March 1999 Editor's Page
CAPA Must Change

The publication of the Consumer Reports article detailing their testing of non-OE parts has re-ignited the OE vs. non-OE parts debate.

Consumer Reports clearly condemns the quality of both CAPA-certified non-OE sheet metal and non-OE bumper covers . No longer is it just a handful of vocal repairers trying desperately to guard their profit margins, as CAPA and insurers often maintain, that are dissatisfied with the quality of non-OE parts.

In the wake of publication, two insurers, Erie and Amica, have dropped specification of non-OE parts on the majority of their claims. Allstate and GEICO now find they’ve joined State Farm as the targets of lawsuits over their specification of non-OE parts.

Given this activity, shops that refuse to use non-OE parts are feeling they’ve won a victory. Shops that supported CAPA’s efforts feel betrayed.

The plain and simple fact is that CAPA has not fulfilled its mission of certifying parts to be equivalent- no matter if the word track dujour is like kind and quality or functionally equivalent. Buying a CAPA part gives the purchaser little assurance they will be able to install the part in a comparable length of time to the OE, have it fit as well, be as rust resistant, or provide the same level of crash protection. Without the ability to provide that assurance, CAPA is a waste of money for non-OE parts producers, distributors and insurers.

As Parts of America, who many believed produced high quality aftermarket parts, found out- producing quality costs money. As you may remember, Parts of America went bankrupt even though heavily supported by the insurance industry. This leads us to believe that producing consistent OE quality costs more than today’s non-OE parts pricing will support.

INSIGHT has long supported the non-OE crash parts industry- if for no other reason than, as consumers, we do not benefit from a monopolized marketplace. That support has not changed.

But, as we have stated in the past, non-OE parts have a place- as a lower cost, and yes, by and large, lower quality alternative part. A ten year old, 100,000 mile Escort does not need the same quality replacement part as a year old Lincoln Town Car-but the parts must at least fit.

Consumer and insurers will benefit from a non-OE parts supply that provides quality parts. Insurers faced with overcapacity in their own industry are faced with rate reductions coupled with increases in severity that could well make personal auto insurance an underwriting loser this year.