Posted: May 14, 2008

From aftermarketNews Staff & Wire Reports

PHOENIX, Ariz. -- The Arizona Department of Environmental Quality (ADEQ) has confirmed it will not include any super or extended warranty provisions as it adopts its clean air rules. The California/Nevada/Arizona Automotive Wholesalers' Association (CAWA), which lobbied against the super warranty regulation, said it considered this a major victory for the aftermarket industry in Arizona and nationwide.

CAWA leaders coordinated a meeting with ADEQ staff in February to tell the story of the extreme negative economic impact extended warranties have on the aftermarket industry with no documented evidence of any consumer benefit and furthermore no proof that extended warranties actually provide incentives for car companies to build more durable emissions systems. The CAWA staff and members made a strong and case that extended warranties would cause debilitating revenue declines for the independent aftermarket on primary repair and maintenance work with significant shifts in revenue from the independent aftermarket to new car dealers.

The ADEQ staff heard CAWA's concerns and consequently developed its regulations with no super warranty provisions included.

"With Arizona's interest in mirroring California's approach to emissions, we knew it was critical to get the aftermarket's voice to the table with regulators who were developing policies that could include extended warranty language," said Rodney Pierini, CAWA president and CEO. "We are happy to report that our team of members and government relations staff communicated our concerns over the adoption of extended warranties so successfully that we have stopped any language that would extend warranties beyond the federal standard in Arizona and raised regulatory awareness of our industry for future rulemaking efforts."

Oregon and Washington have both adopted the stricter California vehicle emissions standards but opted not to include any super or extended warranty requirements. Arizona is yet another state that recognizes the importance of clean air but understands and appreciates the negative economic impact extended warranties have on business with no documented evidence of any consumer benefit and therefore have adopted the rule with the exemption of any super warranty.

"This is certainly a victory for the aftermarket parts and repair industries in Arizona, Washington and Oregon," continued Pierini. "We hope other states will follow Arizona's lead and not include super or extended warranty requirements as they consider adopting California's emissions standards."

Arizona's clean air rules have been adopted by the Governor's Regulatory Review Council. However, the rule will not take effect unless EPA's refusal to issue a California waiver is reversed.

For more information about CAWA, visit: www.cawa.org.