The Automotive Recyclers Association (ARA) represents over 4,500 professional automotive recyclers across the United States and in 14 countries internationally. It is on their behalf that I feel compelled to comment on a February 13, 2015 letter addressed to your office from Senator Richard Blumenthal regarding a recent CNN Anderson Cooper 360 segment on automotive insurers and insurer-preferred repair shops.
ARA has responded to both CNN and Senator Blumenthal expressing grave concern over their mischaracterizations of recycled, original equipment manufacturer (OEM) parts sold by professional automotive recycling facilities.
Similarly, I write to you to caution you about the Department of Justice placing credibility in what was unfortunately a biased, misleading piece of reporting. The automotive repair industry and the role of insurance companies in the marketplace are very complex and any accurate analysis requires a comprehensive review that takes into consideration the role of all stakeholders in the process.
ARA does not believe that a Department of Justice investigation of the automotive insurance industry is necessary. If however, your office does conduct a review, the Association requests that this letter be submitted for the record stating that if a review is conducted, that it must be done in a thorough, fair, comprehensive manner. ARA would appreciate being contacted to help provide Department officials critical background information on the automotive parts supply chain and repair processes if an investigation does occur.
Michael E. Wilson, CEO of the Automotive Recyclers Association