Honda, Hyundai issue anti-used-parts memos, junkyards object

by Chris Shunk (RSS feed) on Oct 29th 2010 at 9:58AM

The Automotive Recyclers Association is ready to go to war with Honda and Hyundai. Why? The ARA claims that the automakers warn against the use of recycled auto parts, saying that the use of these components will void vehicle warranties. The ARA filed an official letter of complaint with the Federal Trade Commission saying that the actions of the automakers fly in the face of the Magnuson-Moss Act of 1975, which was enacted to make warranties more straightforward.

Recycled auto parts have been in wide use for decades, and the ARA says that the use of these gently used components is a $22 billion industry. Further, those recycled parts are not of the aftermarket variety; they're simply OEM parts that are re-applied after the donor vehicle goes out of service. The ARA goes on to say that the automakers have presented no clear evidence that shows why these components aren't acceptable for use in repairs.

So if recycled parts originate from the OEM, are environmentally friendly, are cheaper for the customer and are fully warrantied by the recyclers, then why are Honda and Hyundai warning against their use? The ARA feels the reason is money. If Honda and Hyundai insist that their brand new parts are used, the companies bring in more revenue.

Of course the views of the ARA represent but one side of this story, so it will be interesting to see if the FTC will rule on this matter.

link:

http://www.autoblog.com/2010/10/29/honda-hyundai-issue-anti-used-parts-memos-junkyards-object/

H&H getting caught with their pants down?