Building competition in auto crash parts.

Formed in 1998, the Certified Automotive Parts Association seeks to promote price and quality competition in the collision parts industry. Members include 13 automobile insurers that write most of the business in the United States; seven collision repairers; two consumer groups; and 44 parts distributors. While member insurers provide about 45% of the association's $6 million budget, the rest comes from fees, primarily the $1.25 charge for affixing the CAPA Quality Seal to accredited parts, according to Executive Director Jack Gillis. The association also collects fees for vehicle test fitting of parts and from subcontractors.

Five administrators based in Washington, D.C., oversee the CAPA program. The association's test center employs from 25 to 40 people.

Gillis said the association doesn't try to estimate or calculate how much it saves the auto insurance industry. "Our ultimate goal is to save consumers money when it comes to crash repair" he said. "Obviously, most charges are paid by insurance, so one would expect either moderating insurance premiums or some downward impact."

Gillis maintained that the association has "dramatically improved" both the quality and number of parts available for auto repairs. CAPA is accredited by the American National Standards Institute, which administers and coordinates a voluntary standardization and conformity-assessment system in the United States. But Gillis also said that the market "still has a long way to go to correct the problem of car-company monopolies on parts." Some 80% of parts are still available only through the original manufacturer, he said.

For many years, the association has striven to elevate its CAPA Quality Seal to the same status as Underwriters Laboratories' "UL Listed." One impediment has been a longstanding lawsuit, Avery vs. State Farm, over the insurer's role in encouraging body shops to use aftermarket parts. The original ruling in a local court in southern Illinois went against State Farm, which is appealing. The appeal isn't yet resolved and is being reviewed by the Illinois Supreme Court, and State Farm has suspended use of aftermarket parts. "In waiting for the outcome, there was an original and very chilling effect on competition," said Gillis. "That seems to be thawing. Many insurers continue to use fairly priced alternative parts, but State Farm's decision to not use them has had and continues to have an impact on the market."

Despite that setback, Gillis said the association has improved its program and made "remarkable progress" in improving its credibility. A significant change for the better was the introduction in 1999 of the association's vehicle test fit in response to a high likelihood that the quality of car manufacturers' replacement parts was so bad that the CAPA-certified parts were of correspondingly poor quality. The test fit ensures that the replacement part matches the original part on the vehicle. "Some 40% to 50% of parts don't pass the test," Gillis said. "We're the gatekeeper. That's the beauty of the program."

Auto manufacturers don't seek the CAPA seal. "They should be certified" Gillis said. "Then they could be assured that their parts in fact match the original part on the car."

Meanwhile, repairers are realizing the strong vested interest they have in keeping repair costs down. If repair costs are too expensive, insurers are more likely to total a vehicle (declare that its damages exceed its value), and repairers lose out on a job, Gillis said. Some states, including Iowa, have passed regulations requiring the use of certified parts. Others, such as New Jersey and New York, strongly encourage their use, Gillis said." A number of legislative groups and regulators are looking at our certification program," he added. "So we've been able to rise above the incredible acrimony and demonstrate to the market that there is a quality alternative with a number of benefits."

But Gillis also admits to a major challenge the association faces: "How do we communicate to the market on a shoestring budget that making the CAPA choice is the best way to protect consumers from poor quality and the ravages of the car-company monopoly? That's a challenge, because car manufacturers spend millions of dollars a month to promote their products."

The CAPA Seal: The Certified Automotive Parts Association hopes that its seal will become as recognizable as Underwriter Labs'.

What CAPA Certifies

* Fenders

* Door shells

* Trunk lids

* Truck box sides

* Tailgates

* Bumper covers

* Hoods

* Quarter panels

* Truck beds

* Radiator supports

* Side moldings

* Header panels

* Grilles

* Lamp covers

* Taillights

* Headlight bezels

* Headlights

* Side lights