PANEL HEARS BOTH SUPPORT FOR THE BILL AND CONCERNS WITH IT

Washington, May 17, 2006 - "This is the third time in two years that the panel has taken up the consumers' 'right to repair' their vehicles," stated Rep. Cliff Stearns (R-FL), Chairman of the Commerce, Trade & Consumer Protection Subcommittee. "Although I preferred to see all parties reach a mutually agreeable solution that avoided legislation, we will take up H.R. 2048, the Motor Vehicle Owners' Right to Repair Act, next week. I appreciate getting the witnesses input before we act upon that bill."

H.R. 2048 would direct the Federal Trade Commission (FTC) to create rules giving independent repair shops access to the same information as franchised dealerships. However, it does not require the disclosure of proprietary information. The first witness, FTC Chair Deborah Platt Majoras, provided the commission's perspective. "We continue to encourage the parties to initiate and take the lead on further discussions to try to reach a mutually satisfactory resolution that reflects the parties' consensus. Commission staff would be willing to attend those discussions if the parties feel that our presence would aid them in reaching agreement. If Congress determines that legislation is appropriate, the Commission believes that elements on which the parties were able to reach agreement should receive consideration throughout the ongoing legislative process."

Nancie G. Marzulla, the Coalition Counsel for Auto Repair Equality, testified in support of H.R. 2048, "Modern automobiles contain computers that control many components such as the braking system, the steering mechanism, air bags, ignition, and the climate control system. Lacking the ability to talk to the vehicle's computers, the owners or their auto technicians cannot begin to diagnose, service, or repair modern vehicles. Thus, increasingly, manufacturers are forcing vehicle owners to go to only one place for their service and repairs, to automobile dealers."

Michael J. Stanton, Vice President, Government & International Affairs, Alliance of Automobile Manufacturers, outlined the concerns of manufacturers, "Almost 500 million non-warranty service events are undertaken each year. While we make every attempt to ensure every element of information is readily accessible for every one these aftermarket repair events, we recognize that with literally millions of pages of service and repair information that need to be accessed for these repairs, there will be instances where needed information may not be readily available or apparent. The automakers try to correct these gaps as quickly as possible. There are situations, however, where access to some information is neither reasonable nor appropriate - such as information to override immobilizers that are part of the theft deterrent/security system or overwrite vehicle safety or emissions operating software."

"Again, this is a matter that should have been worked out without government involvement," concluded Stearns. "Since cooperation did not succeed, we see this legislation coming before the subcommittee next week, and I appreciate this testimony outlining the beneficial and controversial elements of H.R. 2048."