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CNN Live Sunday

Interviews With Mantill Williams, Roger Pilon

Aired June 30, 2002 - 17:18   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: All right, well, here's a question for you. Has this ever happened to you? You take your car to your neighborhood garage for repair only to have your trusted mechanic tell you sorry, I can't fix this, you'll have to take it to the dealer.

Well, chances are it's because the auto maker won't give your independent mechanic the computer codes needed to figure out and fix the problem. Some members of Congress have introduced a bill that would force manufacturers to provide those codes to vehicle owners and independent repair shops.

Let's take a look at both sides of the issue. But first making the case for new legislation, is Mantill Williams of the Automobile Association of America. And he joins us from Washington. Thanks for joining us.

MANTILL WILLIAMS, AAA: Good afternoon, Fredricka.

WHITFIELD: All right. So some members of Congress are worrying that auto makers just might be squeezing out the independent mechanics. Are they making a good point?

WILLIAMS: Yes, I think so.

Our main concerns with this really are three reasons. Number one, we think it's also a safety issue because keep in mind these computer codes, they directly affect the safe operation of that vehicle and we're afraid that some of these motorists might be sent back onto the roads because auto technicians aren't able to properly diagnose their vehicle. So that's creating a safety hazard.

And then we also think it's a financial reason, Fredricka, because the motorist will be forced to pay exorbitant repair fees because this approved auto repair dealer is the only game in town.

And then thirdly, we think it's a big service issue because you're sort of forced to work with that one particular dealer who may not have given you good service in the past. And you also may be forced to deal with a time situation where you might have to wait a couple of weeks before your car is even repaired.

WHITFIELD: So this is particularly affecting those auto owners who have cars that are made after 1996, since most of the most recent cars have the computerization. So what can Congress really do to try to encourage these auto makers to give up the codes?

WILLIAMS: Well, we hope that they will offer this Right To Repair Act, this House Resolution 2735. And what this act will do, it will specifically give the motorist the power to choose when, who and where their car will be repaired, because it will provide access, direct access to the computer codes on these on board diagnostic systems so the auto technicians can at least diagnose and at least repair some of these problems that come up with these auto, with these vehicles.

WHITFIELD: So, now what about the independent mechanic? You know, what can he or she really do at this juncture if she is being -- he or she is really being squeezed out? You know, she or he is really relying on Congress to try and do something.

WILLIAMS: Absolutely. What we're telling the independent auto repair technicians, number one, you do have to invest in the technology. That's one way. But if you don't have access to those computer codes, no matter what technology you have, no matter how brilliant you are of an auto technician, you still can't repair the car.

So we're saying to the auto technicians as well as to the citizens to write to their congressmen to support this Right To Repair Bill.

WHITFIELD: All right, Mantill Williams of AAA.

Now, we want to get the auto makers' and dealers' side of this argument.

Roger Pilon, the vice president for legal affairs at the Cato Institute. He's with us and he's on the telephone from Washington.

All right, Roger, well, you know, this isn't just a money issue, perhaps. This is also an environmental issue. The EPA is saying, of course, if independent mechanics are able to work on these cars, just as the auto dealers, then they're going to be able to find emissions problems earlier. But you argue that the auto makers really should be able to protect their best interests.

ROGER PILON, CATO INSTITUTE: Yes, that's correct. And Mr. Williams has made a number of good points.

At the same time, we've got to look at this. And I should say I'm not speaking on behalf of auto manufacturers. I'm speaking simply on behalf of myself.

The first argument to be made against this kind of legislation is that this is proprietary information. And, in fact, there are reasons that auto manufacturers have for wanting to keep these codes to themselves. For one thing, it helps to preserve quality control. For another thing, it ensures brand reliability. And finally, it helps to retain resale value to know that the cars of the manufacturer are being repaired by the authorized dealership as opposed to independent repair facilities which may not repair them quite as well. WHITFIELD: Well, what about for the consumer, though? That means that they have to, they are married to the idea of going to a dealer, which is going to cost them between $10 and $20 more per hour for labor. They're not going to be able to get their car serviced from someone who is going to offer a more competitive rate.

PILON: This is the kind of situation that the markets are far better able to handle than legislation. In fact, what you very likely may see is that some dealers or some manufacturers, rather, will release their codes in the name of consumer choice. And if that is the kind of thing that happens through the market, then we will see a very different world.

We are coming to the end, though, of the shade tree mechanic, and that's because the cars are becoming so much more computerized. You've got to have the knowledge and the equipment to be able to do the repairs these days.

There is a tendency, of course, to think that for every problem there ought to be a legislative solution out of Washington. This is a classic example of that and it seems to me that it's also a classic example whereby we ought to let the market take care of this.

WHITFIELD: All right, Roger Pilon, Cato Institute, thank you very much.

PILON: You're welcome.

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