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Trade Associations Not Swayed by Data-Access Agreement
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By Counterman
The ASE Education Foundation is partnering with auto dealer associations to conduct student automotive competitions designed to increase awareness of career opportunities in the automotive industry.
“The goal of the student competitions is to connect businesses with schools and increase the interest of students, encouraging them to work and stay within the automotive field,” said Mike Coley, ASE Education Foundation president. “The most recent competition was held in December in Texas and was a big success with 40 teams competing and over 700 students participating in a career fair. These types of events are another way the ASE Education Foundation is working to reduce the industry’s technician shortage.”
Three student competitions are currently scheduled for 2024, with more being planned. Competitions are scheduled for March in Charlotte and the fall in Houston.
During the December event at Texas Motor Speedway, 117 high school seniors from ASE accredited training programs competed in the North Texas Automobile Dealers Auto Tech Competition. Dealer technicians were paired with each of the 40 teams for several weeks leading up to the event, which featured students trying to diagnose and repair bugged vehicles where the problems were notated on repair orders.
The competition format is flexible and can be modified for local or organizational needs. Unlike traditional student competitions where school instructors train and prepare students, these competitions are based on a partnership between schools and the local businesses.
The students selected for the competition job-shadow at a local employer’s service facility and prepare for the contest alongside the technicians in the shop. A list of specific skills for the students to experience is provided to each employer.
The goal is to provide real-world experience to the students while exposing them to job opportunities in the local market, the foundation noted.
To learn more about the student competitions, contact George Arrants, vice president of the ASE Education Foundation, at [email protected].
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By Counterman
Dayco is the newest member of the Kalitta Motorsports family of corporate partners, and Kalitta Motorsports is the newest distributor of Dayco belts, the team recently announced.
The 2024 NHRA Mission Foods Drag Racing Series begins March 8-10 at the Amalie Oil NHRA Gatornationals in Gainesville, Florida.
Through the new partnership, Dayco will have branding on J.R. Todd’s DHL GR Supra funny car, and Kalitta Motorsports is now the exclusive at-track distributor of Dayco 11-millimeter racing blower belts for nitro engines.
Dayco and Team Kalitta will work together to expand the available Dayco blower-belt offerings in the near future, they said.
The Dayco 11-millimeter blower belt is specially engineered for Top Fuel and Funny Cars with nitromethane engines. Featuring a hybrid carbon cord encapsulated in custom rubber compounds and patented low-friction PTFE tooth fabric, the belt offers one of the highest load ratings in racing and has helped numerous teams cross the finish line first, according to Dayco.
That success is due in large part to the Dayco team’s utilization of real-world track data to enhance its belt designs, the company added.
“We are excited to kick off this new partnership with Kalitta Motorsports for the 2024 season,” said Jay Buckley, director of marketing, Dayco North America. “Theirs is a phenomenal team, and we can’t wait to see how they perform with the Dayco 11 mm belt installed on their funny cars.”
“This new partnership is great news for Team Kalitta,” General Manager Chad Head said. “We are so happy to partner with a company that’s Detroit-based like we are. We strive to provide our race team with components that give our teams the best chance of reaching the finish line first. That’s really what drag racing is all about – running quicker and faster than the opponent, and we’re confident Dayco belts will make a positive impact on J.R. Todd’s DHL funny car. We look forward to a long relationship with Dayco that has potential to expand in the future.”
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By Counterman
Trade associations for the major automakers and parts manufacturers recently
link hidden, please login to view urging lawmakers to pass legislation including the restoration of full first-year deductibility for research-and-development (R&D) expenses. Co-signing the letter were the Alliance for Automotive Innovation; American Automotive Policy Council; Autos Drive America; MEMA, The Vehicle Suppliers Association; and the Truck and Engine Manufacturers Association, which collectively represent millions of workers in the auto industry.
“Congress must restore this tax provision to enhance U.S. competitiveness, job creation and innovation as soon as possible,” said Ann Wilson, MEMA’s executive vice president of government affairs. “As this industry is facing massive transformation, R&D is crucial. Many of our members are smaller, innovation-driven vehicle suppliers and are struggling with the financial burden to remain competitive in the global marketplace. Restoration of yearly deductibility goes a long way in addressing these fundamental challenges.”
For almost 80 years, motor vehicle and component manufacturers relied on the availability of full first-year deductibility of R&D expenses. A new law implemented in 2022 now forces businesses to spread that deduction over five years, making R&D exponentially more expensive, the associations assert.
The trade associations lament that the change has been “particularly burdensome for the auto industry, threatening thousands of jobs.” Of the $538 billion spent on R&D activities in the U.S. in 2020, more than $23 billion (4.3%) was invested by the motor vehicle industry, according to the associations.
“More than 10% of U.S. auto jobs are in the R&D space,” said John Bozzella, president and CEO of the Alliance for Automotive Innovation. “The auto industry invested $23 billion in R&D activities in recent years – the third highest of any manufacturing sector. By restoring the full deductibility of R&D expenses, Congress can ensure that investment keeps moving in the right direction – supporting U.S. jobs, expanding American innovation and boosting global competitiveness.”
As the letter is distributed, the trade associations are mobilizing members and employees to urge members of Congress to immediately pass legislation restoring full first-year tax deductibility for R&D expenses to protect jobs and preserve the motor vehicle industry’s financial health and competitiveness.
“American Automakers Ford Motor Company, General Motors Company and Stellantis invest heavily in R&D,” said Gov. Matt Blunt, president of American Automakers Policy Council. “These critical investments are vital if American automakers are going to lead the transportation revolution and offer customers the most innovative products in the world. The ability to deduct R&D expenses is needed to ensure our domestic auto production continues to be competitive in the global market.”
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By Counterman
The Automotive Parts Services Group (The Group), a joint venture of The Pronto Network and Federated-Alliance, recently announced a national supply agreement with Monro Inc. on behalf of member distributors.
“The ability to provide national coverage through our collaboration with a single central billing process is key with national customers like Monro,” said Larry Pavey, CEO of the Automotive Parts Services Group. “By working together, our members are able to deliver the same benefits as retail competitors, as well as local expertise and dedication to the needs of professional service providers. This agreement provides members of The Group with the opportunity to offer premium parts and service to Monro and their more than 1,300 locations through an efficient, coast-to-coast system integration.”
The national supply program will begin in several pilot areas and will expand throughout the country in future weeks.
“We are excited about the agreement and working with The Group members who focus on serving professional service providers,” said Austin Phillips, vice president of marketing, merchandising and commercial for Monro. “We are impressed with The Group’s ability to develop integrated processes that allow their different members to act as one company which was essential to us. We recognize that working with their members and high-quality suppliers will allow our stores to provide enhanced value and service for our customers.”
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By Counterman
The Automotive Service Association, the Society of Collision Repair Specialists and the Alliance for Automotive Innovation have sent a letter to Congress reaffirming their commitment to a 2014 national agreement on automotive Right to Repair.
The organizations represent the nation’s independent repair facilities, auto body shops and leading automakers, respectively.
In the letter, the organizations reaffirm their agreement on the 2014 memorandum of understanding, “and commit that independent repair facilities shall have access to the same diagnostic and repair information that auto manufacturers make available to authorized dealer networks.”
In an attachment to the letter, the organizations reiterate: “There shall be available for purchase by owners of motor vehicles and by independent repair facilities on fair and reasonable terms the same diagnostic and repair information, including service manuals and technical repair updates, that a manufacturer makes available to its authorized dealers through the manufacturer’s internet-based diagnostic and repair information system or other electronically accessible repair information system.”
In
link hidden, please login to view, the repairers and automakers also wrote: “This commitment was created with our mutual and valued customers in mind: vehicle owners. It affirms that consumers deserve access to safe and proper repairs throughout a vehicle’s lifecycle [and] it is built to last because it anticipates changes in automotive technologies and market evolutions.” Highlights of the agreement include:
Access to diagnostic and repair information – Independent repair facilities shall continue to have access to the same diagnostic and repair information that auto manufacturers make available to authorized dealer networks. This applies to:
Telematics data needed to diagnose and repair a vehicle if not otherwise available; All vehicle technologies and powertrains, including gasoline, diesel, fuel-cell, electric battery, hybrid and plug-in hybrid electric powertrains. Education and training – A pledge to work together on education and training programs so mechanical and collision repair facilities are fully aware of exactly where and how to obtain repair information,including:
Directly through an automaker’s repair website; Shared access points like www.OEM1Stop.com; Via third-party information providers, software and tools. Future advancements – As vehicle technologies and the corresponding demands on repairers evolve, the commitment ensures a level playing field and a forum to discuss future repairer needs as they develop.
Repairers and Automakers ‘In Lockstep’
As state legislatures and Congress consider automotive Right to Repair laws, including the REPAIR Act, the parties noted: “…independent repairers and automakers are not at odds on automotive data access, but rather in lockstep on this fundamental principle: Consumers should have choice when it comes to repair options and the ability to have their vehicle serviced in well-equipped shops by well-trained technicians anytime, anywhere, anyplace.”
The organizations note that independent repair facilities perform 70% of post-warranty vehicle repairs today, while automakers’ own certified collision networks are comprised of shops that are more than 70% non-dealer owned.
“Automakers support Right to Repair, and today’s independent auto repair market is working well with lots of competition,” said John Bozzella, president and CEO of the Alliance for Automotive Innovation. “Auto repairers across the U.S. have access to the same repair and diagnostic information provided to auto dealers. It’s not just automakers who say this. It’s the Federal Trade Commission. And with today’s agreement; it’s also the thousands of independent auto repairers and small businesses in all 50 states who together with automakers have once again made this fundamental commitment to customers.”
In the letter, the organizations note that the Federal Trade Commission “has rightfully placed a focus on the repair options available to consumers for all the products they purchase – far beyond just automobiles.” The agency has highlighted automotive repair “as a model for other industries to follow.”
“Consumers should absolutely be able to choose quality repairs, performed in accordance with the specific procedures detailed by the vehicle engineers,” said Amber Alley, chairman of the Society of Collision Repair Specialists, and manager of Barsotti’s Body and Fender in San Rafael, California. “They should have the right to be able to do so in an independent repair facility that has invested in the training, equipment and skillset development to meet the rigorous demands of sophisticated, modern vehicles. This expectation is achievable, and consumer options for repairs are not limited by automakers; quite the contrary. Consumers should have the right to a proper and safe repair, and this agreement reinforces the commitment that the entire industry will have the ability to train, equip their facilities, and perform repairs as intended by the vehicle engineers.”
‘Agreement Falls Short’
In a statement, MEMA Aftermarket Suppliers called the agreement “a step in the right direction to ensure that consumers are protected.” However, the pact “falls short of all the protections necessary to ensure consumer choice now and into the future for all parties, not only signatories of the pact.”
“As a transportation industry, we believe that we have one opportunity to pass federal legislation and that legislation must include the ability to prioritize and protect consumers’ access to both light-duty and heavy-duty vehicle repair and maintenance through all iterations of vehicle technology on the road today and to come,” MEMA Aftermarket Suppliers added.
The association asserted that Right to Repair legislation must include:
All vehicles in operation – light-duty, medium-duty and heavy-duty Access to telematics and diagnostics data beyond that available just through the OBD II port An enforcement mechanism The ability for independent repair shops, using bi-directional communication, to update vehicles and parts to the latest software Addressing the risk of repair monopolies Language to protect consumers’ access to both light-duty and heavy-duty vehicle repair, maintenance and parts of their choosing through all iterations of vehicle technology on the road today and to come “The agreement does advance the conversation around right to repair and consumer choice, but if automakers and repair shops are prioritized over consumers, fair competition and a free market would not be realized,” the association said. “As a key stakeholder in protecting consumers’ rights and an essential part of the value chain, MEMA Aftermarket Suppliers must be a part of the conversation.
MEMA Aftermarket Suppliers welcomes the opportunity to work with all parties to align on a federal solution that reflects the principles of consumer choice and a free market, includes the expertise of the supplier community, has a mechanism for real enforcement and prioritizes consumers, their safety and their economy – and the innovative industry we serve. The Right to Equitable and Professional Auto Industry Repair (REPAIR) Act (H.R. 906) addresses these needs, and MEMA Aftermarket Suppliers continues to support this bill that addresses the above concerns and creates a repair ecosystem that puts consumers at the center.”
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