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Page Krughoff, Robert M., president, Washington Center for the Study of Services
308 Laue, Douglas, deputy chief, California State Bureau of Auto motive Repair
48, 83 Ligon, W. H., managing director, Texas Service Station Association
369 Livingston, Charles F., Acting Associate Administrator for Traffic Safety
Programs, National Highway Traffic Safety Administration, Department
5, 143, 188 McCarthy, Frank E., executive vice president, National Automobile Dealers Association-NADA.
212 McDowell, D. James, managing director, Automotive Engineering and Road Services Department, American Automobile Association.......
48 Mallon, Robert P., president, National Automobile Dealers AssociationNADA
212 Mizak, Raymond M., general manager-service, American Motors Corp.. 429, 459 Moretti, Therese, Addison, Ill.
477, 491 O'Neill, Brian, vice president for research, Insurance Institute for Highway Safety ..
511 Pansa, O. Robert, director, service section, consumer relations and service staff, General Motors Corp
429 Persley, Allen S., Houston, Tex ......
367 Pipes, Larry A., on behalf of the American Automobile Association of Missouri
..... 143, 179 Raftery, William A., president, Motor and Equipment Manufacturers Association
36 Randall, Donald A., counsel, Automobile Service Councils, Inc
96 Rendell, Edward G., Philadelphia City district attorney, National District Attorneys Association
48, 76 Richardson, Archie G., Jr., president, Automobile Owners Action Council
143, 171 Richey, Allen, executive vice president, Automotive Service Association .... 96 Rose, George, investigative counsel, Office of Consumer Affairs, National Association of Consumer Agency Administrators ..
298, 305 Stenson, Carl, service research, General Motors Corp
429 Stone, Daniel C., manager, motor vehicle inspection programs, Hamilton Test Systems, a subsidiary of United Technologies Corp
143, 144 Uzick, Mrs. Adolph, Houston, Tex.......
374 Vance, Carrol, district attorney of Harris County
354 Vogelheim, Karl, director, warranty administration, American Motors Corp
429 Warren, Glen, director, consumer relations, General Motors Corp
429 Weiner, Ron, president, Automobile Information Council
21 Welsh, Shelby, past president, Automobile Service Association.
340 West, E. O., Houston, Tex
376 Additional material submitted for the record byAutomobile Information Council-AIC:
Economic impact of the automobile industry in the State of Texas....... 23
29 Automotive Parts and Accessories Association, letter dated December 8,
1978, from Mr. Higgins to Chairman Eckhardt re mandatory licensing of
115 Automotive Service Councils, Inc., letter dated February 8, 1979, from Mr.
Cossette to Chairman Eckhardt response to ABC's position on Federal,
99 Center for Auto Safety:
Letter dated January 4, 1979, from Mr. Ditlow to Chairman Eckhardt
121 Attachment 1-Letter dated January 27, 1978, Mr. Ditlow to Senator
Wendell H. Ford regarding problems consumers have experienced
125 Illinois Attorney General's consumer fraud and protection division Chicago office, attachments to Mr. Benedetto's prepared statement: Exhibit 1-Attorney General William J. Scott, consumer fraud and protection division
421 Exhibit 2–Table 3.1-Satisfaction by purchase category
422 Exhibit 3—Table 5.6—Unremedied strong nonprice problems by purchase category .....
401 402 404 410
, Rich, president, Automotive Legislative Council of Amer-
motive repair licensing,
Table 4-1-Vehicle damage assessment–Test No. 11
press release, March 17, 1970
and 1979 models
low-speed crash test results ..
hour front to rear crashes
low-speed crash tests vehicle bumper system weights....
crash test program
Chart-Automobile related prices and the cost of living 1972-78
Table-Automobile related prices and the cost of living 1972-78
Car's age influences maintenance .....
of jobs never performed
product replaced at least once
to Mr. Mallon invitation to participate in auto repair hearings
Senator Ford with attachment......
re auto insurance part III by Jack Scagnetti
Letter dated March 22, 1978, from Mr. Scagnetti, Mr. Orrico Letters submitted for the record by
Covington & Burling, Richard D. Copaken and John J. Donohue, counsel to
Houdaille Industries, Inc
242 244 268
ORGANIZATIONS REPRESENTED AT THE HEARINGS American Automobile Association of Missouri, Larry A. Pipes. American Automotive Association, D. James McDowell
, managing director, automotive engineering and road services department. American Motors Corp.:
Hitz, Neil, general parts manager.
Vogelheim, Karl, director, warranty administration.
Benck, Henry, president, National Body Shop Council.
Randall, Donald A., counsel.
ment of consumer sales, weights, and measures. Chrysler Corp., Francis G. Hazelroth, general manager, service and parts division. Downs & Sons Auto Service, Morgan Downs. Federal Trade Commission, Albert H. Kramer, Director, Bureau of Consumer
Protection. Ford Motor Co., Grant C. Chave, manager, service programs, Ford parts and service
division. General Motors Corp.:
Pansa, O. Robert, director, service section, consumer relations and service staff. Stenson, Carl, service research.
Warren, Glen, director, consumer relations. Hamilton Test Systems, Daniel C. Stone, manager, motor vehicle inspection programs. Harris County, Tex., Carrol Vance, district attorney. Houston Auto Service, Bill Canterbury, owner. Illinois attorney general's consumer fraud and protection division, Michael A.
Benedetto, Jr., chief, Chicago office. Independent Garage Owner:
Florentine, George A., executive director.
Richey, Allen, executive vice president, Automotive Service Association. Independent Garage Owners Association of Illinois, Inc., Anthony DeRosa, president. Insurance Institute for Highway Safety:
Kelley, Albert Benjamin, senior vice president.
O'Neill, Brian, vice president for research. Michigan Department of State Bureau of Automotive Repair, James D. Hunsucker,
administrative assistant. National Association of Consumer Agency Administrators:
Gregg, Barbara B., president.
Rose, George, investigative counsel, office of consumer affairs.
Hunt, David, associate counsel.
Mallon, Robert P., president.
trict attorney. National Institute for Automotive Service Excellence, Daniel C. Knapp, director,
operating programs. Texas Service Station Association, W. H. Ligon, managing director. Texas State Senate, Senator Ron Clower, chairman, subcommittee on consumer
affairs. Transportation Department:
Brownlee, Michael, director, Office of Automotive Ratings.
Livingston, Charles, Acting Associate Administrator.
Group Washington Center for the Study of Services, Robert M. Krughoff, president. Wisconsin Auto Collision Technicians Association Ltd., Robert Argall, liaison officer.
THURSDAY, SEPTEMBER 14, 1978
HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON CONSUMER PROTECTION AND FINANCE, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,
Washington, D.C. The subcommittee met, at 10 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, the Hon. Bob Eckhardt, chairman, presiding.
Mr. ECKHARDT. The Subcommittee on Consumer Protection and Finance will be in session.
Today the subcommittee begins 4 days of hearings on auto repair. Hearings will be held in Washington and in two cities with automobile populations among the largest in the Nation, Houston and Chicago, regarding the entire range of problems and potential remedies associated with what the consumers of this Nation perceive as the auto repair problem.
Our witness list is comprehensive and includes those most knowledgeable in every aspect of the auto repair process, from matters of auto design, manufacturing defects, and warranty problems, through the interactions of consumers, State regulatory agencies, and the maintenance repair industry at the shop level.
The subcommittee will examine existing programs and recommendations of the National Highway Traffic Safety Administration, the Federal Trade Commission, and the Environmental Protection Agency that bear on this complex problem.
We will attempt to determine what the auto manufacturers are doing and can do to address design and manufacturing defects and to reduce consumer complaints about warranty repairs.
We will examine State and local programs as well as private sector approaches to the problems of unnecessary, incompetent, or fraudulent repair practices. And we will hear from experts in the public and private sector regarding the feasibility of automotive diagnostics as a systematic approach to the auto repair problem.
The automobile may well have more impact on the lives of Americans than any other single consumer product. At present, there are approximately 124 million passenger cars and trucks used primarily for personal transportation in the United States. Between the early 1960's and the early 1970's, private transportation costs grew from about 14 percent to about 19 percent of the average American family's consumption expenditures, and the cost of owning and operating our personal vehicles has risen at record rates since then.
Between 1972 and June 1978, the Consumer Price Index rose by 55.7 percent, reflecting an average annual inflation rate of about 7.7 percent. New car prices increased by less than this, but taking into account style changes, additional consumer options, and mandated safety equipment, the average consumer outlay for a new car has risen at about the same rate as the CPI.
Every other major automobile-related price index has risen more rapidly than the cost of living, including auto maintenance and repair, which has risen at an annual rate of 8.4 percent, well above the rate of inflation.
As a result of these trends, in December 1977, private transportation expenditures had equal weight with food in the urban working family's budget, about 19.3 percent of total spending. This has occurred in spite of the disproportionately large increases in the price of food and other basic necessities during this period.
Direct outlays on maintenance and repair of family vehicles now account for about half as much as maintenance and repair of the home. Auto repair and maintenance outlays are 86 percent as large as average spending for professional medical services, and more than urban working families spend for men's and boys' apparel or personal and educational expenses.
With these hearings, the subcommittee begins a broad program to discover and reduce the avoidable costs of basic necessities in the consumer's budget. We are approaching the auto repair area in an exploratory way, seeking to identify the problems and explore all of the alternative approaches to their solution. While we do not have any specific bills before us, the subcommittee will make findings which could lead to legislation.
At this point in the record, I should like to place an attached chart and table with respect to repair and other costs, and also inflation, having to do with the automobile.
[The following material was received for the record:)