The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has announced that it is standing with other industry groups in opposing State Farm’s pilot parts procurement program with PartsTrader.
“We’re in total agreement with our fellow industry associations and members such as AASP National, SCRS, AASP/MA, AASP Illinois and the many individuals who showed up at last week’s CIC/SCRS meeting in San Antonio who are standing together to voice complete opposition to this latest intrusion into our members’ businesses,” said AASP/NJ Executive Director Charles Bryant. “We’re calling for all of our colleagues across the country to speak up and voice their displeasure with a program that could potentially devastate the industry.”
AASP/NJ President Jeff McDowell echoed Bryant’s statements. “How many more times are we going to let the insurance industry change the rules to their advantage? Things are hard enough out here. Enough is enough.”
Although the PartsTrader “pilot” program has only been introduced in a few test areas, AASP/NJ is encouraging members to get as much information as possible before it reaches New Jersey. “There is a wealth of information about this program in most of the industry publications as well as online,” Bryant said. “And if you take the time to read it, you’ll see that the vast majority of shops who have ‘volunteered’ for the program have regretted it. We don’t want that happening in New Jersey and we’ll do everything we can to prevent it.”
Many AASP/NJ members are already skeptical of the program. “Can State Farm guarantee its network shops that this PartsTrader program will not negatively impact shops’ parts profit margins?” asked one AASP/NJ member. “If the answer is no, how does this fact mesh with State Farm’s contention that they’re committed to a healthy, profitable repair industry? Does this imply that our industry is presently too healthy or too profitable? Unbelievable.”
Bryant thinks the controversy is one the collision industry needs to act on immediately. “We hope the rest of the country continues to step up and join us. It’s our industry. We need to keep it that way.”
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