Automotive Body Parts Association (ABPA)
`400 Putnam Pike, Smithfield, RI 02917
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`
`The Honorable Lisa R. Barton
`Secretary to the Commission
`U.S. International Trade Commission
`500 E Street S.W. Room 112A
`Washington, D.C. 20436
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`Re: Inv. No. 337-TA-1292
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`Dear Secretary Barton,
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`My name is Edward Salamy, the Executive Director of the Automotive Body Parts Association (ABPA),
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`and I am reaching out to you in response to the Commission’s request for written submissions regarding
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`Investigation No. 337-TA-1292. The ABPA is a trade organization that represents the manufacturers and
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`distributors of aftermarket collision repair parts. Previously, the ABPA provided documentation in March
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`2023 during the Commission's first request for submissions on this investigation. We have additional
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`insight that we feel may compel a change in the Final Initial Determination (FID) as ruled on January 24,
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`2023.
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`Articles potentially subject to the exclusion order are automotive repair parts, specifically aftermarket
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`replacement automotive lamps that are used to repair a vehicle involved in a collision. These parts are
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`generally purchased and installed by both vehicle owners and repair shops throughout the country as an
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`alternative to more expensive original equipment manufacturer (OEM) parts.
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`Identify welfare concerns related to the recommended exclusion order: The exclusion order of these
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`vehicle repair parts would have a tremendous negative impact on the US automotive repair parts supply
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`chain. Consumers rely on these parts to repair their vehicles and bring them to pre-accident condition. The
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`absence of these repair parts would lead to higher motor vehicle repair costs due to lack of competition
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`from the OEMs. Additionally, consumers would face higher automotive insurance costs due to more
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`expensive parts pricing as well as a significant time delay in getting their vehicles repaired due to fewer
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`options in the supply chain.
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`Automotive Body Parts Association (ABPA)
`400 Putnam Pike, Smithfield, RI 02917
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`Identify like or competitive articles that could be made in the US to replace excluded articles: In
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`general, most aftermarket automotive lamps such as those imported by LKQ Corporation and manufactured
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`by TYC Genera originate from Taiwan. At present time, there is no major aftermarket manufacturing
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`presence of these repair parts in the US which would serve as an alternative to those manufactured overseas.
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`This would leave the OEM manufacturers, most of whom have their lamps manufactured overseas as well,
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`as the only choice for consumers.
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`Complainant’s ability to replace the volume of articles listed in the recommended exclusion order
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`within a commercially reasonable time: Should a precedent be set from the recommended limited
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`exclusion order, the number of additional OEM manufacturer claimants would rise and threaten to continue
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`to reduce more aftermarket automotive lamp applications available to vehicle owners. The OEM
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`manufacturers have historically failed to fill the void when an aftermarket part is not available in the supply
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`chain. This situation was magnified with their recent supply chain issues where the OEMs continued to be
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`unable to supply the consumers in a timely manner while the aftermarket equivalent parts were available.
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`As non-OEM collision parts represent over 35% of the parts used in a repair1, the effect on consumers
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`would be highly detrimental in their ability to get their vehicles repaired.
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`Higher costs to consumers: The rate of inflation for auto body repair and auto insurance has been at levels
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`not seen since the late 1970s and early 1980s. In January 2023, US Bureau of Labor Statistics CPI data
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`reports that the annual inflation rate for motor vehicle maintenance was 14.2%2. Compared to the already
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`elevated general inflation rate of 6.4% for all items in January 2023, the costs to repair a vehicle in the US
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`is far outpacing inflation. This trend of outpacing general inflation has been ongoing for many years, and
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`it is only getting worse. Utilizing the same CPI data source as previously noted, automotive insurance rates
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`were up 14.7% in January 2023 which again is more than double the overall rate on inflation. The main
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`1 CCC Crash Course 2022, page 28, figure 48 - https://cccis.com/crash-course-2022/
`2 US Bureau of Labor Statistics – Consumer Price Index -https://www.bls.gov/cpi/factsheets/motor-vehicle-
`insurance.htm
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`Automotive Body Parts Association (ABPA)
`400 Putnam Pike, Smithfield, RI 02917
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`reason for this increase is mainly due to the increases in part prices as well as the increased costs incurred
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`by insurance companies (rental cars) due to supply chain issues. In Q4 2022, Enterprise rental car reported
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`an average of 18.7 days for insurance direct pay rentals. This is in comparison with Q4 2021 where the
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`average was 17 days3.
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`Denying consumers a choice of an alternative part such as an auto lamp will lead them to no choice but to
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`purchase the part from the OEM at a significantly higher price. In general, aftermarket collision parts are
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`anywhere from 25-50% less expensive than the car company branded parts4. The effects of an OEM
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`obtaining patents on even basic parts such as steel truck bumpers show a profound impact to consumers.
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`In her recent white paper “Gaming the System”, Dr. Blaire O’Neal provides OEM list pricing comparisons
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`between patented and non-patented truck bumpers. In the case of a 2007-2013 GMC Sierra pickup truck,
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`the price of the non-patented front bumper (part # 15902856) is $358. The 2019-2021 GMC Sierra front
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`bumper has been patented by GM and has a list price of $1123 – a 213% increase5. The results are similar
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`to the Ford Super Duty pickup line where the non-patented 2008-2010 front bumper (part # 8C3Z-17757-
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`B) price is $626 compared to the patented bumpers from 2011-2016 and 2017-2019 (part #’s B3CZ-17757-
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`E & HC3Z-17757-AB) which are priced at $1186 and $1283, respectively. This represents a 104% price
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`increase6. According to leading industry data, the average cost per part for auto lamps (the part type listed
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`in the limited exclusion order) has increased over 13% between 2019 and 2021 alone7.
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`In consideration of the adverse effects of the enforcement of an inclusion order on these automotive repair
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`parts, we would ask that you reconsider the Final ID in this Investigation. I would also encourage you to
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`read the FTC’s report to Congress “Nixing the Fix: An FTC Report to Congress on Repair Restrictions”
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`3 Enterprise Rent-A-Car “US Length of Rental by State Q4 2022”
`4 American Property Casualty Insurance Association (APCIA) Micra Report
`5 O’Neal, “Gaming the System”, 2023, p.17
`6 O’Neal, “Gaming the System”, 2023, p.17
`7 CCC Crash Course 2022, page 30, figure 51 - https://cccis.com/crash-course-2022/
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`Automotive Body Parts Association (ABPA)
`400 Putnam Pike, Smithfield, RI 02917
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`where the long-time abuse of the design patent system by the car companies is clearly explained8. Should
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`you have any questions or need additional information, please contact me at your convenience.
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`Best Regards,
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`
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`Edward Salamy
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`Executive Director
`Automotive Body Parts Association (ABPA)
`Direct: 800-323-5832
`Email: info@autobpa.com
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`8 FTC Nixing the Fix Report to Congress, https://www.ftc.gov/reports/nixing-fix-ftc-report-congress-repair-
`restrictions
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