ARA Responds to Auto Manufacturers’ Attacks on Recycled Automotive Parts

During its annual meeting in Austin, Tex. held Oct. 21-23, the Automotive Recyclers Association announced that it has issued a formal complaint letter with the Federal Trade Commission (FTC) against two car manufacturers, Hyundai Motor America and American Honda.

ARA’s complaint addresses the two auto manufacturers’ statements warning against the use of recycled auto parts, and indicates that the use of recycled parts will void vehicle warranties issued by the companies.

In the complaint letter, ARA said the statements made by these two companies and their threatened warranty refusals could be violations of the Magnuson-Moss Act.

The ARA letter notes that the use of recycled parts, a $22 billion industry, has been widely accepted for decades and there is a very long track record of their successful use. The ARA’s letter states that the recycled parts are fully functional and, in many cases, identical to the original parts Hyundai Motor America and American Honda require. Recycled parts were new OEM parts at some point, yet both Hyundai Motor America and American Honda are calling for the use of their own new parts in repairs.

“Neither manufacturer has provided any evidence that parts unaffected by an accident become inadequate once reused, which begs the question why their use is not supported by either company,” said Michael Wilson, ARA’s CEO in the FTC appeal. “Following the logic held by these companies, as soon as a new Hyundai, Honda or Acura drives off the lot, its parts are unsuitable for use as replacement parts in another vehicle, implying that the parts are unfit for use as soon as the car drives off the lot.” 

In addition, recycled parts have several additional benefits compared to new parts:

• Recycled parts allow consumers to save on costs while using parts identical to new OEM parts.

• Recycled parts are much better for the environment, since no additional resources or energy were used to create an unnecessary new replacement part.

• Auto recyclers provide warranties on any recycled part used in a repair, indicating that recycled parts are not used in an attempt to cut corners with customers.

"We believe the statements made by Hyundai Motor America and America Honda are part of a concerted effort among automobile manufacturers to limit competition in the automotive parts market to try to limit their competition,” said Wilson.