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News and Trends: Right to Repair, Semiconductor Manufacturing, and Electrification
The world moved pretty fast from horse and buggy to automobiles, right? Change happens rapidly in our industry and we must keep up. This section is dedicated to current events that directly impact our industry. Governmental policy changes, aftermarket company structure changes, upcoming industry events and other news should be readily available for our members. To submit an industry topic you’d like to learn more about, contact us at yang@autocare.org.
Government legislation has a significant impact on the automotive industry. New vehicle manufacturers are forced to make vehicles safer (shout out to seat belts, airbags, TPMS…) and more efficient (let’s hear it for turbos, GDI, VVT and computerized controls), oftentimes working closely with the state (looking at you California), as well as the federal government to enact legislation safety and emissions goals for new cars. However, it’s not just the original equipment manufacturers (OEs) that feel the impact of this legislation. As the OEs adjust, so must the aftermarket. There have been multiple pieces of legislation in the news recently that will have a direct impact on the aftermarket for years to come:
![repair Aftermarket Scholarships](/images/default-source/policy-issues/technician-shortage/repair.jpg?sfvrsn=f34110d7_0)
An article published by the Press Herald, reported that a group of independent repair shops in Maine, along with their employees and other supporters have filed an application with the Secretary of State’s Office seeking a statewide referendum in 2023 that would protect their right to repair new cars and trucks.
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In July 2022, Congress passed the CHIPS Act of 2022 to strengthen domestic semiconductor manufacturing, design and research, fortify the economy and national security and reinforce America’s chip supply chains.
![telematics telematics](/images/default-source/communities/yang/blog/telematics.jpg?sfvrsn=673b6f39_2)
U.S. Congressman Earl “Buddy” Carter (R-GA) established a new bipartisan caucus in the U.S. House of Representatives working to address the issue of vehicle data access.
The USMCA dispute settlement panel deliberating the auto rules of origin dispute between the United States, Canada and Mexico completed its preliminary report and filed a confidential version earlier this week. The U.S. position on the automotive rule of origin, if adopted and implemented, would require dramatic and expensive changes to current supply chains.
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In late September, New York’s Governor Kathy Hochul announced in a press conference that all new vehicle purchases in New York must be zero-emission, starting in 2035. According to CBT News, the governor also spoke about a $10 million investment in New York’s Drive Clean Rebate program to help New Yorkers afford the vehicles. This announcement comes on the heels of California also banning gas-powered vehicle sales by 2035.
![iStock-1272538605 iStock-1272538605](/images/default-source/communities/yang/blog/istock-1272538605.jpg?sfvrsn=826f283a_2)
The American Property Casualty Insurance Association has issued a statement showing support for the SMART (“Save Money on Auto Repair Transportation) Act and the REPAIR Act. According to AftermarketNews, “The APCIA is the primary national trade association for home, auto and business insurers.” The association calls legislators to pass the acts for the good of consumers, to help protect and offset soaring prices and restrictions on repairs.
As responsible young aftermarket members, we need to keep up with legislation to know when to educate (1234yf), when to fight (Right to Repair) and how to discuss what’s next (electrification). Luckily, we have an industry that’s willing to fight for us. Learn more about what the Auto Care Association is doing to advocate for our industry at autocare.org/government-relations.
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Welcome to the new YANG Effect! Your one-stop quarterly newsletter for all things Automotive Aftermarket contributed to and written by under-40 industry professionals.
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Market Insights with Mike is a series presented by the Auto Care Association's Director of Market Intelligence, Mike Chung, that is dedicated to analyzing market-influencing trends as they happen and their potential effects on your business and the auto care industry.
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