The below press release came from URG opposing the usage of PartsTrader in its current form. We encourage you to send this on to your parts vendors for their information and consideration.
United Recyclers Group Opposes Repairer Mandates by Insurers
Contact: Don Porter
October 10th, 2013 – Austin, Texas – The United Recyclers Group (URG) Board of Managers are announcing their decision not to endorse the use of the online parts procurement tool developed by Parts Trader. This comes in response to the recent announcement by State Farm Insurance mandating the nationwide use of this tool by their program repair facilities.. “Mandatory usage of PartsTrader in its current form does not serve the needs of the auto recycling industry, the collision industry, or vehicle owners,” says Don Porter, URG Executive Director.
“We are committed to working with State Farm, the nation’s largest auto insurer, to resolve the concerns of URG members,” says Don Porter. “Our members question the value of paying a parts procurement business like PartsTrader with the hope of their parts being included and selected when recycler’s parts data is provided to insurers and collision repair facilities. This model increases the cost of repair parts provided by recyclers, and this cost will ultimately be passed on to consumers.”
Repairers and recyclers have developed long standing business relationships based on mutual respect, integrity and the quality of parts and services provided. URG opposes the mandatory use of any procurement tool which may weaken or potentially sever this relationship. The cost of parts and quality of service go hand in hand when a collision repair facility selects recycled parts. Mandates take away the freedom a collision repairer currently enjoys when selecting an auto recycler as a business partner. URG members feel that part selection and acquisition should not be based merely on the cost of the part, but also on the quality of the part and business acumen of the recycler who will ultimately supply the part.
URG believes online technology solutions help drive efficiency in the parts procurement process and create value. URG’s creation of URGNet, an interactive recycled parts database, is a product of that belief. Parts data from more than 500 URG auto recycler members provides users of different online parts programs with direct and immediate access to comprehensive recycled parts inventory, availability and pricing. Keeping recycled parts available, affordable and competitive in today’s business environment were major considerations in URG’s decision not to endorse Parts Trader.
With over 500 members, United Recyclers Group, LLC (URG) is the largest group of progressive auto recyclers in North America. URG members work together in many innovative ways to improve and modernize the automotive recycling industry.
For more information, go to the United Recyclers Group website at www.u-r-g.com. Or call 303-367-4391.