Under Threat: Competition in the Automotive Service Aftermarket

Hawker, Norman W.

doi:10.2139/ssrn.1337103

Cited by 2 publications

(5 citation statements)

References 6 publications

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“…OEMs have had the ability to require dealers to use OEM parts, but not independents. Although dealers have purchased 75 percent of their parts from OEM manufacturers, “less than one‐fifth of the total parts purchase[d] by independent repair shops are assemblers’ ‘genuine’ parts for which there exist competitive alternatives” (Hawker, ). One important effect of independent shops’ preference for non‐OEM parts is that it has constrained the ability of OEM manufacturers to raise prices (Hawker, ).…”

Section: Judicial Responses To Insurers’ Use Of Drps and Aftermarket mentioning

confidence: 99%

“…Auto manufacturers have a financial interest in not only limiting competition for frequently needed parts like fenders and hoods but also limiting the access of independent providers to the information, parts, and tools that automobile manufacturers make available to their authorized dealers (Hawker, 2008). As one commentator has noted, "Consumers have generally preferred independent mechanics over the OEM dealers for non-warranty work on their cars.…”

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

“…As one commentator has noted, "Consumers have generally preferred independent mechanics over the OEM dealers for non-warranty work on their cars. OEMs, however, have strived to make dealers a more attractive option for consumers, partly as an effort to increase OEM sales of parts and tools" (Hawker, 2008). OEMs have had the ability to require dealers to use OEM parts, but not independents.…”

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

“…2d 801 (2005). from OEM manufacturers, "less than one-fifth of the total parts purchase[d] by independent repair shops are assemblers' 'genuine' parts for which there exist competitive alternatives" (Hawker, 2008). One important effect of independent shops' preference for non-OEM parts is that it has constrained the ability of OEM manufacturers to raise prices (Hawker, 2008).…”

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

See 3 more Smart Citations

Automobile Insurance Vehicle Repair Practices: Politics, Economics, and Consumer Interests

Cole

Maroney

McCullough

et al. 2015

Risk Manage Insurance Review

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There is a continuing debate related to insurers’ use of direct repair programs, in which they contract with particular body shops to perform insured auto repairs according to terms agreed to by the insurers and repair shop owners. A similar debate exists related to insurers specifying the use of aftermarket crash parts instead of original equipment manufacturer parts to replace damaged vehicle components, such as door panels, fenders, and hoods. This study examines these issues from a variety of perspectives providing initial evidence that if properly used, these cost containment tools can be beneficial to consumers and insurers.

show abstract

Section: Judicial Responses To Insurers’ Use Of Drps and Aftermarket mentioning

confidence: 99%

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

Section: Insurer Use Of Aftermarket Parts: Struggling To Enhance Markmentioning

confidence: 99%

See 2 more Smart Citations

Automobile Insurance Vehicle Repair Practices: Politics, Economics, and Consumer Interests

Cole

Maroney

McCullough

et al. 2015

Risk Manage Insurance Review

View full text Add to dashboard Cite

show abstract

“…On the one hand, there are universal workshops, which have a wide range of services starting from a simple tire change to difficult repair works (Wokl, 2010). Thus, the competition can be diminished by holding back this information from the independent aftermarket (Hawker, 2008). Through the high volume of services and the specialization, they often have lower prices than the workshops in the regulated aftermarket.…”

Section: The Independent Aftermarketmentioning

confidence: 99%