A more viable industry-wide aftermarket collision parts certification process could evolve from the pending demise of the Manufacturers’ Qualification and Validation Program Inc. (MQVP), which filed for Chapter 7 bankruptcy.
As MQVP appears to be going out of business in its current form, the non-profit Certified Automotive Parts Association (CAPA) will likely gain added prestige, influence and effectiveness, according to Mike West, a collision repairer who is on the CAPA board.

“I’m glad to hear it,” says West of MQVP’s apparent exit from the scene. “It’s got to be good for the industry and CAPA. I didn’t see where MQVP added anything beneficial to the collision industry. They were just muddying the waters,” says West, owner of Southtowne Auto Rebuild in Tukwila, Wash.

“We need only one certifying body to take some of the confusion out of the waters. I don’t see what the advantage is to having two bodies, and I don’t think the manufacturers did either, otherwise MQVP would still be in business.”
According to an official with the United States Bankruptcy Court for the Eastern District of Michigan, last July Judge Marci B. McIvor granted MQVP’s motion to convert its original August 2006 Chapter 11 reorganization filing to a Chapter 7 liquidation procedure.

Keystone Automotive Industries, which is a defendant in a lawsuit previously filed against it by MQVP, has reported to the Securities and Exchange Commission that a Chapter 7 trustee is to be appointed by the judge, and that individual will control the suit’s outcome. “Based on the company’s evaluation of this lawsuit to date, the company continues to believe it has no liability to MQVP,” Keystone officials told the SEC.

Repeated efforts to reach MQVP executives and associates were unsuccessful. The company headquarters in Michigan has a non-working phone number, as do two lawyers identified as key participants in court proceedings. MQVP did not respond to a submitted list of written questions.

John Arvay says his position as MQVP’s executive director was terminated several weeks ago. After spending his final few days of employment assisting with the Chapter 7 filing, Arvay, who has a law degree, is opening his own consulting service specializing in the automotive parts supply chain and lawsuit avoidance strategies. He is no longer affiliated with the Hindelang family nor involved with MQVP, Global Validators Inc. or Results Systems Corp.

Arvay says he has “appreciated the opportunity to work with them in the past,” but wants to move on. “I have developed many good relationships with many in the industry and expect to maintain those relationships while continuing to work very diligently to help in providing the best possible quality repairs – using the highest quality parts – while encouraging supply chain collaboration resulting in satisfaction for the end-customer policyholders.” He can be reached via (419) 349-8939 or: jarvay1@aol.com.

MQVP’s propensity to file lawsuits instead of negotiating tended to draw valuable money, time and energy away from the company’s primary mission of certifying aftermarket parts, Arvay said.

An industry executive who represents several aftermarket parts manufacturers agrees, saying, “Those people at MQVP had a love for filing lawsuits, which made them difficult to deal with.”

The executive, requesting anonymity, said MQVP officials seem to be “aligning themselves with the car companies,” although details of any future plans remain unclear.

The pages and links that previously adorned MQVP’s Internet site have been replaced by a 970-word missive headlined in red as a “Consumer Safety Advisory.” The text warns of non-genuine, defective or non-compliant crash parts imported from Taiwan or China. It includes an

The text states: “From a body shop business perspective, we urge you to investigate and resolve your aftermarket parts quality issues immediately to avoid any potential future liability and to provide reassurance to the car owners, your customers!”

West counters that CAPA is nicely positioned to accomplish industry-wide parts certification. “I think CAPA’s doing a decent job,” he says. “I’ve noticed the CAPA parts improving in quality. We need aftermarket parts to provide the competition necessary for a free market to exist. If we didn’t have them, the OEs could charge anything they want.”