Information on Demand

Automotive Industries Association Canada

"Right to Repair" article for February 2006 issue of Fleet Maintenance magazine, a Cygnus Business Media publication

Responses from Scott Smith - Manager, Government Relations
AIA Canada
1272 Wellington Street, Ottawa, ON K1Y 3A7
(613) 728-5821 ext.234 fax (613) 728-6021
scott.smith@aiacanada.com
www.aiacanada.com

Canada is keeping a close eye on the status of the Motor Vehicle Owners Right to Repair Act of 2005 (H.R. 2048) or "Right to Repair Act" to better help in possibly shaping its own version of the proposal. Currently, some Canadian independent repairers have reported experiencing a "lock out" from accessing U.S. automaker service websites when attempting to obtain information to complete vehicle repairs.

Scott Smith is manager, government relations for Automotive Industries Association (AIA) Canada in Ottawa and had this to say about how the Motor Vehicle Owners Right to Repair Act of 2005 (H.R. 2048) issue in the U.S. affects the Canadian automotive aftermarket.

"Vehicles from most manufacturers in Canada are essentially identical to those manufactured in the US, meaning the ‘lock-out' problem is the same in both countries," he says. "The decision making process for the vehicle manufacturers, however, appears to be independent in each country. It should be noted that in the U.S., there is currently legislation administered by the Environmental Protection Agency that requires U.S. car companies to disclose all information related to emissions on the Internet and that there is a voluntary agreement between the Automotive Service Association and the Car Companies to disclose all other information. These websites are monitored by an organization called the National Automotive Service Task Force (NASTF). Currently, none of this infrastructure exists in Canada."

Smith continues, "While there is no direct impact of the proposed bill in the U.S. on the situation in Canada, the car company agreement with service providers has resulted in access to some manufacturer's websites by Canadian companies. Also, it could be argued that if the bill is passed in the U.S., it would lend merit to an argument for a similar law in Canada. It is also important to note that both the legislative and voluntary approaches in the U.S. provide a template from which to address the problem in Canada. As previously stated, vehicles in Canada and the U.S. are essentially identical - we need a North American solution."

Intellectual property, information availability, and tool accessibility seem to be the hot buttons associated with this issue. When asked if these are the same concerns for auto manufacturers in Canada or are these the concerns of U.S. auto manufacturers with respect to the Canadian automotive aftermarket, Smith replies, "Intellectual property is one of the central arguments the car companies in the U.S. have used to lobby against the proposed Vehicle Owner's Right to Repair Bill. It has been suggested by some car manufacturers that aftermarket interest in service and repair information is merely a ploy by aftermarket parts companies to obtain access to proprietary design information and thereby avoiding expensive research and development. Obtaining access to intellectual property has never been the goal of the proponents of bill H.R. 2048 and the bill was redrafted to meet the challenge of the intellectual property argument. The intellectual property argument has not yet been raised by Canadian vehicle manufacturers because they have not yet been faced with a legislative challenge."

He adds, "Service and repair information and tools and training accessibility are the core of the issue. Some manufacturers in the U.S. are open to permitting Canadian automotive service providers access to this information through the U.S. service websites. General Motors, for example, has harmonized their process for Canadian companies. Most U.S. manufacturers, however, have not allowed this access and have stated officially that the decision rests with the Canadian division of their respective companies."

Is there concern over the governance of manufacturer and aftermarket information and activities?

"As noted in a previous question, there is an existing voluntary agreement between vehicle manufacturers and the aftermarket in the U.S. The reason a legislative approach is still being pursued is governance," says Smith. "The existing agreement has no administrative measures or consequences for noncompliance, it is not administered by an objective third party and has no dispute resolution mechanism. These are key factors in deciding an approach for Canada."

AIA president, Mr. Ray Datt, commented in a press release from October 21, 2005 that response from Canadian government has been astounding and positive. Is this still the case three months on? What is the government willing to do with respect to "Right to Repair"?

"In meetings with government officials and MPs, AIA has not yet requested a legislative approach to the motor vehicle owner's right to repair issue," Smith explains, "Rather, the request was for support and involvement in a voluntary approach, as there has been little enthusiasm on the part of Canadian manufacturers to discuss options so far."

"This is clearly an issue of consumer choice. Mr. Datt's comments reflect the reaction of government officials and MPs to our meetings on this issue over the last three months and offers of assistance ranging from writing letters to vehicle manufacturers asking for an explanation to entering a motion to the House of Commons to support for new legislation. AIA has had no indication that this support has subsided."

In closing, Smith offers these points for consideration:

• Access to diagnostic and repair software is being denied by most vehicle manufacturers.
• Many OEM diagnostic tools are not available to the aftermarket through legitimate channels.
• Repair training programs for late model vehicles are, for the most part unavailable.
• Canadian companies, for the most part, cannot access the websites set up in the U.S. to disseminate diagnostic information.
• If the tools, training and information is not available to the aftermarket, consumers will be left without a choice in the marketplace for vehicle repair.
• If the aftermarket remains locked out of access to tools, training and information, there will be a significant negative impact on the approximately 220,000 people employed in the industry.
• The consumer will suffer from repair delays because there is insufficient bay space within the dealer network to accommodate the entire fleet.