After much fact and information gathering on State Farm’s electronic parts ordering pilot program, the Automotive Service Association (ASA) is now asking the insurer to prove any operational or financial benefit the program will have to collision repairers.
“If this is a ‘win-win’ situation, as stated by State Farm, then now is
the time for State Farm to provide the numerical data that specifically
identifies any benefit (financially or operationally) to Select Service
shops,” said Denise Caspersen, ASA Collision Division manager. “If State
Farm is not able to clearly demonstrate the benefits of this pilot
application to the repair community, then this application should not
move forward.”
On May 31, ASA released the facts gathered by the ASA Collision Division Operations Committee relating to the State Farm electronic parts ordering pilot program. The committee has held numerous meetings and conference calls on this issue. Since the release of this information, ASA says it has continued to represent repairers on this issue and is working directly with all parties involved to do everything possible on behalf of its members.
ASA has released its findings and points of concern based on its research. Research to date has included interviews with State Farm, PartsTrader and collision repairers – those who participate in direct repair program (DRP) agreements (including some who are currently participating in the pilot of this application), and those who don’t participate in DRPs. ASA members across the nation, including those in ASA’s affiliated associations and, in particular, ASA’s collision operations committee, have devoted time to address concerns about the State Farm pilot.
ASA says it will continue to determine the long-term impact and other immediate concerns that this program application would have on repairers by continuing to stay engaged with all parties involved. To date, ASA has the “details of the application.” Now, it is State Farm’s obligation to provide evidence that this program application is beneficial for collision repairers and the motoring public.
“The State Farm pilot of the PartsTrader application has generated a great deal of speculation and commentary from all corners of the collision repair industry, so it was incumbent on ASA to perform comprehensive due diligence on behalf of its members and the repair community at large," said Ron Pyle, ASA president and chief executive officer. "The results of that exercise have been published and now we believe the ‘burden of proof’ falls to State Farm to demonstrate the benefit of this program as soon as practically possible.”
All ASA announcements and documents regarding the State Farm pilot are located on the association’s website, www.ASAshop.org. Click on “Tools & Resources” (in the blue menu bar on the home page), then “State Farm Pilot Program.” (The site is best viewed using the Firefox browser.)
Collision repairers may share their concerns, comments and experiences
regarding the pilot program by contacting Denise Caspersen at
[email protected], (800) ASA-SHOP, ext. 106, or (817)
514-2906 (direct).
