Arizona says no to super warranties

It doesn't take a super hero to fight super warranties — at least not in Arizona. All it takes is dedication, devotion and the drive to organize and educate policy makers. Sure, it's a dirty job, but the California/Nevada/Arizona Automotive Wholesalers' Association (CAWA) is used to mucking around in murky legislative backwaters to get the job done.

And what better way to celebrate the organization's hard work than a recent announcement from the Arizona Department of Environmental Quality (ADEQ), confirming that it will not include any super or extended warranty provisions in the clean air rules it has chosen to adopt? According to CAWA, the announcement signals a major victory for the collision repair and aftermarket industry in Arizona, as well as for the rest of the nation.

"This is a huge victory for the aftermarket in Arizona," says Jennifer Zins, CAWA's director of Government Affairs. "Our hope is that it will help other states realize that we can clean the air without destroying the aftermarket industry."

When CAWA heard that Arizona was considering the adoption of California emissions standards, it coordinated a meeting with ADEQ staff to drive home the extreme negative economic impact these extended, or "super" warranties have on the collision repair and aftermarket industry. The group also wanted to communicate the fact that there is no documented evidence of any consumer benefit to these warranties, and no proof that extended warranties actually provide incentives for car companies to build more durable emissions systems.

"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," Rodney Pierini, CAWA's president and CEO, stated in a previously issued press release. "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."

In addition to developing a policy that would significantly increase vehicle emissions standards in Arizona and protect the aftermarket, the ADEQ staff addressed the aftermarket's concerns in its economic impact statement — which CAWA is calling a "true victory" for the aftermarket.

"We're happy that ADEQ took the aftermarket's concerns to heart, did some of its own research, realized that the extended warranty legislation would have a debilitating affect on the aftermarket and made a final decision based on these facts." Zins adds. "It's just important that all states that are considering adopting California emissions standards look at what Washington, Oregon and Arizona have done before making a final decision, and realize that they can do what these states have done without putting the aftermarket industry out of business."

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 now joins them in recognizing the importance of clean air, but appreciating the negative economic impact extended warranties have on the aftermarket industry.

"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."

Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA), views Arizona's decision to skip the super warranty language as a powerful argument to leverage against other states considering such legislation. According to Lowe, the AAIA is adamantly opposed to super warranty regulations, because it views them as "anti-consumer, forcing drivers to take their vehicles to places where they really don't want to have them repaired."

"We have a long history of fighting state-mandated warranties," Lowe says. "AAIA believes that this issue should be left up to the individual companies to decide. No studies exist to prove that extended warranties offer consumer benefits or encourage automakers to build more durable emissions systems."

But, Lowe adds, fighting such legislation has always been a tough battle, because "it looks like a great consumer benefit on the surface," he says.

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.

For more information about CAWA and to see a full list of supporters, visit the organization's Web site.