The Automotive Service Association of Ohio (ASA-Ohio) and its government affairs representatives at Governmental Policy Group have been lobbying two companion bills pending in the Ohio Legislature that could negatively impact members of ASA-Ohio and all independent repair facilities statewide.
House Bill 364 (Rep. Lundy, D-Lorain), and Senate Bill 204 (Sen. Wagoner, R-Toledo), were proposed as a result of a task force formed by Governor Ted Strickland. The companion bills were designed to be Ohio's version of a nationwide push by the automotive dealers to strengthen and protect auto franchise laws in the wake of forced dealership closings by General Motors Co. and Chrysler LLC. However, opponents argue that these provisions in these franchise agreement measures go too far in creating a monopoly for the auto dealers and would severely limit options when it comes to repairing vehicles for Ohio's consumers.
The contentious provisions in both measures impose restrictions on the sales and distribution of auto parts, which ASA-Ohio believes would ultimately limit consumer choice. The current restrictive language is as follows:
--Automakers shall not "directly sell, distribute or otherwise make available to any non-franchised individual or entity any original equipment manufacturer motor vehicle parts, accessories or other commodities that would otherwise be sold by a franchised dealer."
While the primary intention of the legislation is aimed at protecting the auto dealer's agreement with the auto manufactures, these two alarming provisions would severely restrict consumer choice.
"From the onset of these measures being introduced ASA-Ohio has worked diligently in expressing our deep concerns to the members of the General Assembly that these restrictive provisions will not only harm all of Ohio's hard working independent repair facilities, but more importantly Ohio's consumers will be severely limited on where they can take their vehicle for repair," said Joe Sanfillipo III, president of ASA-Ohio.
Sanfillipo added that ASA-Ohio and its board of directors have determined that if passed, these provisions would not only threaten to outlaw the sale of original equipment automotive parts to non-franchised automotive-related facilities, but could potentially put thousands of Ohio businesses and jobs in jeopardy.
While work continues to be done with the sponsors of both bills, and their respective leaders, ASA-Ohio is working intensely and is hopeful that a compromise can be reached that would remove both restrictive provisions from the legislation. By doing so it would ensure a continued open and competitive market, which would allow Ohio's consumers the option on where they would like to receive their essential automotive needs.
For more information, or a synopsis of these two measures, contact Joe Sanfillipo III, president and chairman of ASA-Ohio at 513-263-2868.
