`Right to repair' bill aims to fix what isn't broken

Ron Loveys

TADA PRESIDENT

When it comes to out-of-warranty service work on automobiles in Canada, consumers are well served. They can get their vehicles fixed at franchised new-car dealerships or at independent (aftermarket) repair facilities.

New-car dealers in Canada account for 32.4 per cent of the total parts and service business, according to DesRosiers Automotive Consultants. Independent shops account for the remainder.

A group representing aftermarket suppliers is pushing a private member's bill that would "require automobile manufacturers and new-car dealerships to disclose proprietary vehicle diagnostic and repair technology, training and documentation to aftermarket facilities."

This "right to repair" bill was introduced by NDP MP Brian Masse (Windsor-West). It recently passed second reading in the House of Commons and will be reviewed by an industry committee in the fall.

The bill implies that aftermarket shops are at a competitive disadvantage over new-car dealerships, and that consumers are underserved because they don't have a fair choice for car repairs in the marketplace.

Yet there's been no public outcry about the lack of choice for out-of-warranty repairs. Those who support the bill are trying to convince the government that a problem exists with the status quo, when nothing could be further from the truth.

The Toronto Automobile Dealers Association, the Ontario Automobile Dealers Association and Canadian Automobile Dealers Association assert that this bill tries to address a problem that doesn't exist.

Automobile manufacturers already offer access to sufficient information for aftermarket repair facilities. Providers of third-party information already offer affordable assistance in identifying maintenance issues for aftermarket facilities.

For the do-it-yourself crowd who choose to repair their own vehicles, plenty of online resources offer diagnostic and repair information at affordable rates.

It's been a decade since computerized vehicle diagnostic systems were introduced. If the logic of the aftermarket lobby held true then most of the diagnostic and repair work over the past 10 years would have gone to new-car dealerships.

It hasn't. Again, nearly 75 per cent of all non-warranty repairs in Canada are performed at aftermarket shops.

Auto manufacturers retain the right to share certain proprietary information with franchised dealerships. They invest millions of dollars to develop new technologies and diagnostic tools, and they should be able to determine for themselves what information is proprietary (accessible only to dealers) and what information should be accessible to aftermarket businesses.

Dealerships also invest millions to have a dealership and part of the dealer agreement for this investment is warranty work.

The government doesn't require other industries to share proprietary information with their competitors. Why should the auto industry be any different?

Industry Minister Tony Clement has indicated he favours a voluntary solution to the issue. He would prefer auto manufacturers and groups representing aftermarket facilities sign an agreement that works for both sides, as opposed to government-imposed legislation.

Auto manufacturers and automotive retailers in Canada have acted on Clement's suggestion and have produced a letter of intent for the government. This letter seeks to address the concerns brought forward by aftermarket businesses.

Groups representing the aftermarket facilities have refused to sign the agreement and vow to continue pressuring the government.

In the U.S., automakers and aftermarket stakeholders have collaborated to produce the Automotive Service Task Force. This task force allows for the flow of information between all interested parties and it works fine. Such an agreement could work in Canada, too.

Associations that represent new-car dealerships are interested in a voluntary agreement that works for new-car franchisees, aftermarket facilities and consumers, and will continue working toward that goal.

This column represents the views

of TADA. Email: president@tada.ca

or visit www.tada.ca.

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