Aftermarket collision parts are reproductions of original equipment parts (OEM) . These parts provide a competitive alternative to the substantially more expensive OEM parts, and because of the competition created by the AFTERMARKET INDUSTRY, the auto manufacturers have been forced to reduce the cost of many of their parts. In response to the continuing attacks by OEMs on alleged inferior quality, the Certified Automotive Parts Association (CAPA) was established in 1987. Like Underwriter’s Laboratories, CAPA’s primary goal is to develop and oversee an objective testing and inspection program to certify the quality of parts used for auto body repair. Claiming the aftermarket parts are not up to OEM standards, automakers have implied that the parts are unsafe, inferior, counterfeit imitators. In fact, the vast majority of competitive replacement parts offer lifetime warranties – an offer not available for OEM PARTS. Allegations regarding safety and noncompliance standards are unfounded, according to the Insurance Institute for Highway Safety (IIHS). The allegations concerning competitive replacement parts have spilled over into legislative, regulatory and judicial forums. Success for the OEM public relations blitz could lead to a monopoly for the benefit of the OEMs.

WHAT DOES THIS HAVE TO DO WITH AMERICAN CONSUMERS??????????

It affects you because the cost of paying claims is directly linked to the cost of insurance. If OEMs regain their stranglehold monopoly on automobile replacement parts, they will continue to keep prices high without fear of competition. Insurers would have to pay higher prices through claims and consumers will experience a resulting premium increase. Competition in the manufacture and sale of sheet metal parts is the greatest cost containment opportunity ever presented to auto insurers – cost containment that directly affects YOU, the insurance consumer. According to The Alliance of American Insurers, "We believe in free market competition between OEMs and independent manufacturers, and strongly urge that competition be encouraged through reasonable regulation. Furthermore, we suggest that non-OEM parts are equal to or better than the OEM parts in terms of fit, quality and performance…."