Body shops not to blame for ICBC’s financial issues: ARA

The Automotive Retailers Association is fighting back against accusations levelled against them

Posted by Automotive Retailers Association on Wednesday, January 31, 2018

The president of the B.C. Automotive Retailers Association says his industry refuses to be the scapegoat for the ongoing financial issues within ICBC.

“Our concern is that our industry might be used as a scapegoat, quite frankly, for the escalating costs of ICBC,” says Ken McCormack, president and CEO of the Automotive Retailers Association. “We are not the problem, but we do want to be part of the solution.”

As president of B.C.’s aftermarket automotive repair business, he is calling on the government and ICBC to cut repair costs without sacrificing safety through a number of recommended measures.

The ARA participated in a third-party review of automotive repair, recovery and recycling.

Included in the recommendations are changes to ICBC’s salvage procurement policies to enable access to serviceable ‘like new’ used parts for vehicle repairs.

McCormack says this could dramatically cut repair costs without sacrificing quality or safety.

Responding to news that ICBC has incurred a $1.3 billion deficit, he acknowledges government claims that collision repair costs have risen 30 per cent over the past two years, but contends it is not the fault of the repair industry.

“We have certainly seen a significant increase in the value of those repairs,” notes McCormack, but he says it is not the body shops that are escalating those costs.

“The body shops in this province have little to no pull whatsoever on those costs. Vehicles are getting more expensive. While those costs have increased by 30 per cent, I can assure you it is not the body shops reaping the benefits.”

Related: ICBC in ‘financial dumpster fire’: minister

He says motorists are purchasing more expensive and technologically-advanced vehicles and the parts to repair these vehicles are more expensive.

“The standards and methodology for repairs and replacement of parts for damaged vehicles have been set by manufacturers. Use of high-strength steel and aluminium as well as technology including lane departure warning, automatic braking and adaptive cruise control which continually monitors and, in some cases, controls the vehicle, add to repair costs that collision shops have no control over,” he adds.

The ARA states that collision shops have had to invest heavily in equipment and training to be able to keep up with these technological advances.

“There is a need to find economies outside of the repair shops. They already have low profits and the collision sector has had no substantial increase for the past eight years and it’s been longer than that for rate increases in other sectors including glass, towing and salvage,” McCormack says.

Among other recommendations advanced by the ARA is increased support for industry-led technician certification programs designed to save ICBC money through efficiency and improved cycle times.

“We want to work with ICBC and the government to find solutions that will help ICBC reduce its financial burdens while improving vehicle service availability and quality,” McCormack says.

“We think the economies are there to reduce ICBC’s costs and ensure the future viability and sustainability of our automotive-service sector. ICBC’s policyholders are our customers as well.”

RELATED: ICBC projects deficit of $1.3 billion this year

RELATED: ICBC board members replaced before NDP overhaul

To report a typo, email:
newstips@kelownacapnews.com
.


@carmenweld
carmen.weld@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

West Shore RCMP seizes more than $16,000 worth of drugs

Suspected cocaine, pills and cash seized from a Greater Victoria home

Emerald Gloves boxing brings fights to Langford

Langford’s Matt Daniels dropped weight for debut

Team Canada to hold junior selection camp in Victoria

22 players from camp will make roster for 2019 World Junior Hockey Championship

U.S. mayor and dying dog’s roadtrip to Victoria goes viral

First vacation in three years came a month after blood cancer diagnosis

Victoria City Council directs staff to proceed with Central Park for new Crystal Pool location

Save-On-Foods Memorial parking lot still up for discussion as a location

VIDEO: Stan Lee leaves posthumous message for his fans

Marvel Comics’ co-creator died on Monday at the age of 95

Greater Victoria holiday craft fair roundup for Nov. 16 to 18

Check off all of the items on your shopping list at these great events

Greater Victoria Crime Stoppers wanted list for the week of Nov. 14

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

Port Alberni convenience store robbed

Police still searching for suspect

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Saskatchewan college honours memory of Humboldt Broncos coach

Darcy Haugan wore jersey No. 22 when he was a star player with the Briercrest College Clippers

Liberals to act quickly if Saturday midnight deal deadline breached: source

Oh Friday, Canadian Union of Postal Workers said it would not bring the latest offers to a vote of its members

Most Read