The push to demonstrate the extreme negative economic impact extended warranties have on the aftermarket industry in Arizona has been successful, says representatives from the California/Nevada/Arizona Automotive Wholesalers Association (CAWA). CAWA scored a major victory for the aftermarket industry in Arizona and nationwide after the Arizona Department of Environmental Quality (ADEQ) recently confirmed it will not include any super or extended warranty provisions into the clean air rules it adopts.

 

In an effort to ensure that no super warranty regulations were adopted in Arizona, CAWA leaders coordinated a meeting with ADEQ staff in February to discuss the negative economic impact extended warranties have on the aftermarket industry. The group also drove home the point that no documented evidence of consumer benefit exists, and that there is no proof extended warranties actually provide incentives for car companies to build more durable emissions systems.

 

As the ADEQ developed its clean air regulations that will significantly increase vehicle emissions standards in Arizona, it had neglected to consider any adverse economic impact that super warranties have on aftermarket businesses. CAWA staff and members made a strong and convincing case that extended warranties would cause debilitating revenue declines for the independent aftermarket on primary repair and maintenance work with significant shifts in revenue from the independent aftermarket to new car dealers.

 

"With Arizona's interest in mirroring California's approach to emissions, we knew it was critical to get the aftermarket's voice to the table with regulators who were developing policies that could include extended warranty language," says Rodney Pierini, CAWA President & CEO. "We are happy to report that our team of members and government relations staff communicated our concerns over the adoption of extended warranties so successfully that we have stopped any language that would extend warranties beyond the federal standard in Arizona and raised regulatory awareness of our industry for future rulemaking efforts."

 

The ADEQ staff heard CAWA's concerns and consequently developed its regulations with no super warranty provisions included, and addressed the aftermarket's concerns in its economic impact statement, a true victory for the aftermarket.

 

Oregon and Washington have both adopted the stricter California vehicle emissions standards, but because of strong pressure from the automotive aftermarket industry opted not to include any super or extended warranty requirements. Arizona is yet another state that recognizes the importance of clean air but understands and appreciates the negative economic impact extended warranties have on business with no documented evidence of any consumer benefit and therefore have adopted the rule with the exemption of any super warranty.

 

"This is certainly a victory for the aftermarket parts and repair industries in Arizona, Washington and Oregon," continues Pierini. "We hope other states will follow Arizona's lead and not include super or extended warranty requirements as they consider adopting California's emissions standards."

 

Arizona's clean air rules have reached their final hurdle having been adopted by the Governor's Regulatory Review Council. However, the rule will not take effect unless EPA's refusal to issue a California waiver is reversed.

From: search-autoparts/industry news