Monthly Archives: July 2011

FTC Affirms the Use of Recycled Parts for Warranties

Great news for the planet and for consumers pockets as well!

In a letter to ARA Chief Executive Officer (CEO) Michael Wilson, the Federal Trade Commission (FTC) this week affirmed the use of recycled automotive parts in warranty repairs. In the letter, the FTC says: “Warrantors may not claim that a warranty is void simply because a consumer has used an authorized or recycled part.”

“Tying warranties to the use of new, authorized replacement parts is illegal under the Magnuson-Moss Act,” said Wilson. “Several months ago we asked the FTC to review position statements by several automobile manufacturers that implied that recycled parts are lesser quality parts than new OEM parts and that there use could void a manufacturer warranty,” said Wilson.

ARA raised concerns with the FTC that the position statements of the automobile manufacturers might mislead consumers into thinking that using recycled parts in a repair could void their warranty. As a result, the FTC announced the update of a consumer alert entitled Auto Warranties, Routine Maintenance, and Repairs: Is Using the Dealer a Must? The revised alert specifically notes that the mere use of recycled parts does not void a warranty and that it is illegal for warrantors to void a warranty or deny coverage simply because a recycled part was used.

I agree the manufacturers were being  vague on the use of recycled parts and I am happy to see Mr. Wilson confirm the truth.

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A Good Time for Used Tires

North American automakers are struggling with a nagging shortage of tires, caused in part by tire plant closings and rising demand for low-volume specialty tires.

Automakers are paying much higher prices — double-digit percentage increases from a year ago — as tire makers gain pricing power.

“We have been bombarded from every side for additional tires, and we can’t keep up,” said David O’Donnell, Continental Tire’s vice president of original equipment in the Americas. “We are at maximum capacity, and all shifts are maxed out.”

This is the perfect time for people to try out used tires and not only save money but help the planet.
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