Insurers: Car Makers’ Monopoly Over Car Parts Could Cost $3 Billion

January 26, 2009

  • January 26, 2009 at 3:16 am
    Ivan says:
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    Car companies already have a choke hold on parts prices. Based on current data, it would cost 4 times the retail purchase price of a vehicle to rebuild it with new parts. Since they can’t be trusted to operate their business responsibly (and profitably), the only alternative to protect consumers and control physical damage premiums is legislation and oversight.

  • January 26, 2009 at 4:05 am
    Shield says:
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    As an insurance professional working in claims I deal with customers everyday that demand OEM parts be used in the repair of their auto. It only makes sense to utilize cheaper AM parts when possible to keep the overall repair bill lower and thus save the insurance company money and keep premium costs down. The Auto manufactureres have been trying to corner the market on replacement parts for years by claiming the inferiority of AM parts. It will be an uphill battle to convince the public that it is in their best interests to allow AM parts.

  • January 26, 2009 at 4:36 am
    Let go of the idea says:
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    Need to let go of the idea that anyone would even rebuild an entire car from parts! It’s no different than replacement parts for any appliance, etc. So what??? Parts cost money, an entire completed item costs less. And………?

  • January 27, 2009 at 8:54 am
    Andre says:
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    Why should a replacement part for a damaged vehicle cost anymore than what the automaker paid plus a reasonable mark-up for profit for the retailer? The keyword is “reasonable”. People need to start treating an automobile for what it is: a depreciating asset. The notion that they must have OEM parts is ridiculous. On the engine and suspension maybe; but sheet metal is another story. Auto parts is another issue where the public was sold an emotional bill of goodsd by car manufacturers.

  • January 27, 2009 at 9:43 am
    Edmund says:
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    being devil’s advocate, there are essential parts that the original auto maker would not wish to have somebody’s else’s replacement… it may result in expensive and contentious suits with respect to ‘product’ liability.



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