Automotive Aftermarket Associations Sue CARB Over Extended Warranty

BETHESDA, MD, January 8, 2008 – A coalition of 10 state and national aftermarket trade associations filed legal action against the California Air Resources Board (CARB) in the Superior Court of the state of California for Los Angeles County. The lawsuit challenges anti-competitive regulations promulgated by the (CARB) that would require car companies to extend emissions warranties for parts found defective by emissions warranty information reporting requirements.

“The action by CARB to extend warranties to the useful life will cause extensive economic damage to independent aftermarket service facilities in the State and is unlikely to provide any real clean air or consumer benefit,” said Jackie Miller, executive director, Automotive Service Councils of California, one of the lead plaintiffs in the case. “Because car owners will have no idea whether a needed repair that is indicated by the malfunction indicator light is covered by the extended warranty, motorists will return to the dealer for nearly all repairs. “

The lawsuit charges that CARB produced no proof that the extended emissions warranties are actually effective in providing incentives to the car companies to build more durable emissions systems. Further, CARB has no data that indicates whether warranties are as effective in moving the motorist to obtain needed emissions-related repairs, according to the coalition.

“California’s Health and Safety code clearly states that the emissions warranty is three years/50,000 miles on all emissions related components and seven years/70,000 miles for high priced emissions related repairs,” said Aaron Lowe, vice president, government affairs, Automotive Aftermarket Industry Association (AAIA). “The state’s attempt to extend the warranty to 10 years/120,000 miles for most cars clearly is outside the scope of this statute. The industry is not going to sit idly by while the agency continues to ignore the state’s laws and cause financial harm to California small businesses.”

Plaintiffs in the lawsuit are:

Automotive Aftermarket Industry Association
Automotive Service Association
Automotive Parts Remanufacturers Association
Automotive Service Councils of California
California Automotive Business Coalition
California Automotive Wholesalers Association
California Autobody Association
California Service Station and Automotive Repair Association
Car Care Professionals Network
Independent Automotive Professionals Association

Source: Automotive Aftermarket Industry Association (AAIA)

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