Threatened LKQ lawsuit stifles CIC meeting - - ABRN (Automotive Body Repair News)

Threatened LKQ lawsuit stifles CIC meeting

Source: Automotive Body Repair News

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The biggest news to emerge from the Collision Industry Conference in Atlanta April 15 is not about what happened, but what didn’t happen.

Industry activist and trainer Toby Chess was scheduled to give an update on aftermarket structural parts, but instead informed the gathering of collision repairers that he could not give his presentation because he had been threatened with a lawsuit if he followed through on the meeting agenda item. The usually talkative Chess was mum about the company that issued the threat, saying he had to meet with his lawyer before making a public statement.

Society of Collision Repair Executive Director Aaron Schulenburg, who received the call threatening the lawsuit against Chess if he proceeded with his presentation, also would not comment on the company.

However the next day, Jeff Hendler, CIC administrator and past chairman, said the threat of a lawsuit was from LKQ Corp., the largest nationwide provider of aftermarket collision replacement products, recycled OEM products and refurbished OEM collision replacement products.

“We’ve never had to cancel an agenda item for this reason in the history of SCRS or CIC, going back to 1983, and nobody is happy about it,” Hendler says. “I find it very odd that any company would try to stifle information in the manner they did.”

A spokesperson for LKQ provided the following written statement:

“LKQ believes the collision industry needs accurate and relevant information. In an effort to determine the veracity of Mr. Chess’ “sawzall” test at NACE in November 2009, we attempted to replicate his test of the OE rebar. Our results were significantly different! The saw cut through the OE rebar with relative ease.
 
“Questioning the relevance of a sawzall test, we chose to conduct crash tests of the aftermarket part. The results of the tests, which more accurately replicate actual accident conditions, showed the aftermarket rebar met FMVSS208, the federal standard for occupant safety.  
 
“That both the OE and aftermarket rebars performed well in the crash test was not surprising. But, by performing the sawzall test ourselves, it is very clear to us that there is a lot of misinformation being spread. LKQ believes that it is important for the consumer and the industry to receive relevant and accurate information, so we have communicated that message to the parties involved.”

Hendler responded to the statement by saying, “I don’t care how they tested them, the two parts that were made to replace the same crash parts did not perform the same, so they are not like kind and quality.”

This is the latest chapter in a series of events (see article links at end of this story) that Chess kicked off during the November CIC meeting in which he demonstrated how several aftermarket parts did not measure up to the quality of original equipment parts.

In that meeting and in a subsequent CIC meeting in January in Palm Springs, Calif., Chess demonstrated how certain aftermarket parts were made of lower quality steels and other materials that could compromise their effectiveness in a crash. He cut through an aftermarket bumper reinforcement beam for a Toyota Corolla using an extrication saw. The saw was unable to do any damage to the OEM part.

His demonstrations have resulted in significant publicity, not only in the collision industry press, but also in the mainstream media and even in the legislative arena where state legislators are getting an education on structural aftermarket parts. In addition, insurance companies and parts providers have taken notice.

After the Palm Springs event, LKQ pulled the Toyota bumper reinforcement from its inventory, and said it would perform testing on additional parts. LKQ subsidiary Keystone Automotive announced it would only sell aftermarket bumper reinforcement bars that qualified under its quality assurance programs, or that were approved through third-party testing.

Later in January, the Auto Body Parts Association (ABPA) notified its membership that they should review the material and testing their suppliers used in parts manufacturing, and ensure that the parts met OEM standards. The Taiwan Auto Body Parts Association advised members to stop selling and manufacturing non-certified structural parts.

In February, the Collision Repair Association of California issued a letter to Insurance Commissioner Steve Poizner asking that insurers be required to review claims where aftermarket bumper supports were used.

At the end of January, GEICO sent a notice to its adjusters that it would no longer specify aftermarket bumper reinforcements, brackets and energy absorbers. The company also modified its claims management software so that estimates would be automatically flagged if adjusters selected any of these parts.

Shortly after the GEICO announcement, Esurance Insurance Services informed its network shops that it would only specify OEM bumper absorbers and bumper brackets in its estimates. According to the company, its previous OEM-only policy applied to bumper reinforcements and core supports.

Schulenburg cautioned that despite the buzz around aftermarket parts certification, the industry is rife with internal, proprietary standards that can vary from company to company, and there has been no industry standard testing or certification mechanism specifically for structural parts. Manufacturer Diamond Standard, however, announced a third-party certification program, and the Certified Auto Parts Association (CAPA) said it had developed new standards for rigid steel bumpers and bumper reinforcement parts after two years of testing.

Further complicating this issue is that while automotive manufacturers have procedures in place to facilitate recalls in the event that a part is found to be defective, no such mechanism exists in much of the aftermarket. However, LKQ said its Key Trac program has the ability to support a recall of parts. The company said it believes it is the only aftermarket company with this capability.

Most aftermarket parts are manufactured overseas by a variety of companies, and change hands multiple times before arriving in U.S. distributors' warehouses. It would be difficult for many of them to trace the origin of these parts and to determine which vehicles those parts were installed on.

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Comments from our Readers
 Posted 2010-04-19 12:09:39.0
Oh I love this! Perfect. "Stop exposing the truth about our parts! Or we'll sue you!" I guess it's time for everyone to bust out our sawzalls start cutting up parts and posting on line comparison photographs of what the AM's say are "equivalent parts". This is an issue of free speech. Not that the effort to suppress reality surprises me. This is the tip of the iceberg. Wait wait - even better - this is the exposure of smallest part of an institutionalized "Jedi mind trick". This effort by LKQ is an attempt to keep the general public from learning the truth. I say let's get to the truth as soon as is possible - All of it. Not just part of it. With this little bit of the theatre of the Absurd - LKQ have done us a favor here. "Methinks thou dost protest too much." I'm certain they had no idea when the made that call to Aaron (even though it was not even his event) - and doubtlessly suggested strongly that Aaron convey the threat message made to Toby - that anyone would ever mention a word of it. They were hoping I'm sure that this thing would just "go away" - without comment. Instead what happened was - a galvanic response unlike this industry has ever seen. Would this affrot to exposing reality be taken lying down? Not Bloody Likely Kudos to those who stood and spoke the truth. That's my opinion - What's yours?
 Posted 2010-04-19 12:55:16.0
For LKQ to take offense on the quality of their products is hilarious. Maybe the talking heads at LKQ corporate should wander through their warehouse, or better yet just look through the product line. LKQ/Keystone for instance, offers a reproduction radiator support panel for 2000 Chevrolet Blazers. They have one available for a wholesale price of $196.98 and a "value line" offering for $65.00. There are hundreds of parts offered by this company that have various versions and prices that demonstrates they have "cheap" parts and "really cheap" parts. For LKQ to bluster and threaten the few who have guts to proclaim the Emperor has no clothes is crazy.
 Posted 2010-04-19 13:10:33.0
JEFF HENDLER IS BACK... It took long enough- but glad to have him-BACK! I watched him many, many years ago defend collision repairers v. gillis and fierst and their parts... it was really one of the coolest things to behold! I might have to start attending CIC meetings again if this keeps up! coming soon to a theatre near you: toby chess and the lkq saw zaw massacre....
 Posted 2010-04-19 15:38:01.0
"The Truth Shall Set You Free"...or, if exposing less than "LKQ" equivalency of a large aftermarket distributor’s products, well then it won't be "free" after all and will cost you dearly if they have anything to say about it! So much for “Freedom of Speech”! Just another strong-arm tactic by another large corporation who believes the collision industry should just shut-up, sit down and be quiet! Makes one want to run right out and order some parts from this quality company doesn’t it!?
 Posted 2010-04-19 18:02:39.0
Poor Choice on the part of LKQ corp. They should have asked for format and equal time to prove that their products are equal. If your test really shows A/M parts are equal to OEM, why would you not want to be the first on stage to stop the bleeding. Now everyone's doubts run even deeper.
 Posted 2010-04-19 18:48:03.0
I THINK THIS IS THE BEST THING TO HAPPEN TO OUR INDUTRY,TO BRING TO PUBLIC VIEW THE INFERIOR PARTS THAT WE'VE BEEN FORCED TO USE. THIS WILL EXPOSE LKQ-KEYSTONE'S SALE OF PARTS THAT ONLY THEY "CERTIFY".THOSE PARTS ARE NOT "CAPA".THE INSURANCE INDUSTRY TURNS A BLIND EYE TO PARTS IN GENERAL, SO LONG AS THEY ARE LESS EXPENSIVE THAN OEM.UNLESS THE PUBLIC SCARES THEM,AS IN THE ARTICLE..... IT'S TIME TO TAKE EM ALL TO TASK. IF NOT NOW,THEN IT WILL PROBABLY NEVER HAPPEN. THE REASON LKQ-KEYSTONE IS THE BIGGEST IS BECAUSE WE BUY THEIR PARTS. NOW MAY BE A GOOD TIME TO RECONSIDER. THANKS JEFF AND THANK YOU TOBY
 Posted 2010-04-19 19:30:56.0
The ABRN story states that LKQ made a telephone call. (Seems a slipshod way of interrupting a meeting agenda that had been public for months prior.) And moreso that they made a call not to Toby Chess or even to Jeff Hendler. They made the call in effect to "have the message delivered" - Aaron isn't in charge of anything at CIC. Who made him their errand boy? If I were Aaron - I would have told them to “stick it!” - which is why I don't get phone calls like that. ;) Aaron is a nice guy but he's no patsy either - you'd never get him to say it, but I'll wager was less than happy about being put in the middle. Anyway - It *may* not have been intended so, but to me the way the message was "sent" smacks of "Hey - tell your buddy Mister Chess to back the hell off - or somebody he loves may end up swimmin wit the fishes. You got me?" The Battle Royale has begun. Proud of Jeff Hendler for naming names. Way to pull the trigger Jeff. Too bad Toby didn't have an attorney handy. I spoke with Erica about this and she had essentially left before she could have been consulted. None the less, she and McGuire both laughed heartily at LKQ's assertion and would love to see LKQ's legal theory in writing. Not bloody likely. Like I said - watershed moment at CIC. Reading between the lines of this deal tells you what really happened and certainly what comes next. One of those things is Toby Chess showing that the Diamond Standard parts not only pass the sawzall test, but also crush, deform and commute energy in a manner identical to OE counterparts. LKQ and CAPA are upset and don't want Toby Chess to perform his public tests or "endorse" Diamond Standard or Diamond Standard's testing methods - because the AM parts dealt by LKQ and the methods used by CAPA simply don't measure up. Here's to everyone sticking to their guns on this deal - including LKQ/Keystyone/CAPA. I'll put my money on the impartial saw. Send your complaints here > wadeebert@sbcglobal.net.
 Posted 2010-04-19 19:58:02.0
Does anyone remember the LKQ reaches 3+ B I L L I O N threshold story while all this was unfolding. They have VERY deep pockets. That's fine. Just remember it was a humble stone that brought down Goliath.
 Posted 2010-04-20 11:42:12.0
Anybody have a physical address or P.O. Box for Toby Chess? I'd like to send him a sawzall blade and $5 for his continuing efforts.
 Posted 2010-04-20 12:53:17.0
Not news to me try drilling out spot welds on a oem rebar on a Ford Focus it will trash a bit on one weld,the aftermarket one will drill like butta.Look what they did to Transwheel it's not worth a %^$#@ any more!
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