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Auto Parts Patents Will Raise Repair Costs
The Kiplinger Letter ^ | 29 Feb 2008 | Jim Ostroff

Posted on 03/03/2008 8:47:13 AM PST by BGHater

With automakers patenting more parts to enhance dealers' service and repair revenues, the knockoff business is taking a big hit.

The patenting of more run-of-the-mill auto part designs is roiling small body shops, many of which make their living by fixing cars with knockoffs of original equipment parts such as grilles, hoods, lights, mirrors, side panels and fenders. Such pieces are anywhere from 10% to 50% cheaper than the real McCoys, but increasingly, the law forbids their use.

Automakers have long sought patents on certain extra-stylish ornamentation to prevent other automakers from cribbing the design for their vehicles.

But the trickle of patent applications has become a torrent in recent years as automakers seek to boost their bottom lines by patenting more parts, thus bolstering their auto repair and parts replacement businesses. Ford, for example, has patented seven parts on its popular F-150 pickup truck, including lighted mirrors and the front grille. Honda has been the most aggressive, receiving about 110 design patents last year, followed by 75 for Ford and 60 for Toyota.

As the restrictions on replacement parts grow, it's a good bet that automakers will increase their share of the $16-billion parts replacement business in the U.S. Large independent repair shops that contract with car dealers or automakers and can get volume discounts on patented parts will also benefit.

However, small shops -- and consumers -- increasingly will get squeezed. Small collision repair businesses will have no choice but to pay full cost for the parts and pass along those higher prices to their customers. People paying for their own repairs out of pocket will feel the pain first.

Parts makers can't sidestep the patent protections, either, by making a hood or door panel that looks similar to the original. "The dilemma is that most states' laws dictate that repair shops use parts that look exactly the same as the original and be of the same quality and fit," says Eileen Sottile, executive director of the Quality Parts Coalition, a trade group.

Over time, the design patent avalanche is sure to dent business for small shops. Moreover, as overall repair costs rise, insurers will tag more banged-up vehicles as total losses, reducing repair work. Insurance companies also will increase auto insurance premiums to cover their added costs.

Look for the auto parts industry to step up a push to persuade Congress to pass a law letting independent parts manufacturers sell replacement parts to repair shops. Automakers would retain the right to sue competitors that copy a part design for their vehicles. The prospects for such legislation would increase with Democrats strengthening their hold on the House and the Senate, as we expect.


TOPICS: Business/Economy; Editorial
KEYWORDS: auto; costs; patents; repairs
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To: BGHater

The cheap plastic rolling egg cartons that pass as cars these days are totaled if you back into the garage at one mile per hour anyway.


21 posted on 03/03/2008 10:14:20 AM PST by mysterio
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To: Rb ver. 2.0

Crapaloy (Tungsten Cowhide) ain’t cheap.


22 posted on 03/03/2008 10:14:26 AM PST by wolfpat (If you don't like the Patriot Act, you're really gonna hate Sharia Law.)
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To: Red Badger

Some codes...GM has a proprietary list they won’t share. I don’t remember which one stung me recently, but my regular mechanic had to take my Trailblazer to the dealer to obtain the definition. It is only going to get worse.


23 posted on 03/03/2008 10:16:26 AM PST by bigfootbob
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To: wolfpat

Neither is prefabulated amulite.


24 posted on 03/03/2008 10:17:21 AM PST by Rb ver. 2.0 (Global warming is the new Marxism.)
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To: bigfootbob

Their are certain websites that have the codes of all the manufacturers............

http://www.obd-codes.com/trouble_codes/chevrolet/index.php


25 posted on 03/03/2008 10:18:41 AM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: RatRipper

On the plus side, no more idiot insurance companies using Chinese knockoff parts to repair your car and “forgetting” to tell you about it until something fails/goes wrong.


26 posted on 03/03/2008 10:18:42 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Domandred
..cheaper to buy new than fix,

That's the other half of corpo~nazi formula....

Btw~ A Dynasty fully equipped is big & nice.

Also 15 years, 233,000 miles still the same alternater, waterpump, etc., etc., nice, very nice.

27 posted on 03/03/2008 10:27:28 AM PST by norraad ("What light!">Blues Brothers)
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To: ChiMark

Sounds like poor installation more than a part problem.


28 posted on 03/03/2008 10:33:09 AM PST by steve86 (Acerbic by nature, not nurtureā„¢)
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To: norraad

Your DieNasty fits in the trunk of my Jag. It’s not big!


29 posted on 03/03/2008 10:45:27 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: bigfootbob

What year is your Trailblazer?


30 posted on 03/03/2008 10:50:04 AM PST by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: steve86
Eh, I've seen it where the Chinese headlights have problems with sealing between the reflector and the lens.

Fortunately, both the Indians and the Taiwanese make much better replacement/upgrade lights. Here's some samples of their work as installed on my cars:

87 Jaguar XJ6 Vanden Plas/TWR replica

90 Nissan Pathfinder (beater)

Somewhat subtle, but the clear-lensed (as opposed to fluted or patterned) headlights make a huge difference in light output. And they're properly sealed.

31 posted on 03/03/2008 10:53:20 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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Comment #32 Removed by Moderator

To: Spktyr

I thought he was talking about the lens specifically. I may have missed whether this was one of the integrated designs.


33 posted on 03/03/2008 10:59:24 AM PST by steve86 (Acerbic by nature, not nurtureā„¢)
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To: John Williams
Yeh, they're nice, I've just had bad luck with repair costs with GM, Ford, etc..

So when I say what I say I'm including that as a major factor.

34 posted on 03/03/2008 11:02:34 AM PST by norraad ("What light!">Blues Brothers)
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To: BGHater

On the other hand, since I’m in the middle of rebuilding/upgrading my 66 Impala, here are a few part costs:

Alternator/generator (GM knockoff) 39 bux
Starter (GM knockoff, 350 small block) 55 bux

A bit of a side benny is you can actually get yur hands in there to work on it...

Comes at a price. Whatever it costs when you get 13-15 mpg.


35 posted on 03/03/2008 11:09:09 AM PST by djf (I think McCain deserves a chance. After all, he is on R side!)
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To: djf

While you’re at it, don’t reuse the old GM-style starters, get a modern gear reduction unit. Your battery and engine will thank you.

In addition, if you fit the Impala with a TH700R4, your acceleration will benefit AND you’ll get up to 40% better fuel economy.


36 posted on 03/03/2008 11:12:51 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

Those trannies got a bad rep because they got used in the Blazer and burned out alot.

The engine in the Blazer is way, way too small, so the tran does alot of shifting - UNLESS (and I learned this the hard way) you have the throttle cable set right.
(needs to be set so the tran won’t shift up unless the engine r’s are higher)


37 posted on 03/03/2008 11:30:03 AM PST by djf (I think McCain deserves a chance. After all, he is on R side!)
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To: djf

Actually, the post-87 (88-up) trans are all fixed and have an excellent rep now. You can get them built stronger than a 400, if you so desire.

I’m putting one in the Jag this year.


38 posted on 03/03/2008 11:34:07 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

My Blazer’s an 84. Used to be a daily driver, but now I just keep it runnable and tuned if it snows, or I need to pull some fool out of a ditch, or need to haul lumber or something. Handy little truck, them Blazers!


39 posted on 03/03/2008 11:38:49 AM PST by djf (I think McCain deserves a chance. After all, he is on R side!)
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To: Spktyr
Also change fluid twice as often as recommended, you’ll get twice the life, maybe more.
40 posted on 03/03/2008 11:39:43 AM PST by norraad ("What light!">Blues Brothers)
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