FTC Letter

Last week, ARA called on the Federal Trade Commission (FTC) to investigate

potential breaches of warranty laws by automotive manufacturers. ARA is

concerned that several manufacturers have used language that implies that

warranties are tied to the use of new, authorized replacement parts, which is

illegal under the Magnuson-Moss Act. ARA also said “automakers’ unfounded

disparagement” of recycled OEM parts could violate the Lanham Act, which

prohibits false advertisement and other trademark-related activities. The ARA

cited recent statements by Chrysler, Honda, Toyota and Hyundai as cause for

the investigation, which it requested in the letter.

Copies of the letters and position statements are below.

Used Oil Update

Per a court mandate, EPA was ordered to publish a final regulation by Feb. 21,

2011 that would determine whether used oil could efficiently still be burned as

fuel. As of today, February 22nd, the rule has not yet been published.

Over the past several months, the proposed rules have prompted close to 300

elected officials to voice their concerns about the possible job and economic

impacts of the rule to the EPA. Earlier this month, 61 freshman members of

Congress, including Charlie Bass (R-NH) sent a letter to the EPA urging them to

pass standards that are “achievable under normal operating conditions” and

that are “cost effective rules that protect public health”.

In January, 2011, a similar letter was signed by Sens. Roy Blunt (R-MO), John

Boozman (R-AR), Kelly Ayotte (R-NH), Dan Coats (R-IN), John Hoeven (R-ND) Ron

Johnson (R-WI), Mark Kirk (R-IL), Joe Manchin (D-WV), Jerry Moran (R-KS), Rand

Paul (R-KY), Rob Portman (R-OH), Marco Rubio (R-FL), and Pat Toomey (R-PA)

and sent to the EPA.

In addition, in September, 2010, forty-one United States Senators – 18 Democrats

and 23 Republicans – also sent a letter to Administrator Jackson. The following

eight Senators did not join the bipartisan letter mentioned above, but did sign

individual or small group letters: Sens. Russ Feingold (D-WI), Al Franken (D-MN),

Jeanne Shaheen (D-NH), Debbie Stabenow (D-MI), Jon Tester (D-MT), Sherrod

Brown (D-OH), Richard Lugar (R-IN) and Carl Levin (D-MI). Further, a bipartisan

group of 114 members of the U.S. House of Representatives wrote a letter

expressing their concerns to Administrator Jackson on August 2, 2010. Reps.

David Obey (D-7th WI) and David Wu (D-1st OR) sent separate letters to EPA

asking that concerns be addressed. Your ARA staff have talked with several of

these members and expressed ARA’s position on the issue.

As well, at least 21 governors from both parties have written similar letters to

Administrator Jackson on the jobs impact of the Boiler MACT regulations,

including: Haley Barbour (R-MS), Mike Beebe (D-AR), Robert Bentley (R-AL), Terry

Branstad (R-IA), Phil Bredesen (D-TN), Tom Corbett (R-PA), John Baldacci (D-ME),

Mark Dayton (D-MN), Jim Doyle (D-WI), Christine Gregoire (D-WA), Theodore

Kulongowski (D-OR), Linda Lingle (R-HI), John Lynch (D-NH), Robert McDonnell

(R-VA), Butch Otter (R-ID), Tim Pawlenty (R-MN), Bev Perdue (D-NC), Sonny

Perdue (R-GA), Bob Riley (R-AL), Arnold Schwarzenegger (R-CA), and Ted

Strickland (D-OH).

Staff is checking the publication status hourly and will let the profession know of

EPA’s ruling as soon as the regulation is published.

Greece Launches Cash For Clunkers Program

Albeit a bit later than the U.S. and even other European countries, Greece has

now joined the cash-for-clunkers craze. After months of bureaucratic delays,

the government program was scheduled to finally kick off yesterday, February

21, and will run until December 20 – there is hope to garner an anticipated 2.5

million eligible cars for scrappage this way.

The program is geared to getting cars off the road that are 12+ years old in

exchange for a discount of up to €2,800 (approximately $3,800)on a new

vehicle. Savings will be limited to those purchasing a car with an engine

capacity under 2,000 cc, with additional tax exemptions for engine capacity of

901 – 1,400 cc.

New car sales in November fell 63.4 percent compared to sales of the previous

November, following several months of equally low sales figures. It is hoped that

this effort will boost tax revenues and a lagging economy.

Greece’s Transport Ministry general secretary Harris Tsiokas stated that he’s

looking into providing incentives for customers that purchase hybrid cars as well

as ending the current ban on cars running on diesel fuel driving in Athens or

Thessaloniki.