Have 230,000 small businesses reached the end of the road? That possibility is becoming more likely by the day.
These small businesses are independently owned and operated auto repair shops, the kind that dot street corners from the biggest cities to the most rural communities. Yet they’re finding it increasingly difficult to fix newer cars for the simple reason that auto manufacturers won’t let them, even though competition is best for vehicle safety and consumers’ pocketbooks.
The steady advance of technology is what got us here. Every year, cars become more tech-dependent, and today they’re essentially computers on wheels. Independent auto repair shops can fix these cars, but they need specialized software and diagnostic data from auto manufacturers to get the job done.
For decades, auto manufacturers have acted in good faith after agreeing to a memorandum of understanding with independent repair shops. The memorandum allowed auto repair shops access to key vehicle information from manufacturers.
It used to be that when the check engine light went on, mechanics could hook up the right tools to find the problem and then fix it. But advancements in technology have essentially computerized cars, giving manufacturers an opening to switch things up. Because newer cars are connected to the internet, they can send diagnostic information directly to manufacturers, who feel no need to share it with auto repair shops.
Manufacturers aren’t just changing the rules of the road. They see a chance to erect barriers to competition and drive their competitors into a ditch.
But many customers prefer these tried-and-true small businesses. More than 70% of aftermarket car repairs happen at independent auto repair shops, many of which have been around for decades and are family-owned.
There are many reasons for their enduring popularity. They’re usually more affordable than dealers, more conveniently located, and can often get vehicles in for repair much faster. Many people just like their customer service and have personal relationships with these small businesses.
Thankfully, bipartisan members of Congress have introduced a commonsense proposal that would benefit small businesses and consumers: the Right to Equitable and Professional Auto Industry Repair Act. The idea is simple — to provide independent auto shops with the right to repair vehicles.
The bipartisan support behind the REPAIR Act makes it a rare spot of across-the-aisle collaboration in a divided Congress, reflecting broad alignment across the country.
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My own organization, the National Federation of Independent Business, has, for many years, supported initiatives, such as the right to repair, that would increase competition in automotive services. NFIB members include auto repair shops and small businesses that frequently need car repairs, from truckers to farmers to your local plumbers and electricians, whose jobs rely on them driving to and from appointments all over town. These small businesses would benefit from the REPAIR Act.
The sooner Congress acts, the better. Without reform, some 230,000 auto repair shops are looking down a dead-end street, and millions of other small businesses and consumers could face increased costs and fewer options to repair their vehicles.
Andrea McGee is principal of federal government relations at the National Federation of Independent Business.
