| February
29 , 2000 Only the best Autopac repairs are good enough On the same day that at least one major vehicle manufacturer is asking its customers to pay more for auto parts used to repair their vehicles, Manitoba Public Insurance (MPI) is reducing rates for most Manitoba motorists. And the premium reduction is due, in part, to cost savings achieved through the use of quality, guaranteed alternative parts in Autopac claim repairs. In 1998, for example, using parts manufactured by companies other than the original manufacturer for Autopac repairs saved Manitoba premium payers $5.8 million. MPI is reducing rates for three-quarters of Manitoba motorists effective on policy purchases or renewals beginning March 1. On the same day, a major vehicle manufacturer began a campaign at its dealerships to encourage repair customers to ask for more expensive Original Equipment Manufacturer (OEM) parts made by the vehicle manufacturer. MPI wants its customers to know that the use of alternative parts for vehicle repairs is effective, guaranteed and in no way compromises the safety of the vehicle or the motorist. "Customer assurance is a top concern for MPI," said Wilf Bedard, MPI Vice-President of Claims. "We have developed control measures to ensure the use of alternate parts is never at the expense of quality. "And, by using less expensive parts, we keep our customers' insurance costs down." All parts used in Autopac repairs - from brand-new factory parts to recycled parts - must meet high standards and come with warrantees equal to, or better than, original equipment parts. In addition, Autopac repairs must meet international standards of quality, and Autopac-accredited repair shops must meet MPI's standards of quality, equipment and training. Recycled parts are generally about half the cost of new parts. Recycled parts are normally undamaged original equipment parts recovered from salvage vehicles by Manitoba-based recycling businesses. Use of these parts contributes to the Manitoba economy and helps reduce the environmental impact of automobile repairs. After market parts cost about one-third less than new parts. These parts are made to quality standards by manufacturers other than vehicle companies. Ironically, most vehicle manufacturers currently contract out the making of at least some OEM parts to other companies.
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