, the law calls for written notification to a consumer of aftermarket parts being required by an insurer.
Bill Long, MEMA president and CEO also noted that aftermarket parts makers also supply original equipment manufacturers as well, noting that their parts are trusted to serve the hundreds of millions of vehicles on the road today.
“It is important that we fight for the rights of consumers to make their own choices as well as for an industry that is part of the largest sector of manufacturing jobs in the U.S.,” he said in a statement.
The Nevada State Assembly Committee on Commerce and Labor will hear testimony on the legislation on March 13.
If passed, the bill would be effective Jan. 1, 2020.