Automotive Manufacturer Service Monopoly?
August 01, 2009
A Bill before the House of Commons, Bill C-273, would, if passed, require all motor vehicle manufacturers to provide access to very necessary computer technical information required to repair vehicles up to ten years old to qualified independent repair facilities, something that some major manufacturers are not currently providing. Part of the major North American automobile manufacturers restructuring of operations is a huge reduction in the number of dealerships and an accompanying reduction in the number of dealer service departments. Already Chrysler has been reported as having a one week wait for service. Those few remaining Chrysler service departments may well be unable to deal with the increased demand. Unless there is a dissemination of technical information by voluntary agreement in the industry or by legislation, there will be considerable problems for consumers needing to have their certain brand of vehicles repaired.
The government supported Bill C-273 in principle at second reading, despite some flaws, knowing it will receive serious review when considered at Committee. While that review happens we are bringing car companies and aftermarket organizations together to work out a voluntary agreement. There are benefits to establishing a voluntary system, aside from the obvious benefit of keeping government out of regulating how businesses run their affairs. A voluntary system would, for example, have the flexibility to evolve over time to address changes in technology as they arise – which is one of the root causes of the aftermarket concerns.
Ultimately, we need to look at the best possible solution for consumers, for fairness and for ensuring an efficient and competitive marketplace.
However the government of Canada might consider resolving this issue before finalizing on an incentive agreement with manufacturers. Putting taxpayer money to support an auto manufacturer service industry monopoly is not right.
What do you think?