SACRAMENTO, CA — The California Automotive Wholesalers’ Association (CAWA) has joined a growing coalition of automotive organizations opposed to the California Air Resources Board’s (CARB) proposal to adopt regulations on mandatory warranties on emission parts and services.
According to CAWA’s Legislative Advocate Norm Plotkin, CARB is acting outside its authority.
“The plain language of the statute authorizing warranties is unambiguous. Parts are covered for three years 50,000 miles or seven years, 70,000 miles for more expensive parts. CARB had tried to dictate a 15 year, 150,000 mile warranty even though it would have meant warranting a part beyond what their own regulations declared as the useful life of that part,” said Plotkin. “The CARB Board members heard our argument in December and shelved this item in order for staff to work to resolve issues raised by industry. While CARB staff moved 15/150 to 10/120, they are still outside the grant of authority by the legislature in the Health and Safety Code, and they have yet to recognize what two independent studies have shown, that the economic impact to the aftermarket posed by using extended warranties will be in the billions of dollars.”
The CARB Board had deferred action on the proposal at its December meeting after hearing extensive testimony from representatives of both the aftermarket and automotive manufacturers. Plotkin was present to testify against the regulations and based the industry’s objections on three main concerns: (1) the proposed mandate extensions exceed CARB’s legal authority; (2) the Board staff has not demonstrated that either the current or the proposed mandates actually reduce vehicular air pollution; and (3) the financial impact on the independent aftermarket has been glossed over and discounted.
At informal and workshop meetings organized by CARB over the past several months, Plotkin was joined by independent shop owners all testifying about the economic impact of shifting repair work to the car dealers’ networks. In particular they raised concerns of a “slippery slope” effect that they fear will result from CARB’s determination to provide “cradle to grave” warranty coverage.
The proposal will be voted on by the CARB Board during its hearing on March 22, in Sacramento, CA.
